The Canadian Tooling & Machining Association (CTMA) welcomes the Ontario government’s 2026 budget, A Plan to Protect Ontario, which outlines a comprehensive strategy to strengthen the province’s manufacturing sector, enhance global competitiveness, and build long-term economic resilience.
Many of the measures announced reflect priorities CTMA has actively advanced through ongoing engagement with government, including tax competitiveness, investment in advanced manufacturing, workforce development, supply chain resilience, and reducing regulatory burden.
At a time of global economic uncertainty, tariffs, and shifting trade dynamics, the province’s plan signals a strong commitment to supporting Ontario manufacturers and positioning the province as a leader in advanced manufacturing.
Key Benefits for CTMA Members and the Manufacturing Sector
The 2026 budget introduces several initiatives that will directly benefit CTMA members:
Tax Relief & Manufacturing Investment Incentives
A proposed reduction of more than 30% to the small business corporate income tax rate could deliver up to $5,000 annually in savings for eligible businesses.
In addition, enhanced manufacturing investment tax credits and accelerated write-offs for equipment and capital investments will support modernization, automation, and productivity improvements—critical for tooling and machining companies competing globally.
Support for Advanced Manufacturing & Innovation
The creation of a $4 billion Protect Ontario Account Investment Fund will drive investment into high-growth sectors such as advanced manufacturing, artificial intelligence, and research and development.
These investments align closely with CTMA’s advocacy for increased innovation funding to help members adopt new technologies and scale their operations.
Supply Chain Reshoring & Domestic Growth
A strong focus on reshoring critical supply chains and increasing domestic production capacity will create new opportunities for Ontario-based tooling and machining companies.
By reducing reliance on external markets and strengthening local supply chains, the plan supports long-term stability and growth for manufacturers across the province.
Trade Diversification & Market Expansion
Ontario’s efforts to reduce reliance on U.S. markets and expand interprovincial and global trade opportunities will help manufacturers access new customers and mitigate tariff-related risks.
The province’s leadership in removing interprovincial trade barriers and improving labour mobility further strengthens Canada’s internal market — an area CTMA has consistently championed.
Reduced Red Tape & Faster Project Approvals
Streamlined permitting processes and the “One Project, One Process” framework will accelerate major industrial and resource development projects.
Reducing administrative burden has long been a key CTMA priority, enabling manufacturers to focus on growth, investment, and job creation.
Workforce Development & Skilled Trades Pipeline
Continued investments in post-secondary education, skills training, and labour mobility will help address one of the industry’s most pressing challenges: access to skilled workers.
New labour mobility measures will make it easier for employers to recruit talent from across Canada and respond more quickly to workforce needs.
Energy & Infrastructure as a Competitive Advantage
Ontario’s significant investments in energy infrastructure, including nuclear expansion, position the province as a reliable, long-term destination for advanced manufacturing.
Combined with historic infrastructure investments, these initiatives will generate demand across the manufacturing supply chain while ensuring businesses have access to stable, affordable energy — an essential competitive advantage.
Access to Capital & Business Supports
Programs such as the Protect Ontario Financing Program and Ontario Together Trade Fund, along with liquidity measures introduced during recent tariff pressures, provide critical access to capital for small and medium-sized manufacturers.
These supports enable CTMA members to invest in equipment, scale operations, and navigate economic uncertainty with greater confidence.
Supporting Industry Resilience
The province’s response to recent tariff challenges — including nearly $30 billion in relief and support for businesses — demonstrates a strong commitment to protecting Ontario manufacturers and strengthening supply chain resilience.
These actions go beyond short-term relief, helping to build a more self-reliant and competitive economy over the long term.
A Strong Foundation for the Future
“These measures are what we need to stay competitive, and are similar to practices adopted by the U.S.,” said Robert Cattle, CTMA’s executive director. “By cutting our tax rate and having the ability to depreciate the cost of purchasing new machinery and equipment rapidly, will accelerate investment by CTMA members and keep them up to date with the latest advances in technology.”
As Ontario continues to position itself as a leader in advanced manufacturing, CTMA remains committed to working collaboratively with government and industry partners to ensure members can fully leverage these opportunities.
The full budget is available here.