{"id":8538,"date":"2026-09-28T18:28:24","date_gmt":"2026-09-28T16:28:24","guid":{"rendered":"https:\/\/leyton.com\/ca\/?post_type=article&p=8538"},"modified":"2026-09-28T18:28:26","modified_gmt":"2026-09-28T16:28:26","slug":"canadas-productivity-decline-how-strategic-funding-can-help-close-the-efficiency-gap","status":"publish","type":"article","link":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/canadas-productivity-decline-how-strategic-funding-can-help-close-the-efficiency-gap\/","title":{"rendered":"Canada\u2019s Productivity Decline: How Strategic Funding Can Help Close the Efficiency Gap"},"content":{"rendered":"\n

Canada\u2019s productivity has been slowing for several years with labour productivity growth averaging under 1% annually since 2000. GDP per hour worked was roughly 20\u201330% below the U.S., meaning Canadian workers produced about 70\u201375% of U.S. output per hour. <\/p>\n\n\n\n

These statistics are attributed to small firm scale, underinvestment in machinery, automation, digital tools and intellectual property. Additionally, skills shortages and infrastructure bottlenecks have limited efficiency gains and highlight a structural competitiveness gap.<\/p>\n\n\n\n

The recently imposed tariffs<\/a><\/strong> have put further strain on Canada\u2019s productivity as businesses face rising costs, weak investment and growing trade uncertainty.<\/p>\n\n\n\n

However, productivity investments with a focus on automation, artificial intelligence, advanced equipment, digital systems and workforce training may ease the tariff effects.  <\/p>\n\n\n\n

Government assistance has been keen in alleviating some of the pressure with the release of innovation and infrastructure funding, investment tax credits and skills-training  to help reduce costs, improve output and compete in markets beyond the United States.<\/p>\n\n\n\n

Rather than asking, \u201cWhat grant <\/a><\/strong>can we get?\u201d, businesses should ask, \u201cWhat productivity or competitiveness problem do we need to solve?\u201d Funding can then be aligned with measurable outcomes such as lower production costs, higher output per employee, reduced downtime, new market access and stronger domestic supply chains.<\/p>\n\n\n\n

The Regional Tariff Response Initiative (RTRI) has recently been significantly enhanced. Eligible SMEs can access up to $3 million in non-repayable support, including up to $2 million for demonstrated liquidity needs and up to $1 million for eligible pivot projects. <\/p>\n\n\n\n

Support can help businesses improve productivity, diversify markets, strengthen supply chains and respond to tariff-related pressures.<\/p>\n\n\n\n

But beside tariff impacted businesses, labour productivity remains a major concern across industries, and other funding channels may be beneficial.<\/p>\n\n\n\n