Five Okanagan Businesses Share $4.5M in Federal Tariff Funding

On March 2, 2026, Canada’s Minister of Housing and Infrastructure, Gregor Robertson, visited Castlegar to unveil a significant investment initiative aimed at revitalizing businesses across British Columbia’s Southern Interior. This announcement comes as part of a broader federal commitment to support industries faced with the challenges of tariffs and evolving economic landscapes.

The Tariff Response Initiative Explained

The federal government has launched the $1 billion Regional Tariff Response Initiative, designed to assist companies in adapting to tariffs and other trade-related pressures. This national program’s goal is to enhance production capabilities, fortify supply chains, and create access to new markets. With a specific focus on sectors vital to B.C., such as forestry and manufacturing, the initiative is a timely response to the disruptions that tariffs have provoked in local economies.

Gregor Robertson emphasized the importance of these investments, stating, “Tariffs are having a real impact on communities across B.C. That is why we are stepping up… the work we are doing is giving forestry and manufacturing businesses the tools they need to adapt – strengthening supply chains and protecting jobs, especially in sectors that are critical for our province.”

Key Recipients of Funding

Among the notable beneficiaries of this funding are five pivotal Okanagan businesses. These entities are at the forefront of innovation and adaptation within their industries:

1. Kalesnikoff Lumber: This major employer in the West Kootenay is set to receive $5.5 million in the form of an interest-free loan. The funding will be instrumental in acquiring new equipment that enhances their capacity for prefabricated components critical for constructing various buildings, from residential units to commercial spaces.

2. Command Industries (Kelowna): A key player in metal manufacturing, Command Industries will receive $730,000 to invest in advanced laser cutting and machining equipment. This enhancement will bolster their production of custom steel products used in mass timber construction and wastewater treatment.

3. Heartland Economics (Westbank First Nation): This innovative enterprise is receiving $644,000 to transition into the custom-cut wood products market. The investment will facilitate better utilization of local resources while supporting economic development in the area.

4. Rapid-Span (Armstrong): Specializing in prefabricated bridge components, Rapid-Span will benefit from $828,000 aimed at procuring advanced robotics. This move aims to increase production pace and operational efficiency by bringing more processes in-house.

5. Simolo Customs (Armstrong): With $1.56 million allocated for modernization, Simolo Customs is on a mission to streamline its low-speed electric vehicle production facility, thereby enhancing cost efficiency and integrating battery production within its operations.

Additional Funding and Support

Beyond these five businesses, other companies also stood out in the funding announcement:

• SKYTRAC (Kelowna): This company, operating in satellite communication and avionics, will receive $762,000 to implement advanced manufacturing technologies, reinforcing their competitive edge.

• Axis Forestry (Kamloops): Axis Forestry is set to receive $590,000 to enhance its steel-based timber harvesters.

• Porcupine Wood Products (Salmo): This company will gain $583,000 to improve production speed and consistency.

Support for Non-Profit Organizations

In addition to for-profit businesses, the initiative extends its reach to non-profit organizations:

• Independent Lumber Manufacturers Association (Castlegar): This organization will receive $862,000 to implement an AI and digital modernization program for its member mills, enhancing productivity and supply chain transparency.

• Forest Product Association of Canada: Awarded $974,000, this association will develop a digital intelligence platform designed to mitigate transportation delays and bolster supply chain reliability.

Conclusion

The announcement of $4.5 million in federal tariff funding to five Okanagan businesses highlights the government’s commitment to fostering resilience in local industries affected by economic shifts. By investing in these companies, the federal government aims to bolster job security, enhance production capabilities, and ultimately strengthen the economy of B.C.’s Southern Interior. With these targeted investments, a more adaptive and competitive landscape is on the horizon for many critical sectors across the region.