On-Site Magazine

Canadian equipment makers squeezed by COVID-19, look to feds to take action on infrastructure, purchase incentives

August 24, 2020   By On-Site Staff

Equipment manufacturers are looking to Ottawa for help in offsetting the negative effects of the pandemic

Equipment manufacturers across Canada are feeling the impact of COVID-19.

A new survey from the Association of Equipment Manufacturers (AEM) finds 47 per cent of equipment makers expect it will take at least a year for business to return to its pre-pandemic level and a majority are looking to Ottawa for action to support the sector’s recovery.

“The COVID-19 pandemic has clearly impacted equipment manufacturers and the communities we proudly serve across Canada,” Alexander Russ, AEM director of Government Affairs, said in a release. “From new orders drying up to supply chain disruptions, this unprecedented crisis has caused many companies to reduce their immediate financial outlook. AEM continues to help our industry navigate these challenging times to come back stronger and fuel Canada’s economic recovery.”

Among the top challenges for manufacturers polled are in a decrease in new orders (76 per cent) and issues with the supply chain (43 per cent).


The survey, fielded between June 22 and Aug. 5, also looked at Canada’s recovery from the pandemic.

To assist equipment manufacturers as the economy rebounds, 60 per cent of respondents are looking for more infrastructure spending from the federal government. Three-fifths of equipment makers also want to see an incentive program that offers tax credits when replacing old equipment with new, lower emissions machines.

To date, Ottawa has updated several of its infrastructure spending programs, but has not yet committed new funds.

Print this page

Related Stories

Leave a Reply

Your email address will not be published. Required fields are marked *