Manufacturing Data Points: Waterloo vs. Cincinnati

Depending on your priorities, each manufacturing expansion requires a different set of data: workforce, talent pipeline, population growth, energy cost and infrastructure, taxes … Fortunately for you, we cover it all in our Manufacturing Data Book, a comparative resource that breaks down the strengths and weaknesses of 11 manufacturing hubs across North America.

Cincinnati and the Waterloo region are two of the standouts—both have a prolific network of manufacturers, a highly-concentrated workforce and strong market access. These are two regions that make excellent candidates for an expansion shortlist. We’re here to help you figure out which one should make the final cut.

Using comparative data from a variety of sources, let’s see which area offers the best opportunities for your manufacturing operations.

Data Point #1: Manufacturing Workforce Size & Growth

Here’s the deal with Waterloo and Cincinnati’s workforce size and growth: Cincinnati has a much bigger workforce, but its five-year growth is nonexistent. On the other hand, Waterloo’s total workforce is smaller, but we’re growing significantly – 5% to be exact. Our region’s concentration of manufacturing talent outweighs Cincinnati’s by 4%, too. With a concentration of 14%, we have one of largest manufacturing workforces in Canada.

Don’t get us wrong; workforce size matters. With a large workforce, there are simply more available people to draw from. But concentration and growth signal specialization, competitive advantage and momentum. A city with a highly concentrated manufacturing workforce and a rapidly growing talent base tends to have deeper supply chains, specialized skillsets and a favorable environment for doing business.

With a powerful concentration and accelerating growth (plus a 150-year manufacturing history), Waterloo is truly built around manufacturing.

Data Point #2: Salaries for Key Occupations

Let’s talk money. Payroll is a significant expense for manufacturers and it’s important that you’ve got the right people for the right price.

In large part due to the exchange rate, salaries in Waterloo are less expensive than in Cincinnati. For example, you’d pay an industrial electrician $26.14 per hour in Waterloo—$8 less than you’d pay in Cincinnati for the same job. A manufacturing engineer will run you $30,000 more per year in Cincinnati than in Waterloo.

By locating your manufacturing operations in our community, you can hire workers that are skilled, qualified and reliable, for less.

Data Point #3: Emission-free Energy Generation

Now that’s a stark difference. The Waterloo region’s emission-free energy generation is 84.3%, whereas Cincinnati’s is 17.9%. Ontario, the province Waterloo is in, has committed to ensuring its energy grid is cleaner and more sustainable, primarily through hydro and nuclear. This is established infrastructure, giving Ontario’s grid a long-term structural advantage.

Emission-free energy generation goes well beyond environmental benefits, too. Cleaner energy can reduce long-term energy costs and dependency on imported fossil fuels for companies and boosts overall grid resiliency. For example, Ontario’s established nuclear and hydro energy sources offer more predictable operating expenses for manufacturers over time.

Plus, at a time when major trading partners are scrutinizing the carbon footprint of imported goods, clean energy production can protect your export competitiveness.

Data Point #4: Energy Cost per kWh

If you want clean and cheap energy, Waterloo is the way to go. Not only is our energy cleaner, it’s also less expensive per kWh. Why? Well, you’ve got the exchange rate, lower carbon intensity than several US states, industrial programs that lower corporate bills and government incentives that shift costs away from ratepayers.

This winning combination has drawn major manufacturers to our region: Toyota, Magna, Dana Corporation, Desch, Beckhoff Automation and more.

“Waterloo is a true Industry 4.0 community, and that starts with the energy grid,” said Maria Suarez, Market Manager at Waterloo EDC. “It’s clean, affordable and built to last. It’s one of the reasons companies keep choosing to put down roots here.”

Data Point #5: Payroll Taxes

Once again, exchange rate plays a big role in payroll taxes, so your dollar goes farther in Canadian cities like Waterloo. In a manufacturing operation, when margins are tight and labour is a major driver of costs, even a modest exchange rate advantage can improve profitability.

As the difference in payroll taxes between Waterloo and Cincinnati demonstrate, Canadian operations are less expensive than American ones – but the kicker is, you don’t have to sacrifice quality, market proximity or access to a skilled workforce in exchange for lower costs. In Waterloo, you can have it all.

Both Cincinnati and Waterloo are heavy-hitting manufacturing regions. But when you stack the data side by side, our ecosystem’s advantages are hard to ignore: a highly concentrated and growing workforce, lower salaries, cleaner and cheaper energy and a favourable tax environment. With over 150 years of manufacturing history, we’ve spent generations building the supply chains, skilled talent and industrial culture that attract manufacturers to the Waterloo region and help them succeed.