Targeted Manufacturing Initiative for Northern Ontario – Productivity Improvements

Important note:

The program currently has limited budget availability due to a high demand. Please contact a FedNor officer to discuss your project prior to submitting an application under the program.

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.

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; and
  • 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 Project Activities

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

Eligible Project 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

Certain activities and costs will not be considered eligible, including:

  • land, building, vehicles, marketing, studies, overhead, depreciation and salaries.

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.

Application Requirements

The following is required as part of all funding applications:

  • 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;
  • The Applicant must provide 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; and  
  • The Applicant must provide details on how the proposed project will result in net economic benefits to Northern Ontario.

Provision of the above information does not necessarily imply that the funding application will be approved. All applications will be assessed fully to confirm the business case, including a detailed review of historical results and reasonableness of financial projections, as well as to identify any regulatory issues that may impact project outcomes.

Service Standards

FedNor is committed to providing quality service to all applicants and funding recipients in the official language of their choice.

Our goal is to:

  • acknowledge receipt of an application within (3) working days (FedNor has, on average, met this service standard in the 2021/22 fiscal year 100% of the time); and,
  • provide a decision on applications within eighty (80) working days of receipt of a fully completed application (FedNor has, on average, met this service standard in the 2021/22 fiscal year 80% of the time)Footnote 1.
  • render a payment decision on claim submissions within thirty-five (35) working days (FedNor has, on average, met this service standard in the 2021/22 fiscal year 86% of the time).

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.