Canadian Manufacturers & Exporters

Canadian Manufacturers & Exporters

March 04, 2010 16:27 ET

Budget 2010: Out of the Blocks but a Long Race Ahead

OTTAWA, ONTARIO--(Marketwire - March 4, 2010) - Budget 2010 will help Canada's manufacturers and exporters compete, but it offers no guarantee that Canada will win gold on the global economic podium as the race from recession to recovery begins.

"This budget helps manufacturers, but more targeted measures are still needed to sustain innovation, investment and growth," explained CME President & CEO, Jayson Myers. 

Measures that will assist Canada's manufacturers and exporters include the elimination of tariffs on imported machinery and equipment and other goods used in manufacturing; extending Work-Share for another 26 weeks, and a further commitment to funding economic development agencies that have provided crucial support in the midst of the economic downturn for efforts by manufacturers to improve their innovation and productivity performance.

"We worked with the government directly to reduce tariffs for manufacturing and I believe this is an important cost-savings mechanism for companies," said Myers. "While the savings are marginal, it is a bottom-line boost to cash flow for manufacturers at a time when it is needed the most."

Yet Canada's leading trade and industry association was hoping that the 1.8 million people employed in manufacturing would see a signal that the single-most important initiative to help the sector would be extended in this budget.

"In order to give companies some sense of certainty, we were hoping that a five-year extension to accelerated depreciation for investments in new manufacturing and processing technologies would be announced," said Myers. "But we will continue to work with the government to secure this critical policy initiative moving forward."

"We need to do a better job in connecting the dots, moving from business as usual to more targeted support for business investments in new technologies, new products, new workplace skills, and new markets in order to sustain long-term economic growth."

"We are in a race to recovery with the rest of the world, so we need a game plan that will help the Canada take gold in the global economic arena," added Myers. "Manufacturers and exporters have developed our own roadmap to recovery, an economic action plan reflecting the priorities of industry, and we will continue to work with governments in order to ensure that Canadian companies gain a competitive edge around the world."

A version of CME's Roadmap to Recovery Report can be found at

Contact Information

  • CME
    Jeff Brownlee