Canada’s Next Leap: Innovation, Industry & Transformation
September 29, 2025
NGen Insights: A Strong Foundation for Advanced Manufacturing & Industrial Growth
By: Jayson Myers, CEO NGen
On September 5, 2025, Prime Minister Carney announced a package of new measures aimed at protecting, building, and transforming Canada’s strategic industries.
These measures are in addition to the steps the government has already taken in support of steel, aluminum, and softwood lumber and in establishing a Major Projects Office to fast-track large infrastructure projects. They will be followed shortly by announcements of a new Defence Industrial Strategy, Trade Diversification Strategy, and Build Canada Homes program, as well as by the government’s economic statement (budget) that is expected later this fall.
New Measure Package Details
While there are a lot of details that still need to be worked out, the measures of particular importance for advanced manufacturing are:
- A new $5 billion Strategic Response Fund that will replace and build upon the government’s Strategic Innovation Fund, but which will provide flexible terms to help firms in all sectors impacted by tariffs adapt, diversify, and grow.
- An increase in funding for the Regional Tariff Response Initiative to $1billion over three years. The initiative will provide up to $1 million in non-repayable contributions to SMEs in all tariff-impacted sectors.
- A new Buy Canadian Policy that will require all federal procurement agencies, funding programs, and Crown corporations to buy from Canadian suppliers and demand a high proportion of local content when Canadian suppliers are unavailable.
- Establishment of new Workforce Alliances that will enhance collaboration among employers, industry groups, unions, and academic and training programs, targeting tariff-impacted sectors as well as sectors with high growth potential like advanced manufacturing.
- Expansion of the Business Development Bank of Canada’s loan facility for small- and medium sized businesses as well as its Large Enterprise Tariff Loan Facility.
- Introduction of a new biofuel production incentive.
The package announced by the Prime Minister represents more than just an assortment of new policy measures and programs. It reflects an integrated strategy that brings together industrial, innovation, and procurement policies aimed at stimulating demand and targeting industrial competitiveness, business growth, and transformation in a way that Canada hasn’t seen since the 1950s.
Transforming Canada’s Advanced Manufacturing Ecosystem
Transformation will be the key to building a more competitive and resilient industrial economy in Canada. The aim cannot be to subsidize a business-as-usual recovery, but now need to pivot to new markets, accelerate the growth of domestic businesses, build new industries, and take a major leap in enhancing industrial productivity. This takes a more strategic and innovative approach on the part of industry and government alike.
Advanced manufacturing will be at the centre of this transformation. Canada’s ability to weather the economic storm will only come through the adoption and application of advanced technologies to boost industrial productivity. It will also depend on the development, scale-up, and commercialization of new products and services based on Canada’s strengths in advanced technologies.
As the government also recognizes, it’s not just about technology. Canadian success will depend on a highly skilled and knowledgeable workforce, in addition to good business and policy management, as well as a more flexible, responsive, and outcomes-oriented regulatory system.
Industrial (and policy) transformation takes time. There’s more to do as well to transform Canada’s strengths in AI, quantum, advanced materials, cell and gene therapies into value-adding manufacturing in Canada, to encourage the acquisition of Canadian IP by Canadian industry, and to build market-dominant businesses in Canada.
More is required to encourage collaboration too – to build and support partnerships that marry technology providers with industrial customers, integrate technologies in solutions and systems that industrial companies and procurement agencies can both readily adopt and manage, and drive more coordination and collaboration among government departments and agencies at both federal and provincial levels.
NGen has demonstrated the value of collaborative approaches in developing and commercializing leading edge solutions in manufacturing and leveraging capabilities across Canada’s advanced manufacturing ecosystem. They see great opportunities to continue their support of advanced manufacturing and look forward to working with companies and governments across the country to help make their ambitious transformation plans a reality.
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