The booming mining, oil and gas, and agricultural sector have all contributed to the sustained growth of Saskatoon’s manufacturing sector. Saskatoon offers a great deal of opportunity for manufacturers looking to serve the resource sector because of its central location within western Canada. Saskatchewan’s rich resource base of potash, oil, natural gas, uranium, and agricultural land continue to contribute to the long-term success of the region.

Over 300,000 thousand consumers live within 100 kilometres (62 miles) of Saskatoon, and over one million people live in Saskatchewan. The Saskatoon Region is an excellent base for exporting, due to its central location, and rail access to three ocean ports.

Saskatoon’s diverse manufacturing sector produces a wide variety of industrial and consumer products. Manufacturers in the Saskatoon Region, Western Canada’s fastest growing economy, are realizing many benefits by being in this location. Saskatoon’s three largest sectors are:

• Food manufacturing
• Machinery manufacturing
• Fabricated metal product manufacturing

The Saskatoon region is highly competitive from a taxation standpoint. Highlights that most significantly impact manufacturers include the following:

Saskatoon

• Saskatoon offers a tax abatement of up to 100% of new or incremental taxes in year one, 80% in year two, 70% in year three, 60% in year four, and 50% in year five.
  • The value of incentives for new or local expansions in the manufacturing or processing sectors that will create 100 or more new, full-time or full-time equivalent employees may be eligible for tax abatements of up to 100% of new or incremental property taxes for a period of five years.
    

Province

• Saskatchewan has the second lowest corporate tax rate in Canada for manufacturing and processing companies.
• The Saskatchewan small business tax rate is dropping to 2.0% as of July 2011.
• Investment Tax Credit of 5% (equal to the PST rate) for Manufacturing and Processors who purchase new and used manufacturing and processing building, machinery, and equipment.
• Fully refundable Research and Development Tax Credit of 15% on qualifying research and development expenditures
• Saskatchewan is at the highest end of the small business threshold for retaining small business taxation status.
• There is no payroll tax.