Summary
London, Ontario has more than 430 manufacturing establishments employing about 20,000 people, and many are rethinking capacity, customers and supply chains after a year of tariffs and job losses. A strong business plan is how manufacturers win equipment loans, expansion financing, investors and government support. This guide explains what lenders expect from a manufacturing plan, how to model capacity, unit costs and working capital, how new immediate expensing rules affect equipment decisions, and includes a calculator to test an equipment investment.
London has deep manufacturing roots. Metal fabricators and machine shops in the Huron and Innovation industrial parks, food processors along the Highway 401 corridor, and suppliers to automotive, defence, agriculture and construction all call the city home. New investments keep arriving: Italian pasta maker Andriani opened a $55 million North American production facility in London in 2025, and Volkswagen's PowerCo battery plant is under construction in nearby St. Thomas.
At the same time, 2026 has been difficult. The London region's unemployment rate reached 9.2% in April 2026, tied for the highest among Canada's large cities, as trade tensions and slower demand hit employers. Manufacturers are deciding whether to invest in automation, find new customers in Canada and overseas, or reshore production, and each of those decisions needs financing.
That is where a business plan earns its keep. Ledgerive's business plan services prepare manufacturing plans that lenders, investors and funding programs can assess quickly, backed by the capacity and costing models in our financial modeling services.
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1. London's Manufacturing Landscape
Five subsectors make up 57% of London's manufacturing establishments, led by fabricated metal and food. Lenders know these industries well and will compare your margins, capacity use and customer concentration with what they see from similar firms.
2. When Manufacturers Need a Business Plan
- Buying equipment or automating: CNC machines, robotics, packaging lines or ERP systems financed by a bank, lease or government-backed loan.
- Expanding or moving the plant: new space, leasehold improvements or a building purchase.
- Diversifying customers and markets: reducing reliance on one buyer, one industry or the U.S. market.
- Reshoring or new product lines: bringing production back to Ontario or launching a new product.
- Applying for government programs: most funding applications require a plan with projections.
- Bringing in investors or planning succession: partners, buyers and family successors want a clear view of the business.
3. What a Manufacturing Business Plan Includes
| Section | What to include | What lenders look for |
|---|---|---|
| Executive summary | Project, funding request, use of funds, key projections | Clear ask and repayment ability |
| Products and customers | Product lines, margins, top customers, contracts and pipeline | Customer concentration and contract quality |
| Market and competition | End markets, competitors, pricing, export markets | Demand evidence and pricing power |
| Operations | Plant, equipment, capacity, shifts, quality certifications | Ability to deliver at the projected volumes |
| Supply chain and risk | Key suppliers, tariff exposure, inventory strategy | Resilience to disruption and cost shocks |
| People | Management, skilled trades, hiring plan, training | Depth of team and labour availability |
| Financial plan | Unit costing, three-year projections, sources and uses, scenarios | Debt service coverage and working capital needs |
4. Operations, Capacity and Supply Chain
A manufacturing plan lives or dies on its operations section. Lenders want to see that sales projections fit inside the plant's real capacity and that new equipment will actually be used.
- Capacity: current output, utilization by machine or line, shift patterns and the bottleneck that limits growth.
- Productivity: scrap rates, downtime and changeover times, and how new equipment improves them.
- Labour: skilled trades availability in the London-Windsor corridor, wage rates and training time for new hires.
- Supply chain: dependence on U.S. or overseas inputs, tariff costs, alternative suppliers and safety stock.
- Quality and certifications: ISO, food safety or customer approvals that open or limit markets.
Many London-area manufacturers are led by newcomers who bring international industry experience; our guide to fractional CFO services for immigrant entrepreneurs in Windsor covers the extra setup and financing steps they face.
5. Financial Projections That Lenders Trust
Manufacturing projections need more detail than a typical service business, because costs move with volume, inventory ties up cash and equipment drives both capacity and tax.
| Item | How to model it |
|---|---|
| Unit costing | Materials from the bill of materials, direct labour, machine time and overhead per unit |
| Contribution margin | Price less variable cost, by product line and customer |
| Working capital | Raw materials, work in progress, finished goods, receivables and payables in days |
| Capital spending | Equipment cost, installation, commissioning time and ramp-up |
| Tax depreciation | Immediate expensing or capital cost allowance, by asset class |
| Scenarios | Base, downside (lost customer or tariff increase) and upside volumes |
- Working capital is the usual trap: growth means more inventory and receivables before cash arrives; see our article on cash flow mistakes founders only spot too late.
- Immediate expensing: the federal government has proposed permanent 100% first-year deductions for most depreciable property acquired on or after September 15, 2026, while manufacturing and processing buildings remain covered by Budget 2025's temporary immediate expensing.
- Stress tests: investors and lenders test assumptions hard; our article on financial modeling mistakes that kill fundraises explains what they look for.
6. Interactive Equipment Investment Calculator
Test whether a new machine or line pays for itself and covers its loan. Enter the extra annual contribution the equipment creates, from labour savings, less scrap or added sales margin. Results are illustrative; tax savings require enough taxable income to use the deduction.
7. Financing and Government Support
| Source | Typical use | Plan requirements |
|---|---|---|
| Bank term loans and equipment leases | Machinery, vehicles, technology | Financial statements, projections, quotes |
| Canada Small Business Financing Program | Equipment and leasehold improvements up to $500,000; real property | Plan, quotes, owner equity |
| BDC | Equipment, working capital, expansion, technology adoption | Plan and projections |
| Export Development Canada | Export working capital, guarantees, insurance | Export plan and customer details |
| FedDev Ontario and provincial regional programs | Growth, productivity and job-creating projects | Detailed project plan, budget and outcomes |
Government programs open and close often, so we confirm current intake and eligibility before building a plan around them. A fractional CFO can also manage lender covenants and reporting once financing is in place.
8. BN Registration and CRA Accounts for Manufacturers
Lenders and program officers check that the business is properly registered. Every account runs through your nine-digit CRA business number, and manufacturers usually need more accounts than most businesses.
- BN registration: obtain a business number when you incorporate, and include it in your plan's company details.
- GST/HST (RT): claim input tax credits on the 13% HST paid on equipment, materials and services.
- Payroll (RP): remit source deductions for production and office staff on time.
- Corporate income tax (RC): claim capital cost allowance or immediate expensing and any SR&ED credits for process development.
- Import-export (RM): required to import or export commercial goods; the Canada Border Services Agency uses it for customs and duties under your CRA business number.
- Clean books: our bookkeeping services keep inventory, job costing and tax accounts accurate; see how we prepare a different sector for investors in our guide to investor-ready bookkeeping for Windsor dental practices.
9. Our Process and Pricing
| Step | What happens | Typical timing |
|---|---|---|
| 1. Discovery | Review financial statements, product lines, capacity, quotes and goals | Week 1 |
| 2. Model | Build unit costing, capacity, working capital and three-year projections | Weeks 1 to 3 |
| 3. Write | Draft market, operations, risk and financing sections | Weeks 2 to 4 |
| 4. Review and submit | Refine with you, then prepare the lender or program package | Weeks 4 to 5 |
As a guide, lender-ready plans typically cost $2,500 to $7,500 and investor-grade plans $5,000 to $15,000 or more, before HST. Manufacturing plans with detailed capacity and capital models usually sit toward the upper end of each range; we confirm a fixed quote after discovery.
10. Frequently Asked Questions
What should a manufacturing business plan include?
A manufacturing business plan should cover the products and customers, market and competition, plant capacity and operations, supply chain and tariff exposure, staffing, capital equipment needs, unit costing and margins, working capital for inventory and receivables, monthly financial projections, a sources and uses of funds table, risks and scenarios.
How much does a business plan cost in Canada?
Costs depend on scope. As a guide, a start-up or internal plan often costs about $1,000 to $3,000, a lender-ready plan $2,500 to $7,500, and an investor-grade plan $5,000 to $15,000 or more. Manufacturing plans with detailed capacity, costing and capital models are usually at the higher end of those ranges.
Can a manufacturer write off equipment immediately in Canada?
The federal government has proposed permanent immediate expensing for a broad range of depreciable property acquired on or after September 15, 2026, building on Budget 2025's temporary measures, which also cover manufacturing and processing buildings. Eligibility, timing and limits depend on the asset class and the legislation as enacted, so confirm with a tax professional.
What financing is available for manufacturers in Ontario?
Manufacturers commonly use bank term loans and equipment leases, Canada Small Business Financing Program loans for equipment and leasehold improvements, BDC financing, Export Development Canada support for exporters, and federal and provincial programs such as FedDev Ontario and Ontario's regional development funding, depending on eligibility.
Do I need an import-export account with the CRA?
Yes, if your business imports or exports commercial goods. Businesses register an import-export (RM) program account under their CRA business number, which the Canada Border Services Agency uses to process customs declarations and duties.
Summary
London's manufacturers are investing through a tough 2026, and financing depends on a credible business plan. Show real capacity and unit costs, model inventory and receivables, test downside scenarios such as a lost customer or new tariffs, and factor in immediate expensing on equipment. Keep CRA business number accounts, including import-export, current, and choose funding sources that fit the project.
Get your manufacturing plan funded
Ledgerive writes business plans and financial models for manufacturers in London, St. Thomas, Woodstock and across southwestern Ontario. Book a free 30-minute call or reach us directly.
Sources: City of London, Manufacturing Sector Profile Highlights 2025; LEDC, Charged for Growth: How London is Powering into 2026; CTV News London, May 2026; Sarnia News Today, Windsor labour force data; Department of Finance, Productivity Mega Deduction (September 2026). Pricing and calculator results are illustrative.