Government of Canada strengthening industries and businesses in B.C.’s Southern Interior
News release
Regional Tariff Response Initiative investment will help overcome challenges resulting from evolving global trade realities and strengthen B.C. businesses
March 2, 2026 - Castlegar, British Columbia
British Columbia's economy is built on strong businesses in every region of the province, creating good jobs and vibrant communities. Today, many B.C. businesses – like those across Canada – are facing growing uncertainty as tariffs and rapidly changing global trade conditions increase costs and disrupt supply chains.
To remain competitive and resilient, businesses will have to pivot to new paths to growth. The Regional Tariff Response Initiative (RTRI) helps them do that work.
Today, the Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada announced an investment of more than $13 million for ten Regional Tariff Response Initiative (RTRI) projects across B.C.’s Southern Interior. These investments will help businesses impacted by tariffs by helping them boost productivity, cut costs, build more resilient supply chains and reach new markets. This investment will also help protect jobs as Canada builds the strongest economy in the G7.
As part of the RTRI, these investments are in sectors that have been particularly affected by global trade disruptions – such as forestry, equipment manufacturing and value‑added wood manufacturing. The investments support individual companies as well as sector‑wide efforts to improve transportation reliability, supply‑chain visibility, and access to domestic and global markets.
Today’s announcement was made at Kalesnikoff in Castlegar, a longstanding B.C. wood products manufacturer and major employer in the West Kootenays that produces engineered mass timber building materials. Kalesnikoff is receiving a repayable investment of $5.5 million to help purchase new equipment to make prefabricated housing components used in multi-family housing, schools, daycares, and commercial buildings. This equipment will increase manufacturing capacity, improve productivity, and help the company respond to trade pressures by diversifying markets.
In today’s rapidly changing global landscape, the Government of Canada is building one strong Canadian economy by ensuring businesses have the tools they need to grow at home, compete globally, and create good jobs. PacifiCan is delivering targeted tariff‑response support across B.C. so businesses can seize new opportunities and position themselves for long‑term growth.
More details about all the investments announced today can be found in the backgrounder.
Quotes
“Tariffs are having a real impact on communities across B.C. That is why we are stepping up with these investments. The work we are doing is giving forestry and manufacturing businesses the tools they need to adapt – strengthening supply chains and protecting jobs, especially in sectors that are critical for our province. In a world that is rapidly changing, our investments will give workers and businesses the support they need to thrive and succeed.”
-The Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada
“The Southern Interior is home to many businesses that are resilient, growth-oriented and supporting good-paying jobs in their communities. Today's investments will provide the tools businesses need to navigate today's trade challenges. By investing in these companies, our government is protecting local jobs and reinforcing the region’s reputation as a place where businesses innovate, adapt, and thrive.”
-The Honourable Stephen Fuhr, Secretary of State for Defence Procurement and Member of Parliament for Kelowna
“Today’s funding announcement will allow us to further expand our existing unique capacity to build and deliver modular timber housing, classrooms, commercial spaces and other buildings precisely, affordably and efficiently. We stand ready now to partner with developers and general contractors to help meet the high demand for housing here in Western Canada and beyond our borders using B.C. wood and our vertically integrated manufacturing process.”
- Chris Kalesnikoff, President and CEO, Kalesnikoff
Quick facts
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The Regional Tariff Response Initiative (RTRI) is a $1 billion national program to help businesses adapt to new economic realities and build for the future.
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The RTRI is enabling businesses to adapt to trade challenges by opening doors to new markets, boosting productivity, and strengthening domestic supply chains.
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Kalesnikoff are one of only two (and the only in Western Canada) companies in Canada that are fully integrated including woodlands, sawmilling, mass timber design and production and modular manufacturing. This creates a much greater value-add for B.C. and Canadian timber.
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In 2022, the forestry sector accounted for approximately 10% of total revenues in the Southern Interior.
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The region’s diverse natural resources base supports growth in value-added activities. Wood product manufacturing is the second-largest contributor to the manufacturing sector, generating 24% of manufacturing revenues in 2022.
Related products
Associated links
Contacts
Renée LeBlanc Proctor
Senior Communications Advisor and Press Secretary
Office of the Minister of Housing, Infrastructure and Communities and Minister responsible for PacifiCan
renee.proctor@infc.gc.ca
Amanda Costa
Senior Communications Advisor
PacifiCan
amanda.costa@pacifican.gc.ca
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