Targeted Manufacturing Initiative for Northern Ontario – Productivity Improvements

FedNor is committed to supporting Northern Ontario's economy by encouraging businesses to become more innovative, productive and competitive. Through its Regional Economic Growth through Innovation program, FedNor can help existing Northern Ontario manufacturers upgrade and improve capital equipment used in manufacturing processes, including information and communications technology, to improve their competitiveness and productivity.

On this page

• Expected Results
• Eligible Applicants
• Eligible Activities
• Eligible Costs
• Ineligible Costs
• Funding Conditions
• Other Considerations
• How to Apply

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Expected Results

Results generated by FedNor’s investments in manufacturing will include:

• Enhanced manufacturing capability.
• Efficient production facilities.
• Modernized and competitive manufacturing sector in Northern Ontario.
• Increased export sales and profitability.

Eligible Applicants

• Eligible applicants are established manufacturers located in Northern Ontario. For further clarity, established manufacturers means firms currently operating, whose primary line of business is the manufacture of a commercial product and that are planning for growth.

Eligible Activities

• Activities that aim at improving and modernizing the manufacturing process, leading to increased productivity and competitiveness.

Eligible Costs

Eligible project costs include all expenses directly related to the project and deemed reasonable and necessary for its execution. Costs may include:

• plant equipment purchases, including digital hardware and software that are a direct part of the manufacturing process;
• installation and commissioning of new equipment;
• training on the use of new equipment;
• implementation of recommendations from an Operational Assessment, such as lean manufacturing, ISO certification, quality controls, information and communications technology or other operational and managerial improvements; and
• modernizing the production facility through upgrades to existing production equipment (e.g., automation, robotics, ancillary systems).
• Eligible costs must be for arm's-length purchases.

Ineligible Costs

Any costs deemed not reasonable and/or not directly related to the eligible project activities are ineligible, including:

• land, building, vehicles, marketing, studies, overhead, depreciation and salaries; and
• Costs for which the applicant has entered into a legal commitment/incurred prior to the eligibility date.

Funding Conditions

• Assistance available for SMEs is repayable.
• Generally, FedNor will contribute up to 33% of eligible capital costs and up to 50% of eligible non-capital costs.
• If applicants incur costs to implement their projects prior to approval of funding, these costs will not be considered eligible for reimbursement unless written consent is provided by FedNor.

Other Considerations

To be considered eligible, project benefits must accrue to Northern Ontario.

To be considered eligible for funding, applicants must provide:

• A work plan detailing the productivity improvement or the equipment upgrade to be addressed, including milestones/timelines, and a description of how the project will improve the firm's competitiveness and productivity. The Applicant must detail how the project was identified, and include a review of the competitive landscape.
• Evidence of capacity to implement the project, including financial statements for the past three years. Where the last year-end is more than six months past, interim financial statements must be provided.
• Details on how the proposed project will benefit business operations (including target performance measures), supported by reasonable forecast results and the plan to achieve these results.

Completing an application does not guarantee funding approval. All applications will be assessed as they are received. This will include a review of the business case and financial projections, the applicant’s past results, and the identification of any issues that may impact the project’s success. Approval may also depend upon funding availability.

How to Apply

Please call 1-877-333-6673 to discuss your proposal with a FedNor Officer in your area or begin your application process.

FedNor is committed to providing effective, efficient and client-focused programs and services. Visit our service commitment to find out more.