Institutional links

Stay Connected

Twitter Flickr
YouTube RSS Feed
 

Machinery and Equipment

Canada’s Machinery and Equipment Manufacturers are Highly Diversified

“General Electric has operated successfully in Canada for over 100 years, and we continue to grow and invest in the country. Building on a competitive corporate tax rate, a friendly business climate and great relationships with the federal and provincial governments, we have recently announced global centres of excellence and important collaborative research projects in energy, water and health care. For us, Canada is a country of enormous opportunity.”

Elyse Allan, President and CEO, General Electric Canada 

Attractive international investment location— Canada’s machinery manufacturing sector recorded sales of $28.9 billion in 2010. Canada’s expertise in machinery and equipment manufacturing spans a range of sub-sectors, including metalworking machinery, mining, oil and gas drilling equipment, and agricultural machinery. Among many global leaders with production facilities in Canada are France’s Alstom, Japan’s Hitachi Ltd., Germany’s Siemens and U.S.-based Tesco.

Source: Statistics Canada.

The highest proportion of engineers in the G-8 and the lowest statutory payroll costs in the G-7— Canada’s machinery and equipment industry is attractive to global investors because of its skilled workforce and relatively low production costs. Canada boasts the highest proportion of engineers (as a share of its population) in the G-8 and the lowest statutory payroll costs in the G-7. Other significant advantages are proximity to major customers across North America and provincial manufacturing and R&D tax credits.

Strong machinery manufacturing cluster in Ontario— Toronto and south-western Ontario are home to Canada’s largest machinery manufacturing cluster. This cluster accounts for half of all employment in machinery manufacturing in Canada. With 80% of total Canadian employment in metalworking machinery, the southern Ontario cluster serves a wide range of sectors including the automotive and aerospace industries.

Elimination of tariffs on manufacturing inputs—Canada will be the first G-20 country to eliminate tariffs on all manufacturing inputs. Most of the reductions occurred in 2010 and, by 2015, all inputs imported by manufacturers, including metals, tools, machinery and equipment, will be totally duty-free. This provides a huge incentive to foreign investors in machinery manufacturing verticals.

Recent Foreign Investments – Machinery and Equipment

Map of Canada showing three locations: Edmonton, Alberta; Mississauga, Ontario; and Bouctouche, New Brunswick

Valvitalia, a world-leading manufacturer of valves and actuators for the oil and gas industry, plans to establish an assembly and testing facility in Edmonton, Alberta. The facility will handle all of the company’s actuator business in North and South America.
In August 2010, Fronius of Austria established a production site for solar photovoltaic inverters in Mississauga, Ontario. The facility is expected to begin production at the end of the first quarter of 2011.
In August 2010, Systemair AB increased capacity at its facility in Bouctouche, New Brunswick. The plant produces duct fans, heat exchangers and dehumidifiers for residential and light-commercial buildings.