Labour and skills shortages top of mind to start the year

Canadian Manufacturers & Exporters (CME) recently released the results of its national business outlook survey of manufacturing companies. According to the results, labour shortages, supply chain disruptions, and higher input costs ranked as the top challenges the industry faces. According to CME, these problems are hampering the sector’s recovery despite strong demand and an optimistic outlook by those in the business.

“Our survey confirmed what we’ve been hearing from manufacturers on the ground for a long time. Demand for manufactured goods is strong, but we are increasingly unable to keep up let alone take advantage of this boom. Labour shortages, supply chain challenges, and higher input costs are big problems. If we don’t address these, Canada’s economy will suffer,” said Dennis Darby, president/CEO of CME.

Of the respondents, 77 per cent say attracting and retaining a quality workforce is their biggest challenge. More than 80 per cent say they face labour and skills shortages, up significantly from 60 per cent in the 2020 CME Management Issues Survey. These labour shortages are most acute in Quebec, Atlantic Canada, and British Columbia.

Tellingly, 70 per cent of businesses say they are having the most trouble filling general labour and assembly positions. Shortages in the skilled trades are also growing, particularly for millwrights, welders, and machinists.

Almost one in five manufacturers apparently are considering moving some or all their production outside Canada because of these labour shortages.

CME called for a federal industrial strategy with four main priorities in its study: Attract the workers we need in manufacturing, stimulate investment in innovation and advanced technologies, increase Canadian exports, and adopt an industrial net-zero strategy.

The federal government definitely will play an important role in the future of manufacturing, particularly in pushing back on protectionist measures in the U.S. Build Back Better Act. But inevitably the heavy lifting will have to take place on the shop floor.

I’ve spoken about automation a lot here over the past year, but each time there is a new twist to the story that is making that investment a better, more critical one for every business. This year’s issues of Canadian Fabricating & Welding will continue to explore these advances and how they can help shops leap the market hurdles they face.

I look forward to telling the stories of more shop owners this year in the magazine as well. Our January 2022 issue includes a number of case studies and features that explain how fabricators have adapted to market stresses. If you have a unique story about resilience you’d like to share with our audience, please let me know. It’s as a community that industries thrive, and it’s an honour to support that community.