Government funding programs support a broad range of sectors from agriculture to health care. However, we often get the question, “Are there Canadian government funding programs specifically that support manufacturing companies?”
The answer to this question is yes, there are many government funding programs available for Canadian manufacturing companies.
Canada is well known as a leader in the global manufacturing industry with total exports amounting to over $371 billion in 2020. Much of Canada’s exporting is made up of manufactured goods such as cars and motor vehicle parts, which accounted for over $40 billion in 2020. With such a huge contribution to Canada’s economy, it is no surprise that all levels of Canadian government offer funding initiatives to grow this sector.
Government funding programs provide significant grants, loans, or tax credit opportunities for Canadian business activities . Funding programs often support projects under these four main funding activities:
- Hiring & training;
- Research & development;
- Capital & technology adoption; and
- Business expansion.
Many funding programs favour industrial and manufacturing companies because product design, research, development, and production enhancement projects are likely to lead to spin-off benefits throughout the Canadian economy. Manufacturers can start the government funding process by searching for funding by project type.
Companies in the manufacturing sector commonly face specific difficulties. This article will review at these challenges and how government funding can be leveraged to address these hurdles.
Common Challenges Facing the Manufacturing Sector
The Canadian economy is currently facing many challenges , most of which directly impede the manufacturing sector and manufacturing business across the nation. Some common concerns in 2023 include workforce challenges, skills gaps, and losses in efficiency.
Handling Workplace Shortages
A common issue in the manufacturing sector is difficulty finding workers to fill vacancies. This significant issue has cost the Canadian economy approximately $13 billion. Addressing this challenge is a key focus for Canadian manufacturing businesses. To provide relief for onboarding costs associated with hiring new staff, government funding programs are available for hiring activities.
Addressing Skills Gaps
Not only do manufacturing companies struggle to find new employees but they are also experiencing challenges training current employees to adapt skills to new technologies and systems often seen in today’s facilities. To address these issues, there are also funding programs for training and upskilling employees.
Fixing Efficiency Issues
Productivity is critical to the success of manufacturing businesses in Canada. However, many facilities often run with lower efficiency than desirable. To address this issue, many organizations have begun turning to new system approaches – the primary one being a lean manufacturing model. You can learn more about this model via this comprehensive article, Lean Manufacturing in 2023: A General Review.
Get Started on Your Government Funding Journey
More government funding is available to manufacturers in Canada than any other sector, and they can apply for a wide range of grants and loans to offset the costs associated with strategic growth projects that overcome these common manufacturing sector challenges. Making sure that your upcoming projects are aligned with manufacturing grants and loans is the first step to building a successful funding plan.
Canadian manufacturers can benefit from partnering with Mentor Works. We offer our clients exclusive access to our resources and notify them when new programs are available that are a good match for their business. Contact us today to learn how to access funding for your upcoming growth projects.
A holistic funding plan that combines not just grants, but also loans and tax incentives, will ensure a 360-degree funding coverage during your project’s lifespan, ensuring maximum benefit.
Visit our article on top government funding grants and loans for Canadian manufacturers for information on the top government funding grants and loans.
Because of the high number of potential government funding programs available to manufacturers, we advise contacting Mentor Works, a Ryan Company, to build a customized funding strategy aligned with your business’ upcoming growth opportunities.