"We've seen a whole series of incidents or disruptions, sometimes related to the pandemic and sometimes not," says Ms. Proulx . "I'm thinking of the two strikes at the Port of Montreal, the rail blockades, the truckers' blockades, the floods in British Columbia and the cruise ships stuck in the Suez Canal have had an impact on the accessibility of products.

“As for the health crisis, many factories have closed around the world during the various outbreaks,” she continues. “In short, manufacturers are having a lot of difficulty obtaining supplies of raw materials, various materials and critical components that they need.”

These disruptions have disrupted the supply ecosystem. As a result, the prices of certain construction materials have exploded. It should be noted that the $8.3 billion mentioned only concerns the 300 companies surveyed.

Considering that there are approximately 13,000 manufacturers in Quebec, the total sum of costs related to supply issues is enormous.

THE OBSTACLES

Unfortunately, Ms. Proulx believes that supply problems will not be resolved anytime soon, as several challenges face manufacturers.

The main obstacles in the supply chain are production problems due to labor shortages and absenteeism (60% of respondents), increasing transportation costs (46%) and access to critical components from foreign suppliers (41%).

Furthermore, 90% of respondents believe that the availability of labour "represents a challenge for increasing their production" in Canada.

Little surprise here, the survey also reveals that 80% of manufacturers facing supply chain problems have been forced to delay delivery of products to their customers and increase prices.

Moreover, the MEQ is asking governments to increase the number of economic immigrants and temporary foreign workers. "Companies would like to promote the rapid immigration of certain temporary foreign workers (who generally have a visa for a few years) and their family members. This is evident in several regions of Quebec. Ms. Proulx admits that flexibility has been made for certain employment categories in the temporary foreign worker program, thanks to an agreement between the governments of Canada and Quebec. This will make it possible to welcome more workers.

But this is still insufficient according to Ms. Proulx, who recommends to the Quebec minister, Jean Boulet , the creation of a pilot project to promote rapid access to permanent immigration.

"Currently, the path to access it is so complex that most workers choose to return to their country of origin [at the end of their mandate]. In addition, it would be a good way to revitalize the regions, where many companies are thinking of leaving because they cannot find enough workers."

The MEQ also wants to see the creation of strong new tax measures and government subsidy programs for automation and robotization.

"Some companies, especially SMEs, want to increase their operational efficiency to avoid breakdowns or waste. That said, they sometimes need a helping hand to improve their efficiency and productivity."

In addition, the MEQ recommends protecting and investing in critical economic infrastructure (ports, trains, bridges) that facilitate trade and industrial development.

THE UKRAINIAN CONFLICT

According to Véronique Proulx, the war in Ukraine is already having a negative impact, namely the increase in the price of gasoline on the international market. Transportation costs are among the three biggest challenges (the obstacles listed above) for manufacturers.

"Already, the price of a container is rising sharply, as is shipping by boat. In addition, gasoline is really more expensive. 70% of our exports are destined for the United States, largely by truck. So, the war complicates the work of manufacturers.