Southern Ontario Spotlight - May 2021

On April 19, the Government of Canada released Budget 2021 – A Recovery Plan for Jobs, Growth and Resilience, which proposes a number of measures to support a strong and inclusive economic recovery that creates jobs and growth for Canadians. From the outset of the pandemic, regional development agencies (RDAs), including FedDev Ontario, have been providing critical support to help businesses and organizations keep their doors open, keep staff employed and prepare for the future. Budget 2021 recognizes the integral role of RDAs as Canada continues forward to recovery, earmarking $2.8 billion over the next five years for RDAs to continue to support Canadian businesses, organizations and underrepresented groups. 

Proposed measures, subject to parliamentary approval, include:

• An extension of the Regional Relief and Recovery Fund (RRRF) until June 30, 2021, with up to $80 million for RDAs and the Community Futures Network of Canada to continue to support small businesses.
• A new national $500-million Canada Community Revitalization Fund to support infrastructure projects that will stimulate local economies, create jobs, and improve quality of life for Canadians.
• A new national $500-million Tourism Relief Fund to support local tourism businesses in adapting their products and services to align with public health measures, help them recover from the pandemic and position themselves for future growth.
• A new national $250-million Aerospace Regional Recovery Initiative to help position Canada’s aerospace sector for future growth once travel restrictions are lifted.
• $200 million over two years to support major festivals that celebrate Canada’s artistic excellence and unique character.
• An additional $51.7 million over four years for the Black Entrepreneurship Program.

Budget 2021 also included a number of measures that will help drive growth and recovery and have direct, positive impacts in southern Ontario and complement FedDev Ontario’s work. This includes measures focused on research and innovation such as the development of a National Quantum Strategy, a pan-Canadian Genomics Strategy and the renewal of the Pan-Canadian Artificial Intelligence Strategy. Additional details will be provided in the coming months as these initiatives roll out.

President James Meddings discussed strategic investments the Agency has been making to mitigate the effects of COVID-19 and spur innovation across southern Ontario with Canadian SME Business Magazine. President Meddings touched on topics ranging from the challenges of identifying strategic investments in a region as economically diversified and robust as southern Ontario, to his commitment to fostering a workplace that is respectful and optimistic. He also highlighted how FedDev Ontario responded to the pandemic by implementing flexibilities in repayment terms, advancing payments to alleviate pressures on existing clients and delivering the Regional Relief and Recovery Fund.

“In the midst of this challenging time, I continue to be inspired by the innovation and strength that Canadian businesses have shown. Whether through quickly retooling to contribute to the call for PPE, pivoting business models to adapt to new realities, or introducing innovative solutions to continue serving clients, businesses and organizations have shown incredible resilience. It is this resilience and ingenuity that will get us through the pandemic and position us for a strong future. And we continue to be here every step of the way.”

- James Meddings, President, Federal Economic Development Agency for Southern Ontario

Read the full interview to learn more about how we are supporting over 25,000 SMEs with investments of almost $400 million that are projected to maintain over 50,000 jobs in the region.

Strategically located on the Ontario-Michigan border, Sarnia-Lambton is one of the busiest commercial land border crossings in North America and is a key contributor to Ontario’s economy.

Parliamentary Secretary Marie-France Lalonde recently announced Sarnia-Lambton’s official designation as a Foreign Trade Zone (FTZ) point. This designation will allow the region to market itself as a hub for international trade and to provide coordinated access to government programs related to trade and foreign direct investment, helping to attract more business to the area.

“Workers and businesses are essential to the success of our economy and have the support of the Government of Canada. The newest FTZ Point in Sarnia–Lambton will bring many opportunities for trade and entrepreneurship to the region.”

- Marie-France Lalonde, Parliamentary Secretary to the Minister of Economic Development and Official Languages (FedDev Ontario and Official Languages)

The Sarnia-Lambton region is also home to Bioindustrial Innovation Canada (BIC), a business accelerator focused on clean technology that is positioning the region for growth and sustainability. Since 2015, BIC has supported businesses across southern Ontario with advice, services and project funding to advance commercialization and accelerate new sustainable chemistry products and clean technologies. For more information on BIC, read FedDev Ontario’s Pivotal Project profile.

Canada celebrated Earth Day on April 22, and a statement from the Minister of Environment and Climate Change highlighted the importance of a continued focus on the environment and the challenges of climate change, while acknowledging the steps the Government of Canada is taking through Budget 2021 to continue working toward a cleaner and more sustainable economy. FedDev Ontario remains committed to supporting clean growth and investing strategically in environmentally-conscious and sustainable businesses.

That is why FedDev Ontario announced a non-repayable investment of $5 million for the City of Guelph to develop Canada’s first circular economy test platform and accelerator, the Circular Opportunity Innovation Launchpad (COIL). The term “circular economy” refers to a system where businesses and collaborations maximize resources by reusing or repurposing materials, with a goal to eliminate waste and greenhouse gas emissions. The project will focus on accelerating the growth of circular economy-focused companies in the region and is expected to create 400 jobs, commercialize over 100 new products or services, and support the development and growth of up to 70 businesses.

The Agency also announced a repayable contribution of $2.6 million to support the scale up and clean growth efforts of Kingston Aluminum Technology Inc. (KAT), a family-run manufacturer of custom reusable aluminum bottles for the food, beverage and pharmaceutical markets. With this support, KAT will further commercialize its patented blow-molding, producing 100 percent recyclable bottles in an industry overly reliant on plastics. This project will create 29 new quality jobs in the region, maintain 10 jobs and further position the City of Kingston as a centre for clean technology in Ontario.

Canada’s agri-food producers are a critical part of our economy and contribute to the well-being of our population, and FedDev Ontario remains committed to supporting the agri-food sector throughout southern Ontario. Founded in 1966, B-W Feed & Seed is a New Hamburg-based producer of cow, hog and poultry feed servicing over 500 agri-food customers and employing 28 full-time staff. A recently-announced FedDev Ontario investment of
$2 million will support this family-owned business to install advanced manufacturing equipment to quadruple its production capacity to meet growing demand, creating 10 new jobs and maintaining another 28.