Doing business in the United States

^{All currency figures are in Canadian dollars unless otherwise indicated.}

Connecticut, Massachusetts, New Jersey, New York and Pennsylvania

The Northeastern economy supports a diverse collection of industrial and services clusters, with a particular emphasis on advanced technology, technology transfer and commercialization. This is supported by a well-educated labour force and a well-funded R&D community.

The Northeast has several important universities that carry out advanced research, provide highly skilled graduates for the region’s clusters and generally contribute to regional prosperity. In addition, numerous Fortune 1000 companies have a major presence in the area: Massachusetts, for example, is home to some of the largest U.S. defence contractors, while Connecticut has an important aerospace sector of its own. And New York City, of course, is a powerhouse in the media, publishing, advertising, cultural and financial sectors.

For Canadian exporters, two of the Northeast’s most important market advantages are its proximity to Ontario and Quebec, and its huge business and manufacturing base—about half of all U.S. manufacturing facilities lie within easy reach of upstate New York. As a result, it’s an excellent market for many Canadian commodities, products and services.

The following table shows some of the industrial and services clusters which present business opportunities for Canadian companies. Employment numbers indicate the relative size of the various clusters.

Selected Northeast opportunity clusters

As the following table shows, several Canadian exports can be associated with the industrial clusters listed above. The sales figures indicate that various supply chains already connect Canada with these regional clusters, which could provide Canadian exporters with promising opportunities for growth.

Selected Canada-Northeast exports (in millions of dollars)

2.1.1 State highlights: Connecticut

• Connecticut is home to aerospace manufacturing sites for Pratt & Whitney, UTC Aerospace Systems and Sikorsky, and has an important cluster of aerospace suppliers as well.
• Potential opportunity clusters include aerospace and defence, ICT and financial and insurance services.
  
• Major corporations with headquarters in the state include General Electric, United Technologies, Aetna, CIGNA, Xerox, Hartford Financial Services and Stanley Black & Decker.
  

2.1.2 State highlights: Massachusetts

• Massachusetts has one of the largest concentrations of biotechnology and medical device companies in the United States.
  
• Potential opportunity clusters include biopharmaceuticals and medical devices, financial services and ICT.
• Major corporations with headquarters in the state include Liberty Mutual, Massachusetts Mutual Life Insurance Company, EMC, Raytheon Company, Staples, Thermo Fisher Scientific, Biogen and Boston Scientific.

2.1.3 State highlights: New Jersey

• New Jersey has one of the highest-paid and best-educated populations in the United States. The long-term economic trend for the state has been steady (if slow) growth since the end of the 2008-2009 recession.
  
• Potential opportunity clusters include financial and insurance services, ICT, biopharmaceuticals and medical devices.
  
• Major corporations with headquarters in New Jersey include Johnson & Johnson, Prudential Financial, Merck, Honeywell International, NRG Energy, PBF Energy, Cognizant Technology Solutions and Bed, Bath and Beyond.
  

2.1.4 State highlights: New York

• New York State provides several generous tax credits and incentives to encourage both U.S. and foreign investors.
  
• Potential opportunity clusters include financial and insurance services, ICT, biopharmaceuticals and medical devices.
  
• Major corporations with headquarters in New York include Verizon Communications, JPMorgan Chase, Citigroup, IBM, MetLife, Pfizer, New York Life, Goldman Sachs Group and American Express.
  

2.1.5 State highlights: Pennsylvania

• In 2017, the state was among the top U.S. performers in terms of GDP growth and increases in personal income.
  
• Potential opportunity clusters include financial and insurance services, ICT, paper and paper products, wood products, biopharmaceuticals and medical devices.
  
• Major corporations with headquarters in Pennsylvania include AmerisourceBergen, Comcast, Kraft Heinz, PNC Financial Services, PPG Industries, Lincoln National, United States Steel and Hershey.

Illinois, Indiana, Ohio, Michigan, Minnesota and Wisconsin

This region is a top market for Canadian companies, especially because of Michigan’s key position in the U.S. auto sector. The state has historically been the industry's heartland, and numerous global auto corporations have established engineering offices, sales offices and research centres there. As a result, the region has attracted a large concentration of manufacturing firms related to the automotive sector, together with manufacturers of rubber, plastics and vehicle electronics.

Chicago by itself is a major player in the region’s economic environment and is home not only to North America's second-busiest airport, but also the continent’s largest intermodal port and rail hub. This gives it an unsurpassed transportation and distribution infrastructure.

Canadian exports to the Midwest and Great Lakes region have traditionally been energy, machinery, auto parts, wood and paper products, manufactured goods and agri-food. In recent years, newer industries have appeared on the scene, and the region is building its capabilities in high-tech areas such as biotechnology and life sciences. Numerous Fortune 1000 companies are located here, as are the headquarters of thousands of other businesses spanning nearly every economic sector.

The following table shows some of the industrial and services clusters in which Canadian companies may find business opportunities. Employment numbers indicate the relative sizes of the various clusters.

Selected Great Lakes and Midwest opportunity clusters

As the following table shows, several Canadian exports are associated with the industrial clusters listed above. The sales figures indicate that various supply chains already connect Canada with these regional clusters, which could provide Canadian exporters with promising opportunities for growth.

Selected Canada-Great Lakes and Midwest exports (in millions of dollars)

2.2.1 State highlights: Illinois

• Illinois has hundreds of food-product manufacturers, about half of them in the Metro Chicago area.
  
• Potential opportunity clusters include food processing, automotive products, heavy machinery, plastics, ICT and biopharmaceuticals.
  
• Major corporations with head offices in the state include Walgreens Boots Alliance, Boeing International, Archer-Daniels-Midland, Caterpillar, Mondelez International, John Deere, McDonald’s and Illinois Tool Works.
  

2.2.2 State highlights: Indiana

• Almost 1,700 life sciences companies are located in Indiana, which is the second-highest exporter of life sciences products in the United States.
  
• Potential opportunity clusters include medical devices, biopharmaceuticals, automotive products, plastics and heavy machinery.
  
• Major corporations with headquarters in the state include Eli Lilly, Cummins, Zimmer Biomet and Berry Plastics.
  

2.2.3 State highlights: Michigan

• Michigan’s economic recovery slowed recently but is expected to continue through 2020, making it the longest sustained period of job growth in the state since 1945.
  
• Potential opportunity clusters include automotive products, plastics, heavy machinery and food processing.
  
• Major corporations with headquarters in the state include General Motors, Ford, Dow Chemicals, Whirlpool, Penske Automotive Group, Lear, Kellogg, Stryker and Borg Warner.
  

2.2.4 State highlights: Minnesota

• The Minneapolis-St. Paul metro area is home to 65% of the state’s population and is the state’s economic hub. In 2017, Forbes ranked Minnesota as thirteenth in its list of the best U.S. states for doing business.
  
• Potential opportunity clusters include food processing, ICT, heavy machinery, medical devices, plastics, and paper and wood products.
  
• Major corporations with headquarters in the state include United Health Group, Target, Best Buy, 3M, Medtronic, General Mills and Hormel Foods.
  

2.2.5 State highlights: Ohio

• Since 2011, falling business costs and an improving economy have combined to put Ohio among the top 20 U.S. states for economic growth.
  
• Potential opportunity clusters include automotive products, wood and paper products, plastics, heavy machinery, food processing and ICT.
  
• Major corporations with headquarters in the state include Kroger, Cardinal Health, Procter & Gamble, Parker-Hannefin, Macy's, Goodyear Tire & Rubber and Sherwin-Williams.
  

2.2.6 State highlights: Wisconsin

• Wisconsin’s economy is driven by manufacturing, agriculture and healthcare, although growth has remained slow since the 2011 downturn.
  
• Potential opportunity clusters include automotive products, heavy machinery, food processing, ICT, paper and wood products, and plastics.
  
• Major corporations with headquarters in the state include Johnson Controls, Kohl's, Rockwell Automation, Oshkosh and Harley-Davidson.

Florida, Georgia, North Carolina, South Carolina and Tennessee

The Southeast imports a wide range of Canadian products, including medical equipment and supplies, forestry and wood products, aerospace components, machinery, rubber and plastics. Florida is a gateway to Central America, the Caribbean, Brazil, Uruguay, Argentina, and Colombia, and the Miami area’s enormous sea/air logistics capacity has led to the establishment of hundreds of trading companies in the city.

The following table shows some of the industrial and services clusters in which Canadian companies may find business opportunities. Employment numbers indicate the relative sizes of the various clusters.

Selected Southeast opportunity clusters

As the following table shows, several Canadian exports can be associated with the industrial clusters listed above. The sales figures indicate that various supply chains already connect Canada with these regional clusters, which provide Canadian exporters with promising opportunities for growth.

Selected Canada-Southeast exports (in millions of dollars)

2.3.1 State highlights: Florida

• Nearly 500 Canadian-owned companies are established in Florida and six major Canadian banks operate in the state.
  
• Potential opportunity clusters include financial and insurance services, ICT and aerospace.
  
• Major corporations with headquarters in Florida include Office Depot, ADT and Citrix Systems.
  

2.3.2 State highlights: Georgia

• Nearly 300 Canadian-owned companies are established in Georgia.
  
• Potential opportunity clusters include aerospace, ICT, automotive products and forestry and wood products.
  
• Major corporations with headquarters in Georgia include Home Depot, UPS, Coca-Cola, Delta Airlines and NCR.
  

2.3.3 State highlights: North Carolina

• The Raleigh metropolitan area ranked second on the list of best-performing U.S. cities for 2017, partly because of its welcoming business climate and its R&D-driven industries.
  
• Potential opportunity clusters include automotive products, biopharmaceuticals, wood products, paper and packaging, and ICT.
  
• Major corporations with headquarters in North Carolina include Bank of America, Lowe’s, Tyson Foods and Curtiss-Wright.
  

2.3.4 State highlights: South Carolina

• About 150 Canadian-owned companies operate in South Carolina.
  
• Potential opportunity clusters include aerospace and defence, automotive products, ICT, forestry products and paper products.
  
• Major corporations with headquarters in South Carolina include Michelin, Cryovac, Sonoco, Long’s Drugs, InterTech Group, Kemet Electronics and Palmetto Health.
  

2.3.5 State highlights: Tennessee

• The Nashville area has one of the strongest metropolitan economies in the United States.
  
• Potential opportunity clusters include automotive products, ICT, paper and packaging, wood products and medical devices.
  
• Major corporations with headquarters in Tennessee include FedEx, Community Health Systems, International Paper and Eastman Chemicals.

Colorado, Oklahoma and Texas

Most of Canada’s annual exports to the Southwest go to Texas, which is by far the largest market in the region. It is home to the bulk of the regional population and accounts for most of the region’s economic output, while the Dallas-Fort Worth Metroplex is one of the country’s largest metropolitan areas.

The Southwest offers a business environment that is highly friendly to businesses and to investment. Labour costs and taxes are modest and union membership is low. At the municipal and state levels there’s a hands-off attitude toward policymaking, and what policies do exist in these jurisdictions tend to be pro-business.

The following table shows some of the industrial and services clusters in which Canadian companies may find business opportunities. Employment numbers indicate the relative sizes of the various clusters.

Selected Southwest opportunity clusters

As the following table shows, several Canadian exports are associated with the industrial clusters listed above. The sales figures indicate that various supply chains already connect Canada with these regional clusters, which provide Canadian exporters with promising opportunities for growth.

Selected Canada-Southwest exports (in millions of dollars)

2.4.1 State highlights: Colorado

• In 2017, Forbes ranked Colorado third in economic climate, and fourth in growth prospects, for the entire United States.
  
• Potential opportunity clusters include oil and gas, aerospace and defence, and ICT.
  
• Major corporations with head offices in the state include Arrow Electronics, Newmont Mining, Western Union, Molson Coors and Whiting Petroleum.
  

2.4.2 State highlights: Oklahoma

• Oklahoma is the United States’ third-biggest producer of natural gas and fifth-biggest of crude oil. The business tax climate is one of the best in the country and energy costs are 26% below the national average.
  
• Potential opportunity clusters include aerospace and defence, oil and gas and machinery.
  
• Major corporations with head offices in the state include NGL Energy Partners, Devon Energy and Chesapeake Energy.
  

2.4.3 State highlights: Texas

• The Texas economy is the second biggest in the United States after California’s. In 2017, the state ranked first for economic climate and second overall in Forbes’ Best States for Business list.
  
• Potential opportunity clusters include oil and gas, ICT, machinery, and aerospace and defence.
  
• Major corporations with head offices in the state include Exxon Mobil, AT&T, Phillips, Valero Energy, Sysco, American Airlines, ConocoPhillips, Andeavor, Enterprise Products Partners and Halliburton.

California, Oregon and Washington

One of California’s economic centres of gravity has grown up around San Francisco Bay, where Silicon Valley and many of the world’s most important life sciences companies and institutions are located. At least 30 Fortune 1000 corporations have headquarters in the Bay area, together with a very large number of high-technology firms, institutions and R&D centres.

California’s other major centre lies in and around Los Angeles. Like its San Francisco counterpart, the Los Angeles economic region is fiercely competitive, extremely innovative and rich in venture capital. It is exceptionally strong in aerospace, ICT and the life sciences.

In addition, the growing stress on California’s water resources and its widespread urbanization is escalating the need for clean technology. This includes water management equipment, systems and services; water conservation and treatment; storm water management; desalination; hazardous waste management; and recycling.

In Washington State, the Seattle metropolitan area is one of the largest and wealthiest markets of the United States. Its economic diversity furnishes plenty of opportunity for Canadian companies, especially in aerospace, ICT, life sciences, clean technologies and alternative energy. Oregon offers a similar range of prospects and, like Washington, has a powerful concentration of Fortune 1000 corporations.

The following table shows some of the industrial and services clusters in which Canadian companies may find business opportunities. Employment numbers indicate the relative sizes of the various clusters.

Selected Pacific opportunity clusters

As the following table shows, several Canadian exports can be associated with the industrial clusters listed above. The sales figures indicate that various supply chains already connect Canada with these regional clusters, which could provide Canadian exporters with promising opportunities for growth.

Selected Canada-Pacific exports (in millions of dollars)

2.5.1 State highlights: California

• California’s economy is the sixth-largest in the world and represents 14% of the U.S. economy. Economic and job growth are both expected to be strong over the next five years.
  
• Potential opportunity clusters include aerospace and defence, biopharmaceuticals, ICT, medical devices and food processing.
  
• Major corporations with head offices in the state include Apple, Chevron, Wells Fargo, Intel, Walt Disney, Cisco Systems, Ingram Micro, Oracle, Qualcomm, Amgen, Health Net and Western Digital.
  

2.5.2 State highlights: Oregon

• The state’s level of economic activity is projected to be in the topmost tier of the country over the next five years, with household incomes rising very rapidly during this period.
  
• Potential opportunity clusters include food processing, forestry and wood products, and ICT.
  
• Major corporations with head offices in the state include Nike, Precision Castparts and Columbia Sportswear.
  

2.5.3 State highlights: Washington

• In 2017, Washington was ranked eleventh in Forbes’ Best States For Business list, with innovation being among its key economic strengths.
  
• Potential opportunity clusters include aerospace and defence, food processing, ICT and forestry and wood products.
  
• Major corporations with head offices in the state include Microsoft, Amazon.com, Nordstrom, Starbucks, Boeing and Costco.