The global pandemic caused FDI flows to slow down considerably around the world, and Canada was no exception to this. Canada’s foreign investment performance dipped by 49 percent, led by a decrease of 57 percent in FDI inflows from the United States. Nonetheless, with its diverse workforce, Canada is experiencing a surge in Industry 4.0 projects and may also benefit from U.S. firms nearshoring their supply chains. Manufacturers have been adopting technology in their operations to allow for increased automation and data exchange.

Meanwhile, diverse public-sector infrastructure investments, streamlined regulations, and certified site programs are driving private-sector industrial investment and expansions across Canada. As in many countries, Canada has taken a wide-angled perspective on the definition of “infrastructure” with overall objectives to promote economic growth and jobs, support resilience and a low-carbon economy, and build inclusive communities.

Private sector investment in Canada is burgeoning, with $1.5 billion in new life science projects in Ontario, a multi-story industrial warehouse in Greater Vancouver, and Lion Electric’s new production facility in Montreal, just to name a few projects. At its Montreal facility, Lion Electric makes electric trucks and school business and will soon add battery manufacturing capacity. In fact, Canada is the only country in the Western Hemisphere able to manufacture electric vehicles from start to finish, including critical minerals required for EV batteries.