On April 21st, CTMA representatives met with the Honourable Navdeep Bains, Canada’s Minister of Innovation, Science & Economic Development, to discuss issues affecting the machine, tool, die and mould industry. With very tight time constraints, we sent an advance list of several industry issues, then focused our face-to-face meeting on three items we believe his department could assist with:
- Canada is falling far behind on government tax incentives for Industrial Capital Equipment Acquisition. Under the previous government, depreciation on new equipment was 25 percent in year one, 50 percent in year two, and 25 percent in year three. New machinery is now depreciated over eight to ten years. This is a far cry from what the Italian government allows with its super-depreciation of 40 percent on new machine tools and hyper-depreciation of 150 percent on expenses corresponding to Industry 4.0 criteria.
- Funding for the reinstatement of the CTMA’s Advanced Software Training Program on a national scale (it ran in Ontario from 2009 to 2012). This program was a tremendous success and helped companies harness the latest technologies and improve competitiveness. It also stimulated new and updated design and machining software purchases.
- Scientific Research and Experimental Development (SR&ED) changes have adversely affected smaller companies. The program expects the same level of sophistication from SMEs as that of large ones with full engineering departments and the academic experience to manage and report their projects. SMEs have projects that qualify under SR&ED, but without the sophisticated engineering and academic resources, they do not apply for, nor receive, the much needed benefits, placing them at a distinct disadvantage to larger companies.
Minister Bains appreciated the issues we discussed, and we look forward to future developments that will help solve them.
CTMA representatives also recently met with Bryan May, MP for Cambridge, ON, at Mazak Canada’s offices to discuss issues affecting the machine, tool, die and mould industry.