Ontario reveals plan to boost advanced wood construction

Key Takeaways:

• Ontario’s new Advanced Wood Construction Action Plan aims to accelerate homebuilding and grow the forestry sector by promoting locally manufactured modular and prefabricated wood products.
• The plan includes $13 million in provincial investments to support advanced wood construction research, training, and manufacturing.
• Prefabricated wood construction can cut building timelines by up to 50% and reduce costs by up to 20%, helping address the province’s housing shortage.

The Whole Story:

The Ontario government has released a new action plan to promote the use of locally made wood products in modular and prefabricated construction, a move it says will help build more homes faster and strengthen the province’s forest sector.

The Advanced Wood Construction Action Plan sets out a roadmap to boost awareness, remove regulatory barriers, support innovation, and showcase real-world applications of advanced wood construction—including the use of mass timber and other engineered wood materials in mid- and high-rise buildings.

“As our government delivers on its plan to protect and build Ontario, this action plan will help promote and prioritize wood-based building with made-in-Ontario wood construction products,” said Mike Harris, Minister of Natural Resources. “Advanced wood construction is a new opportunity that can help get more homes built faster and build a stronger, more competitive forest sector.”

Advanced wood construction refers to modern building systems that use cross-laminated timber and other prefabricated wood products. These systems can shorten construction timelines by up to 50 per cent and cut costs by as much as 20 per cent, according to the province. The method is seen as a key strategy in reaching Ontario’s ambitious housing goals while supporting sustainability and job growth.

To date, the province has committed more than $13 million to support the sector, including:

• Over $8 million to establish and expand production at Element5, Ontario’s first automated cross-laminated timber manufacturer;
• Nearly $3 million for education and research through organizations such as the Canadian Wood Council and the Canadian Wood Construction Research Network;
• Funding for mass timber buildings at George Brown College and the University of Toronto;
• Support for FPInnovations and the Mass Timber Institute to advance technical expertise and innovation.

“We’re harnessing forest sector innovation to enhance how we build our homes, businesses and communities,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “Our government recognizes the potential of advanced wood construction—and our action plan is bringing its benefits to Ontario.”

Industry groups and municipal leaders welcomed the plan. Ian Dunn, president of the Ontario Forest Industries Association, called it a “blueprint for economic growth,” while Kitchener Mayor Berry Vrbanovic said the initiative supports housing targets and protects local jobs.

“Effectively meeting the challenge of housing affordability and supply requires investment in all forms of housing options, including cross-laminated timber,” said Richard Lyall, president of the Residential Construction Council of Ontario.

The action plan is part of the province’s broader Forest Sector Strategy, which aims to increase the use of Ontario wood, create new markets, and encourage sustainable resource development. The forest sector generated $21.6 billion in revenue in 2023 and supports over 128,000 jobs across the province.

A draft version of the action plan was posted for public comment in July 2024. The finalized strategy now moves ahead with implementation alongside ongoing changes to building codes, regulatory engagement, and funding support.