October 11, 2026 to October 17, 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

• 🏛️ This Week's Parliamentary Calendar
• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week

This Week's Parliamentary Calendar

• Industry and Technology Committee: Bill C-267 and Review of Electric Vehicle Policies: The House of Commons Industry and Technology Committee will meet on October 20 to study Bill C-267, aiming to establish a national framework for the durability of electronics and home appliances, with additional sessions on federal EV policies and AI in strategic industries.
• Human Resources Committee: Bill C-266 on Skilled Trades and Labour Mobility: On October 20, the Human Resources Committee will hold hearings on Bill C-266, relating to a national framework for skilled trades and labour mobility, with departmental witnesses from Employment and Social Development Canada.
• Science and Research Committee: Artificial Intelligence and Private R&D Investment: The Science and Research Committee meets October 20 to discuss committee business and review reports on artificial intelligence and private sector R&D investment in Canada.
• Science and Research Committee: AI and Private Sector R&D (Continued): On October 22, the Science and Research Committee will continue consideration of reports relating to artificial intelligence and private sector research and development investment.

Federal Government News

Government of Canada Expands Support for Artificial Intelligence Adoption in Southern Ontario

On October 13, Minister Evan Solomon announced an additional $500 million over five years for the Regional Artificial Intelligence Initiative, part of Canada’s National Artificial Intelligence Strategy. This expansion, bringing total federal investment to $700 million, aims to accelerate the adoption and responsible integration of AI technologies in priority sectors including manufacturing, health, transportation, and natural resources. Through regional economic development agencies, the funding targets businesses and organizations seeking to boost productivity, competitiveness, and market resilience through AI. Companies such as Deep Breathe Inc., which is developing AI-driven lung ultrasound technology, received funding for commercialization and scaling. The Initiative supports commercialization, talent development, and integration for Canadian AI firms in a rapidly evolving global market.

Sources: www.canada.ca

Competition Bureau Canada Outlines Enforcement Priorities and Sectoral Outcomes

Jeanne Pratt, Interim Commissioner of Competition, addressed the Canadian Bar Association on October 15, providing a detailed account of recent enforcement activities and the Bureau’s approach in the current economic climate. Recent actions included blocking a major merger in the canned and frozen vegetable market and reaching consent agreements with sector players in retail gasoline and grocery market property controls. The Bureau’s priorities continue to include merger enforcement, scrutiny of anti-competitive information-sharing practices, and addressing restrictive covenants impeding business entry. Pratt cited heightened expectations following amendments to the Competition Act, ongoing market studies in food supply chains, and increased focus on competitive barriers beyond retail. Competition law enforcement is being aligned with evolving digital technologies, including the role of AI in commercial decision-making. The Bureau’s approach involves regular consultations and guidance to facilitate compliance and predictability for businesses.

Sources: www.canada.ca

Over $430 Million Committed to Apprenticeship Training through Team Canada Strong

On October 15, Secretary of State John Zerucelli detailed the Government of Canada's investment, exceeding $430 million over five years, into the Union Training and Innovation Program (UTIP) as part of the Team Canada Strong initiative. Three active funding streams support expansion of training infrastructure, innovative approaches to attract and retain apprentices, and increased provision for training equipment, with a temporary boost of federal coverage to 70% for capital purchases. Organizations may apply by set deadlines for these funding processes, and the measures are designed to address growing labour needs tied to infrastructure, housing, and defence projects. Additionally, new support programs will introduce placement grants, completion bonuses, and navigation services for apprentices, with forthcoming bilateral agreements to expand further training access.

Sources: www.canada.ca

Minister Joly Announces $50 Million Investment in Canadian Food Innovation Network

On October 15, Minister Mélanie Joly announced a $50 million commitment through the Strategic Response Fund and the National Food Security Strategy for the Canadian Food Innovation Network (CFIN). The fund aims to accelerate adoption of advanced manufacturing, automation, and digital technologies within food and beverage processing, especially targeting small and medium-sized enterprises. CFIN is expected to support over 200 SMEs, increase its network to 20,000 members, and facilitate up to $200 million in follow-on investments. The initiative is projected to create approximately 300 new jobs, foster over 450 full-time equivalent positions, and expand the commercialization of Canadian innovations in the sector.

Sources: www.canada.ca

FedDev Ontario Funds Business Growth and Modernization in Eastern Ontario

A $6.6 million investment from the Government of Canada, announced on October 15, will fund ten organizations across Eastern Ontario to support the adoption of modern technologies, strengthen competitiveness, and improve supply chain resilience. Projects include a $1 million advanced steel processing expansion by Kawartha Metals Corp., with $500,000 in federal funding allocated. The investments are part of a broader government strategy to support innovation-driven growth in advanced manufacturing and related industries across the region.

Sources: www.canada.ca

Canada and Ontario Partner on $22 Million in Market Diversification for Agri-food Sector

Joint federal-provincial funding of nearly $22 million has been allocated through the Market Diversification and Trade Resiliency Initiative to assist over 130 Ontario farmers and processors. The support is designed to expand export capacity, facilitate market entry for new products, and strengthen production with innovative solutions such as packaging upgrades and AI-enabled grading systems. The initiative is anticipated to leverage an additional $110 million in private sector investment and create more than 900 new jobs.

Sources: news.ontario.ca

Canada Advances Offshore Wind Power Development in Atlantic Canada

Minister Tim Hodgson announced a $100 million federal investment on October 15 to advance offshore wind development under Nova Scotia’s Wind West initiative. The funds will be used for data-gathering using FLiDAR buoys, technical studies on wind and ocean conditions, and expanded grid modeling in collaboration with Net Zero Atlantic. These efforts support Nova Scotia's strategy to develop generation capacity sufficient to meet domestic and export demands. The forthcoming Call for Bids by the Canada–Nova Scotia Offshore Energy Regulator is set for winter 2027, and the overall Atlantic Energy Strategy targets new cross-provincial electricity transmission.

Sources: www.canada.ca

Canada-India Trade Talks and Team Canada Trade Mission

Minister Maninder Sidhu met with India’s Minister of Commerce and Industry, Piyush Goyal, in New Delhi to progress negotiations on a Canada-India comprehensive economic partnership agreement. The meeting, associated with the Team Canada Trade Mission, focused on doubling two-way trade to $70 billion by 2030. Canadian businesses participating in the mission sought commercial agreements in sectors such as advanced manufacturing, food processing, and digital technologies.

Sources: www.canada.ca

Monthly Manufacturing Sales Up in August 2026, Led by Chemicals and Primary Metals

Statistics Canada reported a 1.5% increase in manufacturing sales for August 2026, with gains primarily in the primary metals and chemical product industries. Conversely, transportation equipment sales experienced the most significant decline. These figures provide new data points for manufacturers seeking sector-specific performance benchmarks.

Sources: www.statcan.gc.ca

Canadian Electricity Generation Rises in 2025

Preliminary data released by Statistics Canada shows total national electricity generation grew by 2.9% in 2025, reaching 639.5 million megawatt-hours. The increase equals 17.8 million MWh above the previous year, reflecting rising demand and capacity across the Canadian grid.

Sources: www.statcan.gc.ca

Backgrounder: Union Training and Innovation Program Details Funding Streams for Skilled Trades

The Union Training and Innovation Program, launched in 2017 and receiving renewed federal funding, supports organizations in expanding training infrastructure, piloting innovative apprenticeship measures, and acquiring advanced training equipment. Since inception, $340 million has been allocated, supporting nearly 220,000 participants nationwide. Upcoming measures include a $5,000 Red Seal Completion Bonus, a Build Canada Apprenticeship Service for first-year apprentice placement, and an Apprenticeship Training Grant launching in spring 2027. Quebec organizations access related support through a distinct bilateral framework.

Sources: www.canada.ca

Provincial Government News

Ontario Welcomes $479 Million Hitachi Advanced Manufacturing Investment

Hitachi Energy Canada is investing $479 million in a transformer insulation facility in London, creating over 100 new jobs and addressing supply chain gaps. The project is backed by $20 million in Ontario funding and is scheduled for completion by 2028.

Sources: news.ontario.ca

Alberta Breaks Ground on $2.9 Billion Yellowhead Pipeline Project

Alberta’s Yellowhead Pipeline, valued at $2.9 billion, commenced construction this week, with expectations to add over one billion cubic feet per day of transportation capacity and generate about 2,000 jobs during construction.

Sources: www.alberta.ca

Nova Scotia and Canada Partner on $100 Million Offshore Wind Investment

A $100 million federal-provincial partnership was announced to facilitate offshore wind development, focusing on research, data collection, and risk reduction for future major power projects.

Sources: news.novascotia.ca

Manitoba Delegation Participates in Trade Mission to India

Manitoba government and business representatives are joining the Team Canada Trade Mission to India to open new trade and investment opportunities in sectors including manufacturing, clean energy, and logistics.

Sources: news.gov.mb.ca

Ontario Responds to Continued U.S. Softwood Lumber Duties

Ontario officials reiterated opposition to U.S. softwood lumber tariffs after the U.S. Department of Commerce set the duty rate at 24.75%, citing adverse impacts on cross-border construction costs.

Sources: news.ontario.ca

What We're Reading This Week

• Hitachi factory in London, Ont. to create 100 jobs as Canada's electricity demand rises: Hitachi's new factory addresses supply chain needs for transformer components amid accelerating power demand.
• Canada retooled its factories for war in 1938. Trump tariffs give us a reason to do it again: Analysis on historical shifts in Canadian manufacturing in the context of current U.S. tariff policy.
• Trump tariffs, trade war with Canada and Iran war driving up costs for U.S. manufacturers: Rising costs for U.S. manufacturers linked to tariff escalation and international conflicts.

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