The following is being distributed at the request of Canadian Manufacturers and Exporters:

Industrial and production skills gap emerging: CME report

Government, education and industry must work together to address the growing industrial skills gap, according to a report released today by Canadian Manufacturers and Exporters, Newfoundland and Labrador Division.

The report, entitled Skills Issues in the Manufacturing Sector, reflects the expectations of manufacturers across the province and reveals an emerging industrial skills gap, particularly in the manufacturing sector, which has experienced an annual growth rate of 6.7 per cent since 1993, employs over 17,000 people and contributes $2.2 billion to the provincial economy. The broader industrial sector is comprised of manufacturing, natural resources, and construction and employs 37,000 people annually.

John Patten, CME�s chair, stated, "With sector growth, large scale developments, and retirements, 2,400 new entrants will be required annually for the industrial sector over the next 15 years, yet much fewer than that are attracted and trained for the sector. The situation will only get more strained over the next few years given the province�s demographics."

"If the province is to continue its growth, increased emphasis on strengthening and expanding the industrial sector is required. The emerging skills gap will impede this growth. If the current situation goes unchallenged, the industrial skills gap will continue to develop even while students obtain training for positions they are not matched for or for positions where the opportunity lies outside our provincial boundaries. This is a challenge that business, educators, and government must meet if expansion is to continue," said Mr. Patten.

To address this issue, CME is calling on government, education, industry and other stakeholders to collectively focus efforts on improving the industrial training infrastructure, improving the perception of the industrial sector, further developing labour market capacity and helping advance company capabilities. Proposed initiatives for a provincial human resources strategy are included in the report.

Industry, Trade and Rural Development Minister Judy Foote said the manufacturing industry was targeted as an area of focus in the Renewal Strategy for Jobs and Growth. She said it is critical to collectively address the emerging skills gap to allow the industry to continue to grow and prosper, especially in rural Newfoundland and Labrador.

"This issue was initially identified in the Jobs and Growth consultations and led directly to the establishment by government of the Labour Market Development Council in 2001 and to the accelerated development of a Labour Market Development Strategy for the province as promised in the Strategic Social Plan," said Minister Foote. "Government supports the general direction suggested by the CME in its report and will continue to work with all stakeholders to develop a consensus - based action plan to address these challenges over the short term and long term."

Canadian Manufacturers and Exporters is Canada�s leading business network and senior business association. CME members account for 75 per cent of Canada�s industrial output and 90 per cent of its exports. Over the past seven years, they have been responsible for over 45 per cent of the new jobs created in the Canadian economy.

For a copy of the report on Skills Issues in the Manufacturing Sector, please visit the Newfoundland and Labrador Division, Canadian Manufacturers and Exporters website: www.cme-mec.ca/nf

For further information, please contact: Sean McCarthy, Vice-President, (709) 772-3682, (709) 685-5820.

Media contact: Tansy Mundon, Communications, (709) 729-4570.

2003 03 04                                      1:00 p.m.