ctivity and limit how fast companies can grow without adding headcount.<\/p>\n
Trade policy is also changing where the next incremental factory line gets built. KPMG says most firms still expect to keep their headquarters in Canada (80%), but uncertainty around tariffs and supply chains is pushing some to place future investment in the US. KPMG also notes that 11% expect to relocate headquarters within five years, a small share that could still sting given manufacturing makes up more than 10% of Canada\u2019s economy.<\/p>\n
Why should I care?<\/p>\n
For markets: 57% delaying capital spending can show up later in earnings and the loonie.<\/p>\n
When companies pull back on capital spending and research, the hit tends to arrive with a delay: fewer productivity<\/a> gains, slower capacity growth, and a weaker pipeline of higher-margin<\/a> products. If production shifts south as well, more future revenue<\/a>, hiring, and supplier spending accrue in the US instead of Canada. Together, that can chip away at medium-term expectations for Canadian industrial firms and keep pressure on Canada-linked pricing, including the Canadian dollar and longer-dated Government of Canada bonds as investors compare Canada\u2019s growth outlook with the US.<\/p>\n","protected":false},"excerpt":{"rendered":"ctivity and limit how fast companies can grow without adding headcount. Trade policy is also changing where the…\n","protected":false},"author":2,"featured_media":515383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-515382","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/515382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=515382"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/515382\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/515383"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=515382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=515382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=515382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}