About FOCAL:

The FOCAL initiative is a collaboration between the Canadian Skills Training and Employment Coalition (CSTEC), Prism Economics and Analysis and the Automotive Policy Research Centre (APRC). It is funded by the Government of Canada’s Sectoral Initiatives Program (SIP).

FOCAL has identified 70,000 additional jobs in other primary automotive suppliers to the sector. Combined with the 38,000 jobs in vehicle assembly and 80,000 jobs in parts manufacturing traditionally associated within the sector, this brings the total number of jobs in Canada’s automotive manufacturing sector up to more than 188,000.

FOCAL continues to release trend reports exploring additional topics relevant within the auto production sector. These reports have discussed topics such as diversity, wages and the impact of the adoption of industry 4.0 technologies on the automotive manufacturing occupations. Look out for upcoming reports detailing the role of immigration in the sector, the impacts of COVID-19.

Highlights from FOCAL Kitchener-Waterloo-Barrie Profile & Forecast

Automotive manufacturing employment in Canada is much greater than previously estimated and employers in the sector will face significant hiring needs over the coming decade. These findings are documented in the regional profiles and labour market forecasts produced by the Future of Canadian Automotive Labourforce Initiative (FOCAL).

Kitchener-Waterloo-Barrie is one of Canada’s key auto sector regions. In 2019, FOCAL estimates the region employed nearly 35,700 workers. FOCAL identifies a total of 39 automotive vehicle assembly and parts manufacturing facilities within the County of Simcoe, with Honda being the biggest automotive manufacturing employer in the County. Collectively, these manufacturing facilities account for more than 9,800 automotive manufacturing jobs within the County. 

Of these 35,000 + workers, 63% were employed in core automotive roles, including vehicle assembly (29%) and parts manufacturing (34%). The remaining 37% were employed in automotive industry-associated industries.

Looking ahead, employment in Kitchener-Waterloo-Barrie is projected to remain flat at approximately 36,000 workers through 2030. However, the region’s broader automotive industry will need to hire 7,690 workers by 2030 to meet projected labour demands. More than 6,900 of these hires will be required to replace retirements over this period, while the remaining 770 workers will be needed to as a result of industry growth.

If new entrants to the sector remain at historic levels, the Kitchener-Waterloo-Barrie automotive industry is projected to face a recruitment gap of 5,360 workers. Employers in the region will need to hire the equivalent of 15% of the current workforce by 2030 to meet labour demand – even after accounting for new entrants. These challenges are expected to be greatest for jobs in Management & Administration occupations, accounting for 23% of the total recruitment gap. This recruitment gap could widen should the industry fail to recruit new entrants at historic levels.

Read FOCAL’s full baseline forecast report for Kitchener-Waterloo-Barrie to obtain more detailed information regarding the region’s recruiting needs over the next decade. You may also visualize and explore this forecast data in-depth using the FOCAL data dashboard.

Stay tuned for new FOCAL forecasts assuming an increase and a decrease in production by 20%.

Industry 4.0 adoption is expected to bring changes to the nature of tasks performed by automotive manufacturing occupations, and create many more new roles in the industry.

Employers in the auto production sector must be made aware of the ways in which Industry 4.0 adoption will impact the tasks of auto production occupations, and of the new opportunities this technology will generate for jobs within the sector. FOCAL has analyzed the changes that the adoption of 10 different Industry 4.0 technologies will bring to the tasks performed by 48 automotive manufacturing-related occupations. The research examined how the technologies might alter, partially eliminate or fully eliminate certain tasks performed by automotive manufacturing occupations. For example, 50% of the tasks performed by 10 skilled trade occupations within automotive manufacturing are expected to be impacted – 16% of which will require an upgrade of skills. On the other hand, 75% of the tasks performed by Motor Vehicle Assemblers, Inspectors and Testers will be impacted by Industry 4.0 technologies. 

While digitization and automation might impact many tasks, the study also found that a number of new additional skills and competencies will be required to operate and interact with the new production systems. For example, preventative maintenance procedures will be replaced by predictive maintenance systems, requiring several occupations to learn new skills. Furthermore, computer simulation will be used more frequently for testing new systems and products. 

Finally, Industry 4.0 will create new job titles such as “Additive manufacturing technicians”, “Robotic welding operators”, and “Computer integrated manufacturing engineers”. Even with Industry 4.0 technology adoption in the automotive production sector, the majority of its workforce is expected to remain under the traditional identified automotive manufacturing occupations. 

View FOCAL’s Industry 4.0 trend report for more information on these impacts.