Since 2025, Canadian businesses have been strategizing for the impact of tariffs promised by the Trump administration. Two Canadian companies, Northern Cables and Ambico, are already preparing for the 50% tariffs scheduled to go into effect on August 19th. Northern Cables in Brockville, Ontario is currently running its plant 24 hours a day in order to build a stockpile for its U.S. inventory while also seriously considering a production move south of the border. Over in Ottawa, Ambico remains consistent in their promise to stay located in Canada, but its CEO, Jack Shinder, isn’t sure how it will sustain the business under tariff pressure. Companies across Canada are facing similar pressures, finding themselves weighing a new site selection strategy as a result of current tariff policy.
The Bigger Picture
Industry groups have reported that 29% of the polled 275 Canadian-based manufacturers have already moved some or all of their production to America, along with another group now also actively considering the same move (13%). Whether a company decides to stay in Canada, open a second location, or chooses to move entirely, the underlying problem stays the same. A tariff deadline is forcing companies to make a major real estate decision under pressure. And a decision made under pressure is not always a good one.
Urgency Doesn’t Make the Decision Simpler
A relocation involves much more than just finding the right building. Businesses will need to consider state, city, property tax rates, available incentive programs, labor supply, and utility costs when considering the cost of operating in a new location. The companies who treat a move like a strategic site selection process rather than a streamlined real estate transaction will be in a much better position for the future to come.
Labor Supply and Incentive Terms Carry A Lot of Weight
Some companies exploring a United States expansion have had to turn away from a location after realizing they could not find enough workers to staff it. This is the kind of situation that a proper site selection analysis can uncover earlier on in the process, before signing a lease or ordering equipment.
Just as important as labor supply, tax and incentives should also be considered in the early stages of relocating. Property tax rates, abatements, credits, and exemptions vary by state, and can also be different from city to city. Companies facing the pressure of relocation can still negotiate favorable terms. But that only works when they know what to ask for and where to look.
A Tight Timeline Doesn’t Have to Mean A Bigger Problem In the Future
A hasty location decision to avoid tariff pressure can cause operational problems for years to come. A location that has a low upfront cost but a high property tax rate or no incentives available can end up costing more over ten years than the tariff would have cost in one. When companies take the time to pair a structured site selection process with a full financial analysis, they can move just as quickly, while landing somewhere that makes sense long term.
What This All Means for Canadian Businesses Right Now
KE Andrews’ Site Selection and Incentives Advisory practice helps companies evaluate locations based on total cost, not just the cost of avoiding a tariff. For any Canadian businesses facing this deadline, that distinction can be the difference over the life of a facility. Our Business Location Analyzer tool lets companies compare states side by side on tax climate, labor markets, infrastructure requirements, and incentive programs, so a decision made under deadline pressure is backed by real data. If a United States move is something your company is considering, get in contact with our team and start the planning process now.
