Canadian processors may benefit from tax incentives

By Michael Lauzon
Correspondent

Published: March 22, 2013 2:24 pm ET
Updated: March 22, 2013 2:27 pm ET

Related to this story

Topics Machinery, Government & Legislation
Companies & Associations Engel Holding GmbH

TORONTO -- Canada's extension of its accelerated capital cost allowance write-off might help with plastics machinery purchases but it's not a slam dunk, machinery suppliers said in March 22 interviews.

Canada's new budget released by Federal Finance Minister Jim Flaherty on March 21 will extend accelerated writeoffs for machinery and equipment for another two years. Flaherty estimated the program over the last four years cost about C$1.4 billion (US$1.37 billion) in foregone federal revenues. The feds introduced the program in 2007.

Flaherty said more than 25,000 manufacturers in Canada have taken advantage of the writeoff program.

"It won't hurt but it won't accelerate anything," said Engel Canada Inc. General Manager Steve Elliot in a telephone interview from Engel Canada's head office in Guelph, Ontario. "People buy machinery because they need it."

Elliot explained tax incentives are not usually enough to entice investment in machinery. Machine sales have improved in the current economy because customers are making more parts, a reflection of recovery in the general economy.

Glen Billinger, owner of machinery and equipment distributor Plastics Machinery Inc. of Newmarket, Ontario, said accelerated writeoffs could be a help. Other aspects of the budget could benefit the industry if conditions are right.

Ottawa is reforming its training budget to stress trades skills, which are in short supply in Canada. Billinger said that could help the plastics sector but for it to work there has to be a stronger industry ready to hire skilled workers.

Billinger said a notable part of the budget calls for higher tariffs on imports from more than 70 countries, including China, which have had favorable import duties under the General Preferential Tariff. Billinger said the tariffs will help level the playing field for Canadian firms against low-wage areas like China.

Canada's new budget overall focus is on holding spending in line and capitalizing on a growing economy to cut the country's deficit to zero in 2015. The federal deficit now is C$25.9 billion (US$25.25 billion).


Comments

Canadian processors may benefit from tax incentives

By Michael Lauzon
Correspondent

Published: March 22, 2013 2:24 pm ET
Updated: March 22, 2013 2:27 pm ET

Post Your Comments


Back to story


More stories

Image

Hewlett-Packard jumping into the booming business of 3-D printing

October 30, 2014 2:26 pm ET

The world of 3-D printing has a new player — and it's a major name from the world of office printers: Hewlett-Packard Co.    More

Image

Five-axis flexibility paying off for Sepro and its customers

October 29, 2014 1:47 pm ET

French robot maker Sepro Robotique expects to generate 78 million euros ($99 million) in 2014 sales — 17 percent more than 2013 — as...    More

Image

KraussMaffei thinking small (machines)

October 27, 2014 6:00 am ET

KraussMaffei Technologies GmbH is targeting small-tonnage machines at Fakuma — including the rollout of its reworked CX press, boasting lower...    More

Image

Milacron features multi-brand integration

October 27, 2014 1:36 pm ET

Fakuma 2014 gave Milacron LLC an ideal opportunity to show how its ever-growing portfolio of brands are working together in the injection molding...    More

Image

Automation firms join forces, look to automotive for future growth

October 24, 2014 2:43 pm ET

Hoping to ease the way for automation in some specialized areas of automotive plastics like laser cutting of door panels, a German robot maker and an ...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events