Key Economic and Labour Force Issues Facing Canada’s Manufacturing Sector

Canada’s manufacturing sector is undergoing significant changes as a result of multiple external stresses including globalization, the pace of technological change, and the recent strength of the Canadian dollar. The sector also faces human resource challenges, including early retirements, a below-average level of workforce education, a reduced ability to attract young workers, and changing skill requirements. Manufacturers will need to respond to these challenges in a variety of ways, including increasing their use of imported inputs, expanding the role of services in their products, and undertaking more investment and research and development. The sector will also need to make better use of its existing workforce through increased training to enhance skills, and more flexible work arrangements.