The challenges facing the manufacturing sector are diverse and complex. The Canadian Manufacturing Coalition (CMC) focuses on both international and domestic issues by outlining progressive policies and new ideas to build as a strong foundation for a renewed and competitive manufacturing sector.
Canada is falling dangerously behind its peers in business investment, research and development, digitalization, and the deployment of advanced technologies. Ongoing stagnation has muted Canada’s economic potential, dragging down productivity, and preventing the development of the modern manufacturing sector.
Bold, decisive action is needed to reverse this decline and position Canada to compete and succeed in a rapidly evolving global economy. That means reforming outdated procurement and R&D systems to aggressively drive innovation, build much-needed investments in trade-critical infrastructure, and deliver pro-growth tax reforms that unlock private sector capital and ambition.
To achieve desired levels of investment, CMC will seek improvements to Canada’s taxation system to support manufacturing and encourage growth. These changes should include:
Cross-border engagement and the need to strengthen international supply chains has never been more important for Canadian manufacturing. The U.S. tariffs and Canadian countermeasures have severely harmed manufacturers on both sides of the border by pausing investment, disrupting supply chains, and weakening the North American industrial base – all while increasing costs for consumers.
CMC will encourage the federal and provincial governments to continue to engage the U.S. administration to build a renewed partnership. Through improved collaboration, Canada can work alongside the U.S. to deliver high-quality products to the rest of the world and expand trade to developing markets.
Through open dialogue and effective policy solutions that protect jobs and reinforce supply chains, we can develop critical capabilities to position North American manufacturing for long-term success.
CMC is encouraged by Prime Minister’s 2025 throne speech commitment to “embark on the biggest transformation of our economy since the end of the Second World War”. Certainly, commitments such as cutting project approvals from five years to two years with a “one project, one review” approach are especially welcomed to address the challenges of chronic delays in the approval process.
CMC urges the government to take further action on major projects, including faster approval of projects that are ready to begin construction.
The Coalition will continue to encourage policies that allow Canada to reach its full potential, including the construction and completion of major infrastructure projects. Effective infrastructure is critical to ensuring our energy and manufactured projects are able to reach markets across the globe.
Canada’s manufacturing workforce is aging rapidly as 25 per cent of workers are aged 55 and older. Companies across Canada are signaling recruitment challenges in the years ahead and we anticipate this will continue to constrain growth and competitiveness. We welcome the opportunity to work with you to make sure industry voices are considered when shaping future policy initiatives that benefit workers and employers.
The Coalition will be encouraging the government to take a dual approach to address labour competitiveness in the country. This includes both:
By aligning immigration and labour policies with the workforce needs of manufacturers, Canada can rapidly rebuild capacity and bolster Canada’s economic strength.
The cost of regulatory compliance in Canada continues to be especially high and burdensome for manufacturers. CMC is a strong advocate of more streamlined and efficient policies to reduce burdensome red tape and facilitate the flow of goods across the country.
The Coalition has been encouraged by the actions of both federal and provincial governments to reduce internal trade barriers, eliminate wasteful duplication, and encourage greater collaboration among Canadian companies. The Coalition will be paying close attention and tracking the progress of initiatives aimed at reducing regulatory barriers and positioning Canada for sustained economic growth.