Without Reshoring to Canada, How Can We Improve Supply Chains?

Following all the supply chain disruptions in 2020 and beyond, reshoring Canada became a hot topic. Many of the product shortages exposed a lack of domestic production and weak supply chains that depended on too many variables across too vast a geography. Reshoring Canada would protect the economy from potential future shocks.

However, nearly three years later and this doesn’t seem to be happening.

Reshoring Canada Struggles

For one thing, employment in manufacturing is historically low. As of June 2022, there were 1.75 million manufacturing jobs following a steady decline from over 2.3 million in the early 00s. Moreover, in April 2022, there were over 90,000 job vacancies in the sector. These labour shortages are a significant barrier to reshoring Canada.

Is this due to automation? Unlikely. Compared to leaders like countries in Asia, Canada hasn’t invested much in industrial robotics. In fact, installations dropped by nearly 30 per cent in Canada during 2020 compared to just 8 per cent in the US.

Production is increasing in areas where Canada traditionally thrives, like wood products, petroleum, coal, and food. But imports are still high in manufacturing spaces like computers and electronics.

That being said, this isn’t necessarily a bad thing. For instance, reshoring Canada may lead to foreign capital leaving the country for its own reshoring efforts. More than a third of Canadian manufacturing employees work for a foreign multinational company, nearly triple the rate of the Canadian economy as a whole.

Reshoring Canada Solutions

If reshoring Canada isn’t happening then what are manufacturers doing to future-proof supply chains?

According to Statistics Canada, most manufacturers are:

  • Working with suppliers to improve timelines
  • Partnering with new suppliers
  • Substituting with alternate inputs, products, or supplies
  • Investing in R&D and technological improvements

In comparison, only a small number are shifting to local suppliers or relocating supply chain activities to Canada.

Technology like artificial intelligence is going to go a long way in improving supply chain resiliency. Artificial intelligence can help with end-to-end visibility, demand forecasting, decision-making, and automating processes.

Get Your Products to the Finish Line Faster

Reshoring Canada seems unlikely, so manufacturers will need competent help getting their products into the hands of customers. Marketsupport offers manufacturers solutions for product management, promotions, sales, audits, and artificial intelligence. We help you stay in control throughout the entire process.

Call 1-877-421-5081 or visit our website to book a consultation today.

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