Government of Canada Provides Major Boost for Ontario Manufacturers

For immediate release
December 9, 2013

Minister Goodyear Launches the Advanced Manufacturing Fund

London, Ontario—Ontario's manufacturers welcomed a major economic boost today as the Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), and Joe Preston, Member of Parliament for Elgin–Middlesex–London, announced the launch of the Advanced Manufacturing Fund in London, Ontario.

Ontario is home to skilled workers, world-leading companies and innovative manufacturers. The manufacturing sector's contribution to the economy continues to be a key driver of economic prosperity, despite challenges associated with intensifying competitive pressures.

The Fund is aimed at the development of transformative products and technologies to help Ontario manufacturers create jobs and compete with the rest of the world.

"Through the Advanced Manufacturing Fund, our Government is looking ahead to the new and innovative products or production methods that will push Ontario to the forefront of high-tech manufacturing," said Minister Goodyear. "With this investment, we are helping manufacturers in the province to build momentum and push to be more competitive on the global stage."

"AMF is one of the integral ways our Government will help our workers, businesses and other organizations here in London and across Ontario as they strive to grow and prosper," said MP Preston. "By investing in innovative and productive manufacturing companies, we are helping them to achieve and maintain global leadership, while providing good quality jobs in Ontario now and for the future."

"As Canada's leading trade and industry association, we understand the importance of and need to bolster the global competitiveness of Ontario companies," said Jayson Myers, President and CEO, Canadian Manufacturers & Exporters (CME). "CME supports FedDev Ontario as it continues to equip manufacturers with the right tools to become more successful."

The Government of Canada's Economic Action Plan 2013 provides $200 million over five years for the Advanced Manufacturing Fund in Ontario, to be delivered province-wide by FedDev Ontario.

The Fund will promote continued growth of Ontario's advanced manufacturing sector by supporting large-scale, transformative manufacturing activities.

  • It will increase productivity.
  • It will lead to greater economic output.
  • It will create cutting-edge companies, driven by innovation.
  • It will establish clusters or supply chains.
  • It will foster collaboration between the private sector, research institutions and post-secondary institutions.

Advanced manufacturing includes the development and/or adoption of cutting-edge technologies that demonstrate a commitment to product, process, and technological innovation.

The contributions provided will normally be between $10 million and $20 million per project for up to one-half (50 percent) of total eligible project costs. Projects seeking less than $10 million or more than $20 million may be considered. Applicants must provide evidence of industry support (non-government sources) for at least 50 percent of the remaining project costs and clearly demonstrate how their project responds to innovation, market relevance and spillover economic benefits.

For detailed guidelines and information on how to apply, please refer to the backgrounder or visit www.FedDevOntario.gc.ca.

Created in 2009, FedDev Ontario supports the southern Ontario economy by building on the region's strengths and creating opportunities for jobs and economic growth. In Budget 2013, the Government of Canada demonstrated its continued commitment to workers, families and communities in southern Ontario with the renewal of FedDev Ontario. Economic Action Plan 2013 provides $920 million over five years for the Agency starting on April 1, 2014.

To learn more, please visit www.FedDevOntario.gc.ca or call 1-866-593-5505.

Follow us on Twitter @FedDevOntario.

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For more information, contact:

Stephanie Thomas
Director of Communications
Office of the Honourable Gary Goodyear
613-947-2956

Media Relations
FedDev Ontario
416-954-6652
FedDevMedia@FedDevOntario.gc.ca


Backgrounder

Advanced Manufacturing Fund (AMF) in Ontario

The manufacturing sector is a major contributor to Canada's economy, employing more than 1.7 million Canadians, of which nearly 800,000 live in Ontario. It also accounts for half of the business R&D in Canada.

The nature of manufacturing is evolving and at the same time, Canada faces heightened competition from advanced and emerging economies, increasingly in high value-added segments.

That is why AMF will invest in advanced manufacturing in Ontario and contribute directly to an innovative and sustainable manufacturing base that will continue to be an important economic driver for prosperity.

Advanced manufacturing includes the development of cutting-edge technologies that demonstrate a commitment to product, process, and technological innovation. Advanced manufacturers can be found across all manufacturing industries and sectors.

The Fund will promote continued long-term growth, productivity, and competitiveness of Ontario's manufacturing sector by:

  • Supporting large-scale, transformative advanced manufacturing activities which will increase productivity;
  • Advancing development and/or adoption of cutting-edge technologies, leading to product, process, and technological innovations;
  • Encouraging projects that create spillover benefits for manufacturing clusters and/or supply chains; and
  • Fostering collaborations between the private sector, research institutions, and post-secondary institutions.

There are two types of eligible applicants:

  • Established for-profit businesses located in Ontario that are incorporated in Canada.
    • Eligible manufacturing firms are:
      • Undertaking manufacturing activities in Ontario;
      • Undertaking manufacturing and R&D activities in Ontario; or
      • Conducting R&D in Ontario, but not manufacturing in Ontario.

    * For-profit businesses must present a sustainable business model and have a track record of profitability.

  • Not-for profit organizations (i.e., research institutions, centres of excellence, or post-secondary institutions) located in Ontario. Not-for-profit organizations require collaboration with an anchor firm and must demonstrate a significant benefit to the manufacturing sector.

AMF will support investments that create new and innovative products or production methods, with market entry or commercialization within five years. Technologies developed and/or adopted under the Fund must be new, or applied in a unique and innovative manner.

Eligible activities in all projects include:

  • Activities related to prototyping, demonstration projects, advanced product testing, and applied research leading to a practical application;
  • Work undertaken to achieve technological advancement through the creation/improvement of existing materials, devices, products or processes; and/or
  • The adoption or adaptation of highly innovative products, technologies (e.g., machinery and equipment), and processes that support product or process innovation.

Eligible activities in projects led by not-for-profit organizations, in addition to the above, include industry-relevant, scientifically-advanced research in cutting-edge technologies with the potential to support commercial applications and a long-term competitive advantage for manufacturing in Ontario.

All project activities must be completed prior to December 31, 2018.

For-profit businesses will be considered for an unconditionally repayable contribution. The contributions provided will normally be between $10 million and $20 million per project for up to one-half (50 percent) of total eligible project costs. Projects seeking less than $10 million or more than $20 million may be considered. Applicants must provide evidence of industry support (non-government sources) for at least 50 percent of the remaining project costs and clearly demonstrate how their project responds to innovation, market relevance and spillover economic benefits.

Not-for-profit organizations will be considered for a non-repayable contribution. The contributions provided will normally be between $10 million and $20 million per project for up to one-half (50 percent) of total eligible project costs. Projects seeking less than $10 million or more than $20 million may be considered. Applicants must provide evidence of industry support (non-government sources) for at least 50 percent of the remaining project costs and clearly demonstrate how their project responds to innovation, market relevance and spillover economic benefits.

Applications can be submitted during two intake periods. Intake 2014 will start on December 9, 2013, and end on October 1, 2014. Intake 2015 will start on January 1, 2015, and end on October 1, 2015.

For more information and guidelines, please refer to the Federal Economic Development Agency for Southern Ontario website at www.FedDevOntario.gc.ca or call 1-866-593-5505.

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