“It's important for brokers to identify insurance companies that have industry-specific wordings and comprehensive, customizable coverages for their client, and at Sovereign we want to be a product leader”
Kyle Meadus, Sovereign Insurance
“Unfortunately, a lot of the equipment that is heavily relied upon today is not manufactured in this country – it's manufactured in the US, Germany, and Japan”
Kyle Meadus, Sovereign Insurance
In Partnership with
Three key challenges facing manufacturers
Brokers, as the first port of call, must be aware of manufacturing clients’ needs as the sector continues to wrestle with pressures
Read on
CANADA'S MANUFACTURING sector has not had an easy time in recent years, and it is still facing challenges that are also being experienced on a global scale. This is according to Kyle Meadus, manager, commercial underwriting at Sovereign Insurance.
While it may have been “very easy for everyone to blame COVID” in the past, and the lingering impact of the pandemic and related disruptions will continue to pose a problem, Meadus flags three further issues that are hitting manufacturers where it hurts – their pockets.
Product scarcity, port congestion, and labour shortages are all driving up costs and posing difficulties for manufacturers.
“The cost of doing business is greater than it was yesterday,” Meadus tells Insurance Business. “[There are issues with] port congestion; the supply chain has been complex and disruptive, and it will continue to be an issue for global manufacturers in getting their products across the world.”
Canadian ports, like those in other countries, have had to contend with bottlenecks and backlogs. On the release of its 2022 report, the National Supply Chain Taskforce wrote to the minister of transport to call for imminent action to address “longstanding weaknesses” in the country’s transportation supply chain.
Skilled labour shortages are also proving a major headache for manufacturers, in Canada and farther afield.
“Manufacturers have a situation with skilled labourers, and once that product has been delivered and it’s ready to be manufactured out of raw materials, having the right technology and the right people to work – that has been an issue across the board, and will continue to be a problem,” Meadus says.
Having a giant neighbour in the US, which has a population of just under 335 million, can be a boon to Canadian manufacturers, and roughly 75 percent of Canadian manufactured products head across the border, according to Meadus.
With exporting high on the agenda, currency fluctuations and how the Canadian dollar performs against its peers can have major ramifications for manufacturers.
A weaker Canadian dollar can make product “more competitive in the global landscape,” according to Meadus, but there is a flipside that could be driving manufacturers to abandon initiatives. With manufacturers looking to harness the power of technology to keep pace with their global peers, and much equipment supplied from overseas, a weak loonie has the potential to bite.
“Unfortunately, a lot of the equipment that is heavily relied upon today is not manufactured in this country – it’s manufactured in the US, Germany, and Japan.
“And a weaker dollar ultimately [means it] will cost those manufacturers more to obtain those products, forcing them to make different decisions on growth and [in some cases] ultimately postponing those projects completely.”
With manufacturers already stretched, it is the role of the broker to make sure they have adequate cover in place to plug any risk gaps that could leave them counting further costs down the line, especially when these clients are facing pressures.
In the space of a year, Canadian manufacturers took a $7.2 billion hit from lost or turned down contracts and production delays caused by labour shortages, according to the Canadian Manufacturers & Exporters’ (CME) latest annual survey, with results published in October 2022. Sixty-two percent of those surveyed told the organization that they had been affected.
Meanwhile, 43 percent had postponed or cancelled capital projects due to workforce difficulties, coming at a cost of $5.4 billion in lost investment, the CME said. [source] Overall, more than 80 percent of manufacturers said they had faced skills and labour shortages that year, up from 60 percent in 2020.
The sector may be facing challenges, but it is still big business. Canadian manufacturing accounted for roughly $194 billion (or just over nine percent) of gross domestic product (GDP) as of January 2023, according to Statistics Canada. [source] As of 2021, manufacturers exported more than $354 billion each year, which represented 68 percent of all of Canada’s merchandise exports, according to the government of Canada website. [source]
As the government has put it, “A vibrant manufacturing community encourages industrial clusters that develop skills, knowledge and technology.
“Success breeds success: when Canada’s manufacturers grow and compete, they act as magnets for new investment and for new young people wanting to be part of this great industry, making the products of tomorrow.”
“Understanding a manufacturer truly starts at the broker level,” says Meadus. “It’s the broker’s job to really identify the coverage concerns, gaps in coverage, or the needs of the business, and then relay that to the insurer.”
It is vital that the broker find a partner who “aligns with the business and the insurance needs,” Meadus says.
“Once the insurer has been selected, the insurer will work with risk engineering, along with the broker and the insured, to really understand the business, minimize risks, and see if the products align with what the customer truly wants,” he says.
Sovereign Insurance itself is rolling out a new product this year that is tailored to the manufacturing sector.
“It's important for brokers to identify insurance companies that have industry-specific wordings and comprehensive, customizable coverages for their client, and at Sovereign we want to be a product leader,” says Meadus.
While devising a great product to suit business needs is one piece of the puzzle, there is more to finding the right insurance partner. This is particularly the case in this sector, according to Meadus, and this is something that Sovereign Insurance has committed to keeping top of mind when it comes to offering services.
“In the manufacturer space, the product is only one thing,” he says. “Ultimately, the value-adds of risk engineering and claim services all go a long way when selecting the right insurer.”
Canadian manufacturers facing workforce challenge
The Sovereign General Insurance Company (Sovereign Insurance) is your partner in resilience. We work with our dedicated partners to provide advice, education, ongoing support, and breakthrough risk solutions to address the ever-evolving, unique needs of Canadian businesses. We’re passionate about building a stronger Canada through resilient businesses and the communities they serve. Canadian-owned and -operated since 1953, Sovereign is a wholly owned subsidiary of The Co-operators General Insurance Company, a leading Canadian provider of multi-line insurance products with assets of $9 billion. Sovereign operates in six offices across Canada and is proud to carry an AM Best A (Excellent) rating. To learn more, visit www.sovereigninsurance.ca.
Find out more
“It's important for brokers to identify insurance companies that have industry-specific wordings and comprehensive, customizable coverages for their client, and at Sovereign we want to be a product leader”
KYLE MEADUS, SOVEREIGN INSURANCE
“Unfortunately, a lot of the equipment that is heavily relied upon today is not manufactured in this country – it's manufactured in the US, Germany, and Japan”
KYLE MEADUS, SOVEREIGN INSURANCE
In Partnership with
Three key challenges facing manufacturers
Brokers, as the first port of call, must be aware of manufacturing clients’ needs as the sector continues to wrestle with pressures
Read on
CANADA'S MANUFACTURING sector has not had an easy time in recent years, and it is still facing challenges that are also being experienced on a global scale. This is according to Kyle Meadus, manager, commercial underwriting at Sovereign Insurance.
While it may have been “very easy for everyone to blame COVID” in the past, and the lingering impact of the pandemic and related disruptions will continue to pose a problem, Meadus flags three further issues that are hitting manufacturers where it hurts – their pockets.
Product scarcity, port congestion, and labour shortages are all driving up costs and posing difficulties for manufacturers.
“The cost of doing business is greater than it was yesterday,” Meadus tells Insurance Business. “[There are issues with] port congestion; the supply chain has been complex and disruptive, and it will continue to be an issue for global manufacturers in getting their products across the world.”
Canadian ports, like those in other countries, have had to contend with bottlenecks and backlogs. On the release of its 2022 report, the National Supply Chain Taskforce wrote to the minister of transport to call for imminent action to address “longstanding weaknesses” in the country’s transportation supply chain.
Skilled labour shortages are also proving a major headache for manufacturers, in Canada and farther afield.
“Manufacturers have a situation with skilled labourers, and once that product has been delivered and it’s ready to be manufactured out of raw materials, having the right technology and the right people to work – that has been an issue across the board, and will continue to be a problem,” Meadus says.
Having a giant neighbour in the US, which has a population of just under 335 million, can be a boon to Canadian manufacturers, and roughly 75 percent of Canadian manufactured products head across the border, according to Meadus.
With exporting high on the agenda, currency fluctuations and how the Canadian dollar performs against its peers can have major ramifications for manufacturers.
A weaker Canadian dollar can make product “more competitive in the global landscape,” according to Meadus, but there is a flipside that could be driving manufacturers to abandon initiatives. With manufacturers looking to harness the power of technology to keep pace with their global peers, and much equipment supplied from overseas, a weak loonie has the potential to bite.
In January, MPA held a roundtable discussion with four customer-owned banks: Heritage Bank, Beyond Bank, Teachers Mutual Bank Limited and Bank Australia. We were also joined by two brokers who use mutual banks for their clients’ business: Christopher Lee and David Merison.
As brokers such as these struggle with the greater scrutiny that has following the royal commission, customer-owned banks are stepping up to the plate, providing a service that highlights the value of human interaction. With questions around living expenses forcing a heavier workload on brokers, this personal touch can be vital.
During the roundtable, which took place at Otto restaurant in Sydney, the group discussed the unique value proposition that customer-owned banks offer, particularly with the lack of shareholders they have to cater for. While other
“The value proposition that mutual banks provide is getting some more attention,” he said. “We’ve known for a long time that the customer satisfaction that members get through mutual organisations is very high compared to the major banks. I think we’ve struggled to convert that into member growth, but more recently, with it being so front of mind with customers, it’s definitely starting to grow.”
Growth in the sector is giving the mutual banks their “time to shine”, said Beyond Bank head of third party Darren McLeod, adding that they had worked hard over the last two years on selling their proposition.
Referring to the previous year’s roundtable, when the catchphrase of the day was that the customer-owned banking sector was the industry’s “best-kept secret”, McLeod said, “I think that secret is finally getting out.”
“I don’t think we’re doing anything different,” he added. “We’re doing what we’ve always done, but there’s more customer uptake because the market’s in a place where people are now looking, and they’re willing to try it.”
Agreeing that the royal commission had had an effect on consumers heading to the mutual banks, Mark Middleton, head of third party at Teachers Mutual, said there was a growing groundswell. Not only were borrowers looking for alternative options but aggregators were adding more choice to their panels, he said.
Offering a different perspective, Middleton said consumers were becoming more aware of responsible lending and social responsibilities and asking about things like climate change. Teachers Mutual is not only carbon neutral but gives back around 6.8% of its net profits to community grants and other projects.
“It’s particularly topical right now, with the bushfires happening around the country, that people will start looking for who is doing things to make a difference, not just for this generation but future generations,” Middleton said.
“I think we’ve been actually ahead of the curve; no one’s been really aware of it, but the last 12 months it’s become more prevalent.”
Middleton also talked about the wider recognition the sector was receiving, as reflected in its high NPS scores.
“From all the mutuals around the table here, clearly when customers are being recommended by brokers to come to us, they’re voting with their feet,” he said.
McLeod agreed that a lot of the growth was coming out of the third party space.
“We’ve all been working hard in the broker space over the last couple of years as more brokers use customer-owned banks,” he said. “I think the growth is definitely in the broker channel and the work all of us have been doing in the business. The growth we’re talking about is definitely coming from brokers.”
Brokers have also been an important factor for Bank Australia. Senior relationship manager Fernando Lemos said the bank had been bolstering its support around the third party distribution space. He added that it was not only about diversification of products but also diversification of lenders, and this helped brokers cater for a wider client base.
“I think brokers are really starting to become aware of what we’re about and what we stand for,” Lemos said.
“There’s a marketing edge as well: they can go out there and promote themselves. They’re not just a line to a particular organisation; they can look after certain types of clients.”
Agreeing, McLeod added that the extra regulation, such as the caps on interest-only lending, had also had an effect on the sector.
“We all had to slow down for the caps,” he said. “But when it opened up, the brokers who used four lenders were now using a lot more, so it really gave us a chance because we’re in that larger group. So it’s really opened up the market, because it was so confusing in terms of who was doing what – who’s doing construction, who’s doing interest-only, who’s doing investment – so it’s opened up the market and it gives us a shot at getting the business."
One of two brokers joining the roundtable, David Merison from Vault Plus Mortgage and Finance Consultancy said the demographic of people looking to borrow money wanted choice, rather than relying on those who came straight out of the banks and were simply agents for those lender
“We’ve got to hold ourselves open and come up with some innovative solutions, and that means introducing some lenders they wouldn’t always think of,” he said.
Finsure Finance and Insurance broker Christopher Lee said his primary objective was to put the largest amount of money in his client’s pocket rather than the bank’s pocket, and the mutuals offered a cheaper alternative, as well as a more diverse product range.
Not just that but Lee simply enjoys dealing with the mutuals more.
The Sovereign General Insurance Company (Sovereign Insurance) is your partner in resilience. We work with our dedicated partners to provide advice, education, ongoing support, and breakthrough risk solutions to address the ever-evolving, unique needs of Canadian businesses. We’re passionate about building a stronger Canada through resilient businesses and the communities they serve. Canadian-owned and -operated since 1953, Sovereign is a wholly owned subsidiary of The Co-operators General Insurance Company, a leading Canadian provider of multi-line insurance products with assets of $9 billion. Sovereign operates in six offices across Canada and is proud to carry an AM Best A (Excellent) rating. To learn more, visit www.sovereigninsurance.ca.
Find out more
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Bank Australia
Fernando Lemos
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Beyond Bank
Darren McLeod
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Heritage Bank
Stewart Saunders
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
“It's important for brokers to identify insurance companies that have industry-specific wordings and comprehensive, customizable coverages for their client, and at Sovereign we want to be a product leader”
KYLE MEADUS, SOVEREIGN INSURANCE
“Unfortunately, a lot of the equipment that is heavily relied upon today is not manufactured in this country – it's manufactured in the US, Germany, and Japan”
KYLE MEADUS, SOVEREIGN INSURANCE
In Partnership with
Three key challenges facing manufacturers
Brokers, as the first port of call, must be aware of manufacturing clients’ needs as the sector continues to wrestle with pressures
Read on
CANADA'S MANUFACTURING sector has not had an easy time in recent years, and it is still facing challenges that are also being experienced on a global scale. This is according to Kyle Meadus, manager, commercial underwriting at Sovereign Insurance.
While it may have been “very easy for everyone to blame COVID” in the past, and the lingering impact of the pandemic and related disruptions will continue to pose a problem, Meadus flags three further issues that are hitting manufacturers where it hurts – their pockets.
Product scarcity, port congestion, and labour shortages are all driving up costs and posing difficulties for manufacturers.
“The cost of doing business is greater than it was yesterday,” Meadus tells Insurance Business. “[There are issues with] port congestion; the supply chain has been complex and disruptive, and it will continue to be an issue for global manufacturers in getting their products across the world.”
Canadian ports, like those in other countries, have had to contend with bottlenecks and backlogs. On the release of its 2022 report, the National Supply Chain Taskforce wrote to the minister of transport to call for imminent action to address “longstanding weaknesses” in the country’s transportation supply chain.
Skilled labour shortages are also proving a major headache for manufacturers, in Canada and farther afield.
“Manufacturers have a situation with skilled labourers, and once that product has been delivered and it’s ready to be manufactured out of raw materials, having the right technology and the right people to work – that has been an issue across the board, and will continue to be a problem,” Meadus says.
Having a giant neighbour in the US, which has a population of just under 335 million, can be a boon to Canadian manufacturers, and roughly 75 percent of Canadian manufactured products head across the border, according to Meadus.
With exporting high on the agenda, currency fluctuations and how the Canadian dollar performs against its peers can have major ramifications for manufacturers.
A weaker Canadian dollar can make product “more competitive in the global landscape,” according to Meadus, but there is a flipside that could be driving manufacturers to abandon initiatives. With manufacturers looking to harness the power of technology to keep pace with their global peers, and much equipment supplied from overseas, a weak loonie has the potential to bite.
In January, MPA held a roundtable discussion with four customer-owned banks: Heritage Bank, Beyond Bank, Teachers Mutual Bank Limited and Bank Australia. We were also joined by two brokers who use mutual banks for their clients’ business: Christopher Lee and David Merison.
As brokers such as these struggle with the greater scrutiny that has following the royal commission, customer-owned banks are stepping up to the plate, providing a service that highlights the value of human interaction. With questions around living expenses forcing a heavier workload on brokers, this personal touch can be vital.
During the roundtable, which took place at Otto restaurant in Sydney, the group discussed the unique value proposition that customer-owned banks offer, particularly with the lack of shareholders they have to cater for. While other
“The value proposition that mutual banks provide is getting some more attention,” he said. “We’ve known for a long time that the customer satisfaction that members get through mutual organisations is very high compared to the major banks. I think we’ve struggled to convert that into member growth, but more recently, with it being so front of mind with customers, it’s definitely starting to grow.”
Growth in the sector is giving the mutual banks their “time to shine”, said Beyond Bank head of third party Darren McLeod, adding that they had worked hard over the last two years on selling their proposition.
Referring to the previous year’s roundtable, when the catchphrase of the day was that the customer-owned banking sector was the industry’s “best-kept secret”, McLeod said, “I think that secret is finally getting out.”
“I don’t think we’re doing anything different,” he added. “We’re doing what we’ve always done, but there’s more customer uptake because the market’s in a place where people are now looking, and they’re willing to try it.”
Agreeing that the royal commission had had an effect on consumers heading to the mutual banks, Mark Middleton, head of third party at Teachers Mutual, said there was a growing groundswell. Not only were borrowers looking for alternative options but aggregators were adding more choice to their panels, he said.
Offering a different perspective, Middleton said consumers were becoming more aware of responsible lending and social responsibilities and asking about things like climate change. Teachers Mutual is not only carbon neutral but gives back around 6.8% of its net profits to community grants and other projects.
“It’s particularly topical right now, with the bushfires happening around the country, that people will start looking for who is doing things to make a difference, not just for this generation but future generations,” Middleton said.
“I think we’ve been actually ahead of the curve; no one’s been really aware of it, but the last 12 months it’s become more prevalent.”
Middleton also talked about the wider recognition the sector was receiving, as reflected in its high NPS scores.
“From all the mutuals around the table here, clearly when customers are being recommended by brokers to come to us, they’re voting with their feet,” he said.
McLeod agreed that a lot of the growth was coming out of the third party space.
“We’ve all been working hard in the broker space over the last couple of years as more brokers use customer-owned banks,” he said. “I think the growth is definitely in the broker channel and the work all of us have been doing in the business. The growth we’re talking about is definitely coming from brokers.”
Brokers have also been an important factor for Bank Australia. Senior relationship manager Fernando Lemos said the bank had been bolstering its support around the third party distribution space. He added that it was not only about diversification of products but also diversification of lenders, and this helped brokers cater for a wider client base.
“I think brokers are really starting to become aware of what we’re about and what we stand for,” Lemos said.
“There’s a marketing edge as well: they can go out there and promote themselves. They’re not just a line to a particular organisation; they can look after certain types of clients.”
Agreeing, McLeod added that the extra regulation, such as the caps on interest-only lending, had also had an effect on the sector.
“We all had to slow down for the caps,” he said. “But when it opened up, the brokers who used four lenders were now using a lot more, so it really gave us a chance because we’re in that larger group. So it’s really opened up the market, because it was so confusing in terms of who was doing what – who’s doing construction, who’s doing interest-only, who’s doing investment – so it’s opened up the market and it gives us a shot at getting the business."
One of two brokers joining the roundtable, David Merison from Vault Plus Mortgage and Finance Consultancy said the demographic of people looking to borrow money wanted choice, rather than relying on those who came straight out of the banks and were simply agents for those lender
“We’ve got to hold ourselves open and come up with some innovative solutions, and that means introducing some lenders they wouldn’t always think of,” he said.
Finsure Finance and Insurance broker Christopher Lee said his primary objective was to put the largest amount of money in his client’s pocket rather than the bank’s pocket, and the mutuals offered a cheaper alternative, as well as a more diverse product range.
Not just that but Lee simply enjoys dealing with the mutuals more.
The Sovereign General Insurance Company (Sovereign Insurance) is your partner in resilience. We work with our dedicated partners to provide advice, education, ongoing support, and breakthrough risk solutions to address the ever-evolving, unique needs of Canadian businesses. We’re passionate about building a stronger Canada through resilient businesses and the communities they serve. Canadian-owned and -operated since 1953, Sovereign is a wholly owned subsidiary of The Co-operators General Insurance Company, a leading Canadian provider of multi-line insurance products with assets of $9 billion. Sovereign operates in six offices across Canada and is proud to carry an AM Best A (Excellent) rating. To learn more, visit www.sovereigninsurance.ca.
Find out more
Share
Share
Share
Published 23 May 2023
Contact Us
Specialty
Best in Insurance
Resources
Risk Management
TV
News
RSS
Sitemap
Contact us
About us
Conditions of Use
Privacy policy
Terms & conditions
People
Copyright © 2023 KM Business Information Canada Ltd
Contact Us
Specialty
Best in Insurance
Resources
Risk Management
TV
News
RSS
Sitemap
Contact us
About us
Conditions of Use
Privacy policy
Terms & conditions
People
Copyright © 2023 KM Business Information Canada Ltd
Contact Us
Specialty
Best in Insurance
Resources
Risk Management
TV
News
Copyright © 2023 KM Business Information Canada Ltd
RSS
Sitemap
Contact us
About us
Conditions of Use
Privacy policy
Terms & conditions
People
Source: CME annual labour survey, results published 2022
Value of one year of manufacturers’ economic losses due to shortages
$13 billion
Percentage of manufacturers that have lost or turned down contracts and faced production delays due to labour shortages
62%
Cost of labour shortages in lost sales and penalties
$7.2 billion
Percentage of companies that have postponed or cancelled capital projects due to labour shortages
43%
Value of investment lost due to workforce issues
$4.2 billion
Scale of Canada’s manufacturing sector
As of 2021, the manufacturing sector accounted for:
full-time, well-paying jobs
1.7 million
worth of exports, or 68% of all Canada’s exports
$354 billion
of Canada’s GDP, rising to $194 billion as of January 2023
$174 billion
Source: Government of Canada