Association of Equipment Manufacturers (AEM) Welcomes the 2026 Ontario Budget

TORONTO, ON – The Association of Equipment Manufacturers (AEM) welcomes the steps Premier Ford’s government has outlined in the 2026 Ontario Budget to strengthen the province’s manufacturing sector at a time of continued trade uncertainty and rising costs for businesses.

Equipment manufacturers stand to benefit from the introduction of an immediate 100 per cent tax deduction for manufacturing and processing machinery and equipment, which will allow companies to realize savings right away instead of spreading out deductions over multiple years. The reduction of the small business corporate income tax rate by more than 30 per cent is also a welcome measure that will help equipment manufacturers stay competitive and reinvest in operations and local jobs.

AEM also applauds the government’s proposed 10-year capital plan of $210 billion for infrastructure investment, which acknowledges the need to revitalize core trade-enabling pillars like highways and mass transit, while also laying the foundations for long-term economic security for Ontarians.

The continued collaboration between the federal government and Ontario to retrain workers in tariff-impacted industries through the $228.8 million Canada-Ontario Workforce Tariff Response is an encouraging sign. Such measures will help workers stay employed, upgrade their skills, and adapt to new technology and job demands as the economic landscape continues to evolve.

“This budget signals that Premiere Ford’s government understands what equipment manufacturers need to compete: a strong investment climate, modern infrastructure, and a steady stream of skilled workers,” said Kip Eideberg, Senior Vice President of Government and Industry Relations at AEM. “The real test now is execution so that Ontario’s workers and businesses see results as soon as possible. AEM looks forward to working collaboratively with the government to ensure smooth implementation of these measures so that equipment manufacturers and their value chain partners can continue to thrive.”