Today’s Canadian manufacturing businesses are at a crossroads.
Amid economic uncertainties, workplace shortages, and the fast pace of technological changes, manufacturers across the country are facing significant challenges — but also exciting opportunities.
Earlier this year, MNP brought together manufacturing business leaders from across southern Ontario to participate in roundtable discussions for our 2024 white paper, Innovation in the Business of Manufacturing. Their insights shine a light on the real issues impacting manufacturers today and the strategies they’re using to tackle them.
One of the most urgent challenges highlighted by manufacturers is the persistent struggle to find and retain workers. It’s not only about securing highly skilled employees — businesses are increasingly prioritizing hiring individuals with the right mindset and work ethic. Many firms are focusing on non-monetary benefits, like flexible working arrangements and skills development opportunities, to appeal to a broader and more diverse workforce, including the next generation of workers.
Furthermore, manufacturers are looking to diversify their talent pools by attracting underrepresented groups, like women and newcomers to Canada. This strategy not only helps to fill critical gaps, it strengthens organizational culture, fostering a more inclusive and dynamic workplace.
Technology is driving big change across the sector, from artificial intelligence (AI) and machine learning to advanced enterprise resource planning (ERP) systems. More and more, manufacturers are leveraging these tools to optimize operations, cut costs, make informed decisions, and improve customer service.
However, many are still grappling with selecting the right tools and technologies that meet their needs without disrupting their operations.
Smart technologies like computer vision and predictive analytics tools are being implemented to reduce reliance on manual labour — not to replace workers but to allow them to focus on higher-value tasks. This transition empowers teams and enhances productivity, which leads to greater innovation on the shop floor.
Data-driven decision-making has become essential. It’s used to optimize supply chains, manage production, and make proactive business decisions. But the quality of data is key — without clean, reliable data, even the most advanced systems can fail to deliver quality outcomes.
More and more, manufacturers are recognizing the importance of data integrity, which allows them to make better, more strategic decisions that positively impact their bottom line.
Canada’s declining productivity remains an issue (we’re ranked 29th out of 38 countries for labour productivity as per the Organization for Economic Co-operation and Development) and was a hot topic among manufacturing leaders. Many businesses are focusing on technology, operational efficiency, and continuous learning as key drivers for increased productivity and performance. The challenge lies in making sure employees remain motivated and engaged in their roles, especially as new technologies and processes are introduced.
Manufacturers are emphasizing the need for clear communication and frequent feedback. By maintaining a continuous dialog with their teams, they are better positioned to address performance issues, celebrate successes, and drive operational improvements.
This shift from annual reviews to more frequent feedback has proven effective in maintaining high levels of employee engagement and performance.
Today’s manufacturers are at a critical juncture. The good news is there’s a roadmap for the future, one that highlights the need to invest in their workforce, embrace new technologies, and build cultures that prioritize continuous improvement.
The challenges are undeniable, but so are the opportunities. The question is: which path will you choose?
Explore the Full Report: Click here to read “Innovation in the Business of Manufacturing”.
Pam Lilley, CPA, CA, LPA | Partner, Regional Manufacturing Lead | 905.323.6010 | Pamela.Lilley@mnp.ca
