*Excerpted from IBISWorld, by Nick Petrillo
I thought the article below by Nick Petrillo from IBISWorld would be of interest to a number of businesses looking for opportunities in 2016.
“On October 19, 2015, Canada’s Liberal Party and its leader Justin Trudeau secured a majority government in one of the largest political shifts in the country’s history, which brought Conservative leader Stephen Harper’s nearly 10-year term to a close. The newly-elected Prime Minister’s campaign includes an extensive economic platform, substantial increases in federal funding for many sectors of the Canadian economy and forward-looking strategies that may have significant implications for 10 key industries.
Public Transportation in Canada
The population densities of Canada’s major metropolitan areas have put increasing strain on municipal public transportation systems. Over the next decade, the Liberal Party aims to quadruple federal investment in public transportation by investing an additional $20.0 billion toward maintaining, improving and expanding transportation infrastructure and increasing service frequency to keep up with escalating ridership.
Music Publishing in Canada
Along with pre-existing Canadian Radio-television and Telecommunications Commission requirements designed to preserve and strengthen Canada’s cultural identity, a target annual investment of $360.0 million will be budgeted for the Canada Council for the Arts. This represents a 100.0% increase in funding for the Council and is intended to assist local artists, particularly musicians, who seek adequate space to rehearse, produce and publish their work.
Apartment Rental in Canada
Gradual increases in the unemployment rate have reduced overall spending and limited Canadians’ interest in homeownership. In response, the Liberal Party plans to eliminate the goods and services tax on new capital investments in affordable rental housing. The Party’s economic outlook estimates that this will result in $125.0 million per year in tax incentives to help improve and maintain Canada’s supply of rental housing, which will likely experience significant spikes in consumer demand over the next five years
Wind Turbine Manufacturing in Canada
Canada’s renewable energy manufacturing industries are expected to significantly benefit from Prime Minister Trudeau’s commitment to federal clean energy funding. The Prime Minister intends to invest an additional $100.0 million annually toward producers of clean energy. Wind turbine manufacturers currently receive significant industry assistance from numerous provincial and federal government plans and allotments, including the Accelerated Capital Cost Allowance Act, the Scientific Research and Experimental Development Program and Ontario’s Long-Term Energy Plan.
Movie, Television and Video Production in Canada
A proposed $25.0 million increase in funding for Telefilm Canada and the National Film Board per year will represent a significant boost in industry assistance for the Movie, Television and Video Production industry, which has struggled with intense competition from foreign producers over the past five years, growing a slim 1.7% in 2015.
Waste Treatment and Disposal Services in Canada
Municipal waste treatment and disposal services are allocated provincial and federal funds, but often the federal budget for these services is left unspent. The Liberal platform includes the automatic transfer of unspent federal funding for municipal services to the federal Gas Tax Fund, from which municipalities may withdraw to support pressing local infrastructure needs. For example, Norris Arm, NL used Gas Tax funding to build a waste management facility to support more than 100 communities.
Sawmills and Wood Production in Canada
Alongside the federal government’s increased investments toward renewable energy, an additional $200.0 million per year will be pledged to support transitions to clean technologies within Canada’s natural resource sectors. The Sawmills and Wood Production industry shipped an estimated $9.6 billion in timber products over 2015. Transitioning to renewable energy can create significant cost savings for the industry’s largest players; industry leader Canfor Corporation took advantage of these incentives with the purchase of a biomass power plant in 2011.
Radio Broadcasting in Canada
Canadian content laws require that radio broadcasters air a minimum percentage of content that has been at least partially written, produced, performed or created by artists in Canada. While these laws help limit Canadian artists’ competition with well-known international artists, the Radio Broadcasting industry is anticipated to decline at an annualized 3.3% over the next five years as a result of increasingly popular subscription-based streaming services. A planned $150.0 million annual investment in CBC/Radio-Canada will help support industry investment in more competitive mobile and streaming music technologies.
Municipal Building Construction in Canada
Prime Minister Trudeau‘s proposed Canada Infrastructure Bank would serve as a new lending authority to provide additional capital at low interest rates to municipal construction projects amid weakening economic conditions throughout Canada. This proposal is one possible measure to stimulate the economy beyond simply encouraging private investment through increased funding. Municipal building construction declined at an annualized 1.6% over the past five years and stands to benefit significantly from the proposal.
Tractors and Agricultural Machinery Manufacturing in Canada
An additional $100.0 million is slated to be funded over four years to companies that conduct agricultural research. For tractor and agricultural machinery manufacturers, the development of harvesting machinery that uses clean exhaust scrubbing systems can potentially be funded by both federal agricultural research grants and Canada’s planned clean energy investment funding.”
*To access to the full article, please visit: http://media.ibisworld.com/2016/02/02/19662/