CANADIAN MANUFACTURERS SEEKING ACTION IN BUDGET 2024 TO BOOST CANADA'S INDUSTRIAL ECONOMY

OTTAWA, ON, April 11, 2024 /CNW/ - Amid the economic challenges of high interest rates, weak productivity growth, and a sluggish economy, Canadian Manufacturers & Exporters (CME) is calling on the federal government to focus on bolstering the manufacturing sector in the upcoming budget, a vital industry that directly accounts for 10 per cent of Canada's real gross domestic product.

In its pre-budget submission, CME highlighted the urgent need for measures to stimulate manufacturing investment and support economic growth. "With manufacturing investment per worker significantly less than half that received by US factory workers, the government must prioritise measures that encourage manufacturers to invest, reinvest, and expand in Canada," said Dennis Darby, President & CEO of CME.

Key recommendations outlined in CME's submission, aimed at invigorating the manufacturing sector, include:

• Accelerating the rollout of the five new and expanded investment tax credits introduced in response to the US Inflation Reduction Act (IRA).
• Providing employer-led training benefits, including a 50 per cent tax credit that offsets half the costs for employee training.
• Introducing a nationwide 10 per cent refundable manufacturing investment tax credit for investments in new buildings and new machinery, equipment and software.
• Extending the Accelerated Investment Initiative's current rate for three more years, and in line with Canada's critical minerals strategy, expand the incentive to include mining and metal manufacturing activities.
• Increasing and accelerating investments in trade-enabling transportation infrastructure such as roads, railways, ports and airports to facilitate the movement of goods.

Acknowledging the difficult choices the government faces in the budget, CME stresses the critical need for manufacturing-focused investments to support economic stability and drive growth. "The manufacturing sector makes a significant contribution to the Canadian economy and strengthens communities across the country. By prioritizing the sector's needs, the government can foster a nurturing environment ripe for investment, innovation, and job creation," Darby concluded.

From the first industrial boom in Canada, CME has advocated for and represented member interests. 150 years strong, CME has earned an extensive and effective track record of working for and with 2,500 leading companies nationwide. More than 85 per cent of CME's members are SMEs and collectively account for an estimated 82 per cent of total manufacturing production and 90 per cent of Canada's exports.

SOURCE Canadian Manufacturers & Exporters