MANUFACTURING INDUSTRY IN NORTHERN ONTARIO NEEDS FURTHER INVESTMENT IN WORKFORCE DEVELOPMENT

Region facing distinct challenges requiring regional collaboration and long-term planning

Ottawa, May 1, 2025 – Ontario’s manufacturers are facing serious challenges, with Northern Ontario facing unique workforce development barriers influenced by its geography, industrial makeup and demographic trends, according to a new report by Canadian Manufacturers & Exporters (CME).

CME’s second annual labour report, titled 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: 40 per cent of manufacturers postponed investment projects; 28 per cent froze hiring and 28 per cent started seeking alternative markets.

However, manufacturing in Northern Ontario is poised for significant growth, with manufacturing accounting for 6.6 per cent of overall employment in the region, and total manufacturing employment up four per cent in 2024. In Sudbury, which already boasts the only nickel refinery in North America, the critical minerals sector presents a promising forward-looking opportunity. As investments aim to reduce Canada’s dependency on Chinese critical mineral processing, there is a chance to expand the industrial and population base.

Northern Ontario faces distinct challenges from the rest of the province, including limited worker mobility compared to Southern Ontario. Industries struggle to attract new talent and rely heavily on immigration to fill workforce gaps. Additionally, local projects such as mining and infrastructure development compete with manufacturers for skilled tradespeople.

Overall, 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.  Exasperating this further, 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.

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:

1. 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.
2. Properly resource education programs aligned with the needs of manufacturers.
3. 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.