Canada's Capital Investment

Canada’s capital investment has fallen far behind other developed countries. As a result, our businesses are less competitive and our workers are less productive. In a dynamic global economy we need more capital investment to keep our economy growing.

Capital investments boost the economy over the short-term while laying the foundation for long-term growth. Investments in facilities, equipment, machinery and tools including IT infrastructure are vital to support Canadian workers. These investments raise output, increase wages over time, and increase tax revenues for government.

Per-worker capital investment in Canada is 29% less than the OECD average and 42% less than U.S.

Did you know that...

For every dollar of capital invested in U.S. workers, just 58 cents are invested in Canadian worker.

58 cents on the dollar.

We need to make it easier for businesses to invest in structures, equipment and tools that will make our sectors and our workers more productive.

How has Canada's Capital Investment changed?


U.S. tax changes in 2018 have further eroded Canada’s position -  corporate tax rates and accelerated write-offs bringing the US Marginal Efficient Tax Rate down to 18.8% per cent from 34.6%

1.4 %

Canadian Real GDP is expected to decelerate from 1.6% in 2018 down to 1.4% by the end of 2019


In 2017, the asset finance growth rate was 7.4%—In 2018 it was just 1.1%


The Problem

Weak capital spending jeopardizes Canada’s long-term prosperity, and limits the potential of our economy in high-value added sectors. The problem not only hurts manufacturing and service businesses, but also the natural resources industries on which many regions of the country rely for jobs and opportunity. The anticipated decline in GDP is projected based on lower real residential and non-residential business investment spending, which is an important source of capital investment.


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Who We Are

The Canadian Finance & Leasing Association (CFLA) represents the asset-based financing, equipment and vehicle leasing industry in Canada. This industry is the largest provider of debt financing in this country after the traditional lenders (banks and credit unions).

CFLA’s more than 200 company members range from large multinationals to national and smaller regional domestic companies, crossing the financial services spectrum from manufacturers’ finance companies and independent leasing companies, to banks, insurance companies, and suppliers to the industry. The industry’s customers include Canadian small, medium and large businesses as well as consumers.

Facilitating business investment in new machinery, equipment and vehicles enhances national productivity and lifts the living standards of all Canadians. The asset-based financing industry was directly responsible for raising living standards by 2.3% between 1992 and 2002 (or about 8% of the total increase in living standards over that decade).

CFLA members are key partners with Canadian businesses and consumers. Asset-based financing touches virtually every business and consumer in Canada.