
The Honourable Evan Solomon addresses attendees during the funding announcement, held at XL Tool Inc., on July 23, highlighting the Government of Canada’s investment in strengthening advanced manufacturing, defence capabilities, and resilient domestic supply chains. CTMA photo
The Canadian Tooling & Machining Association (CTMA) is pleased to congratulate two member companies, XL Tool Inc. and Eclipse Automation, on receiving funding through the Government of Canada’s Regional Tariff Response Initiative (RTRI) and Regional Defence Investment Initiative (RDII). The investments will help both companies strengthen Canada’s advanced manufacturing sector while expanding capabilities to support emerging opportunities in the defence and aerospace industries.
Announced by the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for FedDev Ontario, the nearly $40.5 million investment will support 23 businesses and organizations across the Waterloo and Brant regions to improve productivity, strengthen domestic supply chains, and advance next-generation manufacturing technologies.
XL Tool Expands into Defence and Aerospace
Kitchener-based XL Tool Inc., a long-standing CTMA member specializing in custom tooling, metal stamping dies, precision machining, and fabrication, will receive up to $1 million from FedDev Ontario as part of a more than $4 million modernization project. The investment will help the company expand its technical capabilities, modernize operations, and accelerate its entry into the defence and aerospace sectors.
“This funding will help us enhance our manufacturing capabilities, create high-value jobs, and continue delivering world-class products while strengthening Canada’s industrial competitiveness,” said Chris Hergott, Vice President of Operations at XL Tool Inc. “We also believe that continued investment in education, apprenticeships, and skilled trades training is essential to preparing the next generation of workers and equipping them with the skills needed to support a sustainable, competitive, and prosperous future for Canada.”

Chris Hergott, Vice President of Operations at XL Tool Inc., speaks about how federal investment will help the company enhance its manufacturing capabilities, create skilled jobs, and expand into the defence and aerospace sectors. CTMA photo
Eclipse Automation Recognized Among Ontario’s Manufacturing Leaders
CTMA also congratulates Eclipse Automation, another valued member, on receiving federal support through the same investment announcement. Eclipse Automation was among the 23 advanced manufacturing companies selected to receive funding to help strengthen Canada’s industrial capacity, enhance productivity, and build resilience across critical domestic supply chains.

Industry and government leaders gathered to celebrate investments that will help Canadian manufacturers innovate, grow, and compete in emerging markets while creating skilled jobs across Ontario. CTMA photo
Supporting Canada’s Manufacturing Future
“The success of XL Tool and Eclipse Automation demonstrates the strength and innovation of Ontario’s advanced manufacturing sector,” said Robert Cattle, executive director, CTMA. “These investments will help Canadian manufacturers grow, adopt new technologies, and compete in high-value markets such as defence and aerospace while creating skilled jobs and strengthening domestic supply chains. We congratulate both companies on this well-deserved recognition.”
Federal investments like these reinforce the important role Canadian manufacturers play in building a more competitive, resilient economy while positioning the industry for long-term growth in strategic sectors. CTMA is proud to see its members leading the way through innovation, advanced manufacturing, and continued investment in Canadian talent.
Read the full press release here.