May 10, 2026 to May 16, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning most types of manufacturing activities (except agricultural, automotive, aerospace, food, and pharmaceutical), e.g. textile and apparel, chemical, electronics, wood and paper, metals, plastics and rubber, packaging, and machining. Once a week, we break down the most important updates in this space in under five minutes.

Want to track the upstream and downstream forces affecting Manufacturing? Don’t miss this week’s updates in Mining and Oil & Gas. Also consider subscribing to our Manufacturing - Washington edition covering critical GR news south of the border.

📋 In This Week's Newsletter

• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 💬 Government Consultations
• 📚 What We're Reading This Week

Federal Government News

Government Invests in Manufacturing Resilience and Competitiveness in British Columbia

On May 14, at the Manufacturing Excellence Forum in New Westminster, MP Jake Sawatzky announced on behalf of Minister Gregor Robertson a $1.4 million federal investment through PacifiCan’s Regional Innovation Ecosystems program to support the Excellence in Manufacturing Consortium of Canada (EMC) and its three-year B.C. Manufacturing Resilience and Support Program. The initiative will deploy workshops, hands-on plant assessments, export readiness forums, and launch a provincial supply chain mapping platform, supporting over 100 B.C. manufacturers in productivity improvements and supply chain strengthening. The announcement follows recent national measures, including expanded Business Development Bank of Canada financing and additional support through the Regional Tariff Response Initiative, aimed at stabilizing operations and aiding small and medium-sized Canadian manufacturers impacted by ongoing trade disruptions and supply chain pressures.

Sources: www.canada.ca

$35M Federal Commitment for Kruger Inc. to Produce Biodegradable Materials

Minister Mélanie Joly, on May 11, unveiled a $35 million investment through the Strategic Response Fund in Kruger Inc.’s Wayagamack Mill nonwovens project in Trois‑Rivières, Quebec. The initiative will see the mill adapt its operations to manufacture plastic-free, biodegradable paper material for use in finished wipe products. Leveraging Canadian natural pulp fibers and mechanical bonding, the facility will transition away from synthetic polymers and chemical binders, targeting a 65% reduction in GHG emissions per metric ton of product. This production line marks a first for North America, supporting over 350 jobs and strengthening Canada's offering in the North American biodegradable wipes market as tariff pressures continue to impact the domestic forestry sector.

Sources: www.canada.ca

Major Investment Backs Dual-Use Aerospace Technology at MDS Coating

On May 13, Minister Mélanie Joly announced a $55.7 million federal investment in MDS Coating Technologies Corporation’s $212.9 million project at Slemon Park, Prince Edward Island. The support, from the Strategic Response Fund, advances development and commercialization of proprietary nanocoatings that improve engine durability for commercial and defence aerospace sectors by lowering maintenance costs and reducing fuel consumption. The project will create or maintain up to 230 jobs and provide 70 student co-op positions. This is the largest-ever government investment in PEI’s aerospace and dual-use sectors, aligned with priorities under Canada’s Defence Industrial Strategy.

Sources: www.canada.ca

New Support for Tariff-Impacted Quebec Aluminum Processors

On May 11, MP Bienvenu-Olivier Ntumba announced $1.98 million in non-repayable support under the Regional Tariff Response Initiative (RTRI) for Cyrell AMP and Alu MC3, two aluminum processing SMEs in Montérégie, Quebec. The funding will assist in acquiring production equipment and marketing development as companies seek to diversify their markets and maintain competitiveness under the latest round of U.S. tariffs on products containing steel, aluminum, and copper. These investments aim to consolidate 130 regional jobs and are part of a $1.5 billion package announced by Minister Joly.

Sources: www.canada.ca

Regional Tariff Response Funding Rolls Out in Montréal’s East End

On May 13, Parliamentary Secretary Carlos Leitão announced $1.3 million in non-repayable funding for ARA Robotics Inc. and Pro-Spin Metal Spinning Inc.—aluminum-focused manufacturers affected by new U.S. tariffs—in Montréal. Delivered through CED’s RTRI program, ARA Robotics will apply $850,000 towards equipment acquisition and marketing, while Pro-Spin Metal Spinning receives $467,500 to modernize its production line. The support targets improved productivity, market diversification, and the safeguard of 60 jobs, amid a national government effort to counter trade disruptions with over $6.5 billion in measures for Canadian industries.

Sources: www.canada.ca

Federal Funding for Innovative Hearing Protection Commercialization in Newfoundland

On May 13, MP Tom Osborne announced, on behalf of ACOA Minister Sean Fraser, $200,000 in repayable federal support for Audyse Technology Inc. (St. John’s) to advance the commercialization of its AudyseHEAR industrial hearing protection platform. The funding will help improve data intelligence capabilities, support the transition from prototype to market, and enable the company to expand its industrial safety product line, with a focus on securing new commercial opportunities in Canada and abroad.

Sources: www.canada.ca

Monthly Survey of Manufacturing: March 2026 Data Released

Statistics Canada released March 2026 figures showing a 3.0% rise in manufacturing sales nationally, spurred by increased sales in petroleum, coal products, and transportation equipment. Quarter over quarter, sales gained 0.1% in Q1, reflecting incremental growth in the industry during ongoing volatility in global trade.

Sources: www.statcan.gc.ca

Anti-Dumping Inquiry: Preliminary Injury Determination on Chinese Cable Imports

On May 15, the Canadian International Trade Tribunal determined there was a reasonable indication that dumping and subsidization of certain unarmoured building cables from China had caused injury to Canada's domestic industry. The Tribunal’s inquiry is pursuant to the Special Import Measures Act, with the Canada Border Services Agency to issue its preliminary determination by June 12. This could impact domestic cable manufacturers and suppliers depending on the outcome of the ongoing investigation.

Sources: www.canada.ca

RTRI Funding Provided to Ottawa Aluminum Manufacturers to Counter Tariff Pressures

On May 12 in Saint-André d’Argenteuil, MP Stéphane Lauzon announced a non‑repayable $650,000 contribution for Ottawa Aluminum Manufacturers under the RTRI. The funding backs equipment acquisition and market diversification strategies aimed at boosting competitiveness in response to recent U.S. tariff adjustments on metals. The measure is tied to a $1.5 billion federal commitment made in early May and seeks to consolidate over 60 jobs.

Sources: www.canada.ca

North Bay Manufacturers Receive Over $2M to Build Resilience Amid Trade Pressures

On May 15, Parliamentary Secretary Pauline Rochefort announced a $2.2 million FedNor/RTRI investment supporting five North Bay, Ontario area businesses: Premier Mining Products Inc., Pilot Diamond Ltd, Miller Technology Inc., Mincon Canada, and Old Forge Manufacturing. The funding will be used for productivity improvements, modernization, diversification, and expansion into new markets—all in response to global tariff volatility and shifting trade patterns.

Sources: www.canada.ca

Tariff Response Investment Supports Aluminum and Steel Manufacturer in Les Pays-d’en-Haut

On May 14, Parliamentary Secretary Carlos Leitão and MP Tim Watchorn announced a $455,000 non‑repayable RTRI contribution for Multi Online Distribution (known as Multinautic/Korto Structures) in Saint-Sauveur, Quebec. The funding supports equipment acquisition and market diversification for this aluminum and steel modular products business, with 20 jobs consolidated in the Laurentides region. The support is provided in the context of a national strategy targeting industries vulnerable to changing U.S. tariffs.

Sources: www.canada.ca

Provincial Government News

B.C. Invests $16.7M to Expand Wood Product Markets and Promote Local Manufacturing

The Government of British Columbia announced over $16.7 million, including $12 million public and $4.7 million industry funding, to drive market diversification and boost demand for B.C. wood products internationally, while supporting wood manufacturing jobs. The initiative, administered by Forestry Innovation Investment, will prioritize market development and the use of B.C.'s wood domestically and overseas.

Sources: news.gov.bc.ca

Ontario and Canada Announce $1M Investment for Agri-Food Innovation Commercialization

On May 14, Ontario and Canada announced nearly $1 million through the Sustainable CAP initiative to support local agri-food and food processor projects, including advanced manufacturing for dairy-free desserts and digital monitoring technologies in livestock.

Sources: news.ontario.ca

Ontario Awards $10M to Modernize Georgia-Pacific North Woods Facility

The Ontario government is investing $10 million in Georgia-Pacific's $191 million modernization project for its Englehart OSB plant. This upgrade will protect over 220 jobs, increase output by 14%, and use new on-site thermal systems to utilize wood by-products.

Sources: news.ontario.ca

Innovate BC Grants Support Commercialization in Advanced Manufacturing

On May 13, the BC government announced that 11 companies received funding up to $50,000 each from Innovate BC's Go-to-Market Microgrant Program to enhance sales, expand into international markets, and boost commercialization capacity across advanced manufacturing and related sectors.

Sources: news.gov.bc.ca

Five Nova Scotia Public Buildings to Switch to Wood Heat Systems

On May 15, Nova Scotia issued a request for proposals to convert five public buildings, including hospitals, to wood heat systems using local forest products, supporting forestry sector employment and regional energy security.

Sources: news.novascotia.ca

Government Consultations

CFIA Seeks Feedback on Encapsulated Zinc Oxide as Livestock Feed Ingredient

The Canadian Food Inspection Agency launched a public consultation (open until June 12) on the proposed classification of encapsulated zinc oxide as a new livestock feed ingredient for dietary zinc.

Sources: Share your thoughts: Proposed new livestock feed ingredient – Encapsulated zinc oxide - inspection.canada.ca

Consultation: Amended Livestock Feed Ingredient—Guanidinoacetic Acid

CFIA is accepting comments until June 12 regarding changes to the single ingredient feed description for guanidinoacetic acid.

Sources: inspection.canada.ca

Public Comments Invited on the Draft Impact Assessment Report for the Crawford Nickel Project

The Impact Assessment Agency of Canada is accepting public submissions, until June 10, on the draft Impact Assessment Report and proposed conditions for the planned Crawford Nickel Project, an open-pit nickel-cobalt mine near Timmins, Ontario.

Sources: iaac-aeic.gc.ca

What We're Reading This Week

• Globe and Mail: Copper prices surge, tied to global infrastructure demand.
• Financial Post: Analysis of Canada's role in global critical minerals and battery supply chains.
• Reuters: Automotive battery manufacturing investments shift northward, spotlighting Ontario.
• BNN Bloomberg: Steelmakers announce plant upgrades in North America in response to heightened trade frictions.
• La Presse: Tariff measures influence Quebec’s aluminum processing sector outlook.
• Wall Street Journal: U.S. cement manufacturers expand research into carbon reduction.
• Canadian Manufacturing: Firms accelerate adoption of smart tech and robotics despite economic volatility.
• The Chronicle Herald: Feature on Nova Scotia bioplastics start-up accessing national retail chains.
• The Star: Ontario supply chain reshaping in response to U.S. tariff regime.
• Manufacturing.net: Factory automation projects ramp up on both sides of the border.

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