Three-quarters of Canadian business leaders are investing at least as much as their American competitors

"These results reflect a more ambitious mindset within Canadian business, but they also acutely underscore the difficulties our economy faces right now," Benjie Thomas, KPMG Canada CEO and senior partner, said in a statement.

"Tech investment requires a strong bottom line," Thomas added, "and nine in 10 business leaders say it is essential that governments 'act with urgency' and not fall 'prey to complacency' in driving tax reform, eliminating interprovincial trade barriers, improving access to capital, and building infrastructure that unites us and opens new markets."

Government action seen as critical to unlocking productivity gains

Business leaders are sounding the alarm: Staying competitive will require more than just keeping pace. It demands bold, forward-looking investment in technology.

While many Canadian companies are holding their own globally, nearly all executives surveyed say that’s not enough. They believe businesses must go further, faster, or risk falling behind the U.S. in critical areas like productivity and innovation.

A striking 88% say Canadian companies can’t afford to be cautious or wait for consensus before adopting new technology. And more than half admit they simply don’t have the financial breathing room to make those investments right now.

That’s why business leaders are calling for urgent action from government. A full 90% say policymakers must move quickly to ensure Canada remains competitive and prosperous, warning against the dangers of “complacency.”

Their top asks?

• Remove interprovincial trade barriers and harmonize regulations and credentials (64%)

• Conduct a comprehensive tax review to improve competitiveness (58%)

• Streamline approvals for resource and major infrastructure projects (56%)

  Must Read

  • Stop the leak: 5 costs Canadians (still) overpay for every single month. How many are sabotaging your 2026 budget?
  • What's your worth? Here are the 3 net worth milestones that change everything for Canadians (and what they say about you)
  • Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich — and that ‘anyone’ can do it

  Join 19,000+ readers and get Money.ca’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

  Trade tensions with the U.S. are pushing Canadian businesses to look elsewhere

Trade tensions with the U.S. are no longer just background noise. They’re reshaping how Canadian businesses think about growth, investment and global strategy.

Three-quarters of Canadian business leaders say they no longer see the U.S. as a reliable trade partner. Nearly eight in 10 are actively diversifying their export strategies to reduce reliance on the American market.

This isn’t just talk. More than two-thirds are already investing in marketing and building relationships in new international markets, a long-term shift that’s unlikely to reverse. Even if trade relations with the U.S. improve, 90% of respondents say they plan to continue expanding beyond their southern neighbour.

But the uncertainty is also having a chilling effect on investment at home. Over half of executives say they’ve already cut back on research and development or capital spending for the year ahead. Another 50% say they plan to scale back in the near future, citing the broader fallout from the U.S.-led global trade disputes.