MONTREAL, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Mitsubishi HC Capital Canada, a leading non-bank, non-captive finance provider, has identified four key trends that will shape Canada’s industrial equipment sector in 2026. After years of volatility, the sector is entering a critical phase marked by cautious investment strategies, technology-driven transformation, and evolving trade dynamics. Canadian manufacturers and industrial operators are navigating a landscape influenced by global supply chain realignment, rising automation adoption, and persistent labor shortages all while responding to tariff uncertainty and monetary policy shifts.
The industrial equipment market spans sectors such as manufacturing, technology/automation, forklifts/material handling, and energy with each facing unique pressures. For example, manufacturers are accelerating investments in robotics and AI-driven production systems to offset workforce gaps, while material handling firms are prioritizing equipment upgrades to meet efficiency standards. At the same time, logistics companies are exploring warehouse automation and electrification to remain competitive amid tightening environmental regulations. These trends underscore the need for businesses to balance short-term risk management with long-term strategic planning.
Against this backdrop, Mitsubishi HC Capital Canada advises companies to take a proactive approach by leveraging flexible financing solutions and innovative strategies to position themselves for sustainable growth in 2026 and beyond.
Workforce Gaps Drive Automation and Upskilling
Labor shortages continue to challenge the sector, accelerating a shift toward automation, robotics, and workforce upskilling. Across Canada, companies are increasingly investing in technology that enhances efficiency, whether through warehouse automation or AI-enabled decision tools.
This talent gap is accelerating automation adoption. According to the 2025 Advanced Manufacturing Outlook survey, 66% of manufacturers plan to invest in robotics and automation and 51% in AI technologies. Automotive suppliers are deploying collaborative robots to maintain output, while food processors are adopting automated packaging systems to offset workforce shortages.
However, technology alone isn’t enough. Companies that fail to invest in employee training risk higher turnover and operational inefficiencies. Forward-thinking leaders are prioritizing continuous learning programs to ensure teams can adapt to advanced technologies and evolving job roles.
Supply Chain Stabilization and Cautious Investment
Following several years of volatility, supply chain constraints have largely subsided, and most equipment types – from CNC machines to heavy-duty forklifts – is now readily available. However, investment activity has slowed as businesses take a more cautious stance amid ongoing economic uncertainty.
“We’re still seeing many companies delaying major purchases until they have greater visibility into future demand,” said Félix Beauregard, Vice President of Equipment for Mitsubishi HC Capital Canada. “Our advice to business owners is not to wait, but to take advantage of your competition’s hesitation to spur healthy growth for your business.”
Tariffs Create Investment Pause
Tariff volatility continues to weigh on industrial decision-making. Recent adjustments on steel and aluminum imports have increased costs for manufacturers, prompting many to delay major production equipment purchases. This uncertainty is particularly challenging for capital-intensive industries like metal fabrication and heavy equipment manufacturing.
“The biggest issue with the current state of tariffs is the uncertainty they create,” said Beauregard. “Even with expected price hikes in 2026, buyers are not rushing to purchase equipment. This hesitation will likely carry over into next year across the industrial economy in Canada.”
Economic and Monetary Policy Caution
While interest rates remain a key consideration, uncertainty plays a larger role in tempering industrial investment. Many firms are closely watching monetary policy and maintaining liquidity until they gain more confidence in the broader economy.
“Interest rates in Canada have begun to decline slightly, but businesses remain hesitant. From our perspective, rates are near an equilibrium level and that uncertainty, rather than rate levels, is holding back investment.”
“As companies navigate this period of uncertainty, it’s important to stay disciplined,” Beauregard added. “Those that remain steady, informed, and forward-looking will be the ones best positioned to succeed.”
Reflecting on recent years, while the post-pandemic recovery has been slower than anticipated, the industrial sector has proven its resilience and adaptability. The company continues to partner with customers across Canada to deliver financing solutions that support innovation, growth, and long-term operational strength.
Contact our team to learn more about the finance trends facing industrial organizations.
About Mitsubishi HC Capital Canada
Mitsubishi HC Capital Canada, together with Mitsubishi HC Capital America, provides robust specialty financing solutions across North America. A member of a diverse family of financing companies serving North America, the company uses its strong backing and deep resources from its parent company in Japan to combine a consultative approach with customized financial solutions to more than 64,000 customers.
With $7 billion in assets, the company partners with vendors, equipment manufacturers, dealers and distributors, end users and commercial finance clients. They serve the following industries: Construction, Distribution, EV and charging infrastructure, Franchise, Healthcare, Industrial, Insurance, Manufacturing, Technology and Transportation.
Learn more at www.mhccna.com or follow us on LinkedIn.
