Waterloo and St. Louis are each built on century-old manufacturing foundations. With legacies like these, both regions offer long-held structural and logistical advantages for your company. That leaves the question: which one has the competitive edge?
We know that expansion is a huge undertaking, but analyzing reliable, comparative data can simplify your selection process. Our Manufacturing Data Book makes it even easier to discover the competitive advantages of hubs like St. Louis and the Waterloo region.
In the data book, we provide apples-to-apples comparisons of eleven top manufacturing hubs across North America. Your company can narrow down your shortlist of potential locations and determine each city’s strengths and weaknesses.
In our Manufacturing Data Points series, we’ve extracted key metrics from the book and compared Waterloo to Pittsburgh, Detroit and Cincinnati. St. Louis, a mid-sized hub with a long manufacturing history, is up next.
From workforce size to growth trends to energy costs, we’ve broken down the differences between the manufacturing industries in the Waterloo and St. Louis regions.
Key Takeaways
- Louis’ manufacturing workforce is shrinking by 2%, while the Waterloo region’s is growing by 5%, backed by one of Canada’s strongest trade school pipelines
- Waterloo’s energy rate of 6.15 US cents per kWh is roughly 36% cheaper than St. Louis’ 9.65 cents, with industrial programs that further reduce costs
- Ontario’s grid is 84.3% emission-free; St. Louis still relies heavily on fossil fuels for its electricity mix
- Canada’s tax structure — lower corporate rates, reduced payroll taxes and sales tax credits — gives manufacturers an additional cost edge over US-based operations
Data Point #1: Workforce Size & Growth
St. Louis is facing a workforce pipeline problem. The region’s total manufacturing workforce is significantly bigger than Waterloo’s, but negative growth is constraining the sector. One regional report says that job applications at St. Louis manufacturers have dropped 75% since 2021, while technical school enrollments are down approximately 50%.
Waterloo’s talent pool isn’t dealing with the same bottleneck. Our manufacturing workforce is highly concentrated and growing rapidly. With Canada’s largest comprehensive trade school right in our backyard, the Waterloo ecosystem has an educated, skilled talent pipeline available to expanding manufacturing companies. Factor in the University of Waterloo, one of the top three engineering schools in the country, and you have access to quality talent in large quantities.
Data Point #2: Salaries for Key Occupations
Any discussion of talent is incomplete without salary data. How much you pay your workers in a new location impacts your bottom line, talent retention, employee quality of life and more.
For hourly positions and salaried workers, Waterloo offers a better value proposition. The discrepancy between the two regions is primarily due to the exchange rate. You can pay your workers less in the Waterloo area, while still providing them with highly competitive wages.
The quality and concentration of our manufacturing workforce, plus lower salaries and hourly pay, equals a win-win: your company saves money while employing top talent, and your employees enjoy a high quality of life outside of work.
Data Point #3: Emission-free Energy Generation
A long history of manufacturing expertise lends St. Louis a solid set of manufacturing infrastructure, including its energy base. However, as the industry looks to become more sustainable for several reasons (climate change, cost advantages, regulatory concerns, etc.), St. Louis’ lack of clean energy undermines its infrastructure.
Although the city recently released a plan to reduce greenhouse gas emissions, St. Louis still relies heavily on fossil fuels, its electricity mix dominated by natural gas.
In contrast, Waterloo sits on a much cleaner provincial electricity system, shaped by low-carbon infrastructure like hydro and nuclear. As a result, 84.3% of our energy generation is emission-free. Manufacturing companies that expand to the Waterloo community can count on access to cleaner energy for cost savings, efficiency, reliability and sustainability.
Data Point #4: Energy Cost per kWh
The Waterloo region has a lower energy cost per kWh at 6.15 US cents. St. Louis’ energy cost is 9.65 US cents, which means Waterloo’s rate is roughly 36% cheaper than St. Louis’. Our industrial programs and government incentives help large manufacturing operations save on energy costs by lowering electricity consumption and stabilizing peak-demand charges.
Data Point #5: Payroll Taxes
Waterloo’s cost advantages spill into taxes, too. Manufacturing companies that locate in our community can save $1,224.14 per person, per year. While this data is based on an average office-based employee making $75,000 USD, it still offers a snapshot of the savings companies can realize by opening operations and investing in Waterloo.
In general, the Canadian business tax system is advantageous for manufacturing companies, which might come as a surprise to enterprises not currently operating in the country. In addition to lower payroll taxes (encompassing unemployment insurance, health and medical), we have lower corporate income taxes and generous sales tax credits.
The data illustrates the Waterloo region’s competitive edge. Our manufacturing environment is more cost-effective and significantly cleaner than St. Louis, while our workforce is concentrated, growing and well-trained. But data is only part of the story. Location decisions also come down to ecosystem, stability and long-term fit, and that’s where our team comes in.
Contact our team to explore how locating in Waterloo’s robust manufacturing ecosystem can power your company’s growth.