Toronto, October 5, 2017
Canadian Manufacturers and Exporters (CME) finds the cancellation of TransCanada’s Energy East project is a regrettable outcome for the Canadian economy. TransCanada announced today it will not move forward with the pipeline after several years of delays due to regulatory challenges.
“This is a missed opportunity for the Canadian manufacturing sector and, the economy as a whole,” said Dennis Darby, President and CEO of CME. “The project was set to lead to major capital investment projects that the manufacturing sector could have supplied into, not to mention the potential spin-offs.
“The regulatory frameworks in place create uncertainties and inefficiencies which is discouraging investment,” stated Darby. “We are urging federal and provincial regulators to adopt business-friendly processes with clear timelines and parameters for approvals to be achieved to foster a healthy business environment and encourage the development of major projects in Canada.”
Canada has seen a steady decline of private sector capital investment in manufacturing. Investment intentions for 2017 stand at $15.2 billion, the lowest level in five years. To reverse this trend, and to grow Canada’s economy, CME has aggressively advocated for the adoption of a national manufacturing strategy.
In 2016, CME released Industrie 2030, a roadmap for doubling Canadian manufacturing activity by 2030 which was based on input from business across the country. The regulatory environment was highlighted has an impediment to business with most respondents saying it worsening both at the federal level (48%) and the provincial level (58%). Industrie 2030 includes precise recommendations to put in place clear, consistent and transparent regulatory frameworks to achieve a globally-competitive business environment.
ABOUT CANADIAN MANUFACTURERS & EXPORTERS
Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and, compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports.
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