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CME Calls for Immediate Steps to Support Manufacturers' Growth

Published by Marie Morden on February 24, 2017

TORONTO (February 24, 2017) - Manufacturing is the cornerstone of Ontario's economy directly and indirectly responsible for one-third of all economic activity and nearly 30 per cent of all employment. However, the sector, along with the provinces' economy, has stagnated in recent years and immediate action is required to boost growth and investment in the sector.

"Throughout 2016, as part of our Industrie 2030 initiative, we consulted manufacturers on the future of manufacturing and how we could work together to double output and value-added exports by 2030," noted Ian Howcroft, Canadian Manufacturers & Exporters (CME) Ontario Vice President. "What was most evident in these results was that while Ontario manufacturers were optimistic about their future they felt governments were restricting their growth."

As a result of these consultations and in line with the recommendations of member input through Industrie 2030, the Ontario Board of Directors of CME unanimously supported the following resolution:

That the Ontario government, in collaboration with CME, develop and implement a manufacturing strategy for Ontario that builds on CME's Industrie 2030 initiative and recommendations. The focus of the long-term strategy must be to address the very serious and immediate competitiveness challenges facing manufacturers including electricity rates, cap and trade, skills shortages, trade barriers and red tape. Specific actions must include an industrial electricity rate (with immediate relief), a manufacturing investment tax credit, a move to a single going-concern valuation for Defined Benefit pension plan sponsors and commitment to eliminate or streamline regulatory impediments.

"Status quo is not going to create jobs and grow the economy," said Howcroft. "The sector is struggling to maintain investment and jobs under a growing mountain of taxes, red-tape and increasing competition from foreign competitors. With mounting pressure to invest in the US along with massive reductions in red tape and corporate taxes, it is critical that the Ontario government begin to take steps now, or risk being left further behind."

Added Howcroft, "We believe the upcoming Ontario budget is the ideal time to begin to address competitiveness investment issues and support long-term growth in manufacturing through immediate short-term actions."

About CME
Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and thrive around the world. In 2016, CME released Industrie 2030 - a roadmap for doubling Canadian manufacturing activity by 2030. Our focus is to ensure the sector is dynamic, profitable, productive, innovative and growing. We aim to do this by strengthening the labour force, accelerating the adoption of advanced technology, supporting product commercialization, expanding marketplaces and, most importantly, ensuring a globally-competitive business environment. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada's exports.

To read CME Ontario's pre-budget submission, visit: http://www.cme-mec.ca/download.php?file=59vhwsup1.pdf

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For more information, contact:
Marie Morden
Canadian Manufacturers & Exporters
Tel: (613) 355-8819
marie.morden@cme-mec.ca

 

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