Canadian businesses back federal agenda, but want action now

Canadian businesses are backing Ottawa’s economic agenda, but KPMG Canada said on Aug. 5 that execution, not rhetoric, will decide whether that support turns into new investment and work for advisers. The release pointed to a familiar boardroom pattern: companies like the direction, but they wait for credible timelines, clearer rules and measurable progress before they change capital plans.

That matters inside KPMG because the next wave of client demand usually depends on how quickly policy becomes operational. If Ottawa moves on competitiveness, regulatory efficiency and growth-enabling reforms, tax, deal advisory, infrastructure, public sector and finance transformation teams are the ones that get called when companies need to model scenarios, rework supply chains, assess compliance burdens or prepare transactions. If the rollout stalls, the work shifts toward market intelligence, government-relations support and more cautious planning.

The timing fits a year in which Canadian executives have already been stress-testing every policy signal against hard business risks. In January, KPMG said nation-building and major domestic projects could spur Canadian M&A in 2026, a sign that infrastructure and large-scale industrial plans were already feeding into deal conversations. By July, KPMG-linked coverage said 42% of Canadian manufacturers had moved or planned to move production to the United States, and another item said 61% of Canadian manufacturers believed they could not survive without U.S. market access. Those numbers help explain why Ottawa’s agenda is being judged on delivery rather than intent: manufacturers are looking for faster approvals, lower friction and a more predictable investment climate before they commit more capital.

The policy list KPMG has been tracking this year points in the same direction. Canadian businesses have said they want tax system reforms that drive investment and resilient growth, and another KPMG survey found demand for AI regulation, incentives and infrastructure. That combination matters for finance teams and auditors as much as for strategists. Tax changes can alter deferred-tax positions and cash planning. New AI rules can reshape control environments, model risk and disclosure work. Incentives and infrastructure spending can move project timing, procurement and financing structures.

Ottawa’s business-policy debate was already active in the capital before the Aug. 5 release. Michelle Alexopoulos of the Bank of Canada spoke in Ottawa on May 13 to the Ottawa Economics Association and the Canadian Association for Business Economics, and the Canadian Chamber of Commerce held its Future of Business Summit in Ottawa on April 20 and 21. By the time KPMG weighed in on federal economic policy, the question for Canadian companies was no longer whether they liked the agenda. It was whether the government could turn it into decisions fast enough to unlock investment.