Mississauga, Ontario – The FedDev Ontario Minister Gary Goodyear, along with MP for Mississauga-Streetsville Brad Butt and MP for Mississauga South Stella Ambler, announced an important investment that will accelerate the development and commercialization of new, first-in-Canada medical devices to be used by physicians during heart procedures.
Baylis Medical, a manufacturer and distributor of medical devices, will receive a $15.2 million repayable contribution under FedDev Ontario's Advanced Manufacturing Fund.
The Government of Canada's investment will allow Baylis to commercialize and manufacture three new medical device product lines and improve productivity for in-house manufacturing. This will enhance Baylis' global competitiveness and strengthen Ontario's medical device cluster.
This project will lead to the development of transformative products and first-in-Canada technologies to help Ontario manufacturers create high quality, highly-skilled jobs and compete globally.
Quick facts
The manufacturing sector is a major contributor to Canada's economy, employing more than 1.7 million Canadians, of which nearly 750,000 live in Ontario. It also accounts for half of the business R&D in Canada and generated sales of $621.7 billion in 2014, including $286.6 billion in sales for Ontario.
Nearly 80,000 manufacturing establishments exist across the country with more than 32,000 manufacturing establishments exist in southern Ontario.
The Harper Government has provided 1.4 billion dollars or tax relief to the manufacturing sector and total business tax costs in Canada are now the lowest in the G7.
Baylis Medical Company is expected to create 30 research and development jobs and 60 manufacturing jobs at the company's facilities in Mississauga, Ontario. This is in addition to new jobs created through the company's Canadian supply chain.
The Government of Canada officially launched the AMF in Ontario to support manufacturers as they work to increase competitiveness, invest in innovation and boost productivity across the province. The AMF is delivered by FedDev Ontario with an allocation of $200 million over five years.
Additional investment
In addition to the medical investment, The Government of Canada has eliminated all remaining tariffs on machinery, equipment and inputs such as screws, electric motors and pipe fittings for industrial manufacturing. This measure will benefit Canadian businesses by lowering the cost of imports used to produce manufactured goods, making Canada a more attractive place to do business. When the tariff elimination measure was first announced in Budget 2010, the Government estimated that it could create 12,000 jobs across Canada.
Since 2009, more than 1,800 tariffs have been eliminated in the industrial manufacturing sector. This announcement will specifically benefit small and medium-sized businesses that rely on global supply chains and are looking to diversify their export markets. These changes will provide $450 million in annual tax relief for Canadian manufacturers.
Having access to global trade opportunities is an important source of competitive strength for Canadian businesses. Eliminating tariffs reduces import costs, allowing businesses to enhance their stock of equipment and improve their access to domestic and foreign markets.
Quick facts
Canada is the first G20 nation to eliminate all tariffs on machinery, equipment, and inputs used in the industrial manufacturing sector.
Manufacturing companies invested $14.7 billion in the Canadian economy in 2014.
The manufacturing industry has become a high-tech, high-skill economic engine that represents 10.7% of Canada's GDP and directly employs close to 1.7 million Canadians, almost all of them in full-time, well-paying jobs.
Economic Action Plan 2013 extended the accelerated capital cost allowance (ACCA) for investments in machinery and equipment used in manufacturing and processing. More than 25,000 businesses have taken advantage of the ACCA since its introduction in 2007.
Manufacturers are also benefiting from Canada's lower federal general corporate income tax rate (15%), which was more than 22% in 2007. According to KPMG, total business tax costs in Canada are the lowest in the G7 and 46% lower than those in the United States.
Source: FedDev Ontario