Ontario launches advanced wood construction working group

Key Takeaways:

• Ontario has launched an Advanced Wood Construction working group to help accelerate homebuilding, promote modular and prefabricated wood construction, and strengthen the forestry sector amid U.S. tariffs
• Advanced wood construction using mass timber can cut build times by up to 50 per cent and costs by up to 20 per cent, positioning Ontario to compete globally in faster, more efficient construction
• The initiative builds on major provincial investments in mass timber and modular construction, while supporting a forest sector that generated $21.6 billion in revenue and 128,000 jobs in 2023–24

The Whole Story:

The Ontario government has launched a working group to guide implementation of its Advanced Wood Construction Action Plan, a strategy to promote prefabricated and modular wood-based building materials as a way to accelerate home construction and support the forestry sector amid U.S. tariffs.

The working group will harness Ontario’s advanced wood construction expertise to promote wood-based building, provide strategic advice to unlock business opportunities and position the province to compete globally, the government said in a news release Wednesday.

Advanced wood construction—which uses mass timber and locally made wood products to build modular and prefabricated buildings, including mid-rise and tall multi-family homes—can complete projects up to 50 per cent faster and cut costs by up to 20%, according to the release.

“Our government has assembled leaders and experts from a variety of sectors into a working group that will seize the potential of advanced wood construction and revolutionize how we build Ontario,” said Associate Minister Holland. “We will continue to deliver on our plan to protect Ontario’s forest sector businesses and workers by building a strong, resilient forest sector that can stand strong in the face of U.S. tariffs.”

Steven Street, Executive Director of the Canadian Wood Council’s WoodWorks Ontario program, said industrialized wood construction is one of the fastest ways to deliver needed housing. “This plan creates new opportunities for skilled workers and positions Ontario to lead a rapidly evolving construction landscape with a more resilient, efficient, and future-focused building ecosystem,” he said.

The working group complements Ontario’s significant investments in wood-based building, including $50 million to explore modular construction and other innovative building methods. Additional investments include over $16 million in grants and loans to Element5, Ontario’s first fully-automated cross-laminated timber manufacturer; $10 million for the Prince Edward County Memorial Hospital, North America’s first “un-encapsulated” mass timber hospital; and close to $2 million to assist the Canadian Wood Council in promoting wood-based construction through education and training.

The forest sector generated $21.6 billion in revenue from manufactured goods and services in 2023 and supported 128,000 direct and indirect jobs in 2024, the release said.