New $40M federal investment will strengthen tech businesses in Waterloo region

New $40M federal investment will strengthen tech businesses in Waterloo region

16 local businesses will benefit from the multi-million dollar investment

Several local businesses in Waterloo region are getting a boost from the federal government to support the next generation of defence, security and AI technologies.

The investment of nearly $40.5 million will be split up between 23 businesses in Waterloo and Brant regions. Sixteen of them are based in Cambridge, Kitchener and Elmira.

The investment is coming from Canada’s Regional Defence Investment Initiative to allow companies to pivot into the defense industry and the Regional Tariff Response Initiative to uplift businesses impacted by U.S. tariffs.

Evan Solomon, Canada's minister of artificial intelligence and digital innovation made the announcement Thursday at Kitchener's XL Tool, a metal stamping dies and tooling manufacturer.

Solomon is also the minister responsible for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

"We've got talent here, we've got innovation here, we've got resilience here, we've got courage here, we've got businesses here. We've got the best place in the world to build," Solomon said, referring to Waterloo region.

He said defence, energy and automotive are key industries for the federal government to invest in.

"[Waterloo and Brant region] is a unique area that has it all. It's got the most forward frontier thinkers, quantum thinkers," he said.

"You've got tool and die makers here that are punching out parts for auto industry and they've been doing it for generations. We invested in companies here that are 100 years old and we're investing in them because we want them here for another 100 years."

Supporting development in Waterloo region

The announcement was also attended by other local politicians, including Waterloo MP Bardish Chagger, Kitchener-Conestoga MP Tim Louis, Kitchener-Centre MP Kelly DeRidder and Kitchener Mayor Berry Vrbanovic.

"Manufacturing is alive and well in the Waterloo Region and we want to continue keeping those jobs here. We want to continue training Canadians to fill those jobs," Chagger said.

"These investments are about more than funding projects. They are about supporting the people, ideas, technologies that will create new opportunities, strengthen our communities, and ensure that Waterloo, Brant and Canada continue to succeed in an increasingly competitive global economy."

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XL Tool is one of the local recipients of the funding. Chris Hergott, the company's VP of operations, said the money will help them enhance existing manufacturing capabilities.

"It's refreshing to hear that the government in place really understands who we are, what we're trying to do. So thank you," Hergott said.

With the money, XL Tool will be undertaking a more than $4 million project and expanding capabilities in the defence and aerospace industries.

Aastha Shetty is a journalist with CBC Kitchener-Waterloo. She has lived, worked and told stories in Waterloo region and surrounding areas since 2018. She has covered a variety of topics including housing and affordability, consumer rights and social injustice. She also has experience as a court reporter and as a multimedia producer. Get in touch: aastha.shetty@cbc.ca or 226 338 7845.