refusal of contracts, lack of use of facilities, abandonment of products, transfer of production; Chaudière-Appalaches, a vital member of Quebec’s manufacturing sector, is set to allow a $2.08 billion production value cut this year due to an acute labor shortage.
This is not a strike and not a crisis for a year or two. It’s like going through a drought. It lasts so long that the effect is heavy and deep. […] If we do nothing, it will be dramatic,” he warns during an interview with Newspaper Mondial Group founder, Louis Velox.
The latter believes that Quebec risks suffering from a workforce shortage at least “the next eight to 10 years”.
Today, faced with a dearth of talent, local officials and elected chief executives are concerned about the future of Chaudière-Appalaches and are asking Legault’s government to quickly develop an “contingency plan” to ensure the companies are sustainable. And avoid the flight. of capital.
According to a survey by Deloitte and E&B DATA on the impact of labor shortages, nearly nine out of ten manufacturers in this region had vacancies in August and 86% of the 309 companies surveyed were not able to produce at full capacity.
Consequences: 76% of CEOs rejected contracts, couldn’t deliver, 45% gave up or reduced their production, and more than one in two CEOs decided to slow their search for clients. In terms of revenue, corporate losses are estimated at $335 million in 2021.
“It’s a workforce crisis,” replies Charles Tardive, vice president of business development and supplies at Maibec, who has moved some productions to Boston in recent years.
“This prevents us from fulfilling contracts, responding to demand or developing products,” laments the entrepreneur who heads 500 employees in Quebec. In 2019, it had to close a shift at its facilities in Saint-Théophile.
This lack of arms pairs means that many managers (58%) are now considering moving their production or making their next investments outside the region or Quebec.
In August, more than 3,270 jobs were to be filled in the manufacturing sector in Chaudière-Appalaches. According to the report, skilled production and technical jobs such as welders, mechanics and machine operators were the most difficult to fill.
It must be said that this area manipulates full employment. The unemployment rate in October was 3.3%, one of the lowest rates across the country.
According to Deloitte, the lack of available talent translates to “a loss of opportunity, innovation and growth in Chaudière-Appalaches,” which had 42,000 employees in the manufacturing sector in 2019, or more than 8% of industrial employment in Quebec. It is the third largest region in terms of exports to the rest of the country ($3.8 billion).
This discontinued production, estimated at $2.1 billion, also represents lost revenue of about $144 million for municipalities and governments, a number in a Deloitte analysis.
In addition to having to compete with other regions for talent, Chaudière-Appalaches is also experiencing a decline in its workforce. Between 2011 and 2020, the number of workers aged 15 to 64 decreased by 5.3%.
In order to combat this crisis, many companies in the manufacture of metal products, wood products, food or transportation equipment have made changes to automation and robotics. Recruitment from abroad has also grown in popularity.
Municipal officials and executives are now asking Legault’s government to adapt assistance programs for small and medium-sized businesses aimed at supporting modernization projects, simplifying international hiring and finding solutions for new housing construction.
After Montreal and Monterrey, Chaudière-Appalaches is the third largest industrial area in the province by GDP ($5.3 billion).
Effects of labor shortages in Chaudière-Appalaches in 2021
$2.08 billion in unrealized production
$144 million in lost revenue for provincial and federal governments
A contribution loss of $335 million to Quebec’s GDP
Source: Deloitte Report and E & B DATA
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