Decision-making strategies for navigating uncertainty p.14
LABOUR
Exploring new solutions to a decade-old dilemma p.15
INDUSTRY
Highlights from the 2026 Advanced Manufacturing Outlook survey p.18
Shahed Tootoonian, 39, VP, Corporate Development, Mercer International Inc.
Cover story 10 TOP 10 UNDER 40
Meet the winners of our inaugural awards program, recognizing the next generation of talent in Canada’s manufacturing industry.
14 LEADING THROUGH THE FOG
A decision-making framework for navigating times of uncertainty.
15 LABOUR PAINS
Finding new solutions to manufacturing’s decade-old skills shortage dilemma.
18 A MEASURED STEP FORWARD
The 2026 Advanced Manufacturing Outlook Report finds Canadian manufacturers are investing selectively—and cautiously—in Industry 4.0.
BY KIRSTYN BROWN
The kids are more than alright
If you ask anyone in Canadian manufacturing how things are going, you’ll probably hear about the challenges that have marked 2026, namely tariffs, a trade war and inflation.
In other words, it’s been a tough year. Yet, as I worked on this issue of Plant , I found myself feeling something unexpected: optimism.
This month, we’re shining a spotlight on the winners of Plant ’s inaugural Top 10 Under 40 awards program. Starting on page 10, you’ll meet young leaders from across the country who are making a positive impact on the current state of Canadian manufacturing, while actively shaping its future.
What struck me most as I learned more about these individuals spanning industries from tech to defence to energy, was the shared sense of purpose in their work. When asked about their goals for the future, nearly all of them voiced a common goal to build a stronger, more resilient manufacturing industry, believing that sustainability, technology and innovation are imperative for long-term success.
For example, Bhavjit Thandi at Richmond Plywood is driving AI-powered upgrades that support both profitability and sustainability. Nick Nesbitt at Mapleview Energy spearheaded the company’s repurposed battery energy storage project, a first for Ontario. And Kristian Knapp at James Ross Ltd. championed the creation of a nitrogen generation system powered by the company’s 200-kW rooftop solar array.
“Sustainability is not just a technical achievement for us—it is something we take great pride in,” Knapp told me. “We know it matters deeply to the next generation.”
Another shared focus was on building the future workforce, attracting a new generation of skilled workers and fostering a culture of continuous learning. This is especially evident in EMC’s Arien
Aubertin’s work with the B.C. Youth in Manufacturing Initiative, which is opening doors for young people and injecting new energy into the sector.
“I see my role as a connector and advocate,” she said. “Someone who can help bridge the gap between today’s opportunities and tomorrow’s potential in Canadian manufacturing.”
The need for advocates like Arien has never been more urgent. As our labour feature on page 15 highlights, Canada’s skilled trades workforce shrank by 5.7 per cent between 2016 and 2021, even as demand for these workers continues to rise.
In manufacturing alone, employment dropped by 1.4 per cent last year, while sectors like construction and utilities saw growth. The experts in this article emphasized that addressing the workforce crisis will require fresh thinking, collaboration and a willingness to embrace new models.
Fortunately, we’re already seeing those qualities among a new generation of leaders, like our Top 10 Under 40 winners, who are committed to strengthening their industry’s resiliency.
I hope you enjoy reading their stories. For me, they couldn’t come at a better time. In a year when we’re constantly inundated with negative news, they were a reminder that there are reasons to look beyond the headlines. While progress doesn’t always make the front-page or trend at the top of our feeds, it’s always happening, driven by people committed to building something better.
And if there’s a young leader you think should be profiled in Plant, I’d love to know about them! As always, you can reach me at kbrown@annexbusinessmedia.com.
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MERGERS & ACQUISITIONS
ELTON ACQUIRES DECATUR PLASTIC PRODUCTS
Milton, Ont.-based Elton Manufacturing, a supplier of weatherstripping and windows for garage and entry doors in North America, is acquiring the assets of Decatur Plastic Products (DPP) in North Vernon, Indiana. The company reported that it will operate under the name Elton USA. Gary Riley Jr., formerly vice-president of operations and a shareholder at DPP, has been appointed president of the new U.S. division.
“With this new addition to the Elton family, we will be able to strengthen our relationships with our U.S. customers, gain support and expertise from DPP’s highly skilled operations team and increase capacity to achieve our growth strategy,” said Tom Boer, founder of Elton Manufacturing.
According to the company, the acquisition supports Elton’s growth strategy, following capacity constraints at its four Canadian manufacturing facilities. Elton has already begun producing window frames at the Indiana site and has been working with DPP’s management and production teams to align operations and quality standards.
DOMESTIC PRODUCTION
ROSHEL TO PRODUCE BALLISTIC-GRADE STEEL IN CANADA
Canadian armoured vehicle manufacturer Roshel has signed a strategic partnership agreement with Swedish steel producer Swebor to produce ballistic-grade steel in Canada.
In a press statement, Roshel said that the partnership “will leverage Swedish expertise and Canadian natural resources and production capacity to address a significant production gap in terms of strategic industrial capability, sovereignty and national defence readiness.”
Roshel says the new facility will create skilled jobs, introduce advanced manufacturing technologies and provide economic benefits to Canada’s industrial sector.
Although other forms of steel manufacturing exist in Canada, this project will be the first fully dedicated
to ballistic-grade production.
According to Roshel, intellectual property for the new facility will be jointly held by Roshel and Swebor, ensuring “shared innovation and long-term collaboration.”
AEROSPACE
H55 OPENS PRODUCTION FACILITY IN QUE.
H55, a Swiss manufacturer of certified electric propulsion systems for aviation, has opened a new production site and engineering offices in Longueuil, located within Québec’s aerospace innovation zone.
The new plant is manufacturing battery packs for customer aircrafts, with deliveries scheduled to begin in 2027. This marks H55’s first North American location and the launch of its production operations in Canada.
“H55’s new facilities in Longueuil will play a key role in advancing sustainable aviation solutions for the North American market,” said Martin Larose, CEO of H55. “This strategic site will host battery production, product development and integration support for our Canadian
customers, becoming a true driver of innovation for the industry.”
In a press statement announcing the facility’s official inauguration on Aug. 28, H55 said it is set to deliver its electric propulsion systems and battery modules for the Bristell B23 Energic ordered this year, while also serving customers including CAE, Pratt & Whitney Canada and Harbour Air. Certification of its 100kW electric propulsion system is expected in the near term, with first deliveries slated for 2026, the company said.
GOVERNMENT INVESTMENT
OTTAWA INVESTS $21M IN MANITOBA MANUFACTURING
The Government of Canada is investing more than $21 million in nine Manitoba-based businesses to support expansion, innovation and productivity improvements across the province’s manufacturing sector. Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada (PrairiesCan),
Above: Roshel Production Facility in Brampton, Ont.
Inside H55’s first North American location in Longueuil, Que.
announced the funding on Aug. 28.
The funding includes support for companies in cabinetry, RV components, agricultural equipment, robotics, glass manufacturing and organic grain. Projects range from scaling production and adopting advanced manufacturing technologies to developing digital marketplaces and automated systems.
“Manitoba’s innovators are turning bold ideas into real opportunities for their businesses, their communities and our families,” said Minister Olszewski. “The Government of Canada is not only investing in these projects, but we are also investing in the people behind them as they take their innovations to the next level. This is how we are helping businesses grow, create high-quality jobs and strengthen one Canadian economy.”
The investments are part of a broader federal strategy to build resilient Canadian supply chains and support economic growth in local communities.
TARIFFS
CARNEY ANNOUNCES SUPPORT FOR WORKERS, BUSINESSES HIT BY U.S. TARIFFS
On Sept. 5, Prime Minister Mark Carney unveiled a federal support package for workers and businesses affected by U.S. tariffs and trade disruptions. The measures aim to reskill workers, help firms adapt and boost domestic demand.
Key initiatives include a reskilling package for 50,000 workers, expanded Employment Insurance and a new digital jobs platform. A $5-billion Strategic Response Fund will provide flexible financing to affected sectors, complemented by Workforce Alliances aligning training with industry needs.
The government says it will invest $382 million over five years in these alliances, focusing on sectors such as auto parts, steel, aluminum and advanced manufacturing. A Sectoral Workforce Innovation Fund will support regional workforce projects.
For businesses, the Business Development Bank of Canada will increase loan limits to $5 million, while large firms can access additional financing. Auto sector firms will see relaxed EV availability rules and a 60-day cost review.
A new Buy Canadian policy will prioritize domestic suppliers in federal procurement. The Regional Tariff Response Initiative will provide $1 billion over three years to SMEs in affected sectors.
Carney said the plan aims to build a stronger, more self-reliant economy: “Canada is building the strongest economy in the G7.”
APPOINTMENT
BLACKLINE SAFETY APPOINTS VASI PHILOMIN TO BOARD OF DIRECTORS
Blackline Safety Corp. has appointed Vasi Philomin, Executive Vice President, Data and AI at Siemens, to its Board of Directors. Previously, Philomin served as Vice President and General Manager, Generative AI for Amazon.
Involved in encouraging enterprise AI adoption across many industries, Philomin has a background in industrial AI and IoT platform work, with experience commercializing technologies at a global scale. His experience in scaling AI and hardware-enabled SaaS (HeSaaS) platforms supports Blackline’s focus on using connected data and AI to try and improve worker protection and productivity.
Commenting on his appointment, Philomin said, “Blackline’s leadership in IoT-enabled safety—giving organizations the data they need to make better decisions—is truly inspiring. I’m excited to contribute to Blackline’s next chapter, helping unlock even more value from that powerful data to ensure every worker returns home safely.”
Philomin holds a Ph.D. in Computer Science and dual master’s degrees in Mechanical Engineering and Computer Science from the University of Maryland.
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Turning near misses into safer outcomes
Addressing close calls can enhance safety culture and prevent serious incidents.
BY CANADIAN CENTRE FOR OCCUPATIONAL HEALTH AND SAFETY (CCOHS)
When Miguel, a supervisor at a food processing facility, was making his rounds, he noticed a pallet load shift dangerously while being lifted by a forklift. By sheer luck, the load stopped short of toppling onto the walkway where two workers were walking. No one was hurt, but Miguel knew to treat it as a warning. By documenting and investigating what had gone wrong, his team discovered a recurring issue with load securing that could have led to a serious injury.
Stories like this serve as reminders of the potential risks in manufacturing plants. Near misses are warning signs that something in the operating procedure needs adjusting. For plant managers and supervisors, recognizing and acting on near misses is one of the most effective ways to strengthen safety culture and prevent serious incidents.
Normalize reporting
A near miss happens when an unsafe situation arises but, by chance or timely action, does not result in an incident. Think of a conveyor belt that suddenly jams, almost catching a worker’s sleeve, or a piece of machinery that drops a tool from a height but misses anyone walking below. These are opportunities to learn before the worst happens.
Workers may be tempted to forget a near miss once the danger has passed. Encouraging and normalizing reporting of near misses as they happen allows managers to see patterns, identify weak points and put stronger controls in place. In many cases, the information gained from one near miss can prevent a serious incident in the future.
For reporting to work, there needs to be trust. Workers should know they can share what happened without fear of reprisal or blame. Supervisors can play a key role by framing near miss reports not as failures, but as essential contributions to plant safety. In some cases, you may need to report near misses to the government department responsible for health and safety in your jurisdiction. Always check the legislation to ensure you report every event to the appropriate agency.
Investigate effectively
An investigation doesn’t need to be complicated, but it does need to be thorough. The scale may depend on the complexity and potential impact and severity of the event. For example, if a worker slips on a wet floor and doesn’t get injured in a pedestrian zone, the review may be quick, with immediate corrective action. But if a mechanical hoist drops a load in a busy production zone, the consequences could be tragic. In that case, a more detailed investigation is required.
Investigations should focus on root causes, not just symptoms. Was there a training gap? Was equipment poorly maintained? Were procedures unclear? To answer these questions, the investigation team should include supervisors, workers, safety committee members or maintenance staff.
The goal is to identify and correct unsafe conditions, not to assign blame. Recommendations should be practical and measurable, whether that means new signage, improved guarding, refresher training or adjustments to production schedules to reduce unsafe shortcuts.
Overcome barriers to reporting
Despite the value of near miss reporting, managers often face resistance. Workers may worry about being blamed, supervisors may fear repercussions if issues are linked to their departments and everyone may see the process as extra paperwork that slows production.
Clear communication helps to address these concerns. Employers should stress that reporting is about preventing harm, not pointing fingers. Managers can show that the process is worthwhile by thanking workers who bring issues forward and keeping them informed about the status of corrective actions.
Creating a culture where near miss reporting is routine requires effort. Supervisors should regularly remind crews of the importance of documenting close calls, and training programs should cover both how to identify hazards and the steps for reporting them.
Digital reporting tools can make this easier, reducing paperwork and helping track patterns over time. Even a simple mobile form or digital logbook can speed up reporting and ensure no information is lost. Over time, data from these reports can highlight recurring risks.
Regular communication is key. Sharing updates with teams, such as how a reported near miss led to a process improvement, demonstrates that reporting produces real results. This reinforces trust and encourages more workers to come forward.
The Canadian Centre for Occupational Health and Safety (CCOHS) promotes the total well-being— physical, psychosocial, and mental health—of workers in Canada by providing information, advice, education, and management systems and solutions that support the prevention of injury and illness. Visit www.ccohs.ca for more safety tips.
Top 10 Under 40
The winners of Plant’s inaugural Top 10 Under 40 program are shaping the future of Canadian manufacturing through bold ideas, sustainable practices and a commitment to building a resilient industry. BY KIRSTYN BROWN
BHAVJIT THANDI, 38
CFO, Richmond Plywood Corporation Ltd, Richmond, B.C. Despite having no prior experience in forestry, Bhavjit Thandi has made a significant impact since joining Richmond Plywood in 2021. As CFO and Corporate Secretary on the Board of Directors, he’s led transformative financial initiatives, including securing $10 million in federal and provincial funding to support AI-driven machinery upgrades—Richply’s first-ever public funding.
“This was a huge achievement as we now knew that our projects and initiatives have real value to
the communities we operate in, so much so, that the government is willing to invest in our improvements and innovations,” he says.
His efforts have not gone unrecognized. In 2025, Thandi was named to the Canadian Wood Council’s board and two strategic committees, representing Canadian plywood interests. He’s also earned national recognition, including Top 40 Under 40 by the Woodworking Network and Top 20 Under 40 by Canadian Forest Industries, for his contributions to productivity, profitability and industry leadership.
But Thandi says one of the biggest rewards has been the ability to
directly impact and contribute to Richply’s profitability, sustainability and long-term growth, as well as influencing others.
“Being a CFO also allows me to be a mentor as the role involves leading and developing our finance team, fostering collaboration and working together.”
JADE DENIS, 29
Visit plant.ca for more details about our winners!
Production, Engineering and Purchasing Manager, CDR Systems Inc., Calgary, Alta. In 2014, Jade entered CDC, a company that designs and manufactures patient positioning systems for radiation oncology, with a passion for CNC machining and a self-taught approach. Starting with a single router and YouTube tutorials, he taught himself SolidWorks software and began designing parts from scrap for his own car. He says that hands-on learning helped justify investments in advanced equipment and grow into his current role overseeing CNC machines and managing CDR’s production crew.
Something he’s most proud of is his first full-cycle engineering project, the Equilibrium system. Originally designed for Total Body Irradiation, a type of cancer treatment, its ability to rotate the patient turned out to have broader
Bhavjit Thandi
Jade Denis
applications. The feature is now being used to improve various treatments with enhanced precision and effectiveness.
“The most rewarding part of my role is seeing a concept come to life,” Denis says. “Something that starts as a simple napkin sketch transforms into a perfectly organized and labeled final product. It’s incredibly satisfying.”
In the future, Denis says plans to continue driving innovation and empower the next generation of fabricators and engineers by sharing his knowledge for advanced machining.
“My hope is to help build a strong, skilled workforce that can keep Canada’s manufacturing industry competitive for decades to come.”
BRYAN YAKIMISHEN, 33
Director of Operations, RITZ Machine Works Inc., Dauphin, M.B. Bryan Yakimishen began his career at RITZ Machine Works in 2015 as a summer engineering student. Over the years, he progressed from engineer-in-training to manufacturing engineer, eventually leading the engineering department and helping implement an ISO 9001 quality management system. In 2024,
he stepped into the role of Director of Operations, overseeing production, engineering, maintenance, quality, HR and more.
Yakimishen says he thrives on problem-solving and systems thinking. During the pandemic, he helped roll out a time-tracking system that improved cost analysis and job performance tracking, giving estimators accurate data and enabling shop-floor teams to identify and address inefficiencies.
“This system of cost tracking has propelled us forward out of the ‘pandemic’ era and allowed us to secure new work with new world-renowned customers, one of which being the Volvo group.”
Now, Yakimishen says he’s focused on helping RITZ achieve its goal of doubling its sales over the next 10 years by diversifying product offerings and expanding into new markets.
“RITZ was built on a foundation of providing solutions to customers when no one else would,” he says. “I want to continue with that legacy and cement RITZ as a company that provides manufacturing solutions throughout the industry and beyond.”
MARIA TKACHEVA, 36 COO, Roshel Inc., Toronto, Ont. Maria Tkacheva joined Roshel at its inception in 2017 and played a key role in shaping the company’s identity in both the commercial and defence sectors. As Roshel grew, so did her responsibilities, eventually leading to her appointment as Chief Operating Officer in 2022.
Today, she oversees company-wide operations, including procurement, financial planning, HR, and stakeholder relations, while guiding long-term strategy and supporting major business development initiatives.
Under Tkacheva’s leadership, Roshel rapidly scaled production to meet extraordinary global demand, delivering over 2,000 armoured vehicles in record time. The achievement set a new benchmark for innovation and agility in Canadian manufacturing and helped strengthen Canada’s defence industrial base.
“The most rewarding part of my role is seeing the tangible impact of our work: protecting lives and supporting critical missions,” she says. “It’s also about building a strong, dedicated team that grows with the company.”
As for the future, Tkacheva hopes to expand Roshel’s capacity through strategic partnerships and acquisitions, while bringing Canadian manufacturing expertise to international markets. She says her goal is to help build a competitive, resilient sector rooted in practical innovation and strong job creation, keeping Canada at the forefront of global manufacturing.
Maria Tkacheva
Bryan Yakimishen
ARIEN AUBERTIN, 29
Project Manager, EMC, Chilliwack, B.C.
Since joining Excellence in Manufacturing Consortium (EMC) in 2023, Arien Aubertin has played a key role in launching and leading the B.C. Youth in Manufacturing Initiative—a program designed to help manufacturers hire youth aged 16 to 24.
Since its launch, the initiative has placed 285 youth with over 100 manufacturers across 34 subsectors, distributing $1 million in wage subsidies. Her team’s barrier-reducing approach and strategic partnerships have helped small businesses attract young talent while injecting funding into local economies.
“What I find most rewarding is witnessing the real-world impact of the initiative, particularly how young people thrive when given opportunities in this sector,” she says. “It’s incredibly fulfilling to see youth bring fresh perspectives, innovative thinking and new skill sets into the workplace and to watch how they grow and contribute meaningfully to the teams they join.”
For Aubertin, investing in the future workforce is a key part of her career goals. By expanding access to training, paid incentives and hands-on opportunities, she hopes to empower young people to pursue a career in manufacturing.
“Part of this involves working to shift perceptions of what manufacturing is today,” she says. “It is a diverse and dynamic industry that goes well beyond traditional production lines.”
NICK MCDONALD, 38
Founder, Succession Manufacturing; Head of Sales & Marketing, NAFTA Region, Tubular Steel Inc., Toronto, Ont.
After more than a decade at Tubular Steel Inc., Nick McDonald didn’t expect to pivot his career. But a late-2023 experiment with ChatGPT sparked a new direction and by May 2024, he had raised initial funding, built a team and launched Succession Manufacturing, a startup focused on automating the quoting process for metal parts manufacturers.
“I lead every aspect of our journey; shaping strategy, building partnerships and pushing boundaries in how technology can reinvent manufacturing,” he says. “What began as a spark of imagination has become a mission to transform our industry.”
His proudest achievement is the Excelerator platform, which generates fast, accurate quotes and customer cost breakdowns, solving a long-standing pain point for manufacturers.
“For me, it’s not just a product, but a step toward transforming how manufacturers compete and grow.”
In addition to his startup, McDonald continues to lead sales and marketing for Tubular Steel across the NAFTA region and was recently named GM of Tubular Steel USA. His goal is to build the best metal parts supplier in North America, powered by smart, software-defined factories.
“Technology isn’t just an add-on—it’s the foundation for competitiveness and growth. The future of manufacturing will belong to those who can blend tradition with transformation, and I want to help lead that shift.”
“The future of manufacturing will belong to those who can blend tradition with transformation, and I want to help lead that shift.” – Nick McDonald
SHAHED TOOTOONIAN, 39 VP, Corporate development, Mercer International Inc., Vancouver, B.C. Shahed Tootoonian has spent the past 12 years growing within Mercer International, moving from accounting into corporate development and sustainability. Now, as Vice President of Corporate Development, she leads strategic initiatives, mergers and acquisitions and major projects that shape the company’s long-term direction.
“Along the way, I was lucky to have mentors and leaders who believed in me and gave me opportunities to take on more responsibility,” she says.
One of her proudest achievements has been helping advance Mercer’s exploration of carbon capture technology, an innovation she sees as essential to meeting global climate goals. She’s also played a key role in integrating Mercer’s new mass timber business into its broader strategy, positioning the company to support sustainable construction and expand its footprint in emerging markets. Tootoonian says the most rewarding part of her role is the constant learning and collaboration.
“Sometimes it’s tied to our core business in forest products, and other times it’s an entirely new area that pushes me to think differently.”
Arien Aubertin
Nick McDonald
Shahed Tootoonian
Her goal is to help Canada’s manufacturing sector remain globally competitive while leading in sustainability and innovation.
“I see tremendous opportunity for our sector to transform traditional industries into modern, green and resilient businesses that create value well beyond their core products,” she says.
After early experience in precision pump manufacturing and industrial waste-to-energy development, Nick Nesbitt launched Mapleview Energy, a company that builds modular energy storage systems using repurposed EV batteries. There, Nesbitt leads strategy, manufacturing partnerships and project delivery, with a focus on building clean hardware through circular production.
A recent milestone was the launch of Mapleview’s first repurposed battery energy storage project, built in partnership with Ontario Tech University and the Ontario Centre of Innovation. It marked the first time a system using retired EV batteries was manufactured in Ontario, proof that circular manufacturing is possible. “For the sector, it demonstrated that Canada can lead in remanufacturing and give clean technologies a second life instead of sending them directly to recycling,” he said.
For Nesbitt, collaborating with a team to build something meaningful in Ontario is the most rewarding part of the job. “We are taking batteries that might have been discarded and giving them a second life to power tomorrow’s industries.”
That drive for a better tomorrow is what shapes his vision for the future of his company. “I want Mapleview Energy to help define the next generation of Canadian manufacturing, where sustainability, innovation and resilience are built into the hardware itself.”
KENDELL WOOD, 34
VP of Operations, Microart Services Inc., Markham, Ont.
Kendell Wood has built his career at Microart Services, working cross-functionally through logistics, quoating and project management before stepping into operations leadership. Today, he oversees all manufacturing execution, quoting and business systems for the electronics manufacturer, which serves hundreds of customers across a wide range of industries.
Wood says the most rewarding part of his role is seeing products move from design to reality. “Working with people toward a common goal, and then seeing those products go out the door to serve their purpose—that’s the best part of the day.”
From here, Wood says his goal is to help position Microart as the premier electronics manufacturer in Ontario and beyond, while mentoring the next generation.
“Manufacturing in Canada is an oft-overlooked sector of our economy,” he says. “We will prove that we’re competitive with other markets, around a world that is becoming more uncertain and fragmented. Through digitalization and AI,
lean innovations, favorable trade deals and targeted automation, we are seeing a shrinking of the chasm that separates offshore manufacturing versus ourselves. The next generation will see opportunities to produce technology that’s accelerating at speeds never seen in human history.”
KRISTIAN KNAPP, 35
Engineering Manager, James Ross Ltd., Brockville, Ont.
Kristian Knapp joined James Ross Ltd. in 2014 as a design engineer and field service technologist. After nearly a decade in technical roles, he transitioned into engineering management in early 2024. Today, he leads the team responsible for delivering custom-designed products, managing customer expectations and coordinating closely with quality, field service, CST and production.
Knapp says one of his key achievements has been implementing an online scheduling tool that streamlined project timelines across departments. He also led the engineering and fabrication of a nitrogen generation system powered by the company’s 200-kW rooftop solar array, an initiative that improved resource reliability and advanced James Ross’ commitment to sustainable manufacturing.
“Sustainability is not just a technical achievement for us—it is something we take great pride in. We know it matters deeply to the next generation,” Knapp says. “Every product we build is a step toward a more sustainable future.”
He says the most rewarding part of his role is the personal growth that comes with leadership. “I’m continually learning based on the challenges that arise,” he says. “Those experiences help me grow and give me the tools to support our team and improve how we work.”
Nick Nesbitt
Kristian Knapp
Kendell Wood
Leading through the fog
A decision-making framework for when the rules keep changing.
BY WESLEY PATERSON, CMC
By this point in 2025, it’s almost a cliché to say manufacturers are navigating uncertainty. But while the headlines keep shifting, the pressure to make clear, confident decisions hasn’t let up.
With the majority of manufacturers delaying major investments (some speculate as high as 90 per cent) due to tariff uncertainty, leaders need systematic decision-making protocols that work when traditional plans fail.
The solution lies in what I call the PPP Framework: Protect, Pivot and Progress. Inspired by the Serenity Prayer, this framework encourages leaders to accept uncertainties outside their control, act where they can and know the difference.
Phase one: Protect (i.e. control what you can)
When facing uncertainty, secure your foundation first by taking three immediate steps.
First, strengthen your cash position. Canadian manufacturers with strong liquidity will weather tariff storms longer. Build cash reserves equal to six to 12 months of operating expenses, but structure this strategically. Establish a tiered cash management system that includes operating cash for daily needs, strategic reserves for opportunities and crisis buffers for tariff shocks.
Second, lock in critical supplier relationships. Even if costs temporarily rise, secure your essential supply chains through formal partnership agreements. Document at least three alternative suppliers for each critical component, with predetermined pricing.
And third, communicate transparently. Implement daily team huddles and focus on sharing facts rather than speculation.
And remember, your emotional state sets the tone for your team’s performance. Before making critical decisions, take a moment to practice tactical box breathing: inhale for four counts, hold for four, exhale for four and hold for four. This simple reset helps prevent the kind of panic-driven decisions that affect nearly half of executives during crisis periods.
Phase two: Pivot (i.e. mitigate what you cannot control)
You cannot control tariff announcements, but you can control your response to these events. Take the following actions to create multiple pathways forward:
Diversify markets with strategic intent. Focus on domestic expansion and alternative export opportunities. Mexico’s emergence as a major US trading partner creates triangular opportunities within CUSMA. Start mapping these relationships now.
Build compliance systems. Invest in CUSMA compliance infrastructure now, before you need them. For example, manufacturers may look to maintain both existing U.S. relationships, while developing new Canadian OEM partnerships, choosing resilience and adaptability over sides.
create competitive advantages regardless of tariff environments. Companies that invest in ongoing workforce development initiatives report on average 25 per cent higher productivity and 30 per cent better employee retention during periods of uncertainty.
Develop your team’s adaptability through skills investment. Research shows manufacturers with high psychological capital teams adapt to disruptions over 40 per cent faster than traditional hierarchical organizations. Focus on building your people’s confidence, resilience and optimism through skills development and clear communication. Train cross-functional capabilities so disruption becomes an opportunity.
It’s important to recognize the difference between uncertainty that brings opportunity—such as market disruptions—and uncertainty that stems from unpredictable policy changes beyond your control. Focus your investments on the opportunities, while taking steps to safeguard your business against the risks:
Accelerate digital transformation.The majority of successful manufacturers identify digital platforms as vital. These allow you to automate processes that reduce dependency on variable factors and processes that eliminate single points of failure.
Address workforce development: Address the projected 1.9 million job shortage by 2033 through targeted training programs. Skilled workers
Optimize operational efficiency: Focus on improvements that strengthen your position in any scenario. With U.S. manufacturing investment per worker three times higher than Canada’s, efficiency gains become crucial differentiators. The immediate need for Canadian manufacturers to commit to increasing investment in their people has never been higher. Start by implementing lean manufacturing principles, eliminate waste in all forms and create standardized work processes that maintain quality regardless of external pressures.
Daily implementation
Transform this framework into practice with three daily leadership questions:
• Protect: “What stability must be maintained today?”
• Pivot: “What flexibility do we require this week?”
• Progress: “What advancement can we make this quarter?”
The current trade uncertainty will eventually resolve, though volatility may persist through 2026. What will not change is the need for leaders who create clarity through systematic decision making when traditional planning fails.
Master the wisdom of the Serenity Prayer in business: Control your cash, compliance and communication; mitigate market risks through diversification and team development; and maintain the awareness to distinguish between controllable factors and external chaos.
Wesley Paterson, CMC, specializes in leadership development and organizational transformation for manufacturing executives. Connect at patersonconsulting.ca.
Labour pains
Finding new solutions to manufacturing’s decade-old skills shortage dilemma.
BY MARI-LEN DE GUZMAN
Despite ongoing efforts, Canada’s manufacturing sector continues to face a chronic shortage of skilled labour, where a meaningful, comprehensive solution remains elusive. This dilemma has caused manufacturers to underinvest in advanced manufacturing technologies—at a time when a changing global trade dynamic is calling for increased innovation and competitiveness among the country’s most critical growth industries.
“Simply put, a lack of a sufficiently sized and skilled labour pool is directly impacting the growth of manufacturing in Canada today, and will continue to restrict growth moving forward if substantial changes are not made,” wrote Mathew Wilson, senior vice-president, Canadian Manufacturers & Exporters (CME), in the Industrie 2030 summary report titled, Manufacturing Growth, Innovation and Prosperity for Canada. And with exponential growth in electric vehicle and battery manufacturing
expected to take hold across Canada, with new plants and gigafactories opening in Ontario and Quebec in the next two years, the labour shortage issue would only be magnified.
In 2022, the CME indicated that postponed or cancelled capital projects due to labour shortages corresponded to about $5.4 billion in lost investment.
This ongoing labour challenge comes at a time when Canada is aiming to boost productivity and competitiveness amid a changing global trade landscape. The federal government’s “Build Canada Strong” pronouncements, in particular, aims to strengthen the country’s domestic manufacturing industries, in the face of U.S.-imposed tariffs. In addition, Ontario’s 10-year roadmap for growing the province’s manufacturing sector includes a $1.3 billion investment through the Ontario Made Manufacturing Investment Tax Credit, in addition to what’s already been allocated.
“If we see past the current moment,
$5.4B
Lost investment from postponed or cancelled projects due to labour shortages in 2022.
to a world where Ontario and Canada are called upon to provide more processed critical minerals, more high-value / low-carbon goods and more energy, we will see that more urgency in workforce development is needed, not less,” states a May 2025 Ontario Manufacturing Workforce Report released by the CME.
Despite this urgency, several trends that significantly contribute to the current labour shortage still linger: an aging workforce, a declining pool of skilled workers, relatively lower wages compared to other industries. Although manufacturers have taken steps in recent years to mitigate these factors— raising wages and working more closely with post-secondary institutions—the challenge of finding the workers to fill technical roles, such as millwrights, electricians and machinists, continues to plague many manufacturers.
According to data from Statistics Canada, the number of skilled tradespeople employed in the country fell 5.7 per cent between 2016 and 2021, while demand for these occupations has increased over the same period. The employment rate in manufacturing is also beginning to see a decline, falling 1.4 per cent from June 2024 to June 2025, while other industries like construction and utilities saw employment rise to 3.5
and 7.5 per cent, respectively, in the same period.
The consequences of a declining skilled workforce become even more dire when faced with the realities of an aging workforce, a phenomenon that has been taking hold in Canada since the turn of the 21st century.
Retirement boom
Ontario, which accounts for nearly half of Canada’s total manufacturing sales and output, is facing workforce challenges primarily driven by an aging labour force and impending retirements. One in four factory workers in the province is at least 55 years old, and the sector is expected to face an average of 22,500 retirements annually through 2033, according to a May 2025 CME report. It’s the same demographic story across Canada, where 27 percent of manufacturing workers are aged 55 or older, and the number of retirements is expected to reach 40,000 annually up to 2031.
The data is daunting, given the current reality that young Canadians are less likely to pursue a career in manufacturing. Most skilled workers in Canada are opting to work in the construction industry, according to Brendan Sweeney, managing director of the Trillium Network for Advanced Manufacturing.
located outside urban centres, which can be unappealing to a younger worker.
Terry Bowman, manufacturing and supply chain leader at London, Ont.-based 3M Canada, has been in the industry long enough to know the cyclical pattern when it comes to recruitment.
“It ebbs and flows,” Bowman says. “When the economy is a bit slower, it’s a bit easier to find people. When the economy is (growing), it’s more difficult to find people. But even when we take out those ebbs and flows, it’s just tougher now than it was in previous employment cycles.”
When it comes to increasing automation as a solution, Sweeney says simply digitizing or adopting advanced technologies may not be enough to lure younger workers into building a career in manufacturing.
“If you’re going to invest in these machines, it’s going to be digitized and you’re going to need to make commensurate investments elsewhere in your workforce,” he says, adding that the education curriculum also needs to be more digitally focused.
“In Ontario, there might be 700,000 people in the skilled trades, and about 500,000 of them are in construction. So, the whole system is set up to support construction in the skilled trades,” Sweeney says.
One reason could be wages, he says. Although it has gradually narrowed the gap, manufacturing still lags behind construction when it comes to wages. In July 2025, Statistics Canada pegged the average hourly wage in construction at $37.79, compared to $34.92 in manufacturing.
“(Construction) is a hard job, but it pays better,” Sweeney says. “You have trade unions, like the International Brotherhood of Electrical Workers, that are there as a partner to skilled trades (to get them) ready for construction. The building and construction trade unions have almost nothing to do with manufacturing. So manufacturing is missing that key partner in all of this.”
Sweeney says manufacturers also often find themselves competing against tech companies when trying to hire new engineering graduates, who might be more attracted to innovative startups, than a factory setting.
Attracting younger workers
Geography is also contributing to the scarce workforce. Many manufacturing facilities are
3M operates three manufacturing plants in Ontario: London, Brockville and Perth. Bowman says even in a bigger city like London, located two hours from Toronto, the company experiences difficulty in recruiting skilled workers.
“When we get into the smaller locations, such as Perth and Brockville, it’s even more difficult to attract skilled trades and engineers into those smaller towns than it was 10, 15 years ago.”
3M is hoping to address the challenge by going to the source, where the future workers are trained. The company has been partnering with educational institutions to raise awareness among the youth about career prospects in manufacturing.
“We’ll actually have high school kids in (the plant) just to understand some of the career paths that are involved in manufacturing—whether it’s being a production operator, skilled trades, an engineer, plant manager,” Bowman says.
Educating future workers
In a recent survey, the CME asked Ontario manufacturers to identify the actions they have taken to attract and retain more talent. Increasing wages and benefits was at the top of the list among 64 per cent of the respondents. Increasing automation and undertaking efforts to connect more with local schools were cited by 40 per cent and 38 per cent of respondents, respectively.
In his article published in The Conversation, Stephen Murgatroyd, instructor in the faculty of education at the University of Alberta, points out the increasing disconnect between formal education and real-world job requirements. The mismatch is evident in the data. In 2020, Canada’s graduating classes reached nearly 360,000 students from colleges, universities and trade schools, and yet 77 per cent of Canadian businesses surveyed by Manpower Group in 2024 report having significant challenges finding suitable candidates for their available positions.
According to data from the Government of Canada, approximately 700,000 skilled workers are expected to retire by 2028. Adding to the challenge of filling current roles is the expected rise in demand for skills related to artificial intelligence, advanced manufacturing and supply chain management.
“Canada’s antiquated apprenticeship system is struggling to produce enough workers to fill this gap. It is slow, outdated and has low completion rates: just 32 per cent of male and 35 per cent of female candidates complete their training,” writes Murgatroyd.
He cites shortcomings in the current apprenticeship programs in Canada, which can take up to four years to complete. Data from Statistics Canada shows that in 2023, only 20.1 per cent of registered apprentices completed their program. In comparison, European apprenticeship programs with a
“The skilled trades in manufacturing really do afford a nice lifestyle for those who pursue it. Our approach also is to try and get the message out to parents to expose their children, if they can, to skilled trades.” – Terry Bowman, 3M Canada
dual-system model, which concurrently combines practical, on-the-job training at a company with theoretical education at a vocational school—such as those in Germany, Austria and Switzerland—have much higher completion rates. A 2015 report from the Higher Education Quality Council of Ontario
pegged the completion rates in these European jurisdictions between 80 and 90 per cent.
Murgatroyd recommends a “five-pronged strategy” to address the country’s worsening skills crisis. They include: modernizing the apprenticeship system to transition from traditional, time-based apprenticeship model to a flexible, competency-based system; fast-tracking the adoption of micro-credentials, which are short, focused learning experiences for specific skills or knowledge; and a recognition of informal, experiential learning through a “nationally coherent, on-demand competency-based assessment system.”
Shortening and redesigning post-secondary programs to better align with labour-market demand would also help close the skills gap. Lastly, Murgatroyd suggests a stronger incentive framework for employers investing in the upskilling and reskilling of their workforce.
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“Canada cannot meet today’s workforce challenges with outdated systems and thinking. Doing more of the same and expecting different results is no longer an option,” he says.
3M’s Bowman agrees there should be more emphasis and education on career opportunities in the trades—and this starts at home with the parents.
“The skilled trades in manufacturing really do afford a nice lifestyle for those who pursue it,” he says. “Our approach also is to try and get the message out to parents to expose their children, if they can, to skilled trades.”
Getting kids ready for the trades, especially in today’s highly digital environment, Sweeney says there also needs to be “meaningful investments” in education.
“It means that teachers have to be teachers—there is an apparent shortage of teachers now, at least in Ontario. It means they’re going to need more
digital training, especially (for) established teachers who may not have come up in a digital environment,” says Sweeney.
For Bowman, looking at his company’s future requirements makes him wary of the potential implications of a new battery plant (being built by Volkswagen through its subsidiary PowerCo) in St. Thomas, Ont., just half an hour south of London. The plant is expected to hire around 3,000 employees when it becomes operational by 2027.
“If their ratio of production operators to skilled trades is like ours, they might need to be hiring 500 or 600 skilled trades. That could completely drain the excess (labour) capacity of the London area. I really think the upcoming demand for skilled trades is going to put employers behind the eight ball, and (we will need) to change the way we go out and recruit,” Bowman says.
A measured move forward
Annual survey finds Canadian manufacturers are investing selectively—and cautiously—in technology as they respond to tariffs and inflation.
BY KIRSTYN BROWN
Canadian manufacturers are rethinking how and where they invest in technology, as economic pressures and global trade disruptions continue to reshape business priorities, according to the newly released 2026 Advanced Manufacturing Outlook Report.
The annual survey, conducted by Plant and Canadian Manufacturing Online (CMO) reveals that while manufacturers continue to embrace digital transformation, their investment strategies have become more selective and ROI-driven in the face of U.S. tariffs, inflation and ongoing labour and cybersecurity challenges.
These challenges have led to uneven adoption across the sector, with smalland mid-sized manufacturers feeling it most, even as they recognize the value tech can bring.
“We’re seeing this [uneven adoption] more so with small and medium-sized manufacturers,” said Scott McNeil-Smith, VP, Manufacturing Sector Performance at Excellence Manufacturing Consortium and panelist on the survey roundtable. “I think for the most part they see the value,
but tend to struggle, especially when there’s things like trade and tariffs that they’re dealing with, even if they don’t directly apply to them.”
The report, which surveyed 114 business owners, senior executives and leaders from across Canada, found that nearly four in five respondents (79 per cent) are now applying IIoT solutions within their operations, a notable increase from 67 per cent last year.
Perhaps one of the most significant shifts this year was in maintenance innovation, with IIoT adoption for maintenance functions jumping 14 points.
“The 14 per cent jump means that manufacturers are passing the experimental phase and starting to see the value,” said Vishen Maharaj, Director of AI and Machine Learning at MNP Digital, another roundtable expert.
“They see the impact proactive maintenance can have on their businesses.”
More broadly, technology investments are delivering tangible benefits, with 95 per cent of manufacturers reporting at least one positive outcome, including improved product quality, throughput and data security.
Still, manufacturers continue to face
Percentage of Canadian manufacturers now applying IIoT solutions within their operations, up from 67 per cent last year.
obstacles on the path to digital maturity. Integration with existing systems (40 per cent) has overtaken cost (33 per cent) as the top barrier to further investment and cybersecurity concerns as a barrier has grown by 10 points.
“Reimagining how your business works from a digital standpoint and trying to transform your business is like rebuilding a plane in the air. It’s scary, and a lot of times, you don’t know where to begin.” - Vishen Maharaj, MNP
“I think a lot of manufacturers understand that the digital infrastructure is as important as the physical infrastructure,” said Maharaj. “The problem is that there are a lot of legacy systems, and trying to create interoperability of information has become really difficult.” Other factors impacting the pace of integration included fear of the
unknown, especially around tariffs and trade barriers, employee resistance to new technologies and the feeling that they’re not ready to take the next step in digitization.
“Digital transformation is difficult,” said Maharaj. “Reimagining how your business works from a digital standpoint and trying to transform your business is like rebuilding a plane in the air. It’s scary, and a lot of times, you don’t know where to begin.”
Investment intentions for the next three years reflect a more cautious approach, with nearly all respondents planning to invest in at least one advanced technology, but with average intended spend moderating to $1.3 million. Survey respondents reported a decline in spending across most digital technologies over the past year, including robotics, IIoT and machine data capture.
Yet, investment in artificial intelligence was up 6 per cent, with nearly two-thirds planning to invest in AI and 62 per cent already using it in at least one area of their business. These investments in AI are expected to deliver broad benefits: 45 per cent anticipate improvements in production processes, 44 per cent in supply chain management, 43 per cent in sales automation and 35 per cent in financial processes.
As organizations become more comfortable with AI, they are also exploring new ways to leverage and monetize data: 70 per cent are using data to improve operational efficiencies, 38 per cent to strengthen supply chain relationships and 35 per cent to develop new business models based on data insights.
But, warned Jayson Myers, CEO of NGEn Canada, another member of the roundtable, tapping into those AI benefits may not be as simple as some manufacturers anticipate.
“In order to get the data that will improve production processes, which is the top application of AI here, you need cloud computing and IIoT connectivity,” he said. “However, how many of those robotics, automation systems or production systems have some form of AI, or ability to integrate?”
Cybersecurity remains a top concern as manufacturers continue to digitize their operations. Nearly 75 per cent of respondents reported experiencing cyberattacks, prompting more proactive investment in cybersecurity infrastructure, data privacy controls and breach response plans. Ninety-seven per cent have implemented at least one protective measure, but only 20 per cent feel they have taken all possible
precautions, underscoring the need for continuous vigilance.
Of course, tariffs and trade disruptions have forced many manufacturers to reevaluate and adapt their strategies. Forty-six percent of respondents report that recent tariffs have reduced their technology investment, while 42 per cent say there has been no change.
Hussan Malek, Partner at MNP, explained that as manufacturers are adjusting to these pressures, they may not looking to IIoT as a way forward. “They’re not thinking about IIoT as the end-all be-all solution that will help them get through this,” he said. “They’re worried about the next [tariff] and how that will affect them.”
However, the survey found that companies with more advanced digital transformation are somewhat more likely to maintain or increase investment in the face of tariffs, suggesting that digital maturity may provide a buffer against external pressures and disruptions.
NEW PRODUCTS TECH CENTRE
LK SURFACER SRP SURFACE ROUGHNESS PROBE
LK Metrology has introduced the SURFACER SRP, a plug-and-play surface roughness probe for coordinate measuring machines (CMMs).
Compatible with industry-standard probe heads, the SRP enables in-process surface roughness analysis during CNC measurement cycles, eliminating the need for secondary inspection. It features interchangeable probe modules for flat, curved, and grooved surfaces, and communicates wirelessly via Bluetooth 4.0.
The stylus operates independently of the CMM’s kinematics, supported by a preload mechanism that isolates it from vibration and movement.
Measurement resolution is one micron, with a roughness range of 0.5 to 6.5 Ra. The probe integrates with automated change racks and includes application software for setup and data analysis.
www.lkmetrology.com
VENTION UPDATED RAPID SERIES
PALLETIZER
Vention has launched a new, updated Rapid Series Palletizer, a solution designed for quick
deployment in manufacturing environments.
Designed for manufacturers facing labor challenges, a high mix of SKUs, and rising automation demands, the Rapid Series Palletizer brings together plug-and-play hardware, intuitive software, analytics capabilities and remote support into a single, modular palletizing system that can be installed and configured in days.
Key features of the Rapid Series Palletizer include:
• Customizability: Can integrate with modular grippers and conveyors to adapt to any product type or size.
Vertical reach: Achieve stack heights up to 136 inches with an optional riser.
Mobility: A redesigned base supports both pallet jacks and forklifts for anchor-free relocation.
www.vention.io/cobot-palletizer
WAGO PRO 2 SERIES POWER SUPPLY WITH REDUNDANCY
WAGO has added built-in redundancy to its Pro 2 Series Power Supply, eliminating the need for separate redundancy modules in control cabinet setups. The system uses integrated MOSFET functionality to maintain power in the event of failure, supporting n+1 configurations with parallel-wired outputs. Features include support for I/O Link, Modbus RTU, Modbus TCP, EtherNet/IP, and MQTT protocols, as well as smart load
management via TopBoost and PowerBoost. The new models retain the original Pro 2’s efficiency and modular communication capabilities. www.wago.com
EMERSON PACSYSTEMS IPC SERIES
Emerson has introduced the PACSystems IPC 6010, 7010, and 8010 industrial computing platforms, designed to support AI-enabled functions such as predictive maintenance, process optimization and supply chain management.
Built with ruggedized, fanless designs and 13th Gen Intel® Core™ processors, the IPCs offer up to 64 GB ECC memory and 4 TB SSD storage.
Features include multiple Ethernet interfaces, PCIe slots, and pre-installed operating systems with edge and visualization software. The platforms support Windows IoT, Linux, and Emerson’s PACEdge, with built-in security via TPM and Secure Boot. www.emerson.com
HONEYWELL IONIC MODULAR ALL-IN-ONE
New from Honeywell, the Ionic Modular All-in-One is a compact, end-to-end battery energy storage system (BESS) designed for commer-
cial and industrial segments.
The product combines flexible battery storage with Honeywell’s advanced control system, helping to optimize energy costs, absorb fluctuations in energy demand to ensure grid stability and provide back-up power when needed.
The Ionic Control and Energy Management system is fully integrated into the all-in-one modular BESS, providing the latest analytic tools to deliver advanced control and customization onsite.
The advanced control software also incorporates industry-standard ISA Secure 2 cybersecurity, ensuring protection for users and mitigating vulnerabilities for potential network cyber threats. It alo features a flexible modular system and a self-contained lithium-ion battery enclosure.
The new, smaller enclosure enables it to offer a range of power storage options from 250 kWh up to 5 MWh to bring energy storage scalability to more commercial and industrial settings.
www.honeywell.com
BLACKLINE LIVE CLOUD-BASED SAFETY PLATFORM FROM BLACKLINE SAFETY
Blackline Safety has introduced several upgrades to its cloudbased platform, Blackline Live, aimed at improving efficiency, compliance and worker protection. New bulk management tools help automate manual tasks, while enhanced geofencing capabilities support stronger compliance and operational control. A refreshed Loner Mobile app extends coverage to lower-risk lone workers using smartphones.
Worker protection is further strengthened through live sensor readings across devices, device-to-device alert sharing, and updated reporting tools that offer clearer visibility into safety trends and emergency response.
www.blacklinesafety.com
4.0 WHAT CANADIAN MANUFACTURERS ARE PRIORITIZING NOW
POSTSCRIPT BY
SCOTT MCNEIL-SMITH.
Navigating the turbulence, preparing for the opportunity
As 2026 approaches, it is difficult to recall another period where Canadian manufacturers have faced such a complex mix of challenges and opportunities. Over the past year, global uncertainty around trade and tariffs has collided with stubborn inflationary pressures, rising energy costs and ongoing supply chain bottlenecks.
On the home front, while layoffs are happening in some sub-sectors, many manufacturers are still hiring. Skills shortages continue to put pressure on production capacity and growth ambitions. These realities have tested manufacturers in every corner of the country.
And yet, amid the turbulence, there are strong signals of resilience—and even optimism—for the year ahead.
This year’s Advanced Manufacturing Outlook Report developed in partnership with Plant , Canadian Manufacturing Online (CMO) and EMC, provides a timely window into both the pressures manufacturers are under and the strategies they are deploying to stay competitive. The intel confirms what many of us hear daily in our conversations with industry leaders: investment decisions are being carefully weighed against cost pressures, geopolitical risks and workforce constraints. But it also reveals that manufacturers are not standing still. They are adapting, innovating and in many cases accelerating their transformation journeys.
One of the most striking findings is the growing attention to artificial intelligence. While actual spending on many
digital technologies slowed over the past year, investment in AI grew by six per cent, with intent to invest over the next three years jumping by thirteen per cent. This signals a shift in how manufacturers view technology, not just as a tool to digitize existing processes, but as a way to fundamentally reimagine competitiveness. Early AI applications in predictive maintenance, quality control and supply chain forecasting are already showing promise, and more companies are preparing to follow suit.
technologists. In specialized areas like automation and robotics, the skills gap is particularly acute.
How are employers responding? Increasingly by turning to upskilling, reskilling and new pathways for youth and newcomers. Encouragingly, more manufacturers are experimenting with micro-credentials and modular training programs that provide workers with targeted, job-ready skills without requiring years away from the shop floor. This is where EMC has invested heav -
Despite the challenges, Canadian manufacturers remain builders, problem solvers and innovators at heart. Manufacturers are not retreating from the future they are reshaping it.
At the same time, the 2026 Outlook Report reminds us that technology adoption does not happen in a vacuum. Manufacturers continue to emphasize the centrality of people, process and plant/technology—what EMC calls its “3P” framework—as the foundation for transformation. Digital adoption without workforce development or operational excellence is rarely successful. The most competitive firms are those investing in human capabilities alongside systems, and in culture alongside capital.
EMC’s own Labour Market Intelligence (LMI) data reinforces this point. Across provinces, demand continues to outpace supply in many key occupations, from industrial mechanics to production managers, welders and
ily, developing and delivering national programming in areas like advanced manufacturing, green skills, and leadership. The uptake signals a recognition that the future workforce will be defined less by static job titles and more by evolving competencies.
So how do we reconcile the headwinds with the optimism? In my view, it comes down to balance. Manufacturers will need to continue balancing short-term survival with longterm positioning. They will need to balance the adoption of technology with the development of human capability. And they will need to balance the imperative to manage costs with the opportunity to lead on sustainability.
What gives me confidence for the year ahead is not only
what the data tells us, but also what we hear daily from manufacturers themselves. Despite the challenges, Canadian manufacturers remain builders, problem solvers and innovators at heart. They are not retreating from the future, they are reshaping it, one incremental improvement at a time.
The road into 2026 will not be without bumps. Trade disputes may intensify. Costs will remain volatile. Labour shortages will persist. But the sector has proven time and again that it can adapt. With the right partnerships, the right policies, and a continued focus on people, process, and plant, Canadian manufacturing can emerge stronger, more resilient, and more globally competitive.
As we turn the page on a tumultuous year, the challenges are real, but so are the opportunities. Next year may well be a defining one, where Canadian manufacturers not only withstand the turbulence but set the stage for long-term global leadership.
At EMC, we are proud to walk alongside you on this journey—connecting manufacturers across the country, equipping them with the tools and resources they need, and ensuring their voices shape the future of our sector.
Together, we can navigate the turbulence and prepare for the opportunities that lie ahead.
Scott McNeil-Smith is Vice President, Manufacturing Sector Performance for Excellence in Manufacturing Consortium of Canada (EMC), Canada’s largest manufacturing consortium.
Unpredictability and shifting expertise
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