Supply chains aren’t going to fix themselves

Canada’s supply chain, particularly essentials like food, building materials, and consumer goods, took a beating with unrelenting disruptions that came as a result of the COVID-19 pandemic, but more importantly, disruptions that came as a result of Canada’s deep commitment to extended COVID-19 restrictions and lack of agility, dexterity, and preparedness. The initial shock of the world grinding to a halt at the beginning of the pandemic gave us some perspective on the fault lines in our supply chain and exposed some major shortcomings. The problem is that Canada didn’t take those learnings and correct course. We waited, and waited, and imposed harsher and uneven restrictions across the country that served to make all that waiting more painful for our economy. There were many supply shocks at the beginning of the pandemic. Countries around the world faced shortages of commodities like personal protective equipment, ventilators, and, of course, the hysteria about toilet paper suggests those shocks were far reaching. The causes were diverse, but at their core they were attributable to the sudden onset of a destabilizing virus we knew little about. That a major global disruption would cause some global supply chain issues is understandable. However, well after the onset of COVID-19, well after we’ve had time to adjust to the new reality of the pandemic, Canada continues to face supply-chain problems unique to our own nation. For instance, last summer’s lumber shortage was one of many made-in-Canada issues. It was caused by a rail car shortage, historical infrastructure deficits exacerbated by floods and wildfires, and a long-simmering struggle against invasive species. Added to that were mandated vaccines that took many out of the workforce compounded by labour strife we’ll likely experience again in the near future. The continued problems that we face in Canada when it comes to our international trade show that Canada is not committed to fully supporting importers, exporters, and manufacturers, and that we need to do more to implement the lessons we learned from the pandemic. Surely, COVID has some part to play in the disruptions and inconsistencies we’re seeing. However, given that every country around the world is dealing with this virus, we also need to examine the outdated government policies, their impacts, and our ability to think more about our commitment to expanding our existing trade-infrastructure deficit. Inaction from the governing Liberals is at the heart of the problem. On this, and on many other issues we’re seeing play out in our lives today. We’ve been subjected to platitudes, working groups, studies, task forces and, of course, flashy funding announcements, but little follow-through, vision, foresight, or progress. Nowhere is this more apparent than in the national Supply Chain Summit held last January. The government held the meeting, put out a press release, took some nice photos, then never bothered to call some of those the participants back. It's those very participants who have known for years that our lack of agility, preparedness and, in some cases, over-regulation put Canada farther behind in an effort to recover our economy. A continuation of this inaction is the current fiasco with the Canada Infrastructure Bank. Announced with much fanfare, and with a budget of $35-billion, the bank has completed zero projects. No progress, no private-sector investment has been procured to date, and there has been little to no consultation with industry stakeholders beyond those already in the pipeline. The bank could be used to fund desperately needed projects to bolster our supply-chain capacity and resiliency. Instead, it’s being used as a front to give out big bonuses and steady employment instead of building infrastructure—the very infrastructure we need to compete globally, attract foreign investment and be a welcoming place to do business. The House Transportation, Infrastructure, and Communities Committee is currently working on a report related to supply chains. It illustrates the work to be done and the way that the government has missed opportunities and severely mishandled the opportunity to seize an economic recovery we desperately need. Supply chains should be top-of-mind. Yet the committee will be offering a large number of recommendations in a study that lasted just a few months. If the government was truly in control of this issue, they would have proactively identified and addressed many of the problems we found instead of leaving that work to the committee for a third time. As "supply chain" has entered the daily lexicon of Canadians, there is still some confusion about what that entails, which minister, task force or cabinet committee is responsible and what the exposed fault lines might be. Firstly, Canada needs a supply chain commissioner. Currently, responsibility for supply chains is spread out amongst a variety of departments, which makes it difficult to effectively diagnose and then solve problems. Concentrating authority with one person would make it more difficult for this crucial issue to fall through the cracks. A dedicated resource would be able to focus all their time and energy to researching issues in supply chains and then leading the effort to improve them. Additionally, one commissioner would remove the confusion about different departmental responsibilities and would provide greater accountability rather than the failures we’re currently experiencing in everyday government services. The government must also scrap the Canada Infrastructure Bank. We should use the billions of dollars currently allotted to the bank and being awarded to senior government officials to actually build infrastructure and strengthen Canadian trade corridor and transportation networks. It’s a step that sounds drastic, but the bank is ineffective and serves as a scapegoat for real action. Investing in infrastructure resiliency will decrease the likelihood that a flood, fire, or any other natural disaster will destroy critical supply lines and lead to shortages. Increasing capacity at our ports, rail terminals, track networks, and cargo hubs will decrease the chance that bottlenecks or other constraints will affect our ability to compete internationally, keep prices competitive and allow us to avoid further external crises. Labour shortages must be addressed once and for all. With 43 per cent of our marine workforce set to retire in 10 years and as many as 22,000 open truck driver positions across Canada, we need to take swift action to prevent labour shortages like we saw during COVID from becoming permanent and further disrupting our recovery. Short-term changes to the Canada Temporary Foreign Worker Program are helpful, but longer-term solutions are needed. To successfully recruit and retain talent from across the world, let’s get the cost-of-living crisis under control. Thirty per cent of new Canadians under 35 are considering leaving Canada due to low wages and high prices, taking with them knowledge and ideas that our country needs. We should also recognize the problem that exists regarding credential recognition. Finally, our continued stop-and-start exercise on continued COVID restrictions must end without the threat of merely “suspending” our progress on this front. We are out of step in our global trading partners, our competitors and so many who have reinvigorated their workforces and economies sooner than Canada has. Mandates across sectors should have never been in place, but they most certainly should never be brought back. This is just a start, and there are many other potential avenues we can pursue, as I’m sure you’ll see in the House Transportation Committee report. However, I know that these three solutions have broad and near-unanimous support amongst the major parties. We can talk all we want, form more committees and advisory groups, but as we’ve seen, that leads to continued inaction. We need to act, and now, before our supply chains and transportation infrastructure are permanently damaged and our competitiveness becomes our biggest issue. As their elected officials, Canadians should expect no less. Conservative MP Melissa Lantsman, who represents Thornhill, Ont., is her party's transportation critic and vice-chair of the House Transportation, Infrastructure, and Communities Committee. The Hill Times