CANADIAN CHEMISTRY INDUSTRY HAD A STRONG YEAR IN 2014, INVESTING FOR GROWTH IN 2015
Canada’s industrial chemical sector is forecasting a big increase in capital expenditures in 2015, according to the 2014 Year-End Survey of Business Conditions, released today by the Chemistry Industry Association of Canada (CIAC).
CIAC members project their capital investments will jump by 30 per cent – to $3.4 billion – in 2015.
“After a decade of very limited expansion in Canada, our members have started to invest once again,” says Richard Paton, CIAC’s President and CEO. “More importantly, there is the potential for much more to come to Canada over the next decade, if we are successful in creating the right investment conditions, especially for the big projects.”
The chemistry industry is taking advantage of the attractive fiscal policy environment in Canada which includes a competitive corporate tax rate and the temporary accelerated capital cost allowance (ACCA). However, the current ACCA ends in December 2015. CIAC is encouraging the government to transition the ACCA to a long-term (7 to 10 years) policy measure. This would level the playing field with the United States and support a competitive business climate in Canada.
In addition to its bullish investment outlook, in 2014 Canada’s industrial chemical sector saw:
• operating profits reach an all-time high of $3.9 billion;
• shipments grow 10 per cent to $29.2 billion, surpassing the pre-recession high; and
• exports reach $19.6 billion – the second-best year ever.
The Chemistry Industry Association of Canada (CIAC) is the voice of Canada’s Chemistry Industry, representing more than 50 members and partners across the country. The chemistry industry is a $50 billion industry, which directly employs 82,000 Canadians, and supports another 410,000 jobs in the Canadian economy. Members of CIAC are signatories to Responsible Care® – the association’s U.N.-recognized sustainability initiative.