September 27, 2026 to October 03, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning most types of manufacturing activities (except agricultural, automotive, aerospace, food, and pharmaceutical), e.g. textile and apparel, chemical, electronics, wood and paper, metals, plastics and rubber, packaging, and machining. Once a week, we break down the most important updates in this space in under five minutes.

Want to track the upstream and downstream forces affecting Manufacturing? Don’t miss this week’s updates in Mining and Oil & Gas. Also consider subscribing to our Manufacturing - Washington edition covering critical GR news south of the border.

📋 In This Week's Newsletter

• 🏛️ This Week's Parliamentary Calendar
• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 💬 Government Consultations
• 📚 What We're Reading This Week

This Week's Parliamentary Calendar

• Finance Committee to Study Budget Implementation and Federal Fuel Excise Tax Relief: On October 5, the Standing Committee on Finance will meet from 3:30 p.m. to 7:30 p.m. to examine Bill C-31, provisions of the 2025 budget, and Bill C-38 on the extension of the federal fuel excise tax relief, with testimony from the Minister of Finance and departmental witnesses.
• Finance Committee to Discuss Budget Implementation with Industry Stakeholders: The Standing Committee on Finance meets October 6, 11:00 a.m. to 1:00 p.m., featuring Canadian Manufacturers & Exporters, Aerospace Industries Association of Canada, and CropLife Canada as witnesses for Bill C-31.
• HUMA Committee Reviews Trades and Labour Mobility Framework: On October 6, from 11:00 a.m. to 1:00 p.m., the Human Resources, Skills and Social Development and the Status of Persons with Disabilities Committee will study Bill C-266 pertaining to skilled trades and labour mobility, hearing from representatives including Canada's Building Trades Unions and the Heating, Refrigeration and Air-Conditioning Institute of Canada.
• Natural Resources Committee Examines Electrification and Energy Security: On October 5, the Standing Committee on Natural Resources will host stakeholders including the Canadian Association of Petroleum Producers and Manitoba Hydro to discuss Canada’s electrification and domestic energy security, 11:00 a.m. to 1:00 p.m.
• Environment and Sustainable Development Committee to Review Retrofits for Home Energy Efficiency: The Environment and Sustainable Development Committee (ENVI) will meet October 6, 3:30 p.m. to 5:30 p.m., receiving presentations from JD Composites, The Atmospheric Fund, and others on retrofits for home energy efficiency.

Federal Government News

Productivity Mega Deduction Reshapes Canadian Business Tax Landscape

On October 2, Minister Heath MacDonald (Agriculture and Agri-Food) visited Allan Equipment Manufacturing Ltd. in Charlottetown, Prince Edward Island, to announce the rollout of the Productivity Mega Deduction. This initiative allows businesses to immediately deduct the full cost of over 65% of asset classes, a substantial increase from the previous 15%. Eligible deductions span fibre-optic cable, greenhouses, mining properties, software, computer equipment, research and development, vehicles, patents, rail track, and more. The policy move reduces Canada’s marginal effective tax rate on new business investment from 13% to 6.4%, now lower than the United States. The government states that immediate expensing will become permanent, providing long-term investment certainty. The deduction is part of a broader strategy for positioning Canada as a preferred site for industrial investment, with specific mention of benefits for the manufacturing, mining, and advanced equipment sectors.

Sources: www.canada.ca

Nearly $26 Million in Tariff Response Funding Deployed to GTA Manufacturers

On October 2, Minister Evan Solomon (Artificial Intelligence and Digital Innovation; FedDev Ontario) and Treasury Board President Shafqat Ali announced $26 million in investments supporting 31 businesses and organizations across the Greater Toronto Area, distributed via the Regional Tariff Response Initiative (RTRI). Daybar Industries Limited in Brampton will receive a $700,000 share to expand its steel door and frame production as part of a $12-million project. The RTRI is being enhanced with a $1.5 billion tranche for supporting Canadian businesses dealing with tariff pressures, further enabling tech adoption, production scaling, supply chain strengthening, and entry into new markets. Recipients plan technology upgrades and operational expansions to reinforce competitiveness under ongoing tariff uncertainty.

Sources: www.canada.ca

Canada Invests $6.9M to Assist P.E.I. Businesses Facing U.S. Tariff Pressures

The Atlantic Canada Opportunities Agency (ACOA) has allocated more than $6.9 million to 17 Prince Edward Island companies as part of national support connected to U.S. tariffs. PEI Bag Co. received more than $260,000 for new production equipment designed to increase efficiency and expand market reach. Funds come from the RTRI, which the government expanded by $1.5 billion alongside other new measures for businesses adjusting to U.S. trade actions. Local manufacturers report investments in digital upgrades, production line automation, and supply chain resilience. The funds aim to help businesses reposition their supply chains and adapt their strategies in an evolving trade environment.

Sources: www.canada.ca

CITT Initiates Expiry Review of Anti-Dumping Duties on Small Power Transformers

On October 1, the Canadian International Trade Tribunal (CITT) initiated expiry review RR-2026-007 concerning anti-dumping measures on small power transformers imported from Chinese Taipei and South Korea. The Canada Border Services Agency will assess by February 26, 2027, whether the removal of existing duties could lead to resumed or continued dumping, which the Tribunal will follow with an August 2027 assessment on potential injury to the domestic industry. Stakeholders—including domestic manufacturers and importers—may file a Notice of Participation to engage in the proceedings. The review outcome may alter import conditions for specialized electrical equipment manufacturers, and future tariff decisions could impact sector cost structures.

Sources: www.canada.ca

Canadian Centre for Occupational Health and Safety Updates National Forum Program

The Canadian Centre for Occupational Health and Safety has finalized its speaker lineup and session content for Forum 2026: The Changing World of Work, to convene October 28–29 in St. John’s, NL. New sessions include industry-specific presentations on emerging ergonomics technologies, applications of socio-technical science for safety assurance, evolving occupational health and safety statistics, and risk mitigation for musculoskeletal disorders. The Innovation Showcase will feature initiatives from organizations such as Newfoundland and Labrador Construction Safety Association and the Mental Health Commission of Canada. Several industry leaders and academic experts will address health and safety implications for advanced manufacturing workplaces, supply chain safety, and workforce management.

Sources: www.canada.ca

Minister Sidhu Engages Global Partners at G20 Trade and Steel Excess Capacity Meetings

Minister of International Trade Maninder Sidhu attended the G20 Trade Ministers’ Meeting in Milwaukee, focusing on ongoing global supply chain resilience, the weaponization of food through trade actions, forced labour eradication, and structural excess capacity in production—especially steel. During the event and on its margins, Sidhu affirmed Canada’s intent to intensify collaboration with major partners including the United States, European Union, and Japan. As part of the Global Forum on Steel Excess Capacity, Canada reiterated support for countering excess steel capacity, a recurring topic for Canadian steel, machinery, and equipment manufacturing businesses with cross-border operations.

Sources: www.canada.ca

Machinery and Equipment Price Index, July 2026

Statistics Canada released the Machinery and Equipment Price Index (base year 2016) for July 2026. Manufacturers and capital-intensive firms may use these updated figures to benchmark procurement and equipment strategies. The dataset presents price trajectories for a range of capital equipment classes, including imported and domestically produced assets. The data set does not indicate significant month-over-month volatility, serving as a reference for input cost tracking.

Sources: www.statcan.gc.ca

Commercial and Industrial Machinery Rental and Leasing Services Price Update

StatsCan published new second-quarter 2026 data for the Commercial and Industrial Machinery and Equipment Rental and Leasing Services Price Index (base year 2020). Index figures support manufacturers and commercial operators in evaluating cost trends for leasing essential capital equipment. Large-scale projects, plant expansions, and production upgrades may track rental and leasing rates for budgeting and operational planning.

Sources: www.statcan.gc.ca

Industrial R&D Expenditures Dataset—2024 Actuals through 2026 Intentions

Statistics Canada published its updated Annual Survey of Research and Development in Canadian Industry (RDCI) for 2024 (actual expenditures), 2025 (preliminary estimates), and 2026 (intentions). This dataset tracks R&D spending patterns for advanced materials, chemical process innovation, equipment upgrades, and IP-related expenditures across Canada. Manufacturers in chemical, materials, and advanced technology sectors can analyze sector-level R&D investment trends to inform competitive positioning.

Sources: www.statcan.gc.ca

Canadian GDP by Industry—July 2026 Update

Real gross domestic product by industry remained essentially unchanged in July 2026 following three consecutive months of expansion, according to Statistics Canada's latest release. Manufacturing output, as tracked by this series, remained steady through the period, helping maintain broad macroeconomic stability for sector stakeholders.

Sources: www.statcan.gc.ca

Primary Energy Production Increases in July 2026

Statistics Canada’s Energy Statistics for July report a 2.7% year-over-year increase in total primary energy production, reaching 2.1 million gigajoules. Five out of six tracked subsectors contributed to this growth. These gains have implications for manufacturers reliant on stable energy supply, and can affect cost planning for energy-intensive processes in chemicals, materials, and heavy industry.

Sources: www.statcan.gc.ca

StatsCan to Launch Transportation Services and Supply Chain Price Indices

Statistics Canada announced the development of two new tools, the Transportation Services Index and the Supply Chain Services Prices Index, to be published starting October 19, 2026. These indices will allow manufacturers and supply chain managers to monitor changes in transportation volumes and logistics costs, supporting more refined analysis of price pressures and inflationary effects within the industrial sector.

Sources: www.statcan.gc.ca

Provincial Government News

Cement Manufacturer Fined $475,000 Following Worker Fatality at Bowmanville Plant

St. Marys Cement Inc. (Canada) was fined $475,000 after a millwright apprentice died during annual maintenance at the Bowmanville cement plant in March 2023. The court found the company failed to install required blocking to prevent the movement of equipment, violating Ontario's health and safety regulations.

Sources: news.ontario.ca

Greenhouse Operator and Director Fined $360,000 for Multiple Environmental Offenses

AMCO Farms Inc. and director Fausto Amicone were fined a combined $360,000 for exceeding water taking limits and phosphorus limits at their Leamington, Ontario greenhouse with offenses between 2022 and 2024. The penalties include both corporate and individual fines.

Sources: news.ontario.ca

Ontario Government Expands Support to Sectors Hit by New U.S. Import Bans

Ontario expanded eligibility under the Protect Ontario Financing Program (POFP) and Ontario Together Trade Fund to alcohol, dairy, and motorcycle sectors in response to new U.S. import bans. Financial support also continues for businesses impacted by previous tariffs on steel, aluminum, and other goods.

Sources: news.ontario.ca

Rain Carbon Canada Fined $200,000 for Failure to Report Environmental Discharge

Rain Carbon Canada Inc. was fined $200,000 for failing to immediately report high benzene emissions detected by Ontario Ministry of the Environment in October 2023 at its Hamilton facility. The company operates as a subsidiary of Rain Industries Ltd.

Sources: news.ontario.ca

Alberta to Increase Penalties for Illegal Dumping and Strengthen Waste Facility Oversight

Alberta’s government announced plans to introduce legislation that would raise fines for illegal dumping up to $1 million for corporations and establish new oversight requirements for high-risk waste storage facilities.

Sources: www.alberta.ca

Government Consultations

Consultation on Fenamidone Re-evaluation Decision Opens

Health Canada launched a consultation on the proposed re-evaluation decision for fenamidone, a fungicide used in multiple field and specialty crops. The consultation opened September 29 and is accepting comments until December 28, 2026.

Sources: www.canada.ca

What We're Reading This Week

• Over 1,000 students explore manufacturing careers on special day: Thousands of students in Windsor participated in events aimed at introducing them to manufacturing sector opportunities.

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