Knowledge sharing builds resilience

In May, the Canadian Manufacturers & Exporters (CME) released the results of a survey that suggests a shortage of skilled workers is threatening Canadian manufacturers’ ability to adopt necessary technologies to scale and compete globally.

The survey results indicate that manufacturers are looking to technology to improve profits, but are thwarted by ongoing skills shortages, high purchase costs, and the ability to finance these new innovations.

One-third of manufacturers identified a shortage of skilled workers as one of their biggest barriers to technology adoption, as they cannot find enough workers with the appropriate skills to take advantage of the technologies.

Conducted between March 15 and April 17, 2023, the survey also shows that two out of five companies have not started or are in the early stages of digital transformation. If Canada’s manufacturing sector is to remain globally competitive, more manufacturers will need to embrace digital transformation at a faster pace—an issue I discussed here last month.

The CME recommended a number of actions federal and provincial governments should take to support industry change in this area. These included introducing a national 10 per cent investment tax credit that is matched by all provinces to help reduce costs and de-risk investments; supporting employer-led training through a 50 per cent tax credit to offset half of the costs of employee training; and funding technology demonstration tours and site visits to help companies understand the opportunities available with the new technologies.

These, of course, are excellent suggestions. In their absence, however, it’s important that fabricators get as much education as they can from the marketplace. FABTECH Chicago is a great place to start that journey. The suppliers at the show and their distributors are invested in ensuring that technology rollouts by their customers are effective. I recommend engaging with people on the show floor to find out what is available and how they can help you make change possible in your shop.

Another great source of inspiration and support are your customers and suppliers. Customers can be very demanding of their suppliers, but those same customers often are willing to share their system knowledge to ensure their supply chain is strengthened. Engaging with customers in this way, in turn, strengthens the relationship for future business.

These suggestions don’t solve the problems raised by the CME’s survey, but they may help alleviate some of the strain felt in the shop and make the road forward clearer.