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Canada’s Labour Market Challenges A View from Canadian Industry.

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Presentation on theme: "Canada’s Labour Market Challenges A View from Canadian Industry."— Presentation transcript:

1 Canada’s 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 It’s all about…  “Competing & Winning in the Global Marketplace … where your competitor is only One mouse-click away on your customer’s 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 Canada’s 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:

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