Alberta Budget Sees Gains in Manufacturing Productivity

March 1, 2024, Edmonton, AB – Canadian Manufacturers & Exporters (CME) sees a number of positive measures in the Alberta budget but is concerned by what is not included.

“There was a lot of mention of the success and growth that large manufacturers, specifically in the energy sector saw over the past year, and how that is expected to continue,” said Sarah Rimbey, Director, Western Policy of CME, “However, there was no mention of the manufacturing-specific supports CME was hoping to see.”

Alberta is a lower-cost manufacturing environment, compared to the rest of the country, however, the industry continues to face supply chain costs, inflationary pressures and other issues. CME has consistently advocated for a comprehensive manufacturing strategy, and the introduction of a manufacturing Investment Tax Credit (ITC) that would mitigate those costs and help industry to capitalize on Alberta’s many advantages. The province committed to advancing an ITC for the manufacturing industry last year, and we look forward to working with them as it is developed.

Measures that CME was pleased to see include the announced funding for apprenticeship learning grants, aimed at adding an additional 3,200 apprenticeship classroom seats in the province over the next three years. New training seats, high-quality training and support funding for SMEs to address Alberta’s labour-constrained manufacturing sector address these challenges. CME looks forward to working with the government to implement and support these measures.

Additionally, inline with the government’s Job Growth and Diversification Strategy, the budget announced the creation of the Alberta is Calling Attraction Bonus, which will provide a $5,000 refundable tax credit to skilled-workers in eligible occupations who move to Alberta.

“The budget had some strong, labour-focused programs that will positively affect manufacturers”, continues Ms. Rimbey. “We consistently hear from our manufacturers that the cost and availability of labour is the number one issues manufacturers face, so this is a great step. But this only addresses a fraction of the issue, overlooking the need to attract diverse SMEs into the province.”