Why delayed investment threatens food and beverage manufacturing productivity

It appeared that Canada’s food and beverage manufacturers started 2025 ready to invest and expand. But trade tensions and new tariffs quickly shifted optimism to caution. Projects were paused, investment delayed, and uncertainty spiked. While this challenges operations today, it also has longer term implications as investment helps fuel productivity growth. The challenge now is turning this pause into an opportunity to improve efficiency, strengthen operations, and prepare for future growth.

Investment hopes were strong to start 2025

Heading into 2025, confidence across Canada’s food and beverage manufacturing sector was running high. Capital spending plans in both construction and machinery and equipment pointed to a year of investment growth. Food manufacturers were gearing up to spend 14% more than 2024, with a focus on machinery and equipment rather than new construction. Beverage manufacturers on the other hand were more cautious, projecting a modest 0.5% increase in spending, likely a reflection of the softening alcoholic beverage market.

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