Rising trade costs and supply chain uncertainty are prompting Canadian businesses to invest in domestic production capacity and operational improvements. In Saskatchewan, federal funding is supporting manufacturers seeking to improve productivity, expand output and diversify markets amid increased U.S. tariff pressures.
The Government of Canada has committed $5.3 million to six projects across Saskatchewan through the expanded Regional Tariff Response Initiative. The funding was announced by Buckley Belanger, Secretary of State for Rural Development, on behalf of Minister Eleanor Olszewski.
The investments are intended to help small and medium-sized enterprises strengthen manufacturing operations through equipment upgrades, automation, marketing initiatives and expanded production.
Three of the funded projects involve manufacturers investing in production capabilities and market expansion.
Degelman Industries GP Inc., general partner of Degelman Industries Limited Partnership, will receive $1 million to strengthen manufacturing capacity and improve productivity.
Saskarc Inc., operating as infraMOD, has been allocated $1 million to install processing and automation equipment. The investment is expected to increase production capacity and support diversification into additional markets.
Seedmaster Manufacturing Ltd. will receive $596,347 to accelerate international sales of its agricultural equipment.
The three allocations form part of the six-project funding package, which supports businesses across multiple Saskatchewan industries.
The funding forms part of a broader federal response to additional U.S. tariffs imposed on Canadian goods in August 2026.
The Government of Canada has introduced $7.5 billion in new and enhanced support for affected workers and businesses, including an expanded $3.45 billion Regional Tariff Response Initiative delivered through Prairies Economic Development Canada (PrairiesCan) and other regional development agencies.
The program is designed to help eligible businesses manage liquidity pressures, improve competitiveness, diversify export markets and strengthen domestic supply chains. Support is also available to not-for-profit organizations assisting businesses with adaptation and domestic trade opportunities.
Applications for the expanded initiative are open to eligible small and medium-sized businesses and organizations.
Investments in manufacturing capacity and automation can support the broader construction supply chain by strengthening domestic production capabilities and improving industrial productivity.
For heavy construction contractors, equipment manufacturers and project suppliers, the funding represents federal support for businesses navigating higher trade costs and supply chain uncertainty.
The allocations to Degelman Industries and infraMOD also demonstrate how equipment investment and production automation are being used to strengthen Saskatchewan's manufacturing base.
Source: Sask Heavy.
