TORONTO — Ontario is stepping up efforts to expand the use of domestically produced wood construction materials, unveiling a new working group tasked with advancing the province’s strategy for prefabricated and modular wood-based building systems. The initiative marks the latest step in the government’s bid to boost housing supply, strengthen the forestry sector and reduce exposure to U.S. trade actions.
Announced Wednesday by the Ministry of Natural Resources, the Advanced Wood Construction Working Group will guide implementation of the province’s Advanced Wood Construction Action Plan, released earlier this year. The plan outlines priorities for investment, education and research aimed at growing the market for advanced wood construction — a field that includes mass timber, modular housing systems and prefabricated building components.
In announcing the group, Associate Minister of Natural Resources George Holland said the province intends to mobilize expertise across industries to accelerate adoption of innovative building materials.
“Our government has assembled leaders and experts from a variety of sectors into a working group that will seize the potential of advanced wood construction and revolutionize how we build Ontario,” said Associate Minister Holland. “We will continue to deliver on our plan to protect Ontario’s forest sector businesses and workers by building a strong, resilient forest sector that can stand strong in the face of U.S. tariffs.”
The group’s mandate includes promoting Ontario-made wood products, providing strategic advice to unlock new business opportunities and supporting efforts to position the province competitively in global markets. Members will also act as ambassadors within their sectors, encouraging investment and supporting workforce growth in communities tied to forestry and manufacturing.
Representatives from industry associations, research organizations and educational institutions praised the move as a timely effort to modernize construction practices.
“Industrialized wood construction is one of the fastest ways to deliver the housing Ontario needs and to grow value-added manufacturing here at home,” said Steven Street, Executive Director of the Canadian Wood Council’s WoodWorks Ontario program. “This plan creates new opportunities for skilled workers and positions Ontario to lead a rapidly evolving construction landscape with a more resilient, efficient, and future-focused building ecosystem.”
Advanced wood construction has increasingly been used for mid-rise and tall buildings, including residential, commercial and institutional projects. The province says such methods can cut construction time by as much as 50 per cent and reduce costs by up to 20 per cent — efficiencies that could help Ontario meet its ambitious housing targets.
The working group builds on more than $80 million in provincial investments targeting wood construction and innovation. These include more than $16 million for Element5, Ontario’s first fully automated producer of cross-laminated timber; $10 million for the new Prince Edward County Memorial Hospital, slated to be North America’s first “un-encapsulated” mass timber hospital; and close to $2 million for the Canadian Wood Council to support training, education and code development.
Other funded projects include mass timber buildings at George Brown College and the University of Toronto, along with more than $1 million in research partnerships with FPInnovations and the Canadian Wood Construction Research Network.
Industry groups emphasized the broader economic implications of scaling up domestic wood-based construction.
“The Ontario Forest Industries Association (OFIA) looks forward to implementing Made-in-Ontario building solutions using our advanced forest product sector. Ontario has the talent, resources, and capacity to be a global leader in advanced wood construction. By championing Ontario forest products for modular and mass timber projects, we are keeping jobs here, developing provincial supply chains, and being more resilient in the face of trade action,” said Ian Dunn, President and CEO of OFIA.
“Wood-based construction, as envisioned through the provincial government’s action plan, will provide a cornerstone for Ontario’s forest-based bioeconomy,” added Scott Jackson, CEO of the Centre for Research and Innovation in the Bio-Economy (CRIBE). “The creation of new domestic markets combined with the implementation of new technologies will not only put Ontario wood to work in new and innovative ways but will do so in a manner that reduces our dependence on foreign markets, brings new housing supply online, and stimulates the economy for the betterment of all Ontarians.”
Research organizations also welcomed the province’s coordinated approach.
“Through the Advanced Wood Construction Action Plan’s roadmap, Ontario has outlined objectives to increase the use of Ontario wood in the province, accelerate home construction, and support one of Ontario’s largest natural resource sectors. FPInnovations is proud to work with the Province of Ontario to provide applied science for advanced wood construction,” said Stéphane Renou, President and CEO of FPInnovations.
Robert Jonkman, Vice-President of Codes and Engineering at the Canadian Wood Council, said the initiative signals “real leadership at a pivotal time for Ontario’s construction sector,” noting that aligning policy, investment and industry capacity will support continued growth in the field.
Emergency services will also have a seat at the table. Jeremy Parkin, Fire Chief and President of the Ontario Association of Fire Chiefs, said the organization appreciates being included in the group. “The continued partnership will provide important feedback on fire and life safety for Ontarians,” he said.
According to provincial data, Ontario’s forest sector generated $21.6 billion in revenue in 2023 and supported 128,000 direct and indirect jobs in 2024. The government says the new working group will help safeguard those jobs while supporting its broader housing and economic goals.
