Ottawa's regional manufacturing base is facing a tough call: stay put and absorb rising costs, or pack up production and head south. DFC Woodworks Inc., a Muskoka chair maker based in Kemptville just outside the capital, says it's seriously considering moving the bulk of its manufacturing operations to the United States in response to steep U.S. tariffs on Canadian goods.
A local business caught in a trade squeeze
Kemptville sits about 45 minutes south of downtown Ottawa, and businesses there are deeply tied to the capital region's economy, supplying local retailers, shipping through Ottawa-area distributors, and employing workers who commute from across the region. DFC Woodworks has built its name making the classic wooden Muskoka chair, the kind found on porches and patios across Ontario and well beyond. But with tariffs driving up the cost of exporting to its largest market, the company says staying competitive may mean setting up shop stateside.
Why this matters for Ottawa
When a manufacturer this close to Ottawa starts talking about relocating production, it's a warning sign for the wider regional economy. Ottawa and its surrounding communities, including Kemptville, Kanata, and the rest of eastern Ontario, rely on a mix of small and mid-sized manufacturers to keep local supply chains humming and to provide jobs outside the federal government and tech sectors. If tariffs push more of these companies to shift operations across the border, the region could see ripple effects: fewer local manufacturing jobs, less business for local suppliers, and a further tilt toward Ottawa's already tech- and government-heavy job market.
It also highlights how exposed the Ottawa area is to U.S. trade policy. Companies in the National Capital Region often assume their proximity to government and diversified economy insulate them from these shocks, but manufacturers like DFC Woodworks show that trade disputes hit hardest at the ground level, in small towns just outside the city where a single employer can matter a great deal to the local economy.
What's next
DFC Woodworks hasn't made a final decision, but the fact that a move to the U.S. is even on the table underscores how seriously local manufacturers are taking the current tariff environment. For Ottawa-area residents, it's worth watching whether other regional manufacturers follow suit, and whether federal or provincial support materializes to help keep production, and jobs, in eastern Ontario.
For now, DFC Woodworks continues to operate out of Kemptville, but its leadership says the door to a U.S. expansion, or full relocation, is very much open if tariff pressures don't ease.
Source: Ottawa Business Journal
