Keep calm and train skilled manufacturing workers in spite of tariffs: report

Yahoo

13-05-2025

U.S. tariffs on Canadian imports may contribute to unemployment in the short term, but Ontario's manufacturing sector still stands to grow long-term, and much more needs to be done to make sure Canada has enough workers with the skills to do the jobs.
That's the message of a new report from Canadian Manufacturers and Exporters titled Keep Calm and Keep Training.
Canada's automotive sector may be under pressure from U.S. tariffs, said the organization's president and CEO, Dennis Darby. But the country is a major producer of food products, machinery, chemicals and oil and gas, and recent investments in EV and battery production present huge opportunities.
"We think there could be a million people working in manufacturing by … 2035," Darby said.
The sector employed just over 830,000 people in 2024.
The report draws information from two surveys of manufacturers conducted in December 2024 and January through March 2025.
Focus on education funding
"The big insight was somewhere just under 30,000 people a year are going to retire out of the sector over the next eight years," Darby said.
"And we are certainly not in a great position right now to be able to replace all of those folks."
It found that even in southwestern Ontario, which is heavily exposed to the effects of the U.S. trade war, respondents cited shortages of some skilled trades people.
"While this pressure will abate to an extent as the short-term impact of tariffs is felt, general concerns with the aging of manufacturing workers highlight the need for long-term regional coordination," it read.
The report touches on a number of threats to the sector's workforce – economic unpredictability, skill shortages and funding constraints at colleges and universities – and identifies a range of potential solutions.
Those included more incentives for apprenticeship programs; more exposure to trades in high schools; better collaboration between industry and post-secondary institutions; more degree offerings, such as mechatronics; more seats in college apprenticeship programs and attracting workers from underrepresented groups.
But a big focus is funding for education, particularly at the secondary and post-secondary levels – money to expand programs, invest in high tech equipment and create more seats.
There is also a call for more incentives for apprenticeship programs.
Economist Jim Stanford, the director of the Vancouver-based Centre of Future Work, said the report's focus on continued training makes sense because as Canada navigates through the instability caused by the Trump administration, it will need the best workforce possible.
Employers need to do their part
And he said he fully supports governments playing a bigger role in it.
But he said employers also need to do their share, including paying corporate taxes.
"You know, it's always ironic when business groups who are constantly demanding tax cuts and other forms of incentives are also saying, 'Government, you must step up your support for colleges and universities,'" he said.
"Yes, we need that support. And everyone, including companies, has to pay their fair share toward it."
CBC News reached out to the Ministry of Colleges, Universities, Research Excellence and Security for a response to the report.
Among other things, we asked whether the government intended to increase post-secondary funding and address the request for funding for high tech training equipment.
The press secretary for Minister Nolan Quinn replied with an emailed statement saying the ministry continues to ensure Ontario has the highly skilled workforce needed to drive economic growth.
"As our latest step to protect Ontario, we're investing over $800 million to fund news STEM and skilled trades seats at colleges and universities across the province, building on last year's historic $1.3 billion investment and the $5 billion we contribute annually to post secondary education – strengthening the pipeline of highly skilled workers to drive our economy across our critical sectors, including manufacturing," Bianca Giacoboni said.
"We're also expanding the Skills Development Fund by nearly $1 billion to support workers impacted by U.S. tariffs, provide in-demand job training, help employers up-skill staff, and [create] new, innovative partnerships between industry and post secondary [institutions]."