AEM Welcomes Budget 2026 Investments to Strengthen Manufacturing Competitiveness, Urges Focus on Delivery

OTTAWA, ON – The Association of Equipment Manufacturers (AEM) welcomes Budget 2026’s focus on kickstarting an “investment supercycle” aimed at stimulating business investment, strengthening trade infrastructure, and building the skilled workforce Canada needs to compete in a more volatile global economy. 

Backing Business Investment & Innovation 

AEM is particularly encouraged by confirmation of the Productivity Mega Deduction, which now allows businesses to immediately expense a broader range of capital investments. The budget’s own examples of eligible assets, from tractors and combines to excavators and loaders, underscore the central role equipment manufacturers play in Canada’s productivity. Combined with an additional $1 billion over six years for the Strategic Response Fund, these measures can help Canadian businesses modernize operations, adopt productivity-enhancing technologies, and invest with greater confidence. 

Strengthening Trade & Workforce Capacity 

The budget also advances priorities that are critical to equipment manufacturers and the industries they serve. AEM welcomes continued investment in trade-enabling infrastructure, including ports, rail networks, and export corridors, alongside new support to modernize digital trade processes and improve the flow of Canadian goods to global markets. Commitments to a 30-day credential-recognition service standard and digital verification tools for skilled trades are likewise practical steps toward improving labour mobility across provincial lines. The budget also recognizes the ongoing impact of tariffs on businesses and commits to maintaining support for affected companies through the tariff remission framework and other targeted measures. 

Making it Easier to Build & Invest 

The government’s new approach to regulatory competitiveness and red-tape reduction – together with measures such as Bill C-39 – is a positive response to industry’s longstanding call for clearer rules and coordinated approvals. Bill C-39 offers a clear path forward by streamlining federal review of projects of national economic importance, meaning businesses will be able to operate on more predictable timelines and have greater confidence in their long-term investments. 

“Budget 2026 recognizes that Canada’s economic resilience will depend on whether businesses have the confidence and capacity to invest, innovate, and grow,” said Kip Eideberg, AEM’s Senior Vice President of Government and Industry Relations. “The Productivity Mega Deduction, continued support for skilled trades and labour mobility, and investments in trade-enabling infrastructure can help create the conditions manufacturers need to strengthen productivity and compete at home and abroad.” 

“Implementation is now the real test,” Eideberg added. “Manufacturers need timely guidance on investment incentives, a reliable pipeline of projects, and practical regulatory reforms that reduce delays without compromising outcomes. While the budget commits to dedicating additional resources for processing remission requests, the government should also ensure remission programs are timely, accessible, and responsive to manufacturers facing demonstrated hardship. AEM looks forward to working with the federal government to turn these commitments into durable gains for Canadian workers, businesses, and communities.”