Toronto – Canadian Manufacturers and Exporters (CME) has applauded the federal budget tabled on March 21, 2013 by the Government of Canada that positions manufacturing as a top priority and paves the way for a stronger, more competitive economy for all Canadians. CME is the country’s largest trade and industry association.
The 2013 Economic Action Plan responds directly to the priority issues of Canada’s manufacturing sector championed by CME, most notably an extension of the Accelerated Capital Cost Allowance through 2015, investing in the aerospace and automotive sectors, supporting advanced manufacturing projects in southern Ontario and measures to close the skills gap.
“The federal budget sends an important signal,” says CME president and CEO Jayson Myers. “It positions manufacturing and exporting at the heart of Canada’s Economic Action Plan by focusing on practical steps that will enhance competitiveness, productivity, innovation, and business growth.”
Canada’s manufacturers and exporters can expect to realize more than $4.5 billion in direct benefits over the next four years as a result of targeted measures in the budget, CME estimates. Some of these benefits come in the form of $1.4 billion in tax relief for a two-year extension of the Accelerated Capital Cost Allowance, $200 million over five years for a new Advanced Manufacturing Fund in Ontario, $1.8 billion over six years for direct grants to employers for workforce training, $92 million over two years for forestry innovation, and $1 billion over five years for aerospace development.
“This is very good news for companies creating jobs in Canada, investing in our communities, and developing and selling world-class products and services around the world,” notes Myers. “The budget recognizes the importance of manufacturing and exporting for each and every Canadian, as an anchor of high-value, high-paying jobs in all parts of the country and across all sectors of the economy.”
More than 1.8 million Canadians are currently employed in our manufacturing sector generating 14 per cent of Canada’s gross domestic product (GDP). Every dollar in manufacturing output drives $3.50 in overall economic activity.
“Canada’s manufacturers and exporters are at the forefront of global competition and innovation,” says Myers. “The business is rapidly changing with new customers, new competitors, new technologies, and new skills requirements. This budget will make a real difference in helping our manufacturers and exporters compete and win in global markets.”