Sunday, July 21, 2024

Budget for 2023: Canadian Manufacturers Welcome

- Advertisement -

Canadian Manufacturers & Exporters (CME) are pleased with Budget 2023 and the first steps it takes to respond to the US Inflation Reduction Act, promote net zero transitions, alleviate labor shortages, and prevent disruptions in supply chains.

- Advertisement -

CME made a loud and clear plea to the government to do something to help manufacturers prior to today’s budget. To avoid missing out on the next generation of manufacturing production, Canada needed to address ongoing labor shortages, the negative impact of the US Inflation Reduction Act on manufacturing investment in Canada, and the high costs of moving manufacturing production to a net-zero future.

Dennis Darby, President and CEO of CME, stated, “We were pleased to see the budget respond to our biggest challenges and believe that the investments made today into Canada’s industrial capacity are good first steps in strengthening our sector.” We will keep on working with the public authority in the near future to get subtleties and guarantee the responsibilities made today are augmented and maintained.”

The following recommendations were made in response to these calls in the budget for 2023:

  • Clean Technology Manufacturing Investment Tax Credit matches similar manufacturing credits found in the IRA and addresses some concerns about potential lost investment in Canada.
  • Clean Electricity Investment Tax Credit will help Canadian manufacturer’s transition to net-zero production.
  • Expanded scope of the Tax Credit for Carbon Capture will help us compete with the IRA.
  • Funding to improve immigration backlogs, extended support for Work-Sharing, and funding to increase work integrated learning spaces were all CME asks to improve labour shortages.
  • A new Transportation Supply Chain Office to help industry with disruptions to supply chain transportation networks.
  • A commitment to review the SR&ED incentive system is long overdue and welcome news by manufacturers.

This year, CME requested that the 10% Atlantic Investment Tax Credit be extended to all Canadian jurisdictions and that SME-specific assistance be provided for the net-zero transition.

“Manufacturing has always been a cornerstone of the Canadian economy. It contributes ten percent of the country’s gross domestic product (GDP), more than sixty percent of our merchandise exports, directly employs 1.7 million Canadians, and supports an additional 3.4 million workers through the activity of supply chains and employee spending. With the promises made in Budget 2023, we have the foundation for manufacturing to be the engine of prosperity in Canada for many years to come. However, there is always room for improvement, and Darby concluded, “We look forward to working with the government to achieve all of our mutual goals.”

- Advertisement -

Stay in Touch

Subscribe to us if you would like to read weekly articles on the joys, sorrows, successes, thoughts, art and literature of the Ethnocultural and Indigenous community living in Canada.

Related Articles