Canadian Manufacturing

FHCP urges new ministers to address supply chain issues

The rising costs of production have been challenging for Canadian food, health and consumer product manufacturers who have faced a 15% increase compared to 2020.

October 27, 2021  by CM Staff

MISSISSAUGA — On Oct. 27, Food, Health & Consumer Products of Canada (FHCP) urged the new cabinet to act quickly on the organization’s recommendations to strengthen essential manufacturing and supply chains in the face of ongoing significant disruptions.

With economies reopening and continuing high consumer demand, FHCP members report that they are facing significant challenges in delivering essential products on store shelves for Canadians. A recent member survey revealed that more than 75% of FHCP members report that moderate to severe labour shortages are impacting their ability to supply products in Canada. The other top factors constraining production are high prices and limited supplies of ingredients, packaging, and transportation, as detailed in a new infographic also released by FHCP today and available here.

The rising costs of production have been challenging for Canadian food, health and consumer product manufacturers who have faced a 15% increase compared to 2020. These cost increases are negatively impacting much-needed capital and innovation investments in Canada.

FCHP CEO Michael Graydon commented:

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“Canadians understand better than ever the complicated supply chain behind the essential food, health and consumer products they rely on every day, and they expect government to take effective action to strengthen and protect these supplies.

COVID-19 disruptions and a perfect storm of other factors demand action. As FHCP advocated during the election campaign, now is the time to address labour shortages in the nation’s largest manufacturing workforce and work to alleviate Canada’s generally high costs of doing business.

Meanwhile, Canada’s leading brands are working around the clock to keep up supplies of the products Canadians need. We ask that consumers stay calm, patient, and flexible, as we work with grocery stores to allocate products as fairly and efficiently as possible during these still unprecedented times.”

National polling conducted by Abacus Data on behalf of FHCP during the federal election found that Canadians believe the top three most effective actions government can take to strengthen essential food and grocery supply chains are to require large grocery stores to reduce fees charged to farmers and manufacturers (47%), solve worker shortages (36%), and reduce red tape (35%).