On Tuesday, more than 20 equipment manufacturing leaders from across Canada returned to Parliament Hill for AEM’s 2026 Ottawa Hill Day. The event saw attendees participate in more than 25 meetings with ministers, Members of Parliament, and other policymakers to discuss the state of the industry and advance solutions to Canada’s trade, workforce, and infrastructure challenges.
With ongoing trade uncertainty and rising costs, participants urged policymakers to strengthen manufacturing competitiveness, unlock investment, and future-proof Canada’s economy.
Marking the association’s third Ottawa Hill Day, the event helped ensure that the industry’s priorities were heard directly by policymakers and presented a unified case for policies that support investment, innovation, and a more resilient Canadian economy. Participants also highlighted the industry’s significant national footprint. In 2025, Canadian equipment manufacturing generated $54 billion in total output, contributed $24 billion to GDP, and supported 147,000 jobs across the country.
“Escalating trade tensions and rising costs are placing significant strain on Canadian equipment manufacturers, their workers, and the communities they call home,” said Alexandre Mattard-Michaud, AEM’s director of government relations, Canada. “We were encouraged by our conversations with federal policymakers and look forward to continued dialogue on how to help Canada’s industrial base navigate trade disruption, unlock new business opportunities, and reinforce the country’s manufacturing advantage on the global stage.”
The Hill Day came as the federal government prepares its fall 2026 budget following the conclusion of pre-budget consultations. In its budget submission, AEM call on policymakers to provide responsive relief for tariff-impacted businesses, strengthen Canada’s skilled-trades pipeline, support innovation and capital investment, and improve trade competitiveness through modern infrastructure, streamlined regulation, and a renewed 16-year extension of CUSMA. The Hill Day also followed the recent announcement of the Productivity Mega Deduction, which makes immediate expensing permanent and expands the range of capital investment eligible for accelerated write-offs, including manufacturing equipment.
“Manufacturers need a clear, predictable policy environment to keep investing in Canada, developing technology, and supporting the workers building our future,” said Yannick Montagano, President of Kubota Canada and Chair of AEM’s Canadian Advocacy Working Group. “Fair trade rules, a skilled workforce, and reliable infrastructure are connected priorities. Progress on each can provide much-needed certainty for our businesses and the industries that rely on our equipment.”
AEM’s 2026 policy asks included:
- Strengthening Equipment Manufacturing in Canada: Executives urged the government to consult closely with manufacturers on trade policy, preserve and strengthen CUSMA, and maintain flexibility on retaliatory tariffs. They also called for timely duty remission, including relief for inputs that cannot be sourced competitively outside the U.S.; industry education on the remission process; and continued support for EDC’s Trade Impact Program to help exporters manage costs and diversify into new markets.
- Supporting Workforce Development to Protect Safety and Foster Innovation: Equipment manufacturers highlighted significant workforce shortages and called for greater investment in training programs for the skilled technicians needed to service increasingly sophisticated off-road equipment. Priorities include ensuring Team Canada Strong addresses industry needs, engaging manufacturers in the Advanced Manufacturing Workforce Alliance and the planned Housing & Construction Workforce Alliance, and supporting industry-led training solutions that government can help scale.
- Investing in Rural Broadband and Precision Agriculture: Equipment manufacturers called for continued investment in rural broadband and expanded support through the Sustainable Canadian Agricultural Partnership, Agricultural Clean Technology, and AgriInnovate programs. Participants highlighted precision agriculture’s role in improving yields and sustaining rural economies, and the importance of connectivity as automated equipment is increasingly used in agriculture, mining, and forestry.
- Modernizing Canada’s Trade-Enabling Infrastructure: Equipment manufacturers urged the government to fully utilize the $5-billion Trade Diversification Corridors Fund to strengthen corridors, ports, and rail lines; expedite federal and provincial permitting for nationally significant projects; and prioritize critical-minerals development and nation-building infrastructure. Participants also offered to contribute industry expertise as government develops major project, trade, and transportation legislation.
- Streamlining Regulatory Compliance to Improve Competitiveness: Equipment manufacturers called for coordinated action with provinces and territories to reduce unnecessary regulatory burdens, clear service standards for permitting and project reviews, and outcome-based, technologically neutral requirements developed in consultation with industry. Strong safety, environmental, and labour protections remain essential, alongside approvals that are more efficient, predictable, and timely.
To learn more about AEM’s Canadian advocacy efforts, please contact AEM’s director of government relations in Canada, Alexandre Mattard-Michaud, at amattard-michaud@aem.org.
