Skip to main content
Marsh logo

Develop resilience: Addressing workforce risk in Canadian manufacturing

Manufacturing's greatest asset is its people. Yet the sector faces a looming talent crisis of historic proportions — and the challenge extends well beyond filling vacancies. Labour risk encompasses every workforce dimension: safety on the shop floor, psychological wellbeing, diversity and inclusion, community investment, and the ability to develop and retain skilled talent. Addressing these risks strategically is not optional. It is the foundation of every other dimension of manufacturing resilience.

Leading with resilience: The modern manufacturer's imperative

Learn how Canadian manufacturers can manage risk and build long-term stability.

Download the full guide

The scale of the talent crisis

According to a 2025 report from Canadian Manufacturers and Exporters (CME), over 75% of manufacturers have difficulty finding qualified workers. If current trends persist, an estimated 1.7 million manufacturing jobs could remain unfilled across Canada by 2030. In Ontario alone, an estimated 22,500 workers are set to retire each year through 2033.

In the United States, the Manufacturing Institute and Deloitte project that the industry may require as many as 3.8 million additional employees between 2024 and 2033. Attracting and retaining employees remains one of the primary business challenges for North American manufacturers.

The three drivers of the manufacturing labour shortage

A large wave of retirements over the next 5–10 years creates urgent pressure to replenish experienced talent and transfer critical institutional knowledge before it is permanently lost.

Manufacturing struggles to attract younger workers. Only 32% of Canadians aged 16–30 would consider a career in manufacturing. Misconceptions about the industry — outdated, hazardous, low-tech — are deterring the next generation despite significant modernization.

Rapid integration of automation, robotics, AI, and advanced data analytics requires new technical competencies. The 2025 Future Skills Centre Report by the Canadian Apprenticeship Forum highlights a widening gap between the skills manufacturers need and those the current workforce pipeline supplies, particularly in digital literacy and advanced manufacturing technologies.

Reimagining your workforce: attracting younger, more diverse talent

Today's challenges demand a fundamentally different approach to workforce planning and recruitment. Younger workers — particularly Gen Z — increasingly prioritize mental health, diversity, and inclusion in their career decisions. Manufacturers who embed these priorities into company culture and recruitment will be better positioned to attract the talent they need.

Women, Indigenous Peoples and Local Communities (IPLCs), and immigrants represent important and underutilized sources of manufacturing talent. Increasing their participation requires intentional efforts to remove barriers — limited access to training, workplace culture challenges, and recruitment biases — and clear pathways for career development. Companies that successfully engage these groups benefit from a broader talent base and enhanced organizational agility. Research consistently shows that organizations cultivating diverse teams outperform their peers in innovation and problem-solving.

Championing diversity and inclusion must extend beyond recruitment into a workplace culture that consistently prioritizes equity and belonging through upskilling opportunities, retention strategies, mentorship programs, and inclusive leadership development.

Talent development and succession planning are critical

Recruiting from diverse talent pools addresses one dimension of the challenge—but developing and retaining the existing workforce is equally important. Practical approaches to inspiring and empowering your existing workforce include:

  • Creating a culture that celebrates continuous learning, upskilling, and cross-functional development
  • Establishing clear career paths with transparent criteria for advancement into skilled trades, supervisory, and leadership roles
  • Developing mentorship and coaching programs to nurture talent and support individual success

Succession planning must be built into your organization's people strategy. Without succession plans for critical roles like plant managers, process engineers, and skilled trades supervisors, organizations risk losing institutional knowledge and facing costly disruptions when key employees retire or move on. By identifying critical roles, defining required competencies, and developing internal candidates proactively, manufacturers can fill vacancies faster and with less disruption.

Community investment as a talent and resilience strategy

Manufacturing operations have a significant impact on the environments and communities where they operate. Meaningful community investment — particularly in regions near smaller or remote populations — is both a social responsibility and a talent strategy. This can take many forms:

  • Offering employment and training opportunities to members of local communities near manufacturing sites
  • Supporting local infrastructure projects such as schools, healthcare clinics, and community centers
  • Providing digital health and wellbeing solutions to maximize access to preventive care
  • Monitoring manufacturing processes to ensure they do not negatively impact local water sources or the environment
  • Accommodating the cultural and social needs of IPLCs—demonstrating genuine respect that reduces absenteeism and strengthens loyalty

Build resilience. Protect what you've built.

Download Leading with resilience: The modern manufacturer's imperative — Marsh Canada's comprehensive guide to navigating the risk landscape facing Canadian manufacturers. Get ready to act today.

Download for free

Protecting psychosocial health: A business imperative

While traditional health and safety has long been a manufacturing priority, protecting the workforce's psychosocial health and safety is an equally critical and often under-addressed business imperative. Psychosocial risk factors include long working hours, physical exertion, social isolation, and high-pressure environments that contribute to anxiety, depression, and stress-related disorders.

Creating a culture of psychological safety begins with senior leadership modelling and cascades through the organization. Leading manufacturers have taken proactive steps including:

  • Employment of onsite or virtual therapists to provide direct employee support
  • Online programs and resources ensuring access to virtual mental health services
  • Reimbursement or coverage for mental health-related expenses
  • Regular conversations, workshops, and forums focused on wellbeing and resilience
  • Safe and accessible onsite spaces where employees can take restorative breaks
  • Diversity and inclusion training covering unconscious bias, cultural competency, and inclusive workplace practices

Building a future-ready workforce

The future of North American manufacturing hinges on a people-first approach. Developing a resilient workforce requires investing in talent development and succession planning, fostering genuine diversity and inclusion, committing to community investment, and protecting employee psychosocial health, all within a unified, strategically integrated strategy.

People risk intersects with every aspect of manufacturing resilience – from operational continuity and regulatory compliance to financial performance and competitive positioning. Manufacturers who integrate workforce development into their core strategy will be better positioned to drive innovation, maintain competitiveness, and secure long-term economic growth.