Capital expenditure creates future productive capacity. It is an expression, by business, of confidence in the future. For the economy, capital expenditure is essential to maintain existing productive capacity, improved productivity in existing industries, and allow development of new industries.
Without a sufficient level of capital expenditure in both existing and new industries, an economy will become less competitive over time, and the capacity to provide employment will be diminished.
Capital expenditure on buildings and structures has an immediate employment impact. Expenditure on plant and machinery can have a delayed impact. In the short run, it can reduce employment, but in the longer run sufficient, economically justified capital investment is essential. It is the primary way to bring new technologies into an industry and an economy.
Between 2005 and 2010, the total capital investment in Manitoba increased by 11.3% per year on average, 6.6% higher than the national average. Evidence of a strong sense of confidence and productivity was conveyed. In reference to the other provinces, Manitoba had the second largest average increase. Significant investments by sector in Manitoba over this same time period were in transportation and warehousing at 41% and public administration at 33%.
Capital Investment by Industry
Total Capital Investments by Province
To discuss Economic Development in Winnipeg, please contact:
Senior Manager, Strategic Research
E: Edward Suzuki