When expanding your tech company to a new North American hub, the numbers matter. Workforce size, company costs, payroll taxes and demographic trends all impact your next move.
Take Waterloo and Columbus, for example. Both are excellent expansion locations known for thriving startup ecosystems, venture capital investment and a collaborative business environment. But how do they stack up against one another?
The answer is in comparative data.
Keep reading to find objective, third-party data that compares Columbus and the Waterloo area across tech workforce size, operating costs and more. We’ve already analyzed the data-driven differences between Waterloo and Pittsburgh, Silicon Valley and Detroit.
Data Point #1: Tech workforce size and growth
| Total Tech Workforce | Concentration | Growth (5 years) | |
|---|---|---|---|
| Waterloo | 29,100 | 9.6% | 45.5% |
| Columbus | 49,560 | 4.2% | -5.3% |
Source: CBRE Scoring Tech Talent Report 2024
With nearly 50,000 tech workers, Columbus has a larger tech workforce than Waterloo – but not by much. In CBRE’s Scoring Tech Talent Report, Columbus and Waterloo are both considered midsized tech hubs. Why is this important?
With slightly smaller tech workforces, midsized tech hubs have plenty of advantages to offer, such as unique access to top tech talent pipelines, better quality of life for employees and reduced real estate overhead. However, not all midsized tech communities are created equal.
Let’s take a close look at Waterloo and Columbus’ tech workforce growth to differentiate between the two. Columbus’ workforce isn’t growing at all – in fact, it’s shrinking (-5.3% over five years). On the other hand, Waterloo’s workforce is surging at an unprecedented speed, coming in hot at 45.5%.
Add in the fact that the Waterloo region is an integral part of the innovative Toronto-Waterloo Corridor – which boasts a whopping workforce of 343,200+ – and our community tops the charts in this category.
Data Point #2: Population growth
| Overall Growth Population | Growth in the Age 20-30 Demographic | Growth in Age 30-40 Demographic | |
|---|---|---|---|
| Waterloo | 3.7% | 29.2% | 20.2% |
| Columbus | 4.0% | -2.6% | 3.77% |
Source: Lightcast, 2023. Population growth from 2017-2022 at the CD/MSA level; CBRE Scoring Tech Talent Report 2024
Although both communities are growing significantly overall, Columbus’ population growth edges out Waterloo’s by 0.3%.
However, Waterloo beats Columbus in demographics that make up the largest chunk of the workforce: individuals in their 20s, 30s and 40s. Columbus saw a decline in 20-somethings (-2.6%), a key indicator of future workforce strength and slow growth among 30-somethings. The Waterloo area saw continent-leading growth in those two demographic categories.
This means that there is more available talent to hire in Waterloo, especially young graduates from top post-secondary schools in a community renowned for its worldclass programs and esteemed alumni.
Data Point #3: Estimated one-year company costs
| Estimated cost (USD) | |
|---|---|
| Waterloo | $37,561,739 |
| Columbus | $49,424,314 |
Source: CBRE Scoring Tech Talent Report 2024 – based on office space and wages for 500 people
Waterloo wins this round handily. It’s less expensive to establish an office in Waterloo, contributing to Waterloo’s affordability profile.
Setting up operations in the Waterloo area costs $11.8M less per year than in Columbus—thanks to lower real estate costs, salary expectations and tax advantages. To top it off, our real estate options are beautiful, practical, affordable and, due to the density of our ecosystem, mostly central to post-secondary institutions, accelerators and incubators.
For growing tech companies, cutting overhead costs without sacrificing access to talent is a major competitive advantage. If you’re looking to expand and scale effectively, finding a location that supports your financial future is key.
Data Point #4: Payroll taxes
| Payroll Tax per Software Engineer (USD) | |
|---|---|
| Waterloo | $4,258.72/year (based on a salary of $82,515) |
| Columbus | $9,182.64/year (based on a salary of $116,309) |
Source: Salaries from Economic Research Institute, Q3 2024. Taxes from respective governments.
Waterloo’s affordability advantage extends to payroll taxes, which are half the cost of those in Columbus – and significantly lower than in most US tech hubs.
Payroll taxes can – and should – influence your business expansion decision. Paired with lower salaries – thanks largely to exchange rates – Canada provides an excellent environment for significant growth.
Data Point #5: Talent diversity
| Immigrant as a % of the total population | |
|---|---|
| Waterloo | 25.8% |
| Columbus | 9.6% |
Source: Statista, January 2023
Diversity fuels innovation, but not all tech hubs attract global talent at the same rate.
The tech workforce in Waterloo is significantly more diverse than in Columbus, offering companies a deeper talent pool with a greater array of experiences, perspectives and specialized skills.
With world-class universities, strong immigration policies and a high quality of life, the Waterloo area continues to draw top international talent, making it an ideal hub for companies seeking a dynamic and inclusive workforce.
Our new Tech Data Book offers thirteen different tables comparing salaries, taxes, population growth, talent diversity and more across eleven North American tech communities, including Austin, Seattle, Pittsburgh, New York and Silicon Valley. Download your free copy now.