Canada’s Supply Chains: Challenges and Solutions

By: David Friedland

If thoughts of Canada’s supply chain networks rarely occupy your mind, do not fret – you are in the company of many Canadians. And yet, supply chain issues impacting Canada’s economy are critical and are worth paying attention to.

Supply chains, defined as the processes and entities involved in producing and distributing goods, include both public and private sector players— government, ports, terminals, railways, airports, and labour unions, among many others. A robust and resilient supply chain hinges on the efficiency of transporting goods via airplanes, ships, trains, and trucks – all important in a country as vast as Canada. Not surprisingly, with this many players involved, there are opportunities for delays, and other logistical challenges, exacerbated by fluctuating demand, geopolitical changes, and climate.

Recent ministerial and departmental tours, roundtables, studies, and consultations have taken place and have involved business, labour, and trade representatives to strongly emphasize the need for attention from federal and provincial governments. These conversations and outreach efforts from key government players aim to strengthen and redesign systems to address ongoing challenges, which should remain an important focus into next year.

Extreme weather events are also increasingly stressing supply chains, necessitating a comprehensive review to identify areas for improvement, efficiency, and opportunities to drive low-carbon emissions initiatives that will have tangible benefits and result in real system enhancements.

These issues are something all the major political parties in Ottawa are grappling with and are staking positions on.

Under the leadership of current Transport Minister Pablo Rodriguez as well as his last few predecessors notably Omar Alghabra, the federal government has initiated steps to address these matters through the creation of the Supply Chain Task Force. Roundtables and townhalls hosted across the country with key audiences referenced above, and dedicated resources to address the core trade, labour, production, and supply aspects of Canada’s many supply chains and their integrity. Rodriguez, hailing from Montreal, serves as the Liberals’ Quebec Lieutenant, and as such his appreciation for regional dynamics is brought to bear on navigating the oftentimes highly political nature of the Transport portfolio.

Important initiatives moving forward under Minister Rodriguez include the launch of a National Supply Chain Office focusing on trade, logistics, environment, and labour, and what will be the eventual release of a National Supply Chain Strategy. We anticipate that will include further development of the anti-scab legislation, commitments to net-zero through industry-emitters at or near the ports through green technology and infrastructure (like shore-power), and a long overdue implementation of sustainable fuel use.

The Conservative Party (CPC), led by Pierre Poilievre, typically frames the supply chain narrative around protecting Canadian jobs. Alberta MP Matt Jeneroux, designated by the CPC to lead the development of its supply chain strategy, is well-versed on issues related to transportation of goods and people.

The Conservative strategy such that it is known calls for a comprehensive overhaul of the current policy and regulatory framework governing supply chain issues, addressing regulatory barriers, and fostering private-sector innovation. Given the CPC’s position as the Official Opposition, there is no pressing urgency for them to fully flesh out an approach to this topic. That said, the rumblings so far have included national tour opportunities, roundtables with business and labour audiences, and a prioritization of practical solutions to streamline and modernize existing protocols. The approach dovetails into the plan to remove gatekeepers in the system.

Taking note of Alberta and Ontario’s ambitious plan to reduce red tape, this could play out on the federal level if the CPC comes to power, perhaps through reducing the regulatory burden of a supply-chain office and other perceived frivolous expenditures.

The NDP and the Bloc Québécois have similarly expressed concern about supply chain issues, primarily on domestic supply management and labour regulations. For the Bloc, this is exclusively focused on Quebec abiding by tradition.

As we navigate a politically uncertain time, collaboration is crucial on this complicated policy file. It is time for both political parties and government itself to work together and to gather others including industry, civil society, labour, and other interests in a Team Canada approach to promptly addressing supply chain challenges. Through policy and regulatory streamlining swift action is imperative in these challenging times and Canadians are watching.