Through its Federal Economic Development Agency for Southern Ontario, the federal government has announced an investment of nearly $2.9 million to support the Wood Manufacturing Cluster of Ontario (WMCO).

The organization will use the funding to help small and medium-sized businesses across southern Ontario adopt digital strategies.

WMCO is an industry-led cluster that supports SMEs across southern Ontario. Businesses include those specializing in cabinetry, commercial fixtures and millwork, furniture, flooring, mass timber construction and other niche products.

With this investment, WMCO will support manufacturers as they adopt technologies, including supply chain digitization and increased Internet-of-Things capabilities.

WMCO will use the federal funding to provide seed funding for up to 50 eligible SMEs undergoing digital adoption projects. The funding is expected to help commercialize as many as 50 new products, services and processes. WMCO will also prioritize SMEs in rural and Indigenous communities through targeted outreach activities.

“This project demonstrates the importance of industry-led clusters to deliver results for small- and medium-sized wood manufacturing companies,” said WMCO Chief Executive Officer Mike Baker. “SMEs who do not have easy access to support for digital transformation can work with the cluster to achieve global competitiveness through data integration and Industry 4.0 investments. The cluster provides an environment for companies to learn from each other’s projects and leverage the synergies to boost global competitiveness.”

Established in 2011, the Wood Manufacturing Cluster of Ontario is a not-for-profit organization that acts as an industry-led cluster for the value added wood industry spanning across Ontario.

The province is home to the largest concentration of advanced wood manufacturing in Canada, while the forest industry itself comprises 3,000 companies, employs 35,000 workers, and contributes more than $7 billion to Canada’s annual gross domestic product.

Since 2015, the Government of Canada has invested more than $770 million in more than 360 projects in manufacturing through FedDev Ontario.