Ogdensburg the ideal U.S. location for Ottawa-area firms

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The U.S. border town of Ogdensburg, N.Y., spells opportunity for Ottawa-area companies of every size as New York continues its push to attract businesses to the state with a program offering 10 years of tax freedom.

Under the START-UP NY program, taxes — including business, corporate, property, sales and income taxes — are dispensed with for many businesses setting up or expanding into certain areas, including the Ogdensburg area just across the international bridge from Prescott, Ont.

Only 50 minutes’ drive from Ottawa, Ogdensburg and the whole of St. Lawrence County where it is located is also a Foreign Trade Zone, where customs duties are exempted or reduced, offering a serious advantage to firms importing and exporting raw materials and goods.

Add to that Ogdensburg’s easy access to transportation, including its being the only U.S. port on the St. Lawrence Seaway and the closest to Northern Europe, and the availability of light and heavy industrial land and buildings, and it’s easy to see why it’s attractive to Canadian companies.

“There’s been a long history of Canadian companies in the Ottawa region that have expanded to Ogdensburg and done well,” says John Rishe, director of commercial and industrial development for the Ogdensburg Bridge & Port Authority. “There’s a history of this being the ideal U.S. location for Ottawa-area firms.”

Indeed, the Ogdensburg-Prescott International Bridge connects to Hwy. 416, making it an easy run from Ottawa to Ogdensburg. Management staff can oversee their U.S. operation and be home the same day, cutting travel costs.

The port authority also owns the New York and Ogdensburg Railway, a short-haul line with cross-border connections that terminates at the port, and the Ogdensburg International Airport located 10 minutes from Prescott, which offers daily commercial flights and services to private aviators.

Rishe says Canadian companies with a U.S. location find it easier to meet Buy America requirements for government contracts and eliminate many of the border issues that still exist, including brokerage fees, paperwork and duties.

Moreover, having a U.S. operation facility can open the door to a market 10 times the size of the Canadian market, says Rishe.

The DeFelsko Corporation, which is owned by a Brockville, Ont, family, recently added 15,000 square feet to their manufacturing plant in Ogdensburg. Other expanding companies include Strader-Ferris International, a Canadian-based customs broker, and the Ansen Corporation, a third-party contract manufacturer of electronic components.

On the flip side, Ogdensburg is a prime location for U.S. or global companies that do business in Canada.

One of the places those companies set up is in the industrial parks operated by the authority, and Rishe says there’s currently about 50,000 square feet of space available and more than 100 acres of fully-serviced greenfield sites ready to be developed.

Maxam North America, which manufactures explosive products for the mining, construction and quarry markets, opened a $3-million manufacturing plant in the heavy industrial park in July.

After looking at southern Ontario, Vermont and Maine, Maxam set up in Ogdensburg for its many advantages, including its proximity to Ontario and Quebec, where the company does about 20 per cent of its business.

“Being on the St. Lawrence, we have the potential versatility of bringing in raw materials from overseas, and using the local port, bridge and rail infrastructure,” says Dan Francelj, vice-president of operations of Maxam North America, a subsidiary of the Spanish parent that traces its origins to the

Spanish Dynamite Powder Corporation (U.E.E.) founded by Alfred Nobel in 1872.

“Our facility is located within one kilometre of the U.S.-Canada bridge, and it has the lowest wait times in the country.”
In addition, Francelj cites tax advantages, grants and other financial incentives, a skilled local workforce and the port authority itself, which offers a full range of business services to support its tenants, for his company’s decision to build in Ogdensburg.

The business services offered by the Ogdensburg Bridge & Port Authority include incubator space, customs brokerage and pick-and-pack operations, and Francelj says the authority’s experts are “good advocates.”

“They’re exceptional people at the port authority,” says Francelj. “They provided a lot of guidance in terms of how to go about getting necessary permits and how best to work with the planning commissioners, the department of the environment, and other regulatory bodies.

“They were very supportive and helpful.”

This story was produced by the Ottawa Citizen’s advertising department on behalf of the Ogdensburg Bridge & Port Authority for commercial purposes. The Citizen’s editorial department had no involvement in the creation of this content.

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