The Association of Equipment Manufacturers (AEM) will work with the federal government’s Budget 2025 to focus on 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.”
Nation-building and export focused infrastructure
Budget 2025 makes significant investments in infrastructure and housing, with a clear 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, 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.
Rural Canada
AEM is encouraged to see new investments in the agricultural industry, including $75 million for the AgriMarketing Program to help producers access new markets and grow exports.
Workforce development
The federal budget investment of $75 million over three years in the Union Training and Innovation Program will build a pipeline of skilled tradespeople essential to the manufacturing sector and help address persistent labour shortages.
Tax policy for growth
AEM welcomes the expanded capital cost allowance (CCA) provisions, which enable manufacturers to write off investments in machinery and equipment more quickly. This is 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,” said Eideberg. “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.”
While these investments and policy goals are positive steps toward strengthening Canada’s industrial and economic foundation, 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.
AEM stands ready to work with policymakers to help Canada’s equipment manufacturers lead the next wave of industrial growth. The government must implement this budget with urgency, clarity, and coordination
