Equipment manufacturing executives expect a pro-growth and pro-business federal budget , following meetings with Parliamentarians and members of government in Ottawa on Tuesday.

“I think they’re all onboard with what we’re talking about, nobody is suggesting anything different,” said

Linamar Corp. chief executive Jim Jarrell, after meeting with chiefs of staff, Parliamentarians and deputy ministers from federal departments ahead of the Nov. 4 budget. “I think it’s going to be a pro-business, pro-growth budget, I think it has to be.”

The comments were made during a roundtable discussion organized by the

Association of Equipment Manufacturers (AEM), which represents more than 1,000 members in the equipment manufacturing sector . Members of the AEM noted the impact from the trade war with the U.S. and China has been “tremendous.” The manufacturing sector lost an cumulative 58,000 jobs between January and August, although the sector showed some signs of life in September, adding back 28,000 jobs.

Major items the AEM members would like to see in the upcoming budget include tax incentives for bonus depreciation and the expensing of research and development. The executives are also looking for increased incentives for businesses to adapt to new export markets.

“To develop something new for a new export market, European regulations can be quite different,” said Charles Vennat, president and chief executive at the

C.M.I. Inc. , a leading manufacturer of tracked mulching tractors and stump grinders.

“So there are licensing requirements, there are design changes that are required, I mean the size of our machines can’t circulate on most European roads.”

Many of these measures are found in U.S. President Donald Trump’s “Big Beautiful Bill” and equipment manufacturing executives said Canada will need to follow suit to compete.

“So whether it’s R&D or bonus depreciation, all of those provisions that were extended or made permanent has been a massive boom to the industry in the U.S.,” said Kip Eideberg, senior vice-president of government and industry relations at AEM. “So we’ve been encouraging the Canadian government to look at that and do the same.”

As for trade uncertainty, the AEM remains confident that a deal can be reached during the review of the

Canada-United-States-Mexico Agreement (CUSMA), which is scheduled for next year. “It’s hard to see Canada, the United States and Mexico not coming to some agreement,” Eideberg said.

“Since the beginning of NAFTA, we’ve really operated as an industry

as if there were no borders ,” he added. “That’s the way we’ve been taught and adapted to and excelled at doing business.”

The executives estimate tariffs on steel and aluminum have added five to seven per cent to their costs and hurt the bottom lines of most companies in the manufacturing sector and note that companies will not be eating those costs for much longer.

“Tariffs ultimately are going to be inflationary and inflation can impact markets that we serve, and that will potentially impact the production of our products,” said Yannick Montanago, president of

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