Central Alberta deemed production opportunity to help global supply chain challenges

“The logistics and warehousing clusters in central Alberta are a high potential. At the same time, the renewable technology and renewable energy generation is another great opportunity as this area will see a dramatic shift in the years to come,” he said.

During his presentation, Sergeev discussed how the importance of supply chain management and its global interconnectedness was brought to the surface during the pandemic as multiple shortages arose in the computer, automobile and pharmaceutical industries with the recent children’s painkiller shortage.

READ: Foreign supply of children’s pain meds set to hit Canadian shelves next week

“Over the last few years, I think supply chain moved into the world of being either an ability for business to succeed or to break it down because being caught up in supply chain constraints can be detrimental to the business and at the same time there’s multiple opportunities for value added for the business,” he said.

Sergeev shared that the forecast already shows shortages in rubber for tires, cement, and helium as inflation creates a high risk of recession particularly in Europe, and an over 50 per cent chance in Canada and the United States.

A main reason for onshoring or nearshoring, bringing operations to a nearby country, he says, is the global decoupling from China and other Asian countries. He states many companies, particularly in information technology, were left at a standstill when China repeatedly shut down various facilities due to strict COVID-19 protocols. Bringing production back to North America or closer to home, he says, is already reducing the reliance on Asian countries for some companies like IBM with their recent $20 billion investment in New York’s semiconductor chip manufacturing industry.

“Within 90 minutes we have access to three quarters of the population of Alberta. No other region in Alberta has that,” said Kimberley Worthington, CAEP Executive Director. “We’re really positioned well to be a logistics hub; we’re really positioned well to embrace and advance onshoring supply chain needs.”

This trend also ties into the necessity to have alternative sources of supply, he says, and a “just-in-case” mentality for efficient inventory rather than the current “just-in-time” approach which tries to optimize receiving goods from suppliers right when they are needed.

For labour shortages, Sergeev says not enough people are working in manual “blue collar” positions. He also says that companies can no longer go for the lowest cost option, but must build strong relationships with workers and business partners to ensure security.

However, he explains this also plays into the digitization of the world where paper-oriented job positions are being replaced by machines and software. He says while one day refrigerators will be programmed to order food from grocery stores when they detect low stock, humans will still be needed for monitoring machines, problem solving, dispute resolution and other complex and strategy-oriented roles.

One pressing matter for the workforce is sustainability, which he says has become a necessity rather than an option for companies. Whether following government environmental initiatives for greenhouse gas emission or partnering with Indigenous organizations, he says companies will be held accountable for the sustainability of each level in their supply chain even if they are not directly responsible for it.

Sergeev says companies must pay attention to and understand the complexities of their supply chain by either hiring external help or creating a department or position for it, if they don’t have one already.

CAEP

Worthington announced at their FGM that CAEP would be hosting the inaugural Workforce Strategy Summit in March 2023 at Red Deer’s Westerner Park, alongside a new website for branding. Apart from a business to business networking opportunity, author and entrepreneur Matt Tenney and businessman and Chief of British Columbia’s Osoyoos Indian Band Clarence Louie will be keynote speakers. One panel will discuss automation and technology to reduce labour force needs while another will consist of how companies can close the “people gap” by embracing the “new workforce” for diversity, equity, and inclusion of youth, newcomers and people with disabilities.

CAEP also updated members on their Transport and Logistics Task Force efforts of rail advocacy and the multiple meetings had with various stakeholders to discuss the possibility of a shorter access route to connect central Alberta through British Columbia by extending Highway 11 beyond the Saskatchewan Crossing. As this area runs through a National Park, CAEP Chair James Carpenter said through their partnership with Indigenous leaders such as Chief Leonard Standing on the Road, he hopes they can advocate to the federal government for the economic opportunity.

“Never before have we been in such a position in central Alberta to help our province and help our country and I think right now employers and manufacturing industries in central Alberta realize that we have that position to help,” said Carpenter, who also emphasized the region’s agricultural strength.

Sergeev added this would be an opportunity for central Alberta to tap into the electric vehicle market and to take advantage of the provincial grants being given out for charging stations.

READ: Red Deer County receives funding for electric vehicle and charging stations programs

by Alessia Proietti

Central Alberta deemed production opportunity to help global supply chain challenges

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