Budget 2013 an encouraging boost to manufacturing

Top of mind for the Canadian Manufacturers and Exporters (CME) in its statement after the budget was the extension of the Accelerated Capital Cost Allowance through 2015, investing in the aerospace and automotive sectors, supporting advanced manufacturing projects in southern Ontario and measures to close the skills gap."The federal budget sends an important signal," said CME President & CEO Jayson Myers. "It positions manufacturing and exporting at the heart of Canada's Economic Action Plan by focusing on practical steps that will enhance competitiveness, productivity, innovation, and business growth."Canada's manufacturers and exporters can expect to realize more than $4.5 billion in direct benefits over the next four years as a result of targeted measures in the budget, CME estimates. Some of these benefits come in the form of $1.4 billion in tax relief for a two-year extension of the Accelerated Capital Cost Allowance, $200 million over five years for a new Advanced Manufacturing Fund in Ontario, $1.8 billion over six years for direct grants to employers for workforce training, $92 million over two years for forestry innovation, and $1 billion over five years for aerospace development."This is very good news for companies creating jobs in Canada, investing in our communities, and developing and selling world-class products and services around the world," notes Myers. "The budget recognizes the importance of manufacturing and exporting for each and every Canadian, as an anchor of high-value, high-paying jobs in all parts of the country and across all sectors of the economy."Debbie Holton, Director of Industry Strategy and Events for the Society of Manufacturing Engineers (SME), echoed Myers’ sentiments regarding the extension of the Accelerated Capital Cost Allowance. “When times are tough people try to make do with retrofitting or using older equipment, but this should encourage manufacturers to expand their capacity, and to purchase that additional piece of equipment, or invest in some new technology like additive manufacturing that could really propel their business as well.” The investment in training was also a positive for Holton. According to the budget, $300 million per year will be allocated in Canada Job Grants. The federal government and the provinces will each match employer investments in skills training for new and existing employees up to $5,000 per worker.“No one entity is going to be able to solve all the challenges facing manufacturers today, but we are always encouraged when government demonstrates that they want to play a role, and back that commitment up with funding, especially in the area of jobs training,” Holton notes. J. Craig Martin, Vice President of Public Safety for the Canadian Welding Association, notes that the funding model for training really accentuates the need for all levels of government and industry to work together in making an impact on our skills shortages. “At the end of the day, the Canadian Welding Association is going to support anything that encourages the skilled trades,” says Martin. “This proposed funding model creates a very specific program with a specific dollar amount that, if those three groups can work together, we can get that money out to where it is needed most.” Another point that was raised in the budget that Martin considered very positive was efforts to lower the barriers for tradespeople who wish to move from one province to another. “Not all the details were set out in the budget,” Martin concedes, “but there was a commitment by the federal government to invest about $4 million over the next three years to work with the provinces to harmonize regulations in the skilled trades.” For a province like Alberta, where it is a real challenge to find skilled welders, this harmonization might make the process of introducing welders from out of province that much quicker.