The Hamilton Spectator

Ontario is the engine of Canada

- DENNIS DARBY DENNIS DARBY IS PRESIDENT AND CEO OF CANADIAN MANUFACTUR­ERS AND EXPORTERS.

Just a few months ago, the weeklong closure of the Ambassador Bridge and the havoc it wreaked on supply chains and our internatio­nal reputation reminded us once again of a simple fact — how much manufactur­ing matters to Ontario.

Ontario is in many ways the engine of Canada, and manufactur­ing provides the fuel. If that engine sputters, so does our economy.

Today, manufactur­ing directly generates more than 12 per cent of the province’s GDP and some 80 per cent of its merchandis­e exports. Taking direct and indirect impacts into account, the sector’s footprint amounts to more than 30 per cent of Ontario’s economic activity.

More importantl­y, the sector employs close to 775,000 Ontarians, supporting their families and communitie­s with high value, high skilled, and high paying jobs.

These workers are the backbone of the manufactur­ing sector’s ability to produce essential products, such as PPE, medication­s, and antiseptic gels that we depended on during the early days of the pandemic and continue to do so.

For both businesses and consumers alike, the pandemic has resulted in much greater attention and prioritiza­tion on making things local. There is a real opportunit­y for “friend-shoring” production, building more resilient North American supply chains, improving trade with allies, and using the world’s transition to net-zero emissions as a competitiv­e advantage for our businesses.

Our sector, however, has been limited in capitalizi­ng on this opportunit­y. Labour and skills shortages are the most pressing challenges facing manufactur­ers today. In a recent CME (Canadian Manufactur­ers and Exporters) survey, 75 per cent of manufactur­ers reported they were having a more difficult time recruiting workers, with 82 per cent citing labour shortages.

But this is just the tip of the iceberg. Ontario remains a high-cost jurisdicti­on; electricit­y rates are among the highest in North America, and regulatory processes can be uncertain.

Despite recent major victories for the province, over the past five years, the U.S. received 23times the investment that Canada did, while Mexico received 10-times.

As Ontario seeks to turn the page on the COVID-19 pandemic, manufactur­ers need predictabi­lity. They need to know that workers will fill shifts and vacancies, and that key inputs like electricit­y and land will be available at a competitiv­e price.

Over the last four years, the Ontario government has launched several strategies, including a life science strategy, one for hydrogen, a critical mineral strategy and an automotive strategy. All are helpful and represent areas we need to build on. But it is now time to stop creating more silos and create one comprehens­ive advanced manufactur­ing strategy; a strategy that doubles down on manufactur­ers’ core priorities and delivers broader benefits.

To spur manufactur­ing growth, the province must develop a manufactur­ing strategy addressing the labour shortages impacting the ability of manufactur­ers to invest and grow.

We need workers. Let’s put in place a strategy that will help fill labour shortages today and train the workers of tomorrow, and let’s accelerate plans to train more people from diverse background­s so they can gain the skills needed to succeed in the sector and improve productivi­ty.

In the upcoming provincial election campaign, we want all parties to tell us how they plan to support a strong manufactur­ing strategy that prioritize­s investment, innovation, and prosperity for all Ontarians.

Now is the time to re-establish our sector’s leading position and celebrate Ontario manufactur­ers and Ontario-made products. Only with a strong partnershi­p and shared goals between government and our sector, will we be able to capitalize on this unique moment in our history.

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