CIAC Welcomes Federal Budget Measures to Strengthen Investment and Manufacturing Competitiveness 

November 06, 2026

The Chemistry Industry Association of Canada (CIAC) welcomes the federal government’s 2026 budget and its focus on attracting investment, improving productivity, and strengthening Canada’s economic competitiveness. 

At a time when Canadian manufacturers face growing global competition for investment, the budget introduces important measures to help position Canada as an attractive place to build, innovate and grow. These include immediate expensing provisions (Mega Productivity Deduction) the Scientific Research and Experimental Development (SR&ED) program, and the reinforcement of policy measures aimed at reducing red tape and supporting growth. 

“CIAC strongly supports the Productivity Mega Deduction. Providing permanent immediate expensing for a broader range of eligible investments will help lower the cost of modernizing facilities, adopting new technologies, and expanding production in Canada,” said Greg Moffatt, President and CEO of CIAC. “These are the kinds of measures that give manufacturers greater confidence to invest, create jobs and compete globally.” 

For capital-intensive industries such as chemistry and plastics, long-term policy certainty is essential. By improving the conditions for investment, these measures can help unlock projects that strengthen Canada’s manufacturing capacity, support skilled jobs, and drive economic growth. 

CIAC encourages the federal government to prioritize timely implementation and meaningful engagement with industry. Clear legislation, practical eligibility criteria and accessible programs will be critical to translating these commitments into real investment and ensuring Canada remains a competitive destination for industrial growth.