Snow removal is a distinctively Canadian industry and an excellent illustration of how capital investment can increase productivity.

Shovels are the most basic tool of snow removal, and they are relatively inexpensive.

But a snow clearing company will still want to invest in high-quality shovels that can clear driveways or sidewalks without breaking, which slows down work.

Investing in additional equipment can help the same company clear more snow with the same number of workers and make much more money too.

If the company invests in a snow blower, their work crew will be able to clear more snow, faster.

But making an even bigger investment could yield an even bigger pay-off.

A pickup truck with a snowplow attached can clear a driveway much more quickly than a snow blower or a team of shovelers can.

And it would allow the company to take on larger jobs that are difficult to complete with a snow blower or shovels like clearing a commercial parking lot.

Investing in equipment can help a company produce more with the same number of workers.

That adds value and increases productivity.