Ontario Launches Five-Year Action Plan to Expand Advanced Wood Construction Sector

The Ontario government has released a detailed five-year Advanced Wood Construction Action Plan aimed at scaling up the use of modular and prefabricated wood-based building materials across the province. The initiative is intended to accelerate homebuilding, protect forestry jobs, and expand the use of domestically manufactured wood products.

The action plan targets four core objectives: increasing awareness and adoption of advanced wood construction, updating codes and standards to remove regulatory barriers, stimulating innovation and investment in manufacturing, and promoting real-world demonstration projects. These measures are designed to support economic growth, address housing challenges, and enhance environmental sustainability.

“Advanced wood construction is a new opportunity that can help get more homes built faster and build a stronger, more competitive forest sector that can withstand whatever comes our way,” said Natural Resources Minister Mike Harris.

The action plan responds to mounting interest in modern construction techniques that reduce building time and costs. Prefabricated and modular mass timber buildings can cut project timelines by up to 50% and costs by as much as 20%. Eligible structures include mid- and high-rise residential buildings, educational institutions, commercial complexes, and even infrastructure projects such as bridges and towers.

Ontario has committed more than $13 million to advanced wood construction initiatives to date, including:

• Over $8 million to Element5 in St. Thomas, Ontario’s first fully-automated cross-laminated timber (CLT) plant.
• Nearly $3 million for education and training initiatives through the Canadian Wood Council and Canadian Wood Construction Research Network.
• More than $1.5 million for mass timber buildings at George Brown College and the University of Toronto.
• $750,000 to FPInnovations for testing and developing technical resources.
• $300,000 to the University of Toronto’s Mass Timber Institute for underutilized wood studies and modular housing research.

“The action plan is bringing [advanced wood construction’s] benefits to Ontario,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “We’re harnessing forest sector innovation to enhance how we build our homes, businesses and communities.”

Industry voices echoed support. Ian Dunn, President and CEO of the Ontario Forest Industries Association, emphasized the plan’s potential to strengthen domestic supply chains and create economic growth. Steven Street, Executive Director of WoodWorks Ontario, called the initiative a “clear and confident endorsement of advanced wood construction” and a catalyst for addressing both housing and climate challenges.

“The Action Plan outlines a strong, strategic commitment to advancing the use of mass timber and prefabricated wood systems—technologies that can deliver high-performance buildings while supporting job creation and investment across Ontario’s forestry, manufacturing, and construction sectors.” Said the Canadian Wood Council in a display of support for the initiative.

Advanced wood construction includes engineered materials like CLT and laminated strand lumber, produced through factory-based processes using sustainable Ontario wood. The province harvests less than 0.5% of its managed forests annually, leaving room for growth. The plan highlights that Ontario is currently using only half of its sustainable annual harvest, with 15 million cubic metres available for new uses.

Recent amendments to the Ontario Building Code also support this shift, increasing allowable building heights for mass timber from six to 18 storeys between 2015 and 2024. Publicly funded projects are expected to play a leading role in demonstrating the viability and benefits of these materials and methods.

The Advanced Wood Construction Action Plan is a pillar of Ontario’s broader Sustainable Growth: Forest Sector Strategy. It aligns with provincial goals to expand wood product markets, reduce emissions from buildings, and increase the use of lower-value and underutilized wood species through innovation and investment.

For more information, visit: https://www.ontario.ca/page/advanced-wood-construction-action-plan.