New funding and market strategies aim to strengthen Northwestern Ontario’s forestry sector amid trade pressures

THUNDER BAY – BUSINESS NEWS – The Northwestern Ontario Municipal Association (NOMA) is throwing its full support behind new federal measures announced by Prime Minister Mark Carney aimed at revitalizing and transforming Canada’s softwood lumber industry—a sector that remains a lifeline for many communities across the Northwest.

The federal strategy includes:

• Up to $700 million in loan guarantees

• $500 million for product and market diversification

• Prioritization of Canadian lumber in federal procurement

• New workforce development investments

• International market expansion initiatives

Together, these measures represent one of the most comprehensive federal commitments to the forestry sector in recent years, and come at a time when the industry continues to face ongoing trade challenges, particularly in the wake of escalating U.S. tariffs on Canadian wood exports.

Forestry: A Cornerstone for Northwestern Ontario

“These investments are crucial,” said NOMA President Rick Dumas, “as communities across Northwestern Ontario rely on a strong, sustainable, and innovative forestry industry for local jobs, economic growth, and municipal stability.”

Dumas emphasized that the measures “recognize the vital role of forestry in Northwestern Ontario and across Canada,” and that they “help our sector adapt, protect local jobs, and create opportunities for both Indigenous and non-Indigenous communities.”

The forestry sector in Northwestern Ontario contributes significantly to the regional economy, with dozens of municipalities dependent on mill operations, harvesting, and wood processing jobs. Recent downturns in lumber prices, coupled with international market volatility and trade friction with the U.S., have put pressure on mill towns and resource-based municipalities.

Indigenous Forestry, Procurement, and Workforce Development Key to Strategy

NOMA also highlighted the federal government’s commitment to Indigenous-led forestry business development, which Dumas described as “an important and overdue signal that reconciliation and economic participation must go hand in hand.”

The plan to prioritize Canadian wood in infrastructure and housing procurement was welcomed as a critical move to strengthen domestic supply chains, support local sawmills, and improve long-term sustainability.

Workforce development investments are expected to help modernize the industry, attracting younger workers and upskilling employees for a shifting marketplace increasingly focused on green construction, engineered wood products, and low-carbon innovation.

NOMA Ready to Collaborate on Implementation

As federal officials prepare to roll out the funding and programs, NOMA says it stands ready to collaborate to ensure that Northwestern Ontario’s forestry communities are directly engaged in the design and implementation of the new measures.

“We know our regional challenges and strengths better than anyone,” Dumas said. “We’re eager to ensure that these investments reach the front lines—where they can protect jobs, foster innovation, and grow a globally competitive forestry industry rooted in Northern values and sustainability.”

About NOMA

NOMA represents 37 municipalities in Northwestern Ontario and serves as a united voice for the region on issues affecting economic development, infrastructure, resource policy, and municipal governance.