Many, many years ago, the manufacturing sector in Quebec was thriving, in various sectors, including automotive, aerospace, textile and others. Cost of transportation, and logistics, and concerns of quality and reliability allowed manufacturers to stay competitive.

Over the last 30 years, developments in information technologies, logistics and changes in the political landscape gave entrepreneurs the tools to develop business arrangements in lower cost countries, where concerns of quality and reliability were reduced. As competitors outsourced more of their manufacturing overseas, the competitive price pressure moved the industry follow suit in commodity type of products.

In today’s economy, small manufacturing enterprises are focused on specialized or niche markets, where the cost of entry is too large to the size of the market.

In many cases, these are family owned operations that have good products sold to a few customers, and are constantly redesigning the products, and manufacturing process to meet the markets needs.

Some of these activities may qualify for certain government incentives including Quebec refundable design tax credits, and research and development tax credits. If some cases, these credit may be financed through various government agencies based on budgeted design and research activities, providing financing during the process rather than at the end of the year.

If your business is developing and designing new products, making advancements in your manufacturing processes, and are not taking advantage of such programs, please discuss their applicability with your business advisors, or contact our team for further information.

 
For more information:

 
Kyriakos (Kirk) Linardakis, CPA, CA
Partner
Tel: 514-842-3911 ext 233

Email: