B.C. Southern Interior Businesses Share $13M in Federal Tariff Funding

On March 2, 2026, Canada’s Minister of Housing and Infrastructure, Gregor Robertson, made a significant announcement in Castlegar regarding the injection of over $13 million into ten regional projects within British Columbia’s Southern Interior. This funding is part of a broader initiative aimed at helping businesses adapt to the evolving landscape driven by tariffs and new economic realities.

Understanding the Tariff Response Initiative

At the heart of this funding announcement is the Regional Tariff Response Initiative, which is a $1 billion national program designed to support businesses in navigating tariffs and enhancing their competitiveness. By boosting production capabilities and strengthening supply chains, the initiative aims to facilitate access to new markets, thereby fostering economic resilience in affected regions.

“Tariffs are having a real impact on communities across B.C. That is why we are stepping up with these investments,” Robertson emphasized during his visit. The funding is particularly focused on reinforcing sectors that are crucial to the province, such as forestry and manufacturing, ultimately safeguarding jobs and stimulating local economies.

Highlighting Key Beneficiaries

One of the notable recipients of the announced funding is Kalesnikoff Lumber, a family-run company deeply rooted in the West Kootenay region. The company will receive a substantial $5.5 million interest-free loan, enabling them to upgrade their manufacturing capabilities by acquiring state-of-the-art equipment for producing prefabricated components. These components are essential for constructing a variety of structures, from multi-family homes to commercial buildings. The investment aligns with the federal government’s vision to embrace modern construction methods that prioritize affordability and speed in housing production.

In addition to Kalesnikoff, several other businesses are set to benefit from the tariff funding:

• Command Industries in Kelowna will receive $730,000 for advanced laser cutting and machining equipment tailored for their custom steel products essential for mass timber production and wastewater remediation.
• Heartland Economics, owned by the Westbank First Nation, will obtain $644,000 intended for equipment to expand into custom-cut wood products.
• In Armstrong, Rapid-Span will get $828,000 for advanced equipment, including robotics, aimed at enhancing production speed and cost-efficiency in prefabricated bridge and transportation components.
• Another Armstrong-based company, Simolo Customs, is set to receive $1.56 million to modernize its electric vehicle production facility and establish in-house battery production.
• SKYTRAC, located in Kelowna, will receive $762,000 to integrate advanced manufacturing technologies into their satellite communication and avionics facilities.
• Axis Forestry in Kamloops will get $590,000 for adaptations to its specialized, steel-based large timber harvesters designed for logging operations.
• Lastly, Porcupine Wood Products in Salmo will benefit from $583,000, aimed at improving production speed and product consistency.

Supporting Non-Profit Organizations

In addition to for-profit businesses, the funding initiative also extends support to non-profit organizations, underscoring the collaborative effort to enhance overall industry standards and capabilities.

• The Independent Lumber Manufacturers Association, based in Castlegar, will receive $862,000 to implement an AI and digital modernization program for its member mills. This project aims to leverage data and digital tools to boost productivity and improve supply chain visibility.
• Meanwhile, the Forest Product Association of Canada will secure $974,000 to develop a digital intelligence platform designed to minimize transportation delays and enhance supply chain reliability across the sector.

Conclusion: A Blueprint for Economic Resilience

The announcement by Minister Gregor Robertson not only reflects a proactive approach to mitigating the impacts of tariffs on local businesses but also sets a precedent for investing in modern technologies and manufacturing processes. By providing targeted funding to both for-profit and non-profit entities, the Federal Government is making a strategic move towards building a more resilient economy in B.C.’s Southern Interior.

As these projects commence, the anticipation of growth and innovation fills the community, reminding residents that with adaptation comes the promise of a thriving future amid changing economic landscapes. This initiative marks a promising step towards strengthening local industries, protecting jobs, and fostering a sustainable growth model in the face of global trade challenges.