Strategic Focus and Action Items
Foster agility and nimbleness in the public sector and across the economy
If we are to return to solid economic growth, New Brunswick must be a place where entrepreneurs believe they can make a reasonable return on their investment of time and money. In other words, we must be a profitable place in which to do business. There must also be opportunities for investment and the talent to support business expansion across the province.
In 2014, KPMG completed a review of the profit potential of 17 industries in more than 100 jurisdictions across the developed world. It looked at all operating and capital costs associated with these manufacturing and services industries, including raw materials, labour, transportation and taxes.
KPMG’s review found New Brunswick compares favourably to the rest of the developed world. No U.S. jurisdiction offered a greater profit potential than we do, and only a handful of other jurisdictions could make the claim.
Profit margin (percentage of sales) for the average of all 17 manufacturing and service industries
Source: KPMG Competitive Alternatives (2014)
The KPMG report is just a snapshot, but it points to an advantage that we need to promote – for good companies with strong business models, we can be a good place in which to invest.
In addition to a competitive cost environment, there are a number of ways that government can foster an environment conducive to investment. The New Brunswick Economic Growth Plan will work to address these issues.