CES Transformers Powers Up Canada's Grid with Major Markham Expansion

MARKHAM, ON – January 14, 2026 – In a significant move to bolster Canada's energy independence and address a crippling shortage of critical grid components, CES Transformers officially opened its vastly expanded manufacturing facility in Markham this week. The new 160,000-square-foot plant is set to more than triple the company's production of power transformers, injecting much-needed capacity into a strained North American supply chain and creating a wave of high-skilled local jobs.

The grand opening, attended by federal and provincial dignitaries, marks the culmination of a nearly $100 million private investment by the family-owned company, supplemented by strategic government funding. The expansion is a direct response to a growing energy crisis where the demand for electricity is rapidly outpacing the availability of the transformers needed to deliver it.

Powering the Local Economy and National Supply Chain

The expansion is a major economic boon for the region, promising to create over 150 new advanced manufacturing jobs by 2030. These are not just assembly-line positions; they are skilled roles in engineering, technical supervision, and state-of-the-art production. In Ontario, where the average salary for an advanced manufacturing professional hovers around $85,000 annually, this influx of high-value employment represents a substantial boost to the local economy.

This development aligns perfectly with Markham's identity as a national technology and manufacturing hub and supports Ontario's ambitious goal of growing its manufacturing workforce. Government officials at the opening ceremony emphasized the project's dual role in creating prosperity and securing the nation's infrastructure.

"Growing demand for affordable, reliable, clean electricity means we need a resilient domestic supply chain now more than ever," said the Honourable Tim Hodgson, federal Minister of Energy and Natural Resources. "CES Transformers' expanded Markham facility is exactly the kind of investment our new federal government supports: creating good, skilled jobs; strengthening local energy security; and ensuring we have the infrastructure needed to power our economy for decades to come."

Echoing this sentiment, the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation, highlighted the project's broader significance. "This impressive, new 160,000-square-foot facility is about more than machines and technology - it is about creating good jobs in Canada, opportunities for families, and stronger communities across southern Ontario," he stated.

At the provincial level, the focus remains squarely on building a self-reliant grid. "Ontario needs foundational manufacturers like CES Transformers to meet the rapidly growing electricity demand in our province with made-in-Canada solutions," said the Honourable Sam Oosterhoff, Ontario's Associate Minister of Energy-Intensive Industries. "This newly expanded facility will not only address the need for small power transformers in our energy supply chain, but will create more good-paying jobs and support our economy."

Addressing a Critical Bottleneck in North America's Grid

The importance of this expansion cannot be overstated. For years, a severe shortage of power transformers has been identified as a significant bottleneck, hampering everything from new housing developments and industrial projects to the integration of renewable energy sources. Lead times for transformers have stretched from months to years, a delay caused by a perfect storm of aging grid infrastructure, pandemic-related supply chain disruptions, and a decades-long decline in domestic manufacturing capacity.

This shortage is colliding with an unprecedented surge in electricity demand. The electrification of transport, the proliferation of energy-hungry AI data centers, and the broader clean energy transition are placing immense pressure on an already fragile grid.

"Canada's electricity demand is projected to double or even triple by 2050, and meeting that challenge requires a strong, domestic supply chain," said Adam Byrk, President of CES Transformers. "Our expanded facility ensures we can deliver customized, high-quality transformers right here at home--supporting customers, creating jobs, and strengthening the grid for decades to come."

By tripling its output, the Markham-based firm is directly tackling this vulnerability. The ability to produce essential grid components domestically reduces reliance on volatile international markets and shortens critical lead times for utilities and industrial clients, thereby enhancing Canada's overall energy security.

A Strategic Partnership for Innovation and Efficiency

This ambitious project is a case study in effective public-private partnership. The Government of Canada has committed a total of $5.15 million, with the investment strategically divided to foster both production scale and technological advancement.

The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) is contributing $3.75 million specifically to help the company scale up its manufacturing of high-efficiency power transformers. This focus is crucial for building a sustainable energy future, as high-efficiency models minimize energy loss during transmission, reducing the overall carbon footprint of the grid and aligning with federal energy performance standards.

Furthermore, an investment of up to $1.4 million from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) is dedicated to research and development. This funding will help CES accelerate its transformer design process, likely through advanced simulation software, research into new materials, and the integration of smart manufacturing technologies. This R&D component ensures the company is not just producing more transformers, but better and more innovative ones.

As a Canadian, family-owned business with nearly 40 years of history, CES Transformers is leveraging this combination of private investment and public support to reassert Canadian leadership in a vital industrial sector. The new facility in Markham is more than just a factory; it is a critical piece of infrastructure that will help power communities, drive economic growth, and secure Canada's energy future for a generation.