Federal investment helps defend Winnipeg's advanced manufacturing sector against U.S. tariffs

Minister Olszewski announces PrairiesCan support for 15 Winnipeg manufacturing projects through the Regional Tariff Response Initiative and Business Scale-up and Productivity program

WINNIPEG, MB, Sept. 3, 2026 /CNW/ -- When the North American Free Trade Agreement (NAFTA) came into effect in 1994, Manitoba manufacturers were among the first to seize the opportunity. That year, the province's exports to the United States grew faster than those of any other province, led in part by major gains in machinery, transportation equipment, and other manufactured products.

Federal investment helps defend Winnipeg’s advanced manufacturing sector against U.S. tariffs

Over the three decades that followed, Manitoba businesses expanded, created skilled jobs and built supply chains around a reliable continental trading relationship. However, that mutually beneficial relationship has since changed.

Two weeks ago, the United States imposed additional unjustified tariffs on Canadian goods, creating significant uncertainty for workers, businesses and communities, including manufacturers and the supply chains they depend on. Canada negotiated intensively and in good faith toward a fair and comprehensive agreement. However, the terms proposed by the United States asked too much and offered too little in return. Canada therefore suspended negotiations rather than accept a bad deal that would undermine Canadian workers, businesses, strategic industries and national sovereignty.

In response, Canada is matching the new U.S. tariffs dollar-for-dollar and is providing $7.5 billion in new and enhanced support, including via the Regional Tariff Response Initiative (RTRI). As part of these efforts, the Honourable Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada (PrairiesCan), today announced $15.9 million for 15 projects led by 11 Winnipeg-based organizations through the RTRI and Business Scale-up and Productivity (BSP) program.

These projects will help manufacturers grow, improve productivity, strengthen domestic supply chains and reach new markets. Winnipeg's manufacturing sector is highly interconnected, with local companies supplying the equipment, technology and expertise that support production across the province, across Canada, and around the globe.

By supporting productivity, modernization and market competitiveness, the federal government is helping Manitoba's advanced manufacturing sector respond to the immediate pressures created by U.S. tariffs while building greater economic resilience over the long term. Today's investments will support new equipment, automation, digital systems, workforce training and expanded production across a range of manufacturing industries.

Some of the supported projects and companies include:

• Fort Garry Fire Trucks Ltd. is receiving funding for two projects:
  • $999,575 through RTRI to bring production of more fire truck components in-house, including for pump assemblies and plastic tanks.
  • $1,114,651 through BSP for new fabrication, welding and painting equipment to improve productivity and meet growing demand for their products.
• Smartrend Manufacturing Group is receiving support for two projects:
  • $1,000,000 through RTRI to expand into new markets, hire staff in sales, marketing and regulatory roles, and to train workers as the company increases production.
  • $2,087,916 through BSP to automate parts of its electronics production line and launch two new products using the illuminated-sign technology found on school bus stop sign arms.
• City Sheet Metal Co. Ltd. is receiving $570,025 through RTRI to upgrade its aluminum and steel production equipment, increase production and grow sales across Western Canada.

A full list of the 15 projects receiving support through PrairiesCan can be found in the linked backgrounder.

Quotes

"Canada did not choose this trade conflict with the United States, but we are determined to support the workers, businesses, and communities facing its impacts. Manitoba manufacturers have long been a driving force behind the success of North American free trade, and they are now adapting to a fundamentally different trading environmentby investing in new equipment, increasing production, and pursuing new markets. Our government is proud to stand with businesses as they strengthen supply chains, grow domestic capacity, and create the conditions for a stronger, more resilient Canadian economy."
–The Honourable Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada (PrairiesCan)

"Strong supply chains are essential to communities in Winnipeg, whether for community infrastructure or economic development. Investments in Manitoba's manufacturing sector help build that capacity here at home, while creating new opportunities for businesses to grow and reach new markets. That strengthens our economy and supports a more resilient and connected Canada."
–The Honourable Rebecca Chartrand, Minister of Northern and Arctic Affairs and Minister responsible for the Canadian Northern Economic Development Agency, Member of Parliament for Churchill-Keewatinook Aski

"Fort Garry Fire Trucks greatly appreciates the ongoing support for manufacturers being provided by the Canadian Government. Funding provided to Fort Garry Fire Trucks by the Canadian Government, through PrairiesCan's Regional Tariff Response Initiative and Business Scale-up and Productivity Program, will allow Fort Garry Fire Trucks to increase its manufacturing capacity and secure its supply chain by bringing the manufacture of key fire truck components, currently being sourced internationally, back into Canada. This funding will increase the number of trucks built, generate increased economic activity, and create new well-paying manufacturing jobs. Fire trucks are essential to ensure the safety of our communities. Supporting Canadian emergency service manufacturers to ensure that Canada has the ability to build its own fire trucks is important, especially in these uncertain times."
–James Peters, President, Fort Garry Fire Trucks

"Winnipeg's manufacturing sector is built on skilled workers, strong businesses and a long history of innovation. At a time when tariffs are creating new challenges, the companies receiving support today are investing in their operations, creating opportunities for growth and strengthening supply chains here at home. These investments will help ensure Winnipeg businesses remain competitive and continue contributing to a strong Canadian economy."
–Ben Carr, Member of Parliament for Winnipeg South Centre

"Winnipeg manufacturers are the people who build, produce and keep our local economy moving. As we face uncertainty from U.S. tariffs, we're making sure businesses right here in Winnipeg have the support they need to adapt, invest and grow. These investments will help local manufacturers modernize, strengthen their supply chains and create more good, skilled jobs in our community. I am proud to see federal support delivering real results for Winnipeg West and helping our local businesses build a stronger future right here at home."
–Doug Eyolfson, Member of Parliament for Winnipeg West

Quick facts

• As a the December 2025 labour force survey, Manitoba's manufacturing sector employed 67,700 workers, about 9% of the province's total workforce.
• Funding announced today flows through PrairiesCan's Regional Tariff Response Initiative (RTRI) and Business Scale-up and Productivity (BSP) program.
• On August 25, 2026, the Government of Canada announced an additional $1.5 billion through the Regional Tariff Response Initiative to help tariff-affected small and medium-sized businesses manage immediate pressures, diversify markets, boost productivity, reduce costs and strengthen domestic supply chains.
• This additional RTRI funding is part of a new $7.5 billion package for workers and businesses affected by U.S. tariffs. The package also includes a $2 billion Canada Strong Diversification Fund, $500 million in new BDC liquidity support, $3.5 billion in Rapid Response Supports for Workers and Employers, and new flexibilities under the Large Enterprise Tariff Loan facility.
• Today's RTRI and BSP investments will strengthen competitiveness and help each of these organizations achieve tangible outcomes. In total, these projects support more than 358 jobs.

Backgrounder

Today, the Honourable Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada (PrairiesCan), announced $15.9 million for 15 projects led by 11 Winnipeg-based organizations through the Regional Tariff Response Initiative (RTRI) and Business Scale-up and Productivity (BSP) program. The projects will help manufacturers grow, improve productivity, strengthen domestic supply chains and reach new markets.

Projects receiving support include:

• Argus Industries Ltd. is receiving:
  • $507,179 through RTRI (non-repayable) to build and equip a new 5,000-square-foot production space to make specialized seals for the aerospace and defence industries, including the installation of a large moulding press.
     
• Buhler Versatile Inc. is receiving:
  • $1,000,000 through RTRI (non-repayable) to add new manufacturing and material-handling equipment to increase production capacity and reduce operating costs.
• City Sheet Metal Co. Ltd. is receiving:
  • $570,025 through RTRI (non-repayable) to upgrade aluminum and steel production equipment, increase production, hire and train staff, and grow sales across Western Canada.
• Fort Garry Fire Trucks Ltd. is receiving:
  • $999,575 through RTRI (non-repayable) to bring production of more fire truck components in-house, including new production areas for pump components and plastic tanks, along with improvements to digital systems and testing.
  • $1,114,651 through BSP (repayable) to add new fabrication, welding, rubber manufacturing and painting equipment to help improve productivity and meet growing demand for its fire trucks.
• Global Drain Technologies Inc. is receiving:
  • $1,000,000 through RTRI (non-repayable) to purchase and install new production equipment to increase productivity and reduce production costs.
• Innovair Industrial Limited is receiving:
  • $2,524,965 through RTRI (repayable) to add on-site gas storage and cryo-genic gas transport trailers to strengthen the supply and delivery of industrial gases.
  • $1,000,000 through RTRI (non-repayable) to improve and standardize robotic welding systems so they can be installed faster and at a lower cost for manufacturers.
• International Truck Body Inc. is receiving:
  • $1,000,000 through RTRI (non-repayable) for new equipment, tools and production space to complete the first phase of a new step-van manufacturing line.
  • $1,119,407 through RTRI (repayable) for additional equipment and renovations to complete the second phase of the step-van manufacturing line and increase production capacity.
• Micro Tool & Machine Ltd. is receiving:
  • $536,105 through RTRI (non-repayable) to modernize digital planning and production systems, improving how the company manages materials, schedules and costs.
• NeuStar Manufacturing Inc. is receiving:
  • $499,016 through BSP (repayable) to increase production through automation, digital upgrades, new material-handling equipment and additional production space.
• Smartrend Manufacturing Group (SMG), Inc. is receiving:
  • $1,000,000 through RTRI (non-repayable) to expand into new markets, hire staff and train workers as production grows.
  • $2,087,916 through BSP (repayable) to automate parts of its electronics production line and launch two new products using its illuminated-sign technology.
• Structural Composite Technologies Ltd. is receiving:
  • $1,000,000 through RTRI (non-repayable) to add new manufacturing equipment and business-management software, hire and train staff, and expand into new Canadian markets.

Associated links

• Prairies Economic Development Canada (PrairiesCan)
• Regional Tariff Response Initiative (RTRI) in the Prairie provinces
• Business Scale-up and Productivity (BSP) in the Prairie provinces
• Government of Canada announces support for Prairie businesses facing trade challenges
• Prairie businesses impacted by global trade disruptions can now apply for funding through the Regional Tariff Response Initiative (RTRI)

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Toll-free number: 1-888-338-9378
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SOURCE Prairies Economic Development Canada

Contacts: Soraya Lemur, Press Secretary, Office of the Hon. Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada, [email protected], 343-574-6781; Tunde Oyateru, Manager, Communications, Prairies Economic Development Canada, [email protected], 639-382-3753