CME discusses 2023 Fall Economic Statement

The Fall Economic Statement on November 2 reaffirmed the Ontario Government’s commitment to supporting the manufacturing sector, growing investment, reducing business costs, and providing relief to Ontarians at a time when the economy is slowing.

A major win for the sector was the tangible endorsement of returning all industrial carbon tax proceeds directly to eligible industries. This allocation is instrumental in funding their efforts to implement carbon reduction initiatives within their businesses. A key recommendation from CME’s Net Zero Industrial Strategy has become policy, through the confirmation of Ontario’s proceed distribution under the Emission Performance Standards.

Dennis Darby, President & CEO of Canadian Manufacturers & Exporters (CME), expressed his optimism, saying, “The low carbon transition requires monumental resources from manufacturers, but it also presents a tremendous opportunity to rebuild our industrial capacity. With today’s announcement, Ontario manufacturers can now be more confident that the resources they need will be available to them. We encourage the federal government and other provinces to follow Ontario’s lead, adopting this ground-breaking policy to retain and grow manufacturing investment.”

The sector will also benefit from other newly announced initiatives. This includes the infusion of fresh funds to support manufacturing investment and the development of large-scale infrastructure, made possible through the Invest Ontario Fund and a brand-new Ontario Infrastructure Bank.

Following years of tireless advocacy by CME, the Government introduced the Ontario Made Manufacturing Investment Tax Credit earlier this year. This 10% refundable Corporate Income Tax Credit for manufacturing investments in machinery, buildings, or equipment provides businesses the opportunity to receive up to $2 million, helping Ontario-based manufacturers become more competitive and lower their business costs.

Looking ahead, manufacturers continue to grapple with persistent challenges, including labour shortages, red tape reduction, and regulatory uncertainty. “CME remains committed to collaborating with the Government to ensure that the manufacturing sector’s needs are adequately addressed in Budget 2024. This budget is of paramount importance, as it will be the first one released following the highly anticipated Advanced Manufacturing Strategy that the provincial government is currently working on, in close consultation with CME members,” concluded Darby.