Government of Canada strengthening industries and businesses in B.C.'s Southern Interior
Regional Tariff Response Initiative investment will help overcome challenges resulting from evolving global trade realities and strengthen B.C. businesses
CASTLEGAR, BC, March 2, 2026 /CNW/ - British Columbia's economy is built on strong businesses in every region of the province, creating good jobs and vibrant communities. Today, many B.C. businesses – like those across Canada – are facing growing uncertainty as tariffs and rapidly changing global trade conditions increase costs and disrupt supply chains.
To remain competitive and resilient, businesses will have to pivot to new paths to growth. The Regional Tariff Response Initiative (RTRI) helps them do that work.
Today, the Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada announced an investment of more than $13 million for ten Regional Tariff Response Initiative (RTRI) projects across B.C.'s Southern Interior. These investments will help businesses impacted by tariffs by helping them boost productivity, cut costs, build more resilient supply chains and reach new markets. This investment will also help protect jobs as Canada builds the strongest economy in the G7.
As part of the RTRI, these investments are in sectors that have been particularly affected by global trade disruptions – such as forestry, equipment manufacturing and value‑added wood manufacturing. The investments support individual companies as well as sector‑wide efforts to improve transportation reliability, supply‑chain visibility, and access to domestic and global markets.
Today's announcement was made at Kalesnikoff in Castlegar, a longstanding B.C. wood products manufacturer and major employer in the West Kootenays that produces engineered mass timber building materials. Kalesnikoff is receiving a repayable investment of $5.5 million to help purchase new equipment to make prefabricated housing components used in multi-family housing, schools, daycares, and commercial buildings. This equipment will increase manufacturing capacity, improve productivity, and help the company respond to trade pressures by diversifying markets.
In today's rapidly changing global landscape, the Government of Canada is building one strong Canadian economy by ensuring businesses have the tools they need to grow at home, compete globally, and create good jobs. PacifiCan is delivering targeted tariff‑response support across B.C. so businesses can seize new opportunities and position themselves for long‑term growth.
More details about all the investments announced today can be found in the backgrounder below.
Quotes
"Tariffs are having a real impact on communities across B.C. That is why we are stepping up with these investments. 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. In a world that is rapidly changing, our investments will give workers and businesses the support they need to thrive and succeed."
-The Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada
"The Southern Interior is home to many businesses that are resilient, growth-oriented and supporting good-paying jobs in their communities. Today's investments will provide the tools businesses need to navigate today's trade challenges. By investing in these companies, our government is protecting local jobs and reinforcing the region's reputation as a place where businesses innovate, adapt, and thrive."
-The Honourable Stephen Fuhr, Secretary of State for Defence Procurement and Member of Parliament for Kelowna
"Today's funding announcement will allow us to further expand our existing unique capacity to build and deliver modular timber housing, classrooms, commercial spaces and other buildings precisely, affordably and efficiently. We stand ready now to partner with developers and general contractors to help meet the high demand for housing here in Western Canada and beyond our borders using B.C. wood and our vertically integrated manufacturing process."
-Chris Kalesnikoff, President and CEO, Kalesnikoff
Quick facts
- The Regional Tariff Response Initiative (RTRI) is a $1 billion national program to help businesses adapt to new economic realities and build for the future.
- The RTRI is enabling businesses to adapt to trade challenges by opening doors to new markets, boosting productivity, and strengthening domestic supply chains.
- Kalesnikoff are one of only two (and the only in Western Canada) companies in Canada that are fully integrated including woodlands, sawmilling, mass timber design and production and modular manufacturing. This creates a much greater value-add for B.C. and Canadian timber.
- In 2022, the forestry sector accounted for approximately 10% of total revenues in the Southern Interior.
- The region's diverse natural resources base supports growth in value-added activities. Wood product manufacturing is the second-largest contributor to the manufacturing sector, generating 24% of manufacturing revenues in 2022.
Associated Links
- PacifiCan
- Kalesnikoff
- Regional Tariff Response Initiative
- Prime Minister Carney launches new measures to protect, build, and transform Canadian strategic industries | Prime Minister of Canada
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Backgrounder
Today, the Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada (PacifiCan) announced an investment of more than $13 million for ten projects across B.C.'s Southern Interior to help businesses respond to tariff pressures by strengthening supply chains, boosting productivity, and diversifying markets.
The projects announced today are:
Axis Forestry Inc. - $590,000
Based in Kamloops, Axis Forestry builds specialized, steel-based large timber harvesters that help logging operations work more efficiently. The investment will help the company adapt their harvester to process smaller timber and promote the product into new international markets. Company growth will support jobs and strengthen local supply chains as Axis sources its steel primarily from Canadian suppliers.
Command Industries Inc. - $730,291
Command is a Kelowna-based metal manufacturer that designs and builds custom steel products used in sectors such as mass timber and wastewater remediation. The investment will help purchase advanced laser cutting and machining equipment and support training so the company can reduce lead times, improve efficiency, and broaden production scope. The result is new products and more resilient sales--supporting manufacturing jobs and strengthening industrial capacity in the Southern Interior.
Forest Product Association of Canada (FPAC) - $973,980
FPAC represents the interests of Canada's wood, pulp, and paper producers, advocating for sustainable forestry practices and policies that support the industry's economic growth, environmental stewardship and innovation. The investment will help FPAC develop a digital intelligence platform that gives companies real-time insight into how forest products move by rail across Western Canada to B.C. ports. This project will reduce transportation delays, improve supply chain reliability, and strengthen access to domestic and global markets.
Heartland Economics (2006) Ltd. - $644,400
This project supports a forestry business owned by the Westbank First Nation that manages and harvests forests and is moving into production of custom-cut wood products. The investment will help the business purchase equipment for the new products and expand the company's customer base, supporting Indigenous economic participation in B.C.'s forestry supply chain.
Independent Lumber Manufacturers Association (ILMA) - $862,132
Castlegar-based ILMA represents independent forestry manufacturers that are important employers in communities across B.C. The investment will help ILMA deliver an AI and digital modernization program for member mills--helping them assess readiness, build adoption roadmaps, run pilot projects, and train staff. By helping mills use data and digital tools to increase productivity and improve supply chain visibility, the program supports the competitiveness of forestry businesses and protects regional jobs.
Kalesnikoff - $5,500,000
Kalesnikoff is a longstanding B.C. wood products manufacturer and major employer in the West Kootenays that produces engineered mass timber building materials. The investment will help Kalesnikoff purchase equipment to make prefabricated housing components used in multi-family housing, schools, daycares, and commercial buildings. By leveraging its own lumber and mass timber products as inputs, the company can increase sales in domestic markets, keep more value in B.C., and support faster, more efficient construction options.
Porcupine Wood Products - $583,354
Porcupine, based in Salmo, produces high-quality wood products. The investment will help Porcupine purchase new equipment to make short length components more efficiently--improving product consistency, speeding up production, and helping the company get more value from each log. This productivity boost will ensure the company can expand into new markets.
Rapid-Span Structures Limited Partnership - $827,601
Rapid-Span, based in Armstrong, manufactures prefabricated components for bridges and transportation infrastructure across North America, enabling faster onsite assembly. The investment will help Rapid-Scan purchase advanced manufacturing equipment including robotics and steel processing equipment to bring more work in-house, reduce costs, and increase production speed. As a result, Rapid-Span will be able to compete for larger projects and strengthen Canadian supply chains.
Simolo Customs Ltd. - $1,556,787
Simolo is an Armstrong area manufacturer that builds low speed electric vehicles including golf carts and 'last-mile' delivery vehicles. The investment will help Simolo modernize and automate its facility and bring key aspects of battery production in-house, so it can make more vehicles at lower cost and reduce supply chain risk. Simolo's goal is to grow sales in Canada and expand into European markets, supporting jobs and economic activity in the North Okanagan.
SKYTRAC - $761,676
Kelowna-based SKYTRAC makes satellite communications and avionics systems for aircraft around the world - from commercial airplanes and business jets to mission critical rotorcraft. This investment will help SKYTRAC bring advanced manufacturing technologies and testing in-house and support development of a new product for their global customers. Keeping this capability in Canada helps build a more reliable domestic supply chain for advanced aerospace technology.
SOURCE Pacific Economic Development Canada
Contacts : Renée LeBlanc Proctor, Senior Communications Advisor and Press Secretary, Office of the Minister of Housing, Infrastructure and Communities and Minister responsible for PacifiCan, [email protected]; Amanda Costa, Senior Communications Advisor, PacifiCan, [email protected]
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