MANUFACTURING INDUSTRY IN LONDON-WINDSOR CORRIDOR NEEDS FURTHER INVESTMENT IN WORKFORCE DEVELOPMENT
Region facing labour shortages and aging population
Ottawa, May 1, 2025 – Ontario’s manufacturers are facing serious and long-term industry challenges as they struggle with an aging workforce and a potentially sustained trade dispute with the U.S. that will result in significant job losses, according to a new report by Canadian Manufacturers & Exporters (CME).
These challenges are significantly impacting the London-Windsor corridor, where the manufacturing sector is experiencing labour shortages and difficulties securing enough graduates in certain trades according to the report titled, Keep Calm and Keep Training.
The corridor between London and Windsor is a major industrial hub for Ontario, with manufacturing accounting for 15.6 per cent of overall employment in the region, and total manufacturing employment rising 1.7 per cent in 2024. With strategic proximity to Canada’s busiest border crossings and the U.S. automotive centers in Detroit, the region has benefitted from a strong industrial and economic foundation in food, defence, metal fabrication and momentum in automotive from recent electric vehicle supply chain investments.
CME’s second annual labour report, Keep Calm and Keep Training, highlights the impact of the Trump tariffs on Ontario’s manufacturing workforce. According to the report, the province’s workforce was flat in 2024 compared to the previous year, and many companies have frozen hiring and investment. According to the report, 40 per cent of manufacturers postponed investment projects; 28 per cent froze hiring and 28 per cent started seeking alternative markets.
At the same time, however, the province is facing ongoing challenges in training workers for advanced manufacturing technologies, and Ontario colleges and universities have been forced to cut critical programs.
Over the next two years, colleges alone expect to lose between 75,000 to 128,000 students, largely due to the sharp reduction in international student numbers. This translates to a staggering 25 per cent to 40 per cent drop in total enrollment. Making things worse, one in four factory workers was 55 or older last year, which means the sector is projected to face 22,500 retirements per year through 2033.
This is the reality for the London-Windsor region specifically, where major expansions, including new battery and research facilities being established by Stellantis and PowerCo., have presented a need to support workforce development, training and education to equip the region for the future.
The report outlines recommendations to address the corridor’s greatest needs, including increasing the number of apprenticeships at local colleges, increasing funding for tuition-free classes in high demand occupations, and getting students involved in manufacturing earlier in their education journeys.
Amid the challenges faced by the sector, CME sees cause for hope in the resolve manufacturers and government have expressed to fight back.
“Crises come and go, but our sector endures,” said Dennis Darby, CME President and CEO. “Our manufacturing sector has gone through world wars, economic crashes, and even a global pandemic. But here we are now, more modern, more innovative and more ready to face global headwinds than ever before.”
The report also highlights several areas of regional economic strength, and many ideas for resilience:
- Support workforce development in businesses – by improving incentives for employers to offer on-the-job training opportunities, addressing obstacles causing apprentices and students to abandon the sector.
- Properly resource education programs aligned with the needs of manufacturers.
- Use Ontario’s diversity as a competitive advantage – attracting more under-represented women, indigenous people and immigrants with in-demand skills.
Ontario manufacturing sector is at a crucial crossroads. Manufacturers, however, have a plan. This starts now in our schools in workplaces, as we teach hands-on, applied technological skills to build quality products and prosperity.
Keep calm, carry on, and most importantly, keep training.
About Canadian Manufacturers & Exporters
Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and, compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports.