Almost one-quarter of manufacturers across Canada say that they are having problems finding entry-level employees with appropriate skills and experience. Over 10% of manufacturers are experiencing difficulties in filling positions for engineers, sales and marketing personnel, operators, designers, plant managers, electricians, welders, and machinists.

Skills shortages are less pronounced in Ontario than in other provinces. They tend to be more severe in western Canada as well as in the Atlantic provinces. In general, there are greater shortages in all categories of skilled workers in areas outside major urban centres across the country.

Corporate size is also a factor that is related to the skills shortages reported by manufacturing firms. Partly, this reflects the type of job more likely to be found in larger versus smaller companies. It also reflects the fact that demand for labour is proportionately higher in larger firms. For instance, shortages of skilled entry-level workers are more pronounced in smaller companies. Firms with less than ten employees tend to face fewer skills shortages because they offer fewer job opportunities. Shortages of personnel with specialized skills in engineering, design, management, information and other advanced technologies, research and development, and international business development are more acute in mid-sized and larger companies. Shortages of skilled and experienced personnel in the trades – like machinists, tool and die makers, craft workers, welders, and electricians – show little variability across firms with more than ten employees.

Skill shortages are having a negative impact on business performance:

• 28% say that the lack of qualified personnel acts as a constraint on performance improvement;
• 26% reported that the lack of qualified personnel is a constraint on their ability to bring new products to market; and,
• 11% cited lack of expertise as a constraint in effective supply chain management.

The extent of the problem increases as business size diminishes.