Program Information

Key Program Dates

Call for proposals opens:

May 31, 2023

Final date to submit a proposal:

July 31, 2023

Proponents notified following evaluation:

Late August 2023

Estimated date for completion of contract discussions and start of projects:

October 1, 2023

Deadline for proponents to complete project activities and reporting: December 31, 2025

Program Objectives

The Alberta Value Added Wood Products Business Development Program has been designed following stakeholder interviews and sector research to meet the identified business growth needs of Alberta’s value added wood product manufacturers.

The objective of the program is to support eligible proponents to attract investment, improve competitiveness, diversify markets, train employees, and improve or innovate on products, processes, and supply chains, thereby helping to maintain or create employment and generate economic growth in Alberta.

“Value Added Wood Product” Defined

A value added wood product is defined as a wood-based product that has been processed or modified to increase its value or functionality, which can involve milling, machining wood products into “secondary, tertiary or finished” products such as roof and floor trusses, wood building components and systems, prefabricated wood buildings, wood doors, windows, flooring, millwork, paneling, siding and fencing and many other wood / hybrid products. Connection system design and testing is included as an eligible activity.

Amount of Funding

Minimum: $30,000
Maximum: $500,000

Cost Sharing Requirement

The program requests that the recipient of the funds contribute a portion of the total project cost. The purpose of cost sharing is to ensure recipients have a stake in the project’s success and to ensure program funds are used efficiently.

There are 3 forms of cost sharing for this program: cash, in-kind, and third-party.

  • A cash contribution from the proponent will be required. Proposals with higher cash contributions as a percentage of total project costs will be ranked higher. In most cases, the program could provide up to 50% of the total project cost depending on the number and quality of proposals received.
  • In-kind contributions are non-cash such as recipient labour and machine / equipment time required for the project, or other contributions that have a monetary value.
  • Third-party contributions may come from other organizations that provide support for the project.

Applicant Eligibility

To qualify for support under this program, your company must be legally registered as a for-profit organization in Alberta.

In addition, your company must be considered a micro, small or medium-sized enterprise or employer with fewer than 250 employees globally for this program.

Your company must conduct business as a value added wood product or system manufacturer in Alberta.

Your company understands and agrees to use funding obtained under this program for the identified Eligible Activities.

Examples of eligible value added wood products and systems

  • Roof trusses, laminated beams and panels (e.g., LVL, glulam, CLT, DLT, NLT)
  • Off-Site, factory-built, prefabricated or modular wood frame components and buildings
  • Wood walls / wall systems, and flooring / floor systems
  • Wood doors and windows
  • Millwork, cabinets, furniture, paneling
  • Fencing, partitions, plywood

One Project per Proposal

Please submit individual project proposals. Separate applications are requested for each project for clarity and focus (to ensure each project receives adequate attention and can be clearly understood by reviewers), for evaluation, comparison and prioritization (to facilitate a more efficient process), for fairness and transparency (to ensure applications are evaluated based on the merits of the individual project quality, feasibility and alignment with program objectives without being influenced by other project proposals within a combined proposal) and for project management and accountability (to reduce complexity of tracking progress, milestones, and outcomes of individual projects).

Eligible Activities

Innovation

Is the project expected to:

  • Result in or support the development of new or improved wood products, systems, or manufacturing / business processes?
  • Support efficiency optimization (in manufacturing or workflow)?
  • Support new or improved functionality or appearance of the manufactured product or system?
  • Improve business management, data integration, management or use.
  • Help create a new service?

Examples:

  • Product or process engineering design or optimization services.
  • Manufacturing plan for spruce-pine-fir nail-laminated floor system for domestic or export markets.

Business Development

Is the project expected to result in market diversification? Will it result in new funding leveraged or borrowed to expand your business?

Examples:

  • Market research to support a business expansion plan or debt financing request or analysis to help evaluate the best financing options for specific expansion plans (term loan with collateral, asset-based loan, line of credit / revolving credit, equipment loan, non-residential mortgage)
  • Supply chain improvement
  • Information technology (IT) or data management / use improvement

Employee Training

Employee development and training activities are eligible, delivered through in-house training, online training, skilled trades training, management and leadership training, or mentoring.

Questions for proponents to consider include:

  • Will the project help to maintain or create jobs?
  • Will the training or education help improve business operations or management?
  • Is the training related to machine centre, quality control, factory assembly or prefabrication improvements?
  • Will the training help diversify the recipient’s workforce or improve its strategic or organizational planning in areas that could include finance, human resources, marketing, operations / production, or supply chain management?
  • Does the project provide a professional development opportunity for an under-represented group?

Information Technology (IT) and Related Services

  • Data processing, storage, and management infrastructure
  • Systems and data conversion and migration
  • Network and computer systems management
  • Business process management services
  • Video and audio streaming infrastructure
  • Testing lab services
  • Project management

Architectural, Engineering and Related Services

  • As required for existing office or industrial building renovation or new building construction
  • Transportation and distribution facility design
  • Machinery and manufacturing engineering design
  • Engineering design services for renovation, retrofitting
  • Project management services

Industrial Design Services

  • Manufacturing efficiency optimization
  • Technology assessment to streamline processes or improve product quality
  • Integration of computer-aided design (CAD), Building Information Modeling (BIM), and other digital tools to create plans / simulate construction processes before production begins
  • Functionality and appearance of manufactured goods
  • Design and fabrication of models of new product concepts
  • Design specifications for materials, shape and appearance presented in the form of designs, plans, or models

Management, Scientific and Technical Consulting Services

  • Advice and guidance on management issues, strategic and organizational planning, finance, human resources, compensation and benefits, marketing, operations, supply chain management or production

Feedback on the Status of Your Proposal

Once you submit your proposal, you will receive several emails from the program.

Email 1: In early August, an email will be sent to you to confirm receipt of your proposal

Email 2: By mid-September, an email will be sent to you to provide notice of whether your proposal has been approved or rejected.

Email 3: By end of September, if your proposal has been approved for funding, a contract will be prepared and emailed to you for signature.

Transparency & Fairness

A proposal Evaluation Committee will be created and approved by the Alberta Value Added Wood Products Program Steering Committee. No one working for or related to a company that has submitted a proposal will be eligible to act as a member of the Evaluation Committee.

Eligible Expenses

Costs may include:

  • Staff or consultant time required to conduct research, and make recommendations or decisions related to innovation, business / market development, employee training and other business growth opportunities
  • Software that is a direct part of the manufacturing process
  • Training on the use of new software and machinery
  • Operational assessment or other company evaluation intended to identify areas for improvement, such as employee training, machinery layout or material handling optimization, ISO certification, quality control, or information and communications technology.

Ineligible Expenses

Certain activities and costs will not be considered eligible, including:

  • Land, building, vehicles, overhead, depreciation and salaries
  • Plant equipment, and installation and commissioning of new equipment
  • Modernising the production facility through upgrades to existing production equipment (e.g., automation, robotics, ancillary systems)
  • Establishing or contributing to a reserve/contingency account;
  • Donations to other organisations;
  • Individual capital asset purchases exceeding $5,000; and
  • Monitoring, modelling, or capital infrastructure projects.

Recipient Reporting

A project report template will be included with the contribution agreement (progress compared to proposal, challenges, next steps, expense report for the period).

An interim report will be required every 4 months following the signing of the contribution agreement.

A final project report will be required 30 days following the end of the contribution agreement.

Deliverables

Depending on the project, the deliverable could be evidence of a new or improved product or process, an expanded existing or new market, or development and implementation of a new training program, a research or operational improvement report or designs.

Support & Guidance

FAQ section on the BDP website can be developed and updated regularly.

Please Contact Us by email if you have questions.

Resource Library

2021 Value-added Wood Manufacturing Discussion Guide, Alberta Forestry
Internal document available by email
2019 Secondary manufacturing of solid wood products in Alberta 2017: Structure and economic contribution, CFS
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