TORONTO — The Ontario government has announced a $3.5 million investment to strengthen the province’s forestry sector, backing new technologies and expanding production capacity at local manufacturers. The move is aimed at reinforcing the competitiveness of made-in-Ontario wood products while helping businesses withstand ongoing trade pressures, including tariffs from the United States.
The funding is being delivered through the Forest Sector Investment and Innovation Program (FSIIP), a provincial initiative designed to spur advanced manufacturing, create jobs, and enhance productivity in one of Ontario’s most vital industries.
“Our world-class forest sector builds a stronger economy and stronger communities across Ontario,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “Our government’s targeted investments are reinforcing made-in-Ontario wood products as a competitive choice for consumers and markets worldwide, building a competitive forest sector that can stand firm against U.S. trade pressure.”
Investments in Local Manufacturers
Two companies will directly benefit from the latest round of funding.
DSI Industries, an established office furniture manufacturer, is receiving $2.5 million to install automated finishing equipment. According to the government, the upgrade will cut production time in half, double plant capacity, create two new jobs, and preserve 31 existing positions at the company’s Concord facility.
Diamond CNC, a kitchen cabinet manufacturer based in Nanticoke, is being awarded more than $1 million. The investment will allow the company to install robotic systems to automate material handling, which is expected to improve quality control and increase production by 160 per cent. The project will create three new jobs while retaining five existing roles.
“Today’s investments from DSI Industries and Diamond CNC will help strengthen Ontario’s wood manufacturing industry, boost sales of made-in-Ontario products globally, and create good-paying jobs for the region,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “Amid global economic uncertainty, our government will continue to create the right conditions for businesses to invest, expand, and succeed right here in Ontario.”
Broader Supply Chain Impact
The province noted that increased production at these companies is expected to generate nearly $4 million in additional annual purchases across the forestry supply chain. This multiplier effect underscores the importance of targeted investment in small- and medium-sized businesses that form the backbone of Ontario’s manufacturing ecosystem.
Since its launch, the Forest Sector Investment and Innovation Program has provided more than $72 million in funding, leveraging $425 million in private investment to help forestry companies modernize operations and compete globally.
Industry Leaders Welcome Support
Executives from both companies praised the government’s investment as a catalyst for growth and innovation.
“Diamond CNC is proud to showcase our advancements in manufacturing with the establishment of Canada’s first fully automated woodworking facility,” said Mike Clare, Chief Financial Officer of Diamond CNC. “This achievement is made possible through our strategic partnership with CNC Automation and a significant investment in cutting-edge Nanxing machinery, revolutionizing our production efficiency and quality. We are excited to lead the way in innovation and industry growth. We thank the Ontario government for their confidence in us and their investiture, which made this whole project possible.”
Cory Shamir, Vice President of Technology at DSI Industries (operating as OFGO STUDIO), highlighted the company’s history and future ambitions. “Established in 1980, we have built a strong reputation as an Ontario based manufacturer of office furniture, renowned for delivering high performance workplace environments that fulfill the evolving demands of the marketplace. In partnership with the Government of Ontario, we are implementing advanced automation and enhanced manufacturing capabilities, fostering sustained employment growth, broadening our product portfolio, and unlocking new market opportunities to ensure long-term value for our customers and stakeholders.”
Local MPP Laura Smith, representing Thornhill, underscored the community-level benefits. “This investment is good news for our community, as it will strengthen supply chains and expand the use of made-in-Ontario products. By advancing our forestry sector and the businesses that support them here in Thornhill and across Ontario, we’re building a more resilient economy.”
A Strategic Sector
Ontario’s forestry sector remains a key contributor to the provincial economy. The industry generated $21.6 billion in revenue from manufactured goods and services in 2023 and supported approximately 128,000 direct and indirect jobs in 2024.
In addition to its economic role, the sector is anchored in sustainability. Wood harvested from Ontario’s Crown forests is renewable and sustainably sourced. The government emphasized wood’s role as both a clean energy source and a biodegradable alternative to single-use plastics.
The province’s broader strategy includes the Sustainable Growth: Ontario’s Forest Sector Strategy and the Forest Biomass Action Plan, both designed to ensure long-term competitiveness and sustainability.
Looking Ahead
By targeting investments in advanced manufacturing and automation, the Ontario government is positioning local firms to weather global trade challenges while expanding their reach in domestic and international markets. For companies like DSI Industries and Diamond CNC, the funding represents not only a financial boost but also an endorsement of their role in building a resilient, modern forestry sector.
With global demand for renewable and sustainable materials on the rise, Ontario’s forestry sector stands at the intersection of environmental stewardship and economic opportunity — and the province appears determined to ensure its companies are equipped to lead.
