Latest news with #OntarioTogetherTradeFund
Global News
3 days ago
- Automotive
- Global News
Ontario should rejig supports for small auto businesses in wake of tariffs, CFIB says
Ontario should rejig its programs meant to support auto businesses through the impact of tariffs and associated economic uncertainty, as the way they're currently structured is leaving small businesses in the lurch, an advocacy group says in a new report. The Canadian Federation of Independent Business released a report Wednesday based on a survey of 187 small-to-medium-sized businesses in the automotive sector, from parts suppliers to repair shops, and found that tariffs are already having an impact. Their revenue has declined by 13 per cent, on average, and half of them reported that they have paused or cancelled investments due to uncertainty caused by the Canada-U.S. trade war, which could lead to billions in lost revenue or missed investments, the report said. 'It's impossible for a business owner to really know what's going on these days,' Joseph Falzata, co-author of the report and policy analyst with CFIB Ontario, said of the whiplash trade policy news. Story continues below advertisement 'I do this as my full-time job, and it's always difficult for myself. So you can only imagine a business owner who's working 50, 60 hours a week trying to keep track of things.' Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Their revenue is taking a hit in part because they are paying higher prices and there is confusion about which products are affected by tariffs, as well as due to costs associated with seeking out new supply chains, Falzata said. Ontario has programs meant to help shore up businesses in the automotive sector, but while appreciated, they're missing the mark when it comes to supporting smaller businesses, the CFIB report says. In its spring budget the provincial government said it was putting $85 million into two programs: the Ontario Automobile Modernization Program to help parts suppliers upgrade equipment and the Ontario Vehicle Innovation Network for research and development. 'Though these programs have been created with good intentions, few small businesses plan to use them, and over a third of them are ineligible,' the CFIB report says. 'The programs focus on R&D innovation and large-scale manufacturing, while disregarding the reality that most automotive (small and medium businesses) either cannot afford or are not involved in these processes.' A new $50-million Ontario Together Trade Fund meant to help businesses develop new markets and find domestic supply chains, requires businesses to show a revenue loss of at least 30 per cent and requires them to put up $200,000 of their own capital, which the report calls 'a luxury most (small and medium businesses) cannot afford.' Story continues below advertisement The government said its programs have already helped hundreds of businesses, with the Ontario Vehicle Innovation Network supporting more than 600 small and medium businesses since its inception in 2019 and the Ontario Automotive Modernization Program has supported 215 projects since 2021. 'In the face of unprecedented global economic uncertainty, our government is protecting and building on the progress we have made to champion small businesses in the auto sector and across the economy,' Jennifer Cunliffe, a spokesperson for Economic Development Minister Vic Fedeli, wrote in a statement. The best way to help small businesses would be to lower the small business tax rate from 3.2 per cent to two per cent, the CFIB said. The government lowered the rate from 3.5 per cent in 2020.
CTV News
3 days ago
- Automotive
- CTV News
Ontario should rejig supports for small auto businesses in wake of tariffs, CFIB says
Employees work on the production line at the Martinrea auto parts manufacturing plant in Woodbridge, Ontario on Feb. 3, 2025. The site supplies auto parts to both the Canadian and U.S. auto plants. THE CANADIAN PRESS/Chris Young TORONTO — Ontario should rejig its programs meant to support auto businesses through the impact of tariffs and associated economic uncertainty, as the way they're currently structured is leaving small businesses in the lurch, an advocacy group says in a new report. The Canadian Federation of Independent Business released a report Wednesday based on a survey of 187 small-to-medium-sized businesses in the automotive sector, from parts suppliers to repair shops, and found that tariffs are already having an impact. Their revenue has declined by 13 per cent, on average, and half of them reported that they have paused or cancelled investments due to uncertainty caused by the Canada-U.S. trade war, which could lead to billions in lost revenue or missed investments, the report said. 'It's impossible for a business owner to really know what's going on these days,' Joseph Falzata, co-author of the report and policy analyst with CFIB Ontario, said of the whiplash trade policy news. 'I do this as my full-time job, and it's always difficult for myself. So you can only imagine a business owner who's working 50, 60 hours a week trying to keep track of things.' Their revenue is taking a hit in part because they are paying higher prices and there is confusion about which products are affected by tariffs, as well as due to costs associated with seeking out new supply chains, Falzata said. Ontario has programs meant to help shore up businesses in the automotive sector, but while appreciated, they're missing the mark when it comes to supporting smaller businesses, the CFIB report says. In its spring budget the provincial government said it was putting $85 million into two programs: the Ontario Automobile Modernization Program to help parts suppliers upgrade equipment and the Ontario Vehicle Innovation Network for research and development. 'Though these programs have been created with good intentions, few small businesses plan to use them, and over a third of them are ineligible,' the CFIB report says. 'The programs focus on R&D innovation and large-scale manufacturing, while disregarding the reality that most automotive (small and medium businesses) either cannot afford or are not involved in these processes.' A new $50-million Ontario Together Trade Fund meant to help businesses develop new markets and find domestic supply chains, requires businesses to show a revenue loss of at least 30 per cent and requires them to put up $200,000 of their own capital, which the report calls 'a luxury most (small and medium businesses) cannot afford.' The government said its programs have already helped hundreds of businesses, with the Ontario Vehicle Innovation Network supporting more than 600 small and medium businesses since its inception in 2019 and the Ontario Automotive Modernization Program has supported 215 projects since 2021. 'In the face of unprecedented global economic uncertainty, our government is protecting and building on the progress we have made to champion small businesses in the auto sector and across the economy,' Jennifer Cunliffe, a spokesperson for Economic Development Minister Vic Fedeli, wrote in a statement. The best way to help small businesses would be to lower the small business tax rate from 3.2 per cent to two per cent, the CFIB said. The government lowered the rate from 3.5 per cent in 2020. This report by The Canadian Press was first published July 16, 2025. Allison Jones, The Canadian Press
Cision Canada
16-05-2025
- Business
- Cision Canada
CME STATEMENT ON SUPPORTS FOR ONTARIO MANUFACTURERS IN 2025 BUDGET
TORONTO, May 16, 2025 /CNW/ - Canadian Manufacturers & Exporters (CME) applauds the Government of Ontario for taking decisive action in its 2025 budget to support manufacturers as they face historic challenges created by U.S. tariffs. The province's bold response - through expanded financial support and strategic investment - recognizes the critical role manufacturing plays in Ontario's economy and its future. A key pre-budget ask from CME, the enhancement of the Ontario Made Manufacturing Investment Tax Credit – which raises the credit rate from 10% to 15% and expands eligibility to include non-Canadian-controlled private corporations – along with the introduction of the Ontario Together Trade Fund, represent a timely and targeted approach to help manufacturers invest. "These flexible incentives and grants will help businesses buy crucial equipment and tools when they need it most, supporting their pivot to new opportunities," said Dennis Darby, President and CEO of CME. CME also welcomes the creation of the Trade Impacted Communities Program, which will equip ecosystem partners as they seek to create supportive business conditions and safeguard the manufacturing jobs Ontarians rely on. As highlighted in CME's latest report, Keep Calm and Keep Training, workforce development remains an urgent priority for the manufacturing sector. CME commends the province for its continued commitment to building a stronger workforce, including a $1 billion boost to the Skills Development Fund for industry, and $750 million in funding for STEM programs at post-secondary institutions. "These historic commitments mark a turning point. By working together, we can build on Ontario's strong industrial foundation to usher in an Ontario Made economic revolution - one that champions homegrown innovation, drives global competitiveness, and secures long-term prosperity for all Ontarians," concluded Darby. ABOUT CANADIAN MANUFACTURERS & EXPORTERS (CME) Since 1871, CME has made a difference for Canada's manufacturing and exporting communities. Fighting for their future. Saving them money. Helping manufacturers grow. The association directly represents manufacturers large and small, across all subsectors, from automotive, aerospace and food to the materials, technology and energy that support them. More than 85 percent of CME's members are small and medium-sized enterprises. CME's membership network accounts for an estimated 82 percent of total manufacturing production and 90 percent of Canada's exports.
