The Association of Equipment Manufacturers (AEM) is welcoming Canada’s Budget 2025’s plan to invest in infrastructure, workforce development and trade diversification.
To deliver real growth for equipment manufacturers, AEM urges the government to ensure these commitments are implemented swiftly and strategically.
“This budget sends a strong signal that Canada is serious about strengthening its industrial capacity,” said Kip Eideberg, AEM’s Senior Vice President of Government and Industry Relations. “But the real test will be how quickly and effectively these commitments are implemented to support equipment manufacturers on the ground.”
Budget 2025 marks significant spending on infrastructure and housing, with an emphasis on nation-building projects with the $51 billion Build Communities Strong Fund.
These measures are expected to drive demand for construction and heavy equipment, supporting Canadian manufacturing and job creation.
AEM welcomes the $5 billion Trade Diversification Corridors Fund, which will expand ports, rail, roads and airports and the $5 billion Strategic Response Fund to help manufacturers retool, diversify and strengthen supply chains in response to global trade uncertainty.
However, AEM notes the success of these funds will depend on how quickly and flexibly they are deployed. Equipment manufacturers cannot afford lengthy approval processes. To be effective, these funds must deliver rapid, targeted support to businesses ready to invest in new technologies, expand production and enter new markets.
The federal budget also allocates $75 million over three years in the Union Training and Innovation Program, which aims to will build a pipeline of skilled tradespeople essential to the manufacturing sector and help address persistent labour shortages.
Tax policy
AEM welcomes the expanded capital cost allowance (CCA) provisions, which enable manufacturers to write off investments in machinery and equipment more quickly. The association calls the CCA a “critical step” toward increasing productivity and making Canada more attractive for industrial investment.
“Accelerated CCAs are an effective way to drive capital investment and productivity,” Eideberg said. “If Canada wants to compete globally and build strong domestic supply chains, we need tax policy that encourage bold investment in machinery, technology, and infrastructure.”
AEM is disappointed that the budget falls short in expanding funding support for precision agriculture adoption. The association urges the government to enhance funding for this critical component of Canada’s farming industry to ensure continued progress and competitiveness in the sector.
