CANADIAN MANUFACTURERS WELCOME BUDGET 2023
OTTAWA, ON, March 28, 2023 /CNW/ - Canadian Manufacturers & Exporters (CME) welcomes Budget 2023 and the initial steps it takes to respond to the US Inflation Reduction Act, drive net zero transitions, improve labour shortages, and alleviate and supply chain disruptions.
In the lead up to today's budget, CME was very vocal, urging government to act to support manufacturers. Ongoing labour shortages, the US' Inflation Reduction Act's negative impact on manufacturing investment in Canada, and the high costs of transitioning manufacturing production to a net-zero future all needed to be addressed or Canada risked missing out on the next generation of manufacturing production.
"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," said Dennis Darby, President and CEO of CME. "We will continue to work with the government in the days ahead to get details and ensure the commitments made today are maximized and upheld."
The 2023 budget answered these calls by proposing the following measures:
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.
"Manufacturing has always been a cornerstone of the Canadian economy, generating 10 per cent of Canada's GDP, more than 60 per cent of our merchandise exports, and directly employing 1.7 million Canadians and supporting 3.4 million more workers through supply chain activity and employee spending. With the commitments made in Budget 2023, we have the building blocks to help manufacturing drive Canadian prosperity for years to come. We always need to do more, however, and we look forward to working with the government to achieve all our mutual goals" concluded Darby.
The manufacturing sector accounts for nearly 10 per cent of Canada's real gross domestic product.
Manufacturers employ 1.7 million people in Canada.
Total manufacturing sales hit a record high of $718.4 billion in 2021.
SOURCE Canadian Manufacturers & Exporters
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