Due to a lack of personnel, Quebec manufacturing companies refuse contracts, accumulate delays… and suffer financial losses. In total, they had to leave nearly $7 billion on the table over the past year, according to a new survey by the Quebec Manufacturers and Exporters Association (MEQ) released on Wednesday.
“The labor shortage is the biggest obstacle to the growth of Quebec manufacturers,” said Véronique Proulx, CEO of MEQ, at a press conference. When companies do not find enough employees, it has an economic cost, she recalled. They have to give up certain contracts, slow down their production rate, and deliver the goods late…
Of the 7 billion dollars gone up in smoke, 4 billion are due to refused or delayed contracts and 3 billion to canceled or delayed investments.
Over the past year, the manufacturing sector generated more than $180 billion in Quebec, according to figures from MEQ. The losses linked to the shortage of labor then represent only about 4% of the volume of manufacturing activity, but these are losses of “too much”, believes Mme Proulx.
“In a context of economic recovery, inflation, and a recession on our doorstep, can Quebec really afford to leave $7 billion, including major investments in technology? The answer is no”, considers Mme Proulx.
Risk of relocation?
Penalized by the lack of workers, about 3 out of 10 Quebec manufacturing companies have considered “moving part of their activities abroad or giving more contracts abroad” in the last year, we also learn in the survey. .
“When you move your activities outside of Quebec, it’s very rare that you bring them back,” says Ms.me Proulx, who is calling on the government to tackle the issue of the labor shortage head-on, by raising immigration thresholds, facilitating the integration of foreign workers and offering more business support related to automation and robotization.
“In Quebec, recruiting is like fishing in an empty lake. There is nobody ! We are short of workers and we have to work on the issue of immigration,” said Ms.me Proulx.
And the salaries?
If the lower paid positions are more difficult to fill, vacancies offering better salaries are more numerous, the survey also reveals.
“Nearly half (49%) of the vacancies within the companies surveyed are in the salary range of $20 to $29/hr. About four out of 10 (38%) are in salary brackets above $30/h.
In the second quarter of 2022, there were 31,985 job vacancies in Quebec’s manufacturing sector, up from the 30,720 job vacancies counted in the first quarter, according to data from Statistics Canada.
The Quebec Manufacturers and Exporters (MEQ) survey, conducted between September 14 and October 11, 2022, was conducted among approximately 300 Quebec manufacturing companies.