February 03, 2025 | Category: Published Articles

(Published by The Hill Times)

Don’t overlook productivity in bid to return resilience to Western Canada’s supply chains
Addressing inefficiencies, improving productivity, and strengthening resilience are not just sectoral goals—they are national imperatives.

Western Canada’s supply chains are under pressure. The past year exposed vulnerabilities across the system, from climate events to collective bargaining disputes and infrastructure failures. These disruptions have compounded inefficiencies, threatening Canada’s competitiveness and global reputation as a reliable trading partner. Now, with Prime Minister Justin Trudeau’s pending resignation and United States President Donald Trump’s return to office, political shifts are adding another layer of uncertainty to Canada’s economic landscape.

The Compass 2025 Report, an annual publication by the Western Transportation Advisory Council (WESTAC), provides critical insights into these challenges. Based on a survey conducted between Oct. 15 and Nov. 8, 2024, it captures the perspectives of transportation leaders from across Canada on the systemic issues facing supply chains. This year’s report highlights urgent concerns about productivity gaps, reputational risks, and the need for targeted solutions. Without action, vulnerabilities will worsen, making recovery harder and more expensive.

The productivity problem we can’t ignore

According to the Compass 2025 Report, 69 per cent of transportation leaders agree that productivity is critical for improving reliability and competitiveness. This overwhelming consensus underscores the sector’s recognition of productivity as a cornerstone for resilience. Addressing this issue is no longer optional—it is essential for ensuring Western Canada’s supply chains remain competitive in an increasingly challenging global environment.

The urgency of addressing productivity gaps is magnified by both international and domestic challenges. Trump’s repeated declaration of 25-per-cent tariffs on Canadian goods further destabilizes cross-border trade. Canada’s political landscape, already marked by uncertainty, faces additional complications with Trudeau’s resignation. Combined, these developments amplify the need for decisive action including a solid economic and transportation infrastructure plan to address inefficiencies and strengthen Canada’s supply chains.

These inefficiencies are not just operational obstacles. They erode trust in Canada’s supply chain system. Persistent disruptions, aging infrastructure, and regulatory delays compound the sector’s ability to meet growing demand. Failing to address these issues will jeopardize Canada’s standing as a reliable trading partner and reduce its capacity to navigate future uncertainties effectively.

Reputation at risk: global partners demand reliability

Canada’s reputation as a reliable trading partner is deteriorating. The report reveals that 61 per cent of respondents believe the country’s reputation has worsened over the last 12 months due to supply chain instability. Persistent disruptions, whether from collective bargaining disputes, infrastructure failures, or extreme weather, create cascading effects that weaken trust among global buyers.

For international customers, reliability is paramount. When Canada fails to deliver, buyers are forced to shop elsewhere. Once alternatives are found, winning back business becomes increasingly difficult. In today’s competitive global market, maintaining trust with existing customers and diversifying export markets has never been more important for sustaining Canada’s economic position.

What needs to change: a collaborative path forward

Improving productivity and resilience requires more than quick fixes. It demands structural change. Drawing on insights from the Compass 2025 Report, key themes emerge that highlight what must change to strengthen Canada’s supply chains and enhance resilience:

1. Infrastructure modernization: Strategic investments in both urban and rural corridors are essential to address bottlenecks and ensure goods move efficiently across the network.

2. Regulatory efficiency: Accelerating project approvals is critical to prevent delays in expanding essential infrastructure.

3. Workforce stability: Proactively engaging in labour relations and shifting away from reactive crisis management will help reduce disruptions.

4. Technology adoption: Real-time data-sharing and digital tools—including investments in cybersecurity—are necessary to reduce inefficiencies, improve co-ordination, and protect our supply chains.

5. Cross-sector collaboration: Success hinges on partnerships—not just between industry and government, but also across sectors and regions.

By embracing these structural changes, Canada’s supply chains can move beyond vulnerability and build the reliability needed to maintain a competitive edge.

Building resilience requires bold action

Canada’s supply chains are at a crossroads. Addressing inefficiencies, improving productivity, and strengthening resilience are not just sectoral goals—they are national imperatives. The Compass 2025 Report makes the challenges clear, but so are the solutions. What’s needed now is collective commitment and decisive action to modernize infrastructure, streamline regulations, adopt technology, and foster collaboration. The cost of inaction is too high. Canada’s reputation, competitiveness, and economic stability depend on rebuilding trust, and adapting to a rapidly changing world.

Marzia Rizvi is the manager of program development and communications at WESTAC, and the lead for the annual Compass Report.