The Government of Canada is underscoring the forest sector’s role in strengthening economic resilience through new Budget 2025 investments.
During a visit to Kalesnikoff’s mass timber operations in Castlegar, British Columbia, Minister of Energy and Natural Resources Tim Hodgson and Secretary of State for Defence Procurement Stephen Fuhr met with workers to highlight measures aimed at expanding domestic lumber production, growing markets, and supporting the shift to low-carbon construction.
Budget 2025 outlines a broader effort to help the industry navigate global economic uncertainty and reduce reliance on a single trade partner. A key component is the new Buy Canadian Strategy, which prioritizes the use of Canadian materials — such as mass timber and softwood lumber — in federal procurement. Companies contracting with the federal government will be required to source Canadian lumber, a measure designed to strengthen supply chains and sustain jobs in forest-dependent communities.
The budget also provides up to $700 million in loan guarantees over two years, administered by the Business Development Bank of Canada, to help forest companies secure financing during a period of transformation. Beginning in 2026–27, Ottawa plans to invest an additional $500 million over three years to renew and expand Natural Resources Canada programs focused on market diversification, product innovation, and export growth.
Minister Hodgson and Secretary Fuhr toured Kalesnikoff’s mass timber and modular manufacturing facilities, which convert high-quality B.C. lumber into engineered components such as cross-laminated timber wall and floor systems. These products are already used in several projects funded through the Green Construction Through Wood (GCWood) program.
Kalesnikoff has gained momentum through federal housing initiatives such as Build Canada Homes, which targets 500,000 housing starts annually over the next decade. Modular mass timber construction, supported by domestic sourcing requirements, is expected to shorten build times, reduce costs, and increase precision while expanding the use of Canadian wood in national infrastructure projects.
Earlier this year, Natural Resources Canada supported Kalesnikoff’s new 100,000-square-foot modular mass timber facility with a $3-million investment through the Investments in Forest Industry Transformation (IFIT) program.
Government officials emphasized that Budget 2025 positions the forest sector as a driver of long-term growth. “Our new Buy Canadian Policy will strengthen supply chains and support homegrown innovation,” Minister Hodgson said. Fuhr added that prioritizing Canadian-made materials reinforces economic resilience at a time of global uncertainty.
Kalesnikoff Chief Operating Officer Chris Kalesnikoff said the company welcomes the opportunity to participate in future infrastructure projects, noting the role of mass timber in delivering sustainable, high-performance buildings.
As global trade dynamics shift, Budget 2025 positions Canada to build a more self-sufficient, low-carbon economy by leveraging domestic industries, strengthening supply chains, and expanding the use of renewable materials such as wood.
