Manufacturing Canada’s Future: Addressing Crisis with Strategic Government Action

Canadian Manufacturers & Exporters (CME) has released a comprehensive report, “Manufacturing Canada’s Future,” spotlighting critical issues plaguing Canada’s manufacturing sector. The report, unveiled at CME’s National Manufacturing Conference in Ottawa, outlines 22 recommendations to federal, provincial, and municipal governments for rejuvenating the sector.


Key Challenges Identified:

  • National Housing Crisis: Housing affordability and availability are significant concerns for manufacturers, impacting the ability to attract and retain skilled labor.
  • Climate Change Policies: Manufacturers face the dual challenge of adapting to national policies and maintaining competitiveness with international counterparts, particularly with the U.S.’s Inflation Reduction Act.
  • Persistent Labour and Skills Shortages: A growing concern, exacerbated by weak investment and declining competitiveness in the global market.
  • Sluggish Productivity: The sector struggles with stagnating productivity rates, hindering overall economic growth.


Key Recommendations:

  1. Modernizing Immigration and Temporary Worker Programs: A strategic approach to address the labour and skills gap in the manufacturing sector.
  2. Affordable Housing Near Manufacturing Jobs: Including mandates for modular construction to alleviate the housing crisis.
  3. Speeding Up Investment Tax Credits Implementation: Aligning with climate change policies and enhancing competitiveness.
  4. Comprehensive National Manufacturing Strategy: A collaborative effort between all levels of government and the industry to foster long-term economic growth.

CME’s report underscores the critical need for a national industrial strategy to navigate the industry’s challenges. This strategy aims to harness global trends like “nearshoring” and the green transition, enhancing the sector’s competitiveness. Dennis Darby, CME President & CEO, emphasizes that implementing these recommendations will lead to a more competitive business environment, higher investment levels, innovation, productivity, job creation, and substantial emissions reductions.

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