Executive Brief: The 2025 Canadian Budget & Your Service Strategy

As a service leader for a global OEM, your time is limited. Canada is part of your North American market, but it’s rarely the one demanding immediate attention.

This year, however, the 2025 Canadian Federal Budget introduces some interesting strategic shifts. While it creates no new immediate compliance burdens, it sends a clear signal: Canada is prioritizing its domestic supply chain, and future government sales will depend on it.

This new reality, combined with existing provincial regulations, makes a re-evaluation of your Canadian reverse logistics strategy a smart, forward-thinking move.

Here is what you need to know.

1. The Strategic Sales Opportunity: “Buy Canadian” is Now a Mandate

The budget’s new “Buy Canadian Policy” is a “clear obligation” for federal agencies—one of Canada’s largest IT purchasers, to “select Canadian suppliers by default” to “strengthen our supply chains”.

• Why This Matters: Your ability to win major Canadian government contracts will now depend on the “Canadian-ness” of your entire solution. This includes your end-of-life-cycle services.
• The Advantage: An OEM that partners with a truly Canadian-owned and operated servicer for onshore repair, refurbishment, and secure ITAD will have a significant competitive advantage over a competitor staging/configing/repairing/refurbing in the US or using an international servicer’s local branch.

How We Help: Partnering with Microland, a Canadian-owned, ITAD and reverse logistics leader, transforms your service model from a simple cost centre into a powerful procurement asset, helping your sales team win “Buy Canadian” contracts.

2. The Partner Incentive: New Tax Credits to Build Onshore Capacity

The budget makes it cheaper for your Canadian partners to invest in the technology needed to manage your assets onshore.

• What It Is: The budget confirms several tax credits, including a 30% Clean Technology Manufacturing Tax Credit (which now includes recycling critical minerals) and 100% immediate expensing for “manufacturing or processing machinery and equipment”.
• Why This Matters: These incentives mean your Canadian partner (like Microland) can aggressively invest in the advanced robotics, high-speed data-wiping tech, and sophisticated material recovery lines. This lowers the cost of domestic refurbishment and value recovery, making the business case for shipping assets back to the US weaker.

How We Help: Microland is leveraging these incentives to invest in our facilities, passing the efficiency, security, and value recovery on to you. It’s now more cost-effective than ever to keep your entire Canadian reverse logistics loop onshore.

3. The “Right-to-Repair” Context

The federal budget was silent on “Right-to-Repair.” This is notable, as it means no new national compliance mandates are imminent.

• Why This Matters: This federal “status quo” makes your choice of a partner even more critical. Brand protection and IP control remain paramount.
• The Implication: You need an authorized partner who can manage your warranty programs, execute high-volume repairs, and handle end-of-life data security with auditable, certified precision, all while navigating the existing provincial regulations (like those in Québec Bill 29) that already govern service and parts.

How We Help: Microland is your trusted extension. We operate as your secure, brand-compliant partner in Canada, managing the entire reverse logistics chain, from repair and refurbishment to data destruction and value recovery, all while protecting your IP and ensuring compliance.

Executive Recommendation

The 2025 Federal Budget is a sales and strategy signal. The smart move is to partner with a Canadian-owned servicer to:

1. Capitalize on “Buy Canadian” sales opportunities.
2. Ensure compliance with existing provincial repair regulations.
3. Benefit from a partner who is investing in new, onshore technology.

Microland is ready to help you build that strategy.