How to Build a Manufacturing Facility in Ontario

It is difficult to provide a precise estimate of the cost to build a manufacturing facility in Toronto without more information about the specific size and scope of the project, as well as the materials and finishes that will be used. Factors that can influence the cost of building a manufacturing facility in Toronto include the location, size and layout of the building, the type of construction materials and finishes that are used, the complexity of the site and any site preparation work that is required, the cost of labor and materials, and any zoning or regulatory requirements that must be met.

How Much Does it Cost to Build a Manufacturing Facility in Toronto? 

Generally, the cost of renovating or building a manufacturing facility in Ontario can range from $80 to $250 per square foot or more, depending on the specifics of the project and how much equipment is going to be installed. This can translate to a total cost of $200,000 to $625,000 or more for a facility that is 2,500 square feet in size, for example. However, this is just a rough estimate and the actual cost could be higher or lower depending on the specific requirements of the project and whether or not the project is a new-build construction or an interior renovation. 

To get a more accurate estimate of the cost to build a manufacturing facility in Ontario, it is advisable to consult with a construction professional who can assess the specific needs of the project and provide a detailed cost estimate. This may involve working with an industrial architect to develop plans and specifications for the facility, as well as obtaining quotes from contractors and other service providers. It may also be necessary to budget for any permits or fees that are required by local authorities, as well as any other costs that may arise during the construction process.

What is the Process to Build an Industrial Facility in Canada?

Building a manufacturing facility in Ontario involves several steps, including the following:

1. Identify the purpose and scope of the facility. Determine the type of products that will be manufactured and the processes that will be used, as well as the size and layout of the facility that will be needed to accommodate these processes.
2. Select a site for the facility. Consider factors such as location, access to transportation and utilities, zoning requirements, and the availability of land or buildings that are suitable for the facility.
3. Develop plans and specifications for the facility. Work with an architect or engineer to design the facility, including the layout, structural elements, mechanical and electrical systems, and any specialized equipment or features that will be needed.
4. Obtain necessary permits and approvals. Depending on the location of the facility, it may be necessary to obtain building permits, zoning approvals, and other regulatory approvals before construction can begin.
5. Select an Industrial Construction team. This may include a industrial general contractor, subcontractors, and other service providers who will be responsible for constructing the facility.
6. Procure materials and equipment. This may involve purchasing materials, such as steel, concrete, and other construction materials, as well as any specialized equipment or machinery that will be needed for the facility.
7. Begin construction. The construction team will begin building the facility according to the plans and specifications, using materials and equipment that have been procured.
8. Install and commission equipment. After the construction of the facility is complete, specialized equipment and machinery will be installed and tested to ensure that it is operating correctly.
9. Obtain final inspections and approvals. Obtaining final inspections and approvals is an important step in the process of building a manufacturing facility. This typically involves working with local, state, and federal agencies to ensure that the facility meets all applicable codes, standards, and regulations.
   • Here are the general steps involved in obtaining final inspections and approvals:
     • Schedule inspections: Once construction of the facility is complete, you’ll need to schedule final inspections with the appropriate agencies. This may include building inspections, electrical inspections, plumbing inspections, and fire safety inspections.
     • Prepare for inspections: Before the inspections take place, you’ll need to ensure that the facility is ready. This may involve cleaning up the site, making any necessary repairs, and providing access to all areas of the facility.
     • Conduct inspections: During the inspections, the inspector(s) will assess the facility to ensure that it meets all relevant codes and standards. They may also take measurements, test systems and equipment, and review documentation.
     • Address any issues: If the inspector(s) identify any issues during the inspection, you’ll need to address them before final approval can be granted. This may involve making repairs or modifications to the facility.
     • Obtain final approvals: Once all issues have been addressed and the facility meets all relevant codes and standards, the inspector(s) will issue final approval. This may involve issuing a certificate of occupancy or other documentation indicating that the facility is approved for use.
   • Obtaining final inspections and approvals can be a time-consuming process, but it is essential to ensure that the facility is safe and compliant. Working with experienced professionals, such as architects, engineers, and contractors, can help ensure that the process goes smoothly.

How Long Does it Take to Build an Industrial Facility in Canada?

The time it takes to build a manufacturing facility can vary depending on a number of factors, including the size and complexity of the facility, the availability of materials and labor, and any delays or complications that may arise during the construction process. On average, it can take anywhere from several months to a year or more to build a manufacturing facility, depending on the specifics of the project.

In general, the construction of a manufacturing facility can be broken down into several stages, each of which can take a different amount of time to complete. These stages may include the following:

1. Site preparation: This may include clearing the site, grading the land, and preparing the foundation for the facility. This stage can take several weeks to several months, depending on the size and complexity of the site.
2. Structural construction: This stage involves building the main structure of the facility, including the walls, roof, and any other structural elements. This can take several months to a year or more, depending on the size of the facility and the complexity of the design.
3. Mechanical and electrical installation: This stage involves installing the mechanical and electrical systems that will be used in the facility, such as plumbing, heating, ventilation, and electrical wiring. This can take several weeks to several months, depending on the size and complexity of the systems.
4. Equipment installation: This stage involves installing any specialized equipment or machinery that will be used in the facility. This can take several weeks to several months, depending on the amount and complexity of the equipment.
5. Commissioning and testing: This stage involves testing and commissioning the equipment and systems to ensure that they are operating correctly. This can take several weeks to several months, depending on the amount and complexity of the equipment and systems.

Overall, it is important to allow for sufficient time to complete each stage of the construction process and to anticipate and address any delays or complications that may arise. It is advisable to work with a construction professional to develop a schedule and budget for the project, and to regularly review and update the schedule as needed.

What are the Benefits of Building a New Manufacturing Facility?

There are several potential benefits of building a new manufacturing facility, including the following:

1. Increased production capacity: A new manufacturing facility can provide the space and equipment needed to increase production capacity, which can help a business to meet demand and grow.
2. Improved efficiency: A new manufacturing facility can be designed and equipped with state-of-the-art technologies and systems that can improve efficiency and reduce waste and downtime.
3. Enhanced quality control: A new manufacturing facility can be designed and equipped with systems and controls to ensure consistent quality and reduce defects.
4. Enhanced safety and health: A new manufacturing facility can be designed and equipped with safety and health features to protect workers and improve working conditions.
5. Enhanced reputation: A new manufacturing facility can enhance the reputation of a business and help to attract customers and partners.
6. Economic development: Building a new manufacturing facility can create jobs and stimulate economic development in the local community.

Overall, building a new manufacturing facility can help a business to expand, improve operations, and enhance its reputation and competitiveness. It is important to carefully plan and manage the building process to maximize the benefits of the facility.

What are Some Possible Issues with Building a Manufacturing Facility?

There are several potential issues that can arise when building a manufacturing facility, including the following:

1. Cost overruns: Building a manufacturing facility can be a complex and costly process, and it is not uncommon for the final cost to be higher than the original budget due to unexpected expenses or changes in scope.
2. Schedule delays: Building a manufacturing facility in Canada can take several months to a year or more, and it is not uncommon for delays to occur due to factors such as weather, material shortages, or labor shortages.
3. Zoning and regulatory issues: Building a manufacturing facility may require obtaining permits and approvals from local authorities, and it is important to ensure that the facility meets all necessary codes and standards. Failure to obtain the necessary approvals or meet relevant regulations can result in delays or additional costs.
4. Environmental concerns: Building a manufacturing facility may have an impact on the environment, and it is important to consider and address any potential environmental impacts, such as air and water pollution, soil contamination, or habitat destruction.
5. Community opposition: Building a manufacturing facility can affect the local community, and it is important to consider the concerns and needs of local residents and stakeholders. Failure to adequately address these concerns can result in delays or opposition to the project.

Overall, it is important to carefully plan and manage the building of a manufacturing facility to minimize the risk of these and other issues. It is advisable to work with a construction professional who has experience in building similar facilities and can help to identify and address potential issues as they arise.

Is it Better to Build a New Manufacturing Facility or Renovate an Existing Industrial Space?

Whether it is better to build a new manufacturing facility or renovate an existing one depends on a number of factors, including the size and scope of the facility, the location, the cost, and the specific needs and goals of the business. Here are some points to consider when deciding between building a new facility and renovating an existing one:

1. Cost: Building a new manufacturing facility can be a significant investment, and it is important to carefully consider the costs involved. In some cases, it may be more cost-effective to renovate an existing facility rather than building a new one, particularly if the existing facility is in good condition and can be adapted to meet the business’s needs.
2. Location: The location of the facility can be an important factor in deciding whether to build a new facility or renovate an existing one. If the existing facility is in a good location that is convenient for transportation and access to raw materials and markets, it may be more cost-effective to renovate it rather than building a new facility in a different location.
3. Size and scope: The size and scope of the facility can also be a factor in deciding between building a new facility and renovating an existing one. If the existing facility is too small or is not well-suited to the business’s needs, it may be more practical to build a new facility rather than trying to renovate the existing one.
4. Timing: The timing of the project can also be a factor in deciding between building a new facility and renovating an existing one. Building a new facility can take several months to a year or more, while renovating an existing facility may take less time.

Why is it a Good Idea to Build a Manufacturing Facility in Canada?

There are several reasons why it might be a good idea to build a manufacturing facility in Canada:

1. Strong economy: Canada has a strong, stable economy with a well-educated workforce and a high standard of living. This makes it an attractive place to do business especially for manufacturers.
2. Proximity to major markets: Canada is located close to major markets in the United States, which can make it easier to access customers and reduce shipping costs.
3. Access to resources: Canada has abundant natural resources, including timber, oil, and minerals, which can be important for certain types of manufacturing operations.
4. Supportive government policies: The Canadian government is generally supportive of business and has policies in place to encourage investment and growth. This can make it easier to set up and operate a manufacturing facility in Canada.
5. Strong transportation infrastructure: Canada has a well-developed transportation infrastructure, including roads, rail, ports, and airports, which can make it easier to move goods to and from the facility.

It’s important to keep in mind that there may also be challenges to building a manufacturing facility in Canada, such as the need to comply with local regulations and the possibility of higher costs for certain inputs. However, overall, Canada can be an attractive location for manufacturing operations.

About GTA General Contractors Ltd.

GTA General Contractors provides a comprehensive selection of construction services for the industrial sector. These services include architectural and design, construction management, design and build, as well as general contracting. If you are considering a industrial construction project, our team is here to help get your project off the ground efficiently and accurately to make your project a success, GTA General Contractors is here to deliver!