MANUFACTURING ON EDGE OF CRISIS IN BRITISH COLUMBIA SAYS NEW REPORT

A new report from Canadian Manufacturers & Exporters (CME) has identified the lack of investment in the manufacturing as nearing crisis levels in British Columbia. The lack of investment has resulted in poor productivity as manufacturers seek alternate jurisdictions for investment and growth.

“As a province we can no longer ignore the negative trends we have seen over the past several years,” said Andrew Wynn-Williams, Divisional Vice President for BC of CME. “We still have tremendous potential but we have to reverse the declining investment if we want the industry to contribute on the scale it has in the past.”

Key data supporting concerns expressed in the report include:

• A declining share of BC’s GDP, dropping from 9.5% to 5.7% over the course of his century.
• A drop in manufacturing GDP of 4.6% in 2023 alone.
• Declining jobs in the sector, with the 171,800 manufacturing jobs being the lowest since 2014.

“This decline is not a surprise,” said Mr. Wynn-Williams. “Manufacturers here simply can’t afford to invest enough. Manufacturers in the US invest more than 250% more per worker than here in B.C. and are 70% more productive as a result.”

Manufacturers consulted for the report cited a number of barriers to investment. These included high costs driven by taxation, regulation, and the high cost of land. They also identified the skills shortage, the troubled resource sector, and the need for greater market support as issues.

“There is no one thing,” said the CME Vice President. “It is a whole range of issues. “Death by a thousand cuts” was the phrase we heard most from manufacturers in all parts of the province.”

The report includes seventeen recommendations, the first of which is the need for a comprehensive manufacturing strategy for British Columbia.