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

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%)

  Smart investing starts here

  

  Get 100 free online equity trades with promo code EDGE100 when you open a CIBC Investor’s Edge account by Sept. 30, 2025. Click now to unlock 100 free trades and take control of your investments.

  Get started today

  

  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.

Survey methodology

KPMG in Canada surveyed 250 business leaders in all industry sectors across Canada between May 9 to 20 on Sago's business panel, using Methodify's online research platform.

The makeup of the companies is as follows: 31% lead companies with annual gross revenue between $500 million and $1 billion, a quarter report revenue between $100 million and $300 million, 22% have revenue between $300 million and $500 million, 12% between $10 million and $100 million and 10% over $1 billion. No companies under $10 million in annual revenue were surveyed.

Over half (52%) of the companies are privately held, 28% are owned by private equity firms, 18% are publicly traded with headquarters in Canada, and 2% are foreign-owned subsidiaries.

With files from Leslie Kennedy