$1.7M FEDNOR FUNDING HELPS ‘STRONG COMPANIES’ AND MUSKOKA COMMUNITY LAND TRUST HOUSING AMBITIONS, SAYS MINISTER HADJU IN INTERVIEW
Mark Clairmont | MuskokaTODAY.com
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PARRY SOUND-MUSKOKA — Even “strong companies” need help sometimes, said FedNor Minister Patty Hadju today in announcing $1.7 million in federal funding for four businesses and one non-profit housing group in Muskoka.
The minister of jobs and families, and minister responsible for FedNor, announced it is providing $1,766,712 for five economic development projects in Parry Sound-Muskoka area through FedNor’s Innovation program as well as the Regional Homebuilding Innovation Initiative for Northern Ontario.
- Muskoka Community Land Trust, $407,260 GRANT
It’ll receive a non-repayable investment to support investment readiness planning in housing developments that will let it hire skilled professionals to help coordinate critical tasks related to the housing development initiative, contributing directly to shovel-readiness.
- Muskoka Brewery $367,500, Bracebridge LOAN
This repayable loan of lets it buy and install new innovative equipment in support of supporting new product offerings. A new tunnel pasteurizer expands production in its non-alcohol beverage offerings, allowing the business to reach new customers, while also supporting increased shelf stability that will allow for expanded distribution and increased market reach. The brewery had had help from FedNor multiple times.
- Keystone Granite Management, Lake of Bays, $130,000 LOAN
The investment supports acquisition and commission of new, innovative equipment needed to produce value-added granite rock product for the construction and landscaping market. This project also includes infrastructure requirements to support this expanded operation to expand production and access new markets for their products.
- Lofthouse Manufacturing, Burk’s Falls, $400,000 LOAN
Its grant is for increased manufacturing productivity and export growth. And acquisition of an innovative hydraulic forging press to improve manufacturing efficiency by reducing material scrap. This increase in efficiency will help reduce product costs and material waste. FedNor has previously helped Lofthouse, including $2.1 in 2018.
- Connor Industries, Parry Sound, $461,952 LOAN
Money to buy and install innovative watercraft manufacturing equipment to support equipment purchases, infrastructure upgrades, and new technology implementation at its Parry Sound manufacturing plant. That will create expanded production capacity and hiring of new staff. They’ve also had FedNor investment.
AI reshaping the workforce
A release Tuesday, Aug. 18, said: “In a rapidly changing world shaped by tariffs, skills shortages and AI reshaping the workforce, the Government of Canada is focused on what it can control: building a stronger, more resilient economy. Advanced manufacturing is a key pillar of that effort.
Yesterday the government launched the Advanced Manufacturing Workforce Alliance to help close skills gaps in the sector.
Today it said FedNor it is providing investment for Northern Ontario businesses and communities, helping them adopt new technologies, adapt to shifting markets and grow.
Funding for the five projects will help local manufacturers adopt new technology and support new housing and construction across the region.
“The investments are helping local manufacturers adopt the advance technology needed to compete and grow.”
Said Hadju: “A strong national economy is built on strong regional economies, and those foundations are made up of local businesses and the people who run them. Investments like these help Northern Ontario manufacturers adopt the advanced technology they need to compete and grow, creating good jobs and opportunity right in the communities where people live. When we back local businesses, we are building a stronger, more resilient Canada, one region at a time.”
Hadju interview with TODAY.com
In an interview with MuskokaTODAY.com this morning from her riding, Hadju said: “I’m from Thunder Bay, but I’ve been to Muskoka. It’s beautiful. I think anyone who’s been there is quite envious of both of you who get to live there. It’s a gorgeous part of the province and country.”
She went on to say the funds she announced Monday — for an Advanced Manufacturing Workforce Alliance — will “identify and advance solutions to bolster the skilled workforce needed across Canada’s advanced manufacturing sector.”
But that these Muskoka funds are not to be confused with that announcement in Guelph.
“Absolutely not,” the norther Ontario MP said.
The Parry Sound-Muskoka money also comes after the feds and Ontario announced $1 billion yesterday at the AMO conference in Ottawa to help municipalities that don’t levy development charges build and renew critical infrastructure.
“Oh that’s a different thing. That’s about housing development.”
Here “we’re talking about investments directly into the Muskoka-Parry Sound region for four or five companies that are expanding product lines or changing product lines. There’s a not for-profit as well that’s getting ready for housing.
“So those are different manufacturing alliances. This is a different thing.”
It’s a mixed bag announcement.
“Some are loans and one is repayable. Sometimes companies have an opportunity through FedNor to get a loan with preferential conditions, so that they can actually take that money and take that next step in growth.
“Ultimately, at the end of the day, this is about making sure that companies have the support they need financially, so they can take that growth step earlier.
“These projects are expected to result in 16 full-time equivalent jobs and four businesses will be expanded as a result. So that expansion is important too, because of course it allows them to keep that growth going.
“And ultimately, as you know, good companies, strong companies create good jobs. And that’s why we’ve got a support for businesses and workers.”
“Yesterday was about the entire advanced manufacturing sector, trying to ensure that people are getting trained in the right way and with the right methods and making sure that companies have an input into what kind of training that they need are going to get.”
Today’s announcement, she said, will allow “a tighter fit between what people are learning and what people are actually coming out with in terms of what the needs are of companies.”
“We’ve done quite a bit with the provinces. We fund through the labour market transfer agreement support for provinces to do training. We’ve also boosted a transfer for tariff impacted companies to adjust for people who are laid off. So we’ve got additional money going to the province of Ontario.
“So, it is an all hands on deck moment and the government of Canada is deeply supporting provinces and territories.
Muskoka Land Trust money fills ‘gap’
Hadju added the money for the Muskoka Land Trust idea is because “there was a gap in some of the programs that we had for under the housing accelerator fund where small communities that didn’t charge development fees weren’t eligible. So now, small communities that don’t charge development fees are eligible for some of the housing readiness fund.”
Which does fit the needs and priorities of Muskoka for housing and jobs.
“We thank FedNor for their support in continuing to develop permanently affordable housing and social enterprise, said Patrick Chouinard, their executive director. “Our efforts as a community-led, not-for-profit organization are to benefit the vibrant communities across Muskoka, and this investment will help us to do that in a sustainable way.”
‘Strong companies’ and federal ‘angel investor’
The minister was asked why do “strong companies” need federal help? And isn’t private funding such as from banks available for these strong companies?
“Sometimes it is and sometimes it isn’t. Like, these are strong companies, but they’re still smaller companies. They’re not giant companies. They’re local companies. And FedNor grant contributions are in smaller amounts.
“For example, the $400,000 for Lofthouse manufacturing. They’re not giant amounts of money. And so often lenders, you know in larger markets they may not fit the criteria of that loan — the interest rates may be more than they can bear. So FedNor has one specific purpose and it’s to support the economic growth of Northern Ontario. And it does that through these tools, either loans or grants in some cases, to ensure that a company has what they need or has what they need to become ready to grow.
“We also fund not for profit companies,
as you can see, or not for profit organizations.”
However, “when they have the capacity to repay, essentially this operates in a way, if you think, as like a government-run angel investor where there’s an opportunity to borrow at preferential rates for the company in a repayment plan that makes sense for the company. With the goal of creating jobs.”
She added in the interview with her: “I will say we’ve got great success in terms of repayment. We’ve got a great reputation across Northern Ontario. I can’t say enough about the professionalism of the organization, staff that work for FenNor. They are incredible and supportive of really all businesses of all sizes.”
And “if someone goes to FedNor for financial support for advice or economic development advice, and they don’t fit the parameters FedNor helps them find even smaller institutions that can help them with their growth ambition.”
Such as “community economic development corporations, business incubators and innovation centres that also support people to get to the right door and the right level of funding and the right level of support for their particular circumstance.
“This money is very important to the growth of these particular companies. They know what they need and they have a willing partner in FedNor who can not only give them support financially. But also support in terms of how they grow their footprint. What some potential partnerships might look like and what can potential markets might look like.
“So, FedNor is a wealth of information as well as granting and lowing body.”
No request for Muskoka prefab housing factory
When asked, Hadju said FedNor has not seen a request from the District of Muskoka to create a pre-fab housing manufacturing plant with use of robotics.
Would it be eligible?
“It might,” the minister said. “It depends. I have no idea about this project. It hasn’t come across my desk.
“But what I can say is that FedNor is a good agency to work with in terms of what supports are available. So at the next stage, they might need some advice and some structuring. If it’s further along the way, they might need some financial support. They might need some networking support in terms of other lenders and other possibilities.
“But I would say that if there’s a proponent, if there’s somebody serious about that, then they should absolutely reach out to FedNor, because if it is not the right agency, FedNor can certainly help ensure they find a pathway to the right door.”
The minister concluded by saying FedNor does not deal
with a “tremendous amount” of housing proposals.
“No, what we do is actually invest in — as you can see by one of the recipients — we invest in supporting the additional work that has to go in prior to the housing bills. And we do some work with manufacturers.
“So there are some, for example, manufacturers throughout Northern Ontario who are building modular housing. We’ve supported that kind of manufacturing as it relates to housing and the ambitions of the region. And that actually helps those modular companies, not only get larger footprints but more modular housing built more quickly.
“Different kinds of building techniques, but it also help them with the hiring that they need to do in order to continue that work.”
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