A new report from PwC Canada and the Canadian Chamber of Commerce argues that persistent barriers across five industries are holding back Canada’s ability to scale globally competitive sectors.
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Canada’s ambition to operate as a global economic leader is being undermined, according to a new report that points to barriers in several key industries ranging from artificial intelligence to mining and defence.
The report, released Tuesday by PwC Canada and the Canadian Chamber of Commerce, says Canada has not fully achieved sustained economic leadership or developed enough globally scaled industries, despite advantages such as natural resources, research institutions and an educated workforce.
It argues Canada is strong at finding resources and generating intellectual property, but places emphasis on retaining more of the value in the country through processing, commercialization and scaling of ideas into larger companies and products.
The report highlights gaps in the artificial intelligence sector, noting that while Canada has been an early leader, companies face financing gaps when they reach the growth stage and need capital to expand beyond initial development.
In mining and critical minerals, the report says projects can move slowly once they are identified, with new production taking 10 to 15 years, and it identifies the costs and time required to construct mines and processing facilities as obstacles to private investment.
For energy, the report says that despite Canada’s role as a major producer, the concentration of exports limits growth opportunities, pointing to the fact that 85 per cent of exports go to the United States and that additional infrastructure is needed to access other markets.
On defence, the report argues that reforming procurement systems and building domestic capabilities will be important because increased spending could otherwise result in foreign purchases with fewer benefits flowing to Canadian firms.
The report links its defence discussion to current policy efforts, noting that Prime Minister Mark Carney’s government is increasing efforts intended to boost defence spending and investment in the sector.
In agriculture, the report points to opportunities connected to processing and ingredients technology, presenting a potential pathway to increase value beyond raw production.
Across the broader economy, the report identifies common themes such as slow regulatory permitting processes, limited capital for growth, and costly infrastructure bottlenecks, and it argues these structural issues are within Canada’s control to address.
The authors say removing these barriers could enable businesses to better deploy capital and that the next decade presents a window for change as global demand for energy, critical minerals, food, defence and technology aligns with Canada’s established strengths.
The report also situates its findings in the context of intensifying trade tensions between Canada and the United States, saying efforts to diversify the economy are intended not to reduce Canada’s relationship with the United States but to expand the ability to do more domestically and with other partners.
It concludes that producing “more global champions” may require a new model of public-private collaboration and a more business-oriented approach in the public sector to complement market forces, particularly if growth-stage capital gaps, procurement delays, fragmented policy support and limited domestic demand signals are not resolved.
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