The Ontario government is investing $5.5 million in additional funding for the Ontario Automotive Modernization Program (O-AMP) to improve the auto parts supply chain within Ontario and the broader global market. This support will continue to escalate Ontario’s position as a competitive hub for developing, building, and distributing vehicles.
“O-AMP plays an integral part in helping Ontario-based companies grow in a globally competitive auto parts industry. The auto and manufacturing sectors are cornerstones of Ontario’s economy, providing good jobs for local families and workers. By reducing the cost of doing business in Ontario by nearly $7 billion annually, and through programs like O-AMP, our government is creating the right economic climate to encourage investment, innovation and growth.”Vic Fedeli, Minister of Economic Development, Job Creation and Trade.
In order to improve the operational efficiency and competitiveness of Ontario’s automotive parts companies, the O-AMP program provides financial support, through the Ontario government, to enable them to invest in new hardware and software technologies and lean methodologies.
“This funding will help to enhance Morbern’s quality control, ensuring their products continue to be of the highest quality, enabling them to continue their contribution to the region’s economy and job creation, while being an important manufacturer in the province’s auto sector.”Jim McDonell, MPP for Stormont-Dundas-South Glengarry.
What Is the Ontario Automotive Modernization Program (O-AMP)?
The Ontario Automotive Modernization Program (O-AMP) supports Ontario automotive parts manufacturers as they invest in new hardware/software technologies and lean methodology to improve their operational efficiency and competitiveness.
Successful applicants for the O-AMP initiative may receive up to 50% of costs, to a maximum of $150,000, for eligible project activities.
Applicants must fulfill the following criteria to apply for this program:
- Be an SME manufacturer in the Ontario automotive supply chain (distributors are not eligible);
- Have less than 500 FTEs;
- Have less than $1 billion in annual revenue;
- Generate at least 50% of sales from the automotive sector;
- Have at least two years of financial statements; and
- If a past recipient of O-AMP funding, project must be completed prior to a new application.
Funding for projects is only available to those in one of the following two categories:
(1) Technology Adoption: The implementation of new software and related hardware, such as Enterprise resource planning (ERP) systems to improve efficiency, productivity, and production quality; and
(2) Lean Manufacturing: Adoption of Industry 4.0 or lean manufacturing processes by either implementing lean principles or hiring a third-party certified consultant to help with lean implementation.
Other important notes include the following:
- Funding cannot be applied to equipment purchases;
- To implement the project, the applicant must have adequate financing and management structure; and
- Applicants must be able to demonstrate relevant experience.
The O-AMP program is currently closed. However, due to the increase of $5.5 million to the program that the government announced, another intake is expected in 2022.
Sign up for our government funding newsletter to get notified when the O-AMP program is open for intakes.
O-AMP Success Stories
The following success stories highlight three Ontario businesses that were able to successfully secure funding through the Ontario Automotive Modernization Program (O-AMP) thanks to the government funding application support provided by Mentor Works.
O-AMP for ERP Systems
An Ontario manufacturer was having difficulty with their operations and wanted to secure funding to improve inefficiencies. With the help of Mentor Works government funding assistance services, they were able to secure $142,500 in funding from the O-AMP program in the December 2021 intake. This funding was used to significantly reduce inefficiencies for their custom packaging facility. These inefficiencies were improved by installing a new ERP system which increased revenue by 275% and improved lead time by 40–60%. This funding also created 10 jobs and provided the necessary training of employees to adapt to the new ERP system.
O-AMP for Industry 4.0 Equipment and Software
An Ontario tool & die machine shop was having significant troubles in their production outputs and efficiencies. Waste and inefficient systems were causing lost opportunities in revenue. This organization applied for O-AMP with the help of Mentor Works and was awarded $142,500 in funding during the December 2021 intake. This funding was used for purchasing new software and industry 4.0 storage equipment that drastically improved production. Thanks to the O-AMP allotment, this organization was able to achieve a 25% waste reduction at their facility, as well as a 30% reduction in inefficient activities and 15–30% increase in output.
Addressing Steel Simulation and Production Challenges with O-AMP
Lastly, an Ontario organization in the steel manufacturing industry was having challenges because high strengths steel requires more simulations to test material properties. Due to their outdated software, more manual trial and error simulations were required, which resulted in lost money due to overtime and longer lead times. Moreover, the spec library of current software was limited and could not accommodate the breadth of variability, which further increased lead times and outsourcing.
Again, with the support of Mentor Works in the grant writing process, this company was awarded $140,000 via O-AMP to adopt new versions of software that includes a broader spec library and improved simulation tools that allow for more accurate validation of test parameters. This grant award helped significantly reduced recuts, overtime, and redesign time, as well as increased capacity.
More Funding Opportunities for Zero-Emissions Vehicles
The Ontario Automotive Modernization Program (O-AMP) offers significant opportunities to organizations that are looking to improve their production capacities, software, and processes. To prepare your organization for the next O-AMP intake, get in touch with our team today.
Also, make sure to sign up for one of our industry-leading events to learn the best ways to approach the funding landscape from industry-experts.