Policy Initiatives

Supporting Business Scale-Up and Technology Adoption Encouraging Business Scale-Up


CME is focused on helping companies scale up their operations in Canada and abroad by removing barriers to growth, and by lowering the cost and risk of investing in new machinery, equipment and technologies.

Why It Matters

Successful companies are growing companies. A business environment that supports growth and investment in new technologies helps you become more productive and innovative, lowers your production costs, and improves your ability to compete at home and abroad.

The Challenges

Compared to other advanced economies, Canadian manufacturers have relatively small operations and, on average, underinvest in facilities, machinery and equipment, and new technologies. The reasons for this include:

  • A tax system that rewards companies for staying small and penalizes their efforts to grow
  • High business costs that erode profitability, and leave less money available for investment
  • Government investment incentives that are less generous than in the United States
  • A lack of information about how new technologies would fit in to existing operations
  • The cost and risk of making major investments is proportionately higher for smaller companies

Other tax and regulatory issues also limit growth potential in manufacturing. These include long project approval timelines and regulatory uncertainty around major resource developments.

How CME is Helping

CME is committed to helping your company grow. Our National Policy Team is working to:

  • Improve tax incentives for technology investment;
  • Reform the tax system to incentivize business growth;
  • Reduce project approval timelines and increase investment certainty;
  • Improve access to technology-related training and skills updating; and
  • Modernize and enhance the federal SR&ED program.


To get involved with CME or to provide comments on our position, please contact CME Senior Vice President Mathew Wilson at Mathew.Wilson@cme-mec.ca.

Graph Capital investment in manufacturing is stagnant Graph Obstacles preventing businesses from investing in advanced technologies