The challenges facing manufacturers can be diverse and particularly complex; however, a vast majority share a common set of priority issues that have a profound impact on both industry and the economic landscape as a whole. The Canadian Manufacturing Coalition focuses on these key issues and works to develop progressive policies and new ideas to help ensure they remain a strong foundation for a competitive manufacturing sector in Canada.
The Coalition secured a 10-year extension of the Accelerated Capital Cost Allowance for investments made in manufacturing and processing machinery and equipment. This includes a Capital Cost Allowance at a rate of 50 per cent on a declining basis that will apply on assets purchased after 2015 and before 2026. This will allow manufacturers to write-off 90 per cent of their capital investment over four years and more than 95 per cent over five years.
Budget 2015 introduced a new Automotive Supplier Innovation Program, allocating $100 million over five years to support product development and technology demonstration by Canadian auto parts suppliers. It also allocates $6 million to the development of a national aerospace supplier development initiative and $2.5 million per year to support a new Defense Procurement Strategy aimed at providing new opportunities for Canadian manufacturers and technology companies.
In 2013, the Coalition fought aggressively to ensure that decades old exemption for manufacturers from a requirement to have Ontario certified Professional Engineers test and certify all equipment and machinery used in any industrial setting was not removed. In 2015, the Coalition successfully worked to ensure this regulatory change was struck from the books.
Budget 2015 provided $50 million over five years for a small business export support program. Another $42 million over five years will go to expanding the Trade Commissioner Service. The budget also established a new Development Finance Initiative capitalized with $300 million over the first five years to provide financing to Canadian businesses operating in developing countries.
The Coalition secured Government commitment to strengthen Canada’s trade remedy system, including an office within Industry Canada to support the elimination of internal barriers to trade within Canada.
We also continued to work towards the ratification of the Canada/Europe Comprehensive Economic and Trade Agreement (CETA) and monitored the implementation of the Canada-South Korea Free Trade Agreements. They were signed in September 2014.
The Coalition also aggressively pursued a Trans-Pacific Partnership that would support Canadian manufacturing with a deal reached in October 2015.
Federal Budget 2015 cemented the previous government’s commitment to placing a major focus on manufacturing as a cornerstone of economic growth and prosperity moving forward. The budget was largely focused on manufacturing issues including the extension of the Accelerated Cost of Capital Allowance (ACCA), investment in training, sector investment support mechanisms, export support programs, support for small manufacturers, investment in infrastructure, and further regulatory reforms.
During Federal Election 2015, the Coalition ensured that manufacturing was a focus for all three major political parties. We were successful in ensuring that manufacturing was written into all party platforms as part of their economic strategies, including the victorious Liberal Party.
Manufacturing Day on Hill and the Celebration of Manufacturing was held on February 22nd and 23rd, 2016. The Celebration of Manufacturing was co-hosted by Industry Minister Bains and had roughly 45 Members of Parliament attend. The Day on the Hill saw representatives of the Coalition meet with 102 MPs and senior government representatives, including 2 Ministers, 8 Parliamentary Secretaries, 11 Chairs of Parliamentary Committees, 20 Critics and Deputy Critics, 3 Party Leaders, and 1 Deputy Whip.
Budget 2015 provided $65 million over four years to industry associations to develop integrated education and training initiatives to better align the needs of Canadian industry with Canadian colleges and universities. This was expanded to $74 million in Budget 2016.
Budget 2016 expanded funding for the Canada Jobs Grant by $50 million per year.
The Coalition also secured additional assistance to the provinces to harmonize apprenticeship training and support the development of a nation-wide Blue Seal Certification program aimed at improving the business skills of journeypersons and encouraging entrepreneurship.
The coalition advocates more streamlined and efficient policy for regulation in Canada and around the globe. New bilateral groups, including the Canada-US Regulatory Cooperation Council (RCC) and Beyond the Border Working Group (BBWG), have been established to do just that, and the Coalition has been leading industry coordination across both Canada and the US to identify unnecessary differences in regulation and help steer solutions. The coalition will be paying close attention in the coming months to track the progress of these initiatives and demand improvements.
The cost of regulatory compliance in Canada continues to be especially high and burdensome for manufacturers. The Coalition does not advocate for a reduction of reasonable checks and balances, rather the removal of duplicative regulations and unnecessary reporting procedures.