The federal government has announced a $13-million tariff response investment in B.C.’s Southern Interior to help forestry and manufacturing businesses respond to global trade disputes.
The funding, announced Monday at Kalesnikoff’s mass timber prefabrication and modular facility near the West Kootenay Regional Airport, is being provided through Canada’s Regional Tariff Response Initiative.
The $1-billion initiative aims to help companies boost productivity, strengthen supply chains and reach new markets.
Of the $13 million, Kalesnikoff is set to receive a $5.5-million repayable investment to purchase new equipment for its modular and mass timber manufacturing operations.
Speaking at Monday’s event, Gregor Robertson, Minister of Housing and Infrastructure and minister responsible for Pacific Economic Development Canada, said tariffs and economic uncertainty are creating significant challenges for Canadian manufacturers.
“There are really tough circumstances right now with the tariffs from the U.S. Ongoing software challenges,” said Robertson.
“But the overall challenge that we have right now, based on the volatility and all the disruption we have around the world, is it’s day to day. That has slowed down our markets. That has created all kinds of challenges, particularly with housing and construction.”
Robertson said companies like Kalesnikoff are well positioned to adapt.
“Kalesnikoff got an incredible national reputation as a leader in wood products,” he said.
“What I see here today is extraordinary progress on modular and mass timber products, which we need across Canada right now. We have a fraction of the manufacturing here that Europe has with wood products, and we need to scale that up and Kalesnikoff is one of our top companies nationally that can do that.”
He said the federal government is focused on supporting modern methods of construction to help speed up housing development nationwide.
“We want to move this as fast as we can given the threats to our economy and use technologies like these to move faster and get homes built for Canadians.”
The investment is also intended to protect jobs and strengthen regional supply chains in areas heavily affected by trade disruption, including forestry and equipment manufacturing.
Chris Kalesnikoff, president and CEO of the company, said the funding will help expand its modular manufacturing capacity during a time of economic uncertainty.
“In short, we’re open for business now, and we look forward to expanding to meet the growing demand for housing construction across Canada,” said Kalesnikoff.
Ten projects throughout the region are receiving funding through the initiative. The federal government said the program is designed to help businesses adapt to shifting global trade realities while positioning them for long-term growth.
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