Nearly a third of Canadian small businesses expect their capital investments to decrease over the next two years, according to a new report from the Canadian Federation of Independent Business (CFIB). In addition, only two in five are making investments to improve their productivity.
Over the past decade, business investment in machinery and equipment declined by 16 percent, equivalent to $1,178 less per private sector worker. The CFIB reports that this has exacerbated challenges to Canada’s productivity, which already lags behind most G7 countries.
Sixty-nine percent of businesses said equipment costs are deterring them from investing in capital. In comparison, 56 percent reported they have reduced capital investment due to the high cost of doing business.
Sarah McGoldrick
