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

Published: 10:05 am Tuesday, March 3, 2026

In a significant boost to the economy of British Columbia’s Southern Interior, Canada’s Minister of Housing and Infrastructure, Gregor Robertson, announced more than $13 million in funding for ten projects under the Regional Tariff Response Initiative. This announcement was made on March 2 during a visit to Kalesnikoff Lumber in Castlegar, a company poised to lead the region in modern construction and manufacturing methods.

What is the Tariff Response Initiative?

The Regional Tariff Response Initiative is part of a broader $1 billion national program designed to help Canadian businesses adjust to the changing trade landscape characterized by tariffs. This initiative aims to enhance production capabilities, fortify supply chains, and facilitate access to new markets. The federal government recognizes that tariffs are causing real economic ramifications for communities across B.C., particularly in the forestry and manufacturing sectors that are crucial to the provincial economy.

Minister Robertson emphasized the occasion, stating, “Tariffs are having a real impact on communities across B.C. That is why we are stepping up with these investments.” This financial allocation underscores the government’s commitment to ensuring that local businesses have the necessary resources to adapt, thereby protecting jobs and stimulating economic growth.

Key Beneficiaries of the Funding

Among the recipients of this funding, Kalesnikoff Lumber stands out, receiving a substantial $5.5 million in the form of an interest-free loan. The company, which has a rich heritage in the West Kootenay region, is one of the only two firms in Canada fully integrated in woodlands, sawmilling, and mass timber design and manufacturing. The funding will enable Kalesnikoff to acquire new equipment aimed at increasing the production capacity of prefabricated components essential for constructing multi-family housing, educational institutions, and commercial buildings.

In addition to Kalesnikoff, several other companies across the Southern Interior will benefit:

• Command Industries (Kelowna) will receive $730,000 to invest in advanced laser cutting and machining equipment for custom steel products utilized in mass timber production and wastewater management.

• Heartland Economics (Westbank First Nation) has been granted $644,000 to start producing custom-cut wood products.

• Rapid-Span (Armstrong), known for prefabricated bridge and transportation components, will get $828,000 to enhance automation and reduce costs through robotic manufacturing.

• Simolo Customs (Armstrong) will modernize its low-speed electric vehicle production with a funding boost of $1.56 million to automate its facility and in-source battery production.

• SKYTRAC (Kelowna) is set to benefit from $762,000 aimed at introducing advanced manufacturing technologies in satellite communication production.

• Axis Forestry (Kamloops), manufacturers of specialized logging equipment, will receive $590,000 for adaptations to their timber harvesters.

• Porcupine Wood Products (Salmo) has been allocated $583,000 to enhance production speed and product consistency through new equipment.

Advancements for Non-Profits

The initiative also extends its support to non-profit organizations, delivering funding in the form of grants.

• Independent Lumber Manufacturers Association (Castlegar) will receive $862,000 to launch an AI and digital modernization program tailored for its member mills. This project aims to harness digital tools to boost productivity and enhance supply chain visibility.

• Forest Product Association of Canada is set to receive $974,000, designated for developing a digital intelligence platform focused on reducing transportation delays and improving overall supply chain reliability.

Conclusion

This funding announcement marks a pivotal moment for businesses in B.C.’s Southern Interior, positioning them to navigate the complexities of a changing economic environment. By equipping companies with the necessary tools and resources, the Canadian government is fostering resilience and adaptability in key sectors. As these businesses upgrade their capabilities and expand their markets, the ripple effects will be felt throughout the community, enhancing job security and economic stability for the region as a whole. The investments reflect not just a commitment to immediate economic support, but also a strategic vision for a more robust future.