The trade of bio-industries is affected by the differing regulatory requirements of various countries. Foreign building codes and environmental regulations constitute significant non-tariff barriers for Canadian forest products firms. Architects must comply with licensing and other local requirements before they can market their services in another country. Further efforts need to be devoted to such initiatives. The industries studied include highly capital intensive industries, such as forest products, electric power equipment and services and petroleum products, and sectors with relatively low reliance on capital, such as apparel, household furniture, architecture, and education and training services.
Capital spending has an important influence on an industry's performance and growth.
In recent years, investments in advanced technology have contributed to improved performance in a number of sectors, including auto parts and auto assembly, plastic products, and primary steel. Investment in plant modernization has, at the same time, enabled firms in sectors, such as steel and forest products, to meet stricter environmental requirements. Investment financing has been a problem for some firms, including small and medium-sized enterprises that lack adequate collateral. Capital spending in Canada depends, in part, on this country's ability to attract investment by foreign-based multinationals. This issue has arisen most pointedly in industries, such as industrial chemicals and pharmaceuticals, where many major Canadian-based firms are subsidiaries of foreign multinationals.