Economic Resilience
Economic Resilience: The Bridge to Opportunity, Equity, and Growth
Building Ontario Together: HST Reinvestment for Infrastructure
Currently, municipalities in Ontario are required to pay the 1.76% non‑refundable provincial portion of the HST. In contrast, municipalities receive a full refund of the 5% GST portion of the HST from the federal government. The 1.76% non-refundable provincial share is significant for rural and small-urban municipalities, where every dollar matters for essential infrastructure.
The EOWC’s 13 upper and single-tier municipalities would gain approximately $13 million in additional annual revenue if they were able to retain their 1.76% non-refundable HST portion. This figure would increase if applied across all of the EOWC’s 103 municipalities.
Residents in eastern Ontario fund, on average, 88% of municipal taxes (ranging 74%- 98%). Reinvesting the 1.76% back into communities would directly support affordability, as in smaller municipalities a greater share of taxes is borne by residential households, unlike larger urban centres where commercial and industrial properties carry a greater share of tax burden.
Municipalities face growing pressure as they try to maintain aging infrastructure while supporting new housing and expanding water and wastewater infrastructure, yet revenue tools remain limited, widening the funding gap. Returning the non-refundable provincial share of the HST would provide municipalities a stable, growth-responsive source of revenue that helps close the infrastructure gap.
It would also reduce red tape and administrative burden by replacing calculations with a simple, predictable mechanism.
Note: This information reflects data collected in May, 2026.
Eastern Ontario’s Top Economic Sectors are at Risk
Across Eastern Ontario, annual sales from all sectors average $124 billion a year, roughly $115 billion of which comes from private sector businesses (the remaining balance is public funding transfers).
Manufacturing is the largest sector in the regional economy with $43.9 billion in annual sales. Two manufacturing subsectors along with agriculture, transportation and residential building construction have been prioritized for analysis due to their sheer size in the region’s economy and the potential impact of trade disruptions. Taken together, $24 billion in economic activity with nearly 49,000 jobs may be at risk. These five sectors alone account for 21% of the regional economy.
Note: This information reflects data collected in May 2025.
See how the EOWC is Mobilizing Amid U.S. Tariff Threats
As part of our efforts to mobilize amid trade and tariffs threats that impact our regional economy, businesses and overall prosperity, the EOWC has set Economic Resilience as a priority for 2025 and beyond.
The EOWC is dedicated to strengthening economic resilience across the region by promoting local purchasing, supporting local businesses, and fostering domestic trade. We stand together with our governments partners and support the measures they have put in-place. We will continue to collaborate with federal and provincial governments, businesses, and key organizations to:
- Lead procurement alignment across EOWC’s 103 municipalities.
- Advocate for funding from counter tariffs for infrastructure.
- Identify job loss sectors and work with skills development funding for micro-credentialing/reskilling with our post-secondary institutions.
- Project-based ports and transportation as an economic driver. Potential to get behind local project(s) and support it regionally given regional benefit.
- Identify key companies (top exporters) to partner with and leverage relationship to support Eastern Ontario economy, jobs and workers.
- Build on Ontario Chamber of Commerce connections.
| Sector | Annual Sales from Region’s Producers | Jobs | Percentage of Total Private Sector Regional Economic Output |
|---|---|---|---|
Resins & Rubber  | $688 Billion | 3,324 | 6.8% |
| Electrical Equipment | $4.83 Billion | 6,648 | 4.6% |
| Agriculture | $4.13 Billion | 11,863 | 3.6% |
| Transportation | $4.04 Billion | 17,187 | 3.5% |
| Residential Building Construction | $3.69 Billion | 9,700 | 3.2% |
| Total | $23.57 Billion | 48,722 | 20.5% |
Beyond Manufacturing at $43.9 billion, the next 10 largest sectors by sales are Public Administration ($13 billion), Construction (all forms) ($9.4 billion), Healthcare and Social Assistance ($8.8 Billion), Retail Trade ($5.3 Billion), Transportation and Warehousing ($4.7 Billion), Professional, Scientific and Technical Services ($4.7 Billion), Educational Services ($4.6 Billion), Agriculture, Forestry, Fishing and Hunting ($4.4 Billion), Wholesale Trade ($3.6 Billion).
Top Sectors
At Risk
Top SectorsIf there was a 10% decline in sales of the prioritized sectors, the region’s economic activity would be reduced by $2.4 billion a year. This would lead to a reduced payroll of $592 million and 11,500 fewer jobs. It is unlikely that there will be a rebound on these measures before the end of the decade.
Sales, Jobs and Payroll Impact of 10 % Decline in Sales by Sector
| Sector | Decline in Annual Sales | Change in Jobs | Change in Payroll |
|---|---|---|---|
| Resins & Rubber | -$688 Million | -492 | -$29 Million |
| Agriculture | -$482 Million | -1,203 | -$78 Million |
| Transportation | -$413 Million | -1,493 | -$60 Million |
| Electrical Equipment | -$404 Million | -6,700 | -$348 Million |
| Residential Building Construction | -$369 Million | -1,614 | -$82 Million |
| Total | -$2.357 Billion | -11,502 | -$592 Million |
Value of 10% Decline in Sales for Five Priority Sectors in Eastern Ontario
(in $ millions / year)
Out of the $2.35B decline in annual sales,the Resins & Rubber sector is expected to experience the largest drop.
Resins & Rubber
Electrical Equipment
Agriculture
Transportation
Residential Building ConstructionTotal Impact on Eastern Ontario Jobs of a 10% Decline in Sales in Five Sectors
Total Impact on Ontario Jobs of a 10% Decline in Sales in Five Sectors
Five Priority Sectors – 10% decline in salesFive Priority Sectors – No trade disruption
Build Resilience,
Pursue Opportunity
Eastern Ontario’s Ability to Supply Its Own Inputs
How can we build on this strong foundation and grow our own supply chains?
$689
million
(31%)
Resins &
Rubber
$364
million
(40%)
Electrical
Equipment
$1.6
million
(74%)
Agriculture
$1.8
billion
(74%)
Transportation
$1.9
billion
(74%)
Residential
Construction
Eastern Ontario Imports
How can we diversify our supply chains and buy more from other regions or provinces?
$1.57
billion
(69%)
Resins &
Rubber
$540
million
(60%)
Electrical
Equipment
$571
million
(26%)
Agriculture
$801
million
(31%)
Transportation
$635
million
(27%)
Residential
Construction
Eastern Ontario Exports
How can we sell more to other regions or provinces?
$5.7
billion
(69%)
Resins &
Rubber
$2.8
billion
(60%)
Electrical
Equipment
$1.8
billion
(26%)
Agriculture
$1.76
billion
(31%)
Transportation
$544
million
(27%)
Residential
Construction
Imports for 12 Sectors Exceed $1 Billion a Year
| Sectors for Which Eastern Ontario is Importing At Least $1 Billion A Year in Goods or Services (Private Industry Only) | Annual $ Value Imports (from out of region) |
|---|---|
| Farms | $2.4 Billion |
| Resin, synthetic rubber and artificial and synthetic fibres and filaments manufacturing | $2.2 Billion |
| Petroleum and coal product manufacturing | $2.1 Billion |
| Motor vehicle manufacturing | $1.9 Billion |
| Oil and gas extraction | $1.9 Billion |
| Depository credit intermediation | $1.6 Billion |
| Basic chemical manufacturing | $1.6 Billion |
| Lessors of real estate | $1.3 Billion |
| Computer systems design and related services | $1.2 Billion |
| Residential building construction | $1.1 Billion |
| Insurance carriers | $1.1 Billion |
| Wired and wireless telecommunications carriers | $1.0 Billion |
Eight Sectors Export At Least $1 Billion a Year Out of Eastern Ontario
| Eastern Ontario Sectors with At Least $1 Billion A Year in Exports Out of the Region (Private Industry Only) | Annual $ Value Exports (from out of region) |
|---|---|
| Resin, synthetic rubber, artificial and synthetic fibres and filaments manufacturing | $4.9 Billion |
| Other electrical equipment and component manufacturing | $1.9 Billion |
| Farms | $1.8 Billion |
| Basic chemical manufacturing | $1.6 Billion |
| Dairy product manufacturing | $1.4 Billion |
| Grainseed and oilseed milling | $1.3 Billion |
| Motor vehicle parts manufacturing | $1.2 Billion |
| Alumina and aluminum production and processing | $1.0 Billion |