Canadas Labour Market Challenges A View from Canadian Industry

1
Canadas Labour Market Challenges A View from
Canadian Industry
2
Manufacturing 20/20

• 98 meetings involving more than 3,500
  manufacturers and stakeholders
• Input from 15 industry associations
• Cross-country survey of 942
  manufacturers in 2005
• National Manufacturing
• Summit
• Report on Workforce
• Capabilities

3
Top Strategic Issues
4
Competing in World Markets

• Global markets Global competition
• Competitors, partners, customers around the
  world
• Global value chains business networks Supply
  chains compete
• Global sourcing products, services, technology,
  information, capital, people
• Success depends on delivering customer value
  knowledge embodied in products, services, and
  production processes
• Business as usual is not an option New
  determinants of competitive success
• New workforce requirements skills and
  capabilities

5
Future Competitive Advantage?

• Focus on Customer Success
• Mastering global supply chains
• Knowledge management
• Specialized products services
• Innovation Continuous commercialization of new
  and improved products processes
• New technologies automation systems
• New business models and global value networks
• New market opportunities
• Agility Customization
• Customer Value Design, Engineering, Service,
  Financing
• Time Product Development to Customer Response

6
2020 Workforce Capabilities

• A  mix of creative problem-solving capabilities,
  technical know-how, business skills, and an
  ability to interact with colleagues and
  customers
• A higher degree of technical and technological
  expertise as production systems become more
  automated and more interconnected, and as
  workplaces incorporate advanced technologies such
  as nanotechnology, biotechnology,
  microelectronics, and robotics
• Continued reliance on the skilled trades, but in
  combination with other technical and business
  skills

7
2020 Workforce Capabilities

• A  greater reliance on manufacturing and product
  engineering, product and process design, and
  scientific research
• Multilingual and multicultural skills, as
  business operations expand on a more global
  basis
• Management skills in the fields of manufacturing
  processes, supply chains, product and knowledge
  development, financing, and global business and,
  
• Agility, Teamwork, Problem-Solving an ability
  to adapt easily to constantly-changing roles in a
  constantly-changing workplace and to work
  together to provide solutions for customers.

8
Its all about

• Competing Winning in the Global Marketplace
  where your competitor is only One mouse-click
  away on your customers computer.
• Vision Customer success
• Culture Lean thinking everywhere
• Leadership Generating sustaining followers
• Management Achieving results through people
• Thriving on Change Sustaining Success

9
A Changing Workforce

• The average age in Canadas manufacturing
  workforce is 48.
• Manufacturing employment has increased by 15
  over the past 10 years. The number of employees
  under the age of 45 has increased by 7.
• An estimated 255,000 people will retire from the
  manufacturing workforce by 2010.
• Two-thirds of manufacturing workers under the age
  of 35 have a post-secondary qualification.
• Over 27 of the manufacturing workforce are
  immigrants.
• Recent immigrants accounted for 166 of the net
  growth within the manufacturing workforce over
  the past decade.

10
Availability of Qualified Personnel

• 78 - an important factor affecting innovation
• 39 - a significant factor affecting business
  location decisions
• 37 - a strategic issues that will reshape
  manufacturing over the next 10 years
• 30 - a constraint on improving flexibility
• 28 - a constraint on performance improvement
• 26 - a constraint on developing export markets
• 20 - a constraint on bringing new products to
  market

11
Top Skill Shortages
12
Unsatisfactory Skill Sets
13
Refusing Job Applicants
14
Effectiveness of Education Training Programs
15
Critical HR Issues

• Attraction retention of skilled personnel
• Basic employability skills
• Training Basic specialized technical skills
• Changing demographics women, immigrants,
  aboriginal workers
• Leadership, teamwork, problem-solving
• Workforce mobilization leading to performance
  improvement

16
Overcoming Constraints
17
Skills Training Budgets
18
Outlook for Training Budgets
19
Incentives to Increase In-House Training
20
Strategies to Address Future Labour Needs
21
Conclusions

• Success depends on achieving results through
  people.
• Effective management of workforce capabilities
  needs to be a strategic priority.
• Attraction, retention, skills development,
  mobilization are key issues.
• Above all other sectors, manufacturing depends on
  attracting and developing the capabilities of
  recent immigrants.
• Workforce challenges will only increase
  particularly for smaller firms.
• Common problems Local Solutions.
• Communication, Coordination, Collaboration.

22

• Manufacturing 20/20
• www.cme-mec.ca/mfg2020/index.asp