Today, Collingwood's industrial base, which includes Collingwood Ethanol L.P., Pilkington Glass of Canada, Good all Rubber Company - Canada ULC, and VOAC Inc, and which are among the community’s largest employers, has begun to erode. Several industries in the area have closed in recent years, including Niacin Products (2004), Backyard Products (2004), Kaufman of Collingwood (2006), Goodyear Tires (2007), Alcoa Wheel products (2008) and the internationally-famous Blue Mountain Pottery(2004). Collingwood is also home to the distillery where Canadian Mist Whisky is produced.
In June 2007, Collingwood Ethanol (Now Amazingly Green) began production in the former Niacin facility. The company expects to produce 50 million litres of ethanol annually to satisfy regulatory requirements on ethanol content in gasoline mandated by the provincial and federal governments. Collingwood Ethanol also produces by-products of the ethanol manufacturing process, including an organic corn gluten fertilizer. Petitions have been submitted to the town by residents of a new housing development located across the road in an effort to force Collingwood Ethanol to reduce the amount of odour and noise that they are causing during the times when they are in full production. Before Collingwood Ethanol started production, however, Niacin (a starch plant that once occupied the now ethanol plant) also created a strong order and noise. This made many locals wonder why a housing development would be built across the road from an industrial part of town.
Located on the southern shores of Georgian Bay and located in proximity to Blue Mountain, a promontory of the Niagara Escarpment, the town has become the major recreation area for the southern part of the province. Blue Mountain itself is noted for skiing, and also for its Scenic Caves. The town is also a short distance from the popular Wastage Beach Provincial Park, an attractive destination that received the title of Biosphere Reserve
