OTTAWA, May 1, 2025 – Ontario’s manufacturers are facing serious challenges as they struggle with an aging workforce, funding shortfalls in education and a potentially sustained trade dispute with the U.S. that has frozen investment and hiring, according to a new report by Canadian Manufacturers & Exporters (CME).
Keep Calm and Keep Training, CME’s second annual workforce report, drawing from the input of over 100 manufacturers, educators and regional workforce stakeholders, highlights the impact of the Trump tariffs on Ontario’s manufacturing workforce.
Much is at risk. According to the report, the workforce was flat in 2024 compared to the previous year, and a large segment was deeply integrated with the U.S. market. The uncertain trade environment has already impacted a significant proportion of manufacturers – 40 per cent postponed investment projects; 28 per cent froze hiring and 28 per cent started seeking alternative markets. Job vacancies in the sectors are at a ten-year low.
At the same time, consultations uncovered persistent issues in training workers needed to operate the next generation of advanced manufacturing technologies, with challenges persisting to fill positions for in-demand trades like millwrights and electricians. Compounding this issue, Ontario colleges and universities have been forced to cut critical programs due to the sharp reduction in international student numbers and the associated revenue shortfall. This comes as projections indicate the sector will face an average of 22,500 retirements annually through 2033.
Amid those challenges, CME’s President is finding cause for hope in the resolve manufacturers and government have expressed to fight back. “Crises come and go, but our sector endures,” declared Dennis Darby, President and CEO of Canadian Manufacturers & Exporters. “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 even more ready to face global headwinds than ever before.”
CME consultations revealed several areas of regional economic strength, and many ideas for resilience, which are outlined in today’s report:
- 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.
Quotes
“At Toronto Pearson, workforce development isn’t just a priority—it’s a necessity. As we undergo a major expansion at the airport through Pearson LIFT, this growth isn’t possible without a strong, skilled labour force behind it. From construction to operations to innovation, it’s people who will make this expansion possible. Strengthening the manufacturing workforce is essential to ensuring these efforts deliver lasting benefits for our passengers, our partners, and the economy the airport drives.”
— Karen Mazurkewich, Vice President, Stakeholder Relations and Communications, Toronto Pearson
“Building a resilient and future-ready workforce starts by breaking down barriers to training access, particularly in rural communities. Our location in the heart of Ontario’s Clean Energy Frontier gives us a front-row seat to the challenges employers face in sourcing skilled talent. And it’s why we’re actively working to host innovative, responsive training at the NII Advance Technology Campus—training that fits the needs of employers and learners in our region,”
— Jessica Linthorne, President & CEO, Nuclear Innovation Institute
“CME’s 2025 Manufacturing Workforce Report shines a valuable spotlight on the critical need for skilled talent across Ontario. We’re proud that Ontario’s public colleges are recognized as key partners in building that workforce—equipping learners with the practical skills the industry needs in high-demand fields like machining, CNC operation and industrial electrical work. Continued investment in college programs will be essential to sustaining growth and meeting the evolving demands of Ontario’s manufacturing sector.”
— Maureen Adamson, Interim President and CEO, Colleges Ontario
“Ontario’s universities stand shoulder-to-shoulder with our manufacturers and exporters to help meet the urgent challenges facing our province. As this critical sector adapts to global pressures, our universities continue to ensure students are prepared with the advanced skills, innovative thinking, and problem-solving capabilities that Ontario’s industry needs to compete and grow. A strong manufacturing and exporting sector need a strong talent and innovation pipeline – and that pipeline runs through Ontario’s universities.”
— Steve Orsini, President and CEO, Council of Ontario Universities
“One of the key tools we have at our disposal in times of economic challenges is a resilient and highly skilled workforce. Our world-class postsecondary sector is well positioned to partner with industry and help to furnish Canada’s workforce with the skills that give our national economy a world-wide competitive advantage, and contribute to our prosperity.”
— Robert Luke, Chief Executive Officer, eCampus Ontario