Administered by FedNor under the Regional Economic Growth through Innovation (REGI) program, the Targeted Manufacturing Initiative – Productivity Improvements Stream supports established manufacturers in Northern Ontario that are looking to enhance productivity through the adoption of new technologies, lean manufacturing practices, or automation. This stream is specifically designed to enable small and medium-sized enterprises (SMEs) in the manufacturing sector to remain competitive in regional, national, and international markets by modernizing their operations and processes. The program focuses on funding projects that result in measurable productivity gains. Eligible projects may include investments in specialized equipment, manufacturing process improvements, robotics, artificial intelligence integration, and advanced manufacturing technologies. It also covers activities such as facility upgrades that contribute to increased efficiency, employee training related to new systems, and technology adoption that supports cleaner and smarter production. Funding is delivered through conditionally repayable contributions, emphasizing shared investment between the federal government and the applicant. The initiative aims to stimulate regional economic development, support job creation and retention, and promote long-term sustainability and innovation in Northern Ontario’s manufacturing sector. Applications are accepted on a continuous basis and are evaluated based on the project's alignment with FedNor priorities, its expected economic impact, and the applicant’s financial and operational capacity to implement the project successfully.
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