Modular ConstructionFederal Energy Minister Advocates for Mass Timber During B.C. Visit

Federal Energy Minister Advocates for Mass Timber During B.C. Visit

Federal Energy Minister Promotes Mass Timber in B.C. Visit

Published 3:36 PM Monday, November 10, 2025

In a significant development for the sustainable construction industry, Federal Energy Minister Tim Hodgson, accompanied by Stephen Fuhr, Canada’s Secretary of State for Defence Procurement, visited Castlegar, British Columbia on November 10. The visit spotlighted Kalesnikoff Lumber’s latest mass timber production facility, underscoring key objectives outlined in the 2025 federal budget aimed at enhancing Canadian manufacturing and promoting eco-friendly building practices.

A Tour of Kalesnikoff Lumber’s State-of-the-Art Facility

The ministerial delegation toured Kalesnikoff Lumber’s impressive 100,000 square-foot mass timber production facility, which opened its doors in June 2025 following a substantial investment of $30 million. This venture was significantly supported by a $3 million allocation through Natural Resources Canada’s Investments in Forest Industry Transformation program, showcasing a commitment to innovation within the lumber sector.

What is Mass Timber?

Mass timber production repurposes lumber into value-added, low-carbon building components. From prefabricated wall and floor systems to entire modular units, this innovative approach employs glued-laminated timber (glulam) and cross-laminated timber (CLT). The versatility of mass timber allows it to be utilized in various structures, including residential homes, apartment buildings, and public institutions like schools and community centers.

Embracing a "Buy Canadian" Strategy

The 2025 budget highlights an essential pivot towards Canadian materials in construction, a move that aligns with the national strategy to stimulate the economy and support local industries. Hodgson emphasized the new federal procurement processes, which require companies contracting with the government to prioritize Canadian lumber. This strategic shift aims to bolster the domestic lumber industry while addressing the urgent need for sustainable building materials.

Housing Development Initiatives

As part of the Liberal government’s ambitious Build Canada Homes plan, the goal is to facilitate 500,000 housing starts annually over the next decade. Hodgson elaborated on the importance of integrating mass timber products into this development initiative, asserting that the use of manufactured homes would significantly reduce housing costs.

“The prime minister has been very clear: he wants the bulk of new home development to involve manufactured homes, which helps drive down costs. We also aim for these homes to utilize mass timber, further contributing to affordability,” Hodgson stated during his visit.

Transforming the Construction Industry

Hodgson expressed optimism regarding the future of construction in Canada, noting that facilities like Kalesnikoff’s exemplify the attainable goals of sustainable building practices. “When you look at a facility like this, you can see that the goal is attainable. This is the opportunity – we need to change the way we build. We are here because this is the future,” he said, referring to the advantages of mass timber.

In addition to improving sustainability, mass timber construction remarkably reduces construction times and enhances precision and predictability, factors crucial for maintaining project schedules and budgets.

Financial Support Reflecting Commitment to Change

To support this transformation, the 2025 budget includes up to $700 million in loan guarantees over two years. This financial backing is designed to provide companies with the necessary funding and credit support as they adapt to the evolving landscape of the forestry sector. Moreover, an additional $500 million will be invested over the next three years to renew and expand Natural Resources Canada’s forest sector programs aimed at market diversification and new export initiatives, further solidifying the government’s commitment to fostering growth in this sector.

Conclusion

The visit to Kalesnikoff Lumber’s mass timber facility by Federal Energy Minister Tim Hodgson and Secretary of State Stephen Fuhr highlights a pivotal moment for Canada’s construction industry. As mass timber continues to gain traction as a sustainable building material, the government’s support through strategic budgeting and procurement practices signals a comprehensive vision for a greener, more economically resilient future. With ambitions set high for the coming decade, Canada is poised to lead the way in modern, eco-friendly construction practices, driving innovation while supporting local industries and economies.

Get your Weekly Updates...

get a summary of the week on friday morning

be ahead of 90% of the industry with these insights

EXPERT ANALYSIS OF AND EMERGING TRENDS IN construction

get insider news on the new Build Canada Homes (BCH) Initiatives

Get unlimited access to our EXCLUSIVE Content and our archive of subscriber stories.

Exclusive content

AEC Benefits - Leaders in Group Benefits for Ontario

Latest article

More articles