London, Ontario manufacturer, Armo-Tool, has been awarded up to $611,600 in small business grants to support facility infrastructure upgrades. The investment will allow Armo-Tool to construct a 20,000 sq. ft. expansion and purchase new equipment to fill it, helping the manufacturer to boost production capacity and become more innovative.
The Government of Ontario will provide this investment through the Southwestern Ontario Development Fund (SWODF), which supports large-scale facility expansions including building extensions and purchasing new, innovative equipment. Eligible manufacturers may receive up to 10-15% of project expenses to a maximum of $1.5 million in Ontario government grants. Businesses investing more than $10 million in their project may also be eligible for up to $3.5 million in additional repayable funding.
The government’s investment will allow Armo-Tool to purchase a new stamping press and a high-speed laser cutter; this will enable the company to work with more durable metals and reduce consumable costs. In addition to equipment upgrades, the company will also create 15 new jobs, and retain 145 existing positions.
Related Post: Southwestern Ontario Manufacturer Awarded Over $800k SWODF Grant
Armo-Tool Awarded up to $611,600 in Ontario Small Business Grants
Armo-Tool Ltd. specializes in tooling and automation solutions. They are the largest supplier of custom automation equipment in the North American automotive industry. To accommodate recent growth, the company is currently investing over $7.6 million in support of equipment upgrades and extensions to its existing facility.
The Government of Ontario is contributing $611,600 from the Southwestern Ontario Development Fund to help Armo-Tool execute its latest expansion project. The investment will help Armo-Tool purchase a 2000T stamping press, a high-speed wire EDM, CNC equipment, and a 3D printer.
This equipment along with a 20,000 sq. ft. building extension will allow Armo-Tool to improve productivity, increase capacity, and demonstrate innovation. In addition, the company will create 15 new jobs and retain 145 existing positions.
Southwestern Ontario Development Fund (SWODF) Business Grants
The Southwestern Ontario Development Fund (SWODF) supports business expansion projects by providing grants and/or repayable funding to reinforce project budgets and help drive successful project outcomes. The program administers government grants and loans to reduce the costs of implementing capital equipment, creating a strong workforce, enhancing productivity, and developing new infrastructure.
Eligible applicants that may receive the following funding contributions:
- Under $10 Million in Project Expenses: Up to 15% in Ontario government grants to a maximum of $1.5 million in funding.
- Over $10 Million in Expenses: Up to 15% in Ontario government grants to a maximum of $1.5 million in funding with the option to access another $3.5 million in repayable funding.
Armo-Tool has used SWODF on multiple occasions and has also leveraged other Canadian government funding as part of their advanced Proactive Funding Plan™.
Armo-Tool Executes a Proactive Funding Plan™ to Secure Multiple Funding Wins
Armo-Tool successfully leverages funding from multiple government grants and loans because they’ve developed a Proactive Funding Plan™ to strategically match upcoming projects to active funding programs.
This approach has helped Armo-Tool be awarded with over $1 million in funding to date.
Including their most recent SWODF win, Armo-Tool has proactively used funding to secure grants from the following programs:
- Canada-Ontario Job Grant (COJG): Over $90k to facilitate workforce development by offsetting third-party management and leadership training;
- Southwestern Ontario Development Fund (SWODF): Received $325k to support capital expansion, production improvements, and facility expansion to support new hires;
- Automotive Supplier Competitiveness Improvement Program (ASCIP): Over $49k to test and refine customized software technology leading to advanced industry competitiveness; and
- CME SMART Advanced Technologies for Global Growth: Up to $100k to purchase new equipment, increase company revenue, and reduce outsourcing needs.
Please Note: CME SMART Advanced Technologies for Global Growth is currently unavailable; businesses should seek its current sister/spin-off program, the CME SMART Green Fund for technology advancements having a direct impact on manufacturing-related greenhouse gas emissions.
Develop a Proactive Funding Plan™ to Support Upcoming Investments
Mature, strategic Canadian business have a wide range of opportunities when it comes to accessing government grants and loans. When used strategically like Armo-Tool, these programs can help access hundreds of thousands or even millions of dollars in project funding.
The most critical element of government funding success is having a Proactive Funding Plan.
To learn how to build a Proactive Funding Plan™, please download Mentor Works’ free How to Build a Proactive Funding Plan™ slide deck.