Survey reveals chronic supply chain challenges deeply impacting chemistry sector in Canada
June 30, 2022
Canadian chemistry manufacturers reported that persistent, and in some cases worsening, supply chain challenges are negatively impacting their operations. According to survey results released by the Chemistry Industry Association of Canada (CIAC), the impacts of supply chain disruptions and transportation constraints are wide-ranging and have occurred across the three major modes of transportation – road, rail and marine:
- 76 per cent of CIAC members noted their operations have been negatively impacted by the various supply chain disruptions over the last year
- 79 per cent reported that shipping reliability has become a serious issue
- 83 per cent reported they have seen transit times increase
- 55 per cent reported they have lost sales in Canada and abroad, and
- 76 per cent identified the rail mode as being a major pinch point within the supply chain
Supply chain challenges are critical for CIAC members as chemistry is the fourth largest manufacturing sector in Canada and the third largest shipping sector across the rail network. Nearly 75 per cent of the sector’s production is exported.
In an April appearance before the House of Commons Committee on Transportation, Infrastructure and Communities, President and CEO at CIAC Bob Masterson stated, “We call on you as the federal government and the Committee to take intentional and meaningful steps to grow our transportation infrastructure to ensure that these new products, that the world needs so much and that Canada will benefit from producing, can reach their intended customers.”
CIAC’s top recommendations included:
- Deem rail an essential service
- Ensure there is confidence and capacity in the network to meet the current and future needs of the economy
- Enhance transparency and competition to drive improvements and investment
- Develop a long-term plan for trade infrastructure that supports Canada’s long-term population and economic growth objectives.
Supply chain advocacy remains a key priority area of focus at CIAC. The Association and its members, appreciate the steps the federal government is taking to better understand and address these issues. CIAC is currently engaged in sharing the sector’s views and recommendation on supply chain issues with the recently appointed National Supply Chain Task Force.
Read the full survey report here.
About CIAC
The Chemistry Industry Association of Canada is the association for leaders in Canada’s chemistry and plastic sectors—adding $55 billion and $30 billion respectively to the Canadian economy. The association represents over 100 members and partners across the country. We provide coordination and leadership on key issues including innovation, investment, plastics, taxation, health and safety, environment, and regulatory initiatives.