Make it, Move it, Ship it

Make It Move It Ship It

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

January 2012

Make It Move It Ship It Acknowledgements Workforce Planning Hamilton recognizes and thanks the following individuals that assisted with Make it, Move it, Ship it: Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton.

Richard Koroscil, John C. Munro Hamilton International Airport Janet Balfour, Hamilton Port Authority Sylvia Renshaw, City of Hamilton, Economic Development Norm Schleehahn, City of Hamilton, Economic Development A special thanks to the employers who took the time out of their busy schedules to contribute to this project with Workforce Planning Hamilton.

Prepared by Rachelle Moore, Workforce Planning Hamilton

This Employment Ontario project is funded by the Ontario Government Ce projet Emploi Ontario est financÊ par le gouvernement de l’Ontario.

This document may be freely quoted and reproduced without obtaining the permission of Workforce Planning Hamilton provided that no changes whatsoever are made to the text and Workforce Planning Hamilton is acknowledged as author. The information presented in this report is current at the time of printing.

The views expressed in this document do not necessarily reflect those of the Government of Canada or the Government of Ontario.

Make It Move It Ship It

Table of Contents

Executive Summary

4

Introduction

6

Methodology

8

Air Transportation

10

Rail Transportation

15

Marine Transportation

19

Truck Transportation

24

Supply Chain Management & Logistics

28

Survey Results

34

Findings and Recommendations

35

Summary

36

Appendix

37

Endnotes

40

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Executive Summary For skilled workers ready for a rewarding career, Hamilton’s Goods Movement and Supply Chain and Logistics sector is a bright prospect. It is an industry that thrives in the exact kind of environment Hamilton provides – an established infrastructure with close proximity to major commerce hubs (Niagara region, Toronto and the United States border). No other municipality in Canada is so ideally suited to all four major modes of transportation:

Air – The 24/7 John C. Munro Hamilton International Airport is the largest courier/cargo airport in Canada.

Water – Hamilton Harbour is the busiest on the Canadian Great Lakes and 8th busiest in the country.

Road – Easy access to several major highways makes Hamilton a gateway for truck transport.

Rail – Two prominent railway companies, Southern Ontario Railway and Canadian National Railway, currently operate in Hamilton.

The Supply Chain Management and Logistics subsector, which employs more than 13,000 people in Hamilton, is another key subsector outlined in this report.

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Despite an ideal environment for the Goods Movement and Supply Chain and Logistics companies, employers currently lack what all industries in the country lack today – an abundant qualified workforce from which to hire. Overcoming the following human resources challenges could make the difference between a slowly growing sector in Hamilton and a booming one: Lack of awareness: Many job seekers know little about the vast career opportunities in this sector.

Negative image: Of those who do consider this sector, many forego it because they see it as unglamorous, difficult or not family-friendly, thus missing out on rewarding careers.

Aging workforce: In the subsector of Supply Chain and Logistics, the number of workers approaching retirement (17% in 2006) is slightly above the average for all occupations in Hamilton. This issue is also of particular concern in trucking where almost 60% of truck drivers are over 45 years of age. With low numbers of young workers entering the field, trucking faces an alarming labour shortage.

Low percentage of local residents working in the sector. Despite large numbers of Hamilton residents looking for work in the sector, the majority of workers in the city’s Air Transportation and Marine

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

Make It Move It Ship It Transportation jobs commute, often in heavy traffic, from Halton/Peel, Toronto and other areas.

Besides identifying gaps, this report by Workforce Planning Hamilton highlights opportunities to address the Goods Movement and Supply Chain and Logistics sector’s HR challenges. The following is a summary of WPH’s recommendations: Tap into local talent. Our research indicates an abundance of workers available locally. Figures from the 2006 census reveal there were 725 Hamilton residents working in or looking for work in Air Transportation, 290 in Rail Transportation and 55 in Marine Transportation. Employers have at their ready a pool of skilled graduates from Hamilton’s world-class institutions that offer apprenticeship, trades certificates or diplomas.

Attract more career-seekers. It is important to promote the variety of highpaying careers in Goods Movement and Supply Chain and Logistics. The sector can revamp its image by highlighting the lucrative and interesting jobs, many of which offer opportunities for travel.

Employers need to get on the radar of students and new entrants to the workforce.

Improve transit options for commuters, and for people within Hamilton who travel to the airport in Mount Hope.

How to get to and from work is a major consideration for new entrants.

Plan for retirements. In Supply Chain and Logistics, an exodus of retirees will create new opportunities for new entrants.

Employers must plan for new hires and find ways for experienced workers to impart their knowledge to the new workforce. In trucking, employers must find ways to attract skilled young workers to replace retirees.

Workforce Planning Hamilton support workforce development in the Goods Movement and Supply Chain and Logistics sector. Other key partners are the many goods movement related associations, including MITL, Metrolinx, SOGC, TransHub Ontario and the Transportation Club of Hamilton. By addressing HR challenges, this sector may be poised to enjoy limitless possibilities in Hamilton.

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Introduction Hamilton has many advantages as a transportation hub. Hamilton harbour is the busiest on the Canadian Great Lakes. The city’s position as the Niagara Gateway provides access to US markets, as well as direct links to major highways and rail lines. Having all four modes of transportation with the addition of logistics and distribution centres in one city, Hamilton offers many exciting opportunities now and in the future for goods movement industries and the occupations that support them.

In 2005 the City of Hamilton introduced its “Goods Movement Study,” which identified this industry cluster as an important source for the city’s economic growth and demonstrated Hamilton’s potential as a regional intermodal transportation centre. In 2006, the provincial government identified Hamilton as a regional growth node in its “Places to Grow” strategy. Hamilton’s location, existing industrial base and market accessibility have made it a major North American gateway for goods movement, logistics and supply chain operations. No other municipality in Ontario offers all four modes of goods transportation within its borders.1 The goods movement cluster in Hamilton faces significant human resources challenges as we move into the future.

While many sectors of the economy are

6

faced with a tightening labour market due to retirements, for the Goods Movement and Supply Chain and Logistics industry this issue is compounded by its negative image. The City of Hamilton’s Goods Movement Study noted issues concerning the appeal of transportation and warehousing as an occupational choice. The image of transportation, and the lifestyle choices often required, are not attracting young people at an adequate rate.2 In order to thrive in Hamilton, this sector needs a strong workforce available for employers wishing to establish or expand their business in the area.

Workforce Planning Hamilton supports workforce development in this sector.

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

Make It Move It Ship It The Workforce Planning Hamilton Goods Movement and Supply Chain and Logistics Report provides detailed labour market information profiles for the five key sectors driving the goods movement cluster in Hamilton. These include:

The following pages delve into these sectors in some detail highlighting key occupations, education and human resources challenges in each sector.

• Air Transportation • Rail Transportation • Marine Transportation • Truck Transportation • Supply Chain Management and Logistics, more specifically Manufacturing, Wholesale and Retail Trades, and Transportation and Warehousing

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Methodology communities of Grand Erie, Niagara, PeelHalton, Toronto, Waterloo, Wellington, and Dufferin to illustrate the skills available to Hamilton employers.

To document the status of the Goods Movement and Supply Chain and Logistics industry as it relates to the local economy, data was collected from a number of recognized sources. This report’s industry analysis used Canadian Business Patterns (CBP) data from 2007 and 2011.3 The

For the purpose of this report the goods movement cluster focused on specific subsectors of transportation, including air, rail, marine, truck, as well as supply chain management and logistics, in the manufacturing, wholesale and retail trades and transportation and warehousing sectors. Each industry profile includes a detailed description of the sector, number of establishments, labour force characteristics, occupational analysis, and a narrative of the trends, opportunities, and challenges of the industry in Hamilton. The labour force characteristics section highlights the number of people employed in Hamilton (opportunities for local employment) as well as how many of those employees live in Hamilton (availability of local talent). This section also compares Hamilton to neighbouring

8

Canadian Business Patterns database provided by Statistics Canada identifies the number of business establishments within a Census Division. The database also identifies the number of employers by detailed industry and for nine different employee size ranges, including indeterminate employers.4 Industries are categorized using the North American Industry Classification System (NAICS).5 The number of people employed and the top occupations based on the National Occupational Classification (NOC)6 system are from 2001 and 2006 Statistics Canada Census data. The NOC is a nationally accepted reference on occupations that groups over 30,000 job titles into 520 occupational groups, providing a standardized framework for organizing the workforce into a coherent system.

While the data supplied by Statistics Canada captures Hamilton’s unique

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

Make It Move It Ship It

circumstances, local knowledge can be very useful in complementing this statistical evidence. In this report, Workforce Planning Hamilton engaged key informants across all industries to discuss their experience in the Goods Movement and Supply Chain and Logistics industry. These interviews proved very useful in uncovering the occupations, skills and key human resources issues in each sector profiled in this report.

Hamilton area and resulted in a total of 34 respondents. An estimated 2,500 employers in Hamilton were contacted; however less than 400 companies were confirmed as working in the goods movement cluster. Fifty per cent of businesses that responded were small- to medium-sized enterprises (SMEs), ranging from 1 to 49 employees, while 13% of respondents employed over 200 workers.

The specific findings of this survey will be discussed in the following sections.  

Workforce Planning Hamilton also reached out to local employers, with assistance from advisory members via an online survey. Survey respondents provided additional information about occupations, education, changing demands and skills.

The survey was distributed across the

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Air Transportation NAICS 481 0.32% of the total workforce in Hamilton, compared to 0.27% across Ontario. The comparison of Hamilton to Ontario minus Toronto reveals that while employment in this sector is relatively low, career opportunities in this sector are similar in Hamilton to elsewhere in the province.

Quick Facts • From 2001-2006 employment grew from 240 to 625 people, an increase of 160% in Hamilton • Local employers report low turnover in this industry • High demand for Transport Canada certifications

Industry Overview This subsector includes establishments primarily engaged in for-hire, commoncarrier transportation of people and/or goods using aircraft, such as airplanes and helicopters. The following are additional subsectors in air transportation: • Scheduled air transportation (NAICS 4811) • Non-scheduled air transportation (NAICS 4812)

Industry Presence A total of 625 people were working in the air transportation sector in Hamilton in 2006, an increase of 385 workers since 2001. This sector accounted for

From 2007 to 2011 the number of businesses registered in air transportation decreased 21% from 14 to 11. In all employee size ranges, there has been no change or a decline in employers over this period.

Today, the John C. Munro Hamilton International Airport (HIA) is Canada’s largest dedicated courier/cargo airport.

HIA has many strengths including a large market in a catchment area, unrestricted and uncongested 24/7 operations, a proven distinct passenger traffic market and a strategic location with strong linkages to other modes of transportation.7 The strength of Hamilton’s international airport coupled with the recent growth in qualified labour suggests continued expansion and opportunities for those interested in air transportation careers.

Table #1: Number of people employed in air transportation in Hamilton NAICS 481 Air Transportation

Hamilton

Ontario

Ontario Minus Toronto

#

%

#

%

#

%

625

0.32%

14,780

0.27%

12,930

0.31%

197,200

5,570,865

Source: Statistics Canada, 2006 Census

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Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

4,234,325

Make It Move It Ship It Labour Force Characteristics The 2006 Census revealed that 625 people were working in the air transportation sector in Hamilton. The table below shows that of those 625 people, only 140 were Hamilton residents.

This suggests that the majority of workers in Hamilton’s air transportation sector commute from the neighbouring regions of Peel-Halton or Toronto.

This is not to say Hamilton does not have people with the necessary skills to work in the air transportation sector. In fact, in 2006 over 700 Hamilton residents were identified as working in or looking for work in the air transportation sector. This indicates there is a surplus of workers available to employers in this sector.

Table #2: Number of residents employed and unemployed in the air transportation sector Hamilton

Grand Erie

Niagara

Peel-Halton

Toronto

WaterlooWellingtonDufferin

Total

Number of employed residents

140

25

55

980

1,015

215

2,430

Labour force of all residents

725

210

260

6,135

4,425

1,010

12,765

481 Air Transportation

Source: Statistics Canada, 2006 Census

Occupational Analysis The careers offered in this sector provide competitive salaries and require a variety of skills and education. In 2006, almost 70% of the workers in this sector had attained some form of post-secondary education, whether apprenticeship training, college diploma or university degree. In addition, most careers in air transportation are regulated by Transport Canada, which

makes specific certifications and training mandatory for many jobs. For example, several air transportation companies employ dispatchers, an occupation found in various other industries. Many of the skills obtained as a dispatcher in one industry can be transferred to the air transportation sector. However, dispatchers entering this sector must complete additional training offered by Transport

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Make It Move It Ship It employers do not expect retirements to affect their workforce in the near future.

In addition, many employers reported low turnover among employees which

Focus on continuous learning Currently 70% of workers in this sector have post secondary education.

Most jobs in the air transportation sector are governed by Transport Canada regulations and require special certifications and training.

Canada.

Another finding is that over 80% of the current workforce is between 25 to 54 years of age while only 5% are approaching retirement. Interview and survey results confirm this; most

indicates satisfying, healthy and safe work environments among Hamilton’s air transportation employers.

The following table shows the number of people employed and the median income for workers in the air transportation sector.

Among these top occupations, four specific jobs have grown tremendously since 2001: aircraft mechanics; aircraft instrument, electrical and avionics mechanics; technicians and inspectors; air transport ramp attendants; and airline sales and service agents. Interview and survey results confirm the importance of

Table #3: Top 10 occupations employed in air transportation in Hamilton NOC

Occupational title

Industry employment

Total workforce

Median employment income

Total – all occupations

625

7315

Aircraft mechanics and aircraft inspectors

140

22.40%

195

0.10%

$53,483

2271

Air pilots, flight engineers and flying instructors

95

15.20%

110

0.06%

$87,489

7437

Air transport ramp attendants

75

12.00%

170

0.09%

$29,116

6433

Airline sales and service agents

65

10.40%

75

0.04%

$26,357

2244

Aircraft instrument, electrical and avionics mechanics, technicians and inspectors

40

6.40%

45

0.02%

$48,371

6432

Pursers and flight attendants

25

4.00%

25

0.01%

$43,206

0713

Transportation managers

20

3.20%

225

0.11%

$63,617

0721

Facility operation and maintenance managers

20

3.20%

570

0.29%

$59,967

4131

College and other vocational instructors

15

2.40%

1,160

0.59%

$65,603

0611

Sales, marketing and advertising managers

10

1.60%

1,425

0.72%

$80,470

197,200

Source: Statistics Canada, 2006 Census

12

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

$43,970

Make It Move It Ship It these occupations in the sector.

Local Training

The air transportation industry offers many careers requiring a variety of training and certifications. Local employers indicate that entry-level employees are encouraged to develop the necessary skills and pursue continued education to qualify for management positions.

New entrants can expect some form of post-secondary education will be needed to work in this field. In fact, in 2006 almost 70% of workers in this sector had attained either apprenticeship training, a college diploma or a university degree. This suggests jobs in air transportation most likely require higher education.

These education programs and certifications relate specifically to the air transportation industry: • Aviation Technician – Aircraft Maintenance • Business Administration

In 2009 the Hamilton Wentworth School Board launched the Aviation and Aerospace Specialist High Skills Major program at Ancaster High School in partnership with the Ontario Aerospace Council, John C. Munro Hamilton International Airport and Mohawk College. This program offers students an opportunity to explore and gain handson experience in a variety of aviation/ aerospace careers.

Air Transportation in Hamilton The John C. Munro Hamilton International Airport was Canada’s number one intermodal (i.e providing more than mode of transportation) air freighter gateway in 2007, moving some 101,400 tons, of which 60-70% were via couriers and 30-40% cargo.8 From 2001 – 2006 employment in this sector grew from 240 to 625 people, an increase of 160%.

Employment in this sector is expected to remain strong as the airport and businesses located at the Hamilton Airport continue to expand.

• Engineering • Travel and Tourism • Certification as an operator of a particular mode of transportation include: »» Air Traffic Control (flight dispatcher) »» Aircraft Maintenance Engineer (AME) »» Commercial or Air Transport Pilot’s Licence

The City of Hamilton selected an area of land surrounding the John C. Munro Hamilton International Airport to examine and develop a concentrated area of employment lands.9 The Airport Employment Growth (AEGD) initiative has been identified as an important economic engine for the future of Hamilton’s workforce. It is projected that 20,000 – 30,000 jobs will be created with the development of AEGD.10

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Make It Move It Ship It Key HR Issues Interviews with local employers indicate very few human resources challenges in the air transportation sector. Most employers report low turnover and small numbers of retiring workers in Hamilton.

One barrier identified by companies in this sector, however, was the location of the airport. The John C. Munro Hamilton International Airport is in Mount Hope, in the southern suburbs of the city. This location offers many advantages to companies operating at the airport but poses a challenge for commuting workers.

Interviews with employers suggest the need for increased bus routes and adapted time schedules to reflect the hours worked by freight and cargo carrier employees.

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Rail Transportation NAICS 482 Industry Overview This subsector comprises establishments primarily engaged in operating railways, which include long-haul or mainline railways, short-haul railways and passenger railways. The following are additional subsectors of rail transportation: • Short-haul freight rail transportation (NAICS 482112)

Quick Facts • 9% increase in employment from 2001 – 2006 • Majority of workers employed in transportation • 25% employed in track maintenance jobs

• Mainline freight rail transportation (NAICS 482113) • Passenger rail transportation (NAICS 482114)

Industry Presence In Hamilton, there were 120 people working in the rail transportation sector in 2006, up 9% from 2001. This sector accounted for 0.06% of the total workforce, compared to 0.12% across Ontario. While this sector is relatively small in Hamilton these numbers are typical across the province.

Because of the way that Canadian Business Patterns identify businesses, the data shows that there are currently no registered businesses with offices in Hamilton. However, two prominent railway

companies are currently operating in Hamilton: Southern Ontario Railway and Canadian National Railway.11 Throughout Southern Ontario there are 22 railway companies in operation. CN and CP dominate the network and are supported by many short line railways, freight railroads and commuter operations.12

Table #4: Number of people employed in rail transportation in Hamilton NAICS 482 Rail Transportation

Hamilton

Ontario

Ontario Minus Toronto

#

%

#

%

#

%

120

0.06%

6,770

0.12%

5,220

0.12%

197,200

5,570,865

4,234,325

Source: Statistics Canada, 2006 Census

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Make It Move It Ship It Labour Force Characteristics In 2006, there were 120 people working in the rail transportation sector in Hamilton. Of this total, 40 were Hamilton residents, which suggests that the majority of workers tend to commute to work.

This is not to say that Hamilton does not offer qualified residents looking to work in this sector. In fact, 290 residents were identified as either employed or looking for employment in Hamilton’s rail transportation sector.

Additionally, within the economic regions of Hamilton, Grand Erie and Niagara, 510 residents were actively working or looking for work in this sector. This indicates an abundance of skilled labour available to employers operating in Hamilton. The following table shows that Hamilton and Waterloo-Wellington-Dufferin offer a good number of qualified residents after PeelHalton and Toronto.

Table #5: Number of residents employed and unemployed in the rail transportation sector Hamilton

Grand Erie

Niagara

Peel-Halton

Toronto

WaterlooWellingtonDufferin

Total

Number of employed residents

40

15

30

190

190

40

505

Labour force of all residents

290

50

170

1,105

1,190

120

2,925

482 Rail Transportation

Source: Statistics Canada, 2006 Census

High turnover rate for new hires Individuals who choose a career in the rail industry need to be prepared for a physically demanding job and shift work.

Occupational Analysis The rail transportation sector provides many opportunities for competitive salaries and unique work environments.

The majority of workers in this sector have attained a high school diploma, while 40% have completed an apprenticeship

16

or trades certificate or college diploma.

Most workers in this sector are between 25 and 44 years of age while 11% are approaching retirement.

From 2001 to 2006, six occupations in the rail transportation sector in Hamilton showed positive growth. Five of the six occupations did not exist in 2001: supervisors (railway transport operations), civil engineers, mechanical engineers; contractors and supervisors (metal forming, shaping and erecting trades); railway car men and welders.

These occupations require higher levels of education including university and professional certifications. Table #6 shows

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Table #6: Top rail transportation occupations in Hamilton NOC

Occupational title

Industry employment

Total workforce

Median employment income

Total — all occupations

120

7362

Railway conductors and brakemen

25

20.83%

35

0.02%

$75,718

7221

Supervisors, railway transport operations

20

16.67%

25

0.01%

N/A

7265

Welders and related machine operators

15

12.50%

2,135

1.08%

$47,323

2131

Civil engineers

10

8.33%

360

0.18%

$63,327

2132

Mechanical engineers

10

8.33%

445

0.23%

$63,166

7214

Contractors and supervisors, metal forming, shaping and erecting trades

10

8.33%

205

0.10%

$76,720

7314

Railway carmen

10

8.33%

50

0.03%

$58,126

197,200

$43,970

Source: Statistics Canada, 2006 Census

the number of workers and median income for people employed in the top occupations.

Local Training The rail transportation industry offers many careers from entry-level to managerial positions and requires a variety of training and skills. New entrants are expected to have either on-the-job training or some form of post-secondary education, most commonly apprenticeship training, to work in this field.

These education programs and certifications relate specifically to the rail transportation industry: • Civil Engineering • Mechanical Engineering

»» Certificate of the Railway Employee Qualification Standards Regulation

Rail Transportation in Hamilton According to the Railway Association of Canada, Canadian railways are among the safest in North America. In 2009, over 30,000 people were employed in rail transportation across the country. The majority of workers were responsible for transportation, while 25% were involved in track maintenance occupations.13 In Hamilton the rail transportation system has played a significant role in the goods movement sector for decades. While the dependence on traditional use of rail has declined, the city has embraced new forms of rail transportation.

• Welder - Apprenticeship • Certification as an operator of a particular mode of transportation »» Canadian Rail Operating Rules Certificate

In recent years, the GO Transit station was redeveloped so that patrons would have access to the rail station located in Burlington. Hamilton continues to develop

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Make It Move It Ship It its rail transportation system. Future plans include the creation of the Hamilton Light Rail Transit (LRT) system, which will provide a rapid transportation network within the city. This initiative has been supported by the Ministry of Innovation’s Places to Grow Strategy which aims to support transportation networks that link urban growth centres through an extensive multimodal system.14 As part of this strategy, the Ministry of Innovation suggests that 200 residents and jobs per hectare will be needed to develop the urban growth centre in downtown Hamilton.15 Even though rail transportation is not generally considered to be robust, it continues to be an important sector in the goods movement in Hamilton.

Locally this sector continues to offer many opportunities for new entrants to gain meaningful employment.

Key HR Issues

Development Canada, short line railway companies have an important advantage because they employ fewer people and are flexible in their labour force. Training courses specific to various employment situations are a main requirement and are encouraged in these companies.16 Skills sets in demand include the ability to manage change, good leadership and communication skills, strategic intuition and good customer service aptitudes.

Health and Safety If a train derails it can cost up to $1 million. The rail industry understands the consequences for both the industry and its clients and pays close attention to occupational health and safety issues.

Major investments have been made in radio equipment and other technology to improve security. Personal safety devices are now compulsory, and ergonomics have improved work methods.17

Survey results and industry research indicate the following main human resources challenges facing the rail transportation sector: Recruitment Working on the railroad can be tough work, with long hours and many days away from home. Despite these challenges, the work can be very rewarding. The industry is working toward promoting the rail transportation as an exciting and stimulating work area.

Organizational Design According to Human Resources and Skills

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Marine Transportation NAICS 483 Industry Overview This subsector includes establishments primarily engaged in the marine transportation of passengers and goods, using equipment designed for those purposes. Additional subsectors of marine transportation include:

Quick Facts • 20% of workers are approaching retirement • Hamilton is the busiest Canadian Great Lakes port

• Deep sea, coastal and Great Lakes water transportation (NAICS 4831) • Inland water transportation (NAICS 4382)

Industry Presence According to the 2006 Census, there were 65 people working in marine transportation in Hamilton. This accounted for 0.03% of the total workforce compared to 0.02% across Ontario.

The June 2011 Canadian Business Patterns reveal that two companies are registered in Hamilton’s marine transportation sector. The Port of Hamilton handles the largest volume of cargo and shipping traffic in all the Canadian Great Lakes. Many opportunities are available in Hamilton but due to the itinerant nature of the work, shipping businesses are located outside of the city and are not represented in this count.

Table #7: Number of people employed in water transportation in Hamilton NAICS 483 Water Transportation

Hamilton

Ontario

Ontario Minus Toronto

#

%

#

%

#

%

65

0.03%

870

0.02%

5,220

0.12%

197,200

5,570,865

4,234,325

Source: Statistics Canada, 2006 Census

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Make It Move It Ship It Labour Force Characteristics

local employers. The table below shows the number of residents in neighbouring regions either working in or looking for work in the marine transportation sector as of 2006.

Across the economic region (including Hamilton, Grand Erie and Niagara) 400 residents were actively working or looking for work in this sector. This suggests an abundance of skilled labour available to

Table #8:Total labour force of residents in water transportation across neighbouring regions NAICS

Hamilton

Grand Erie

Niagara

Peel-Halton

Toronto

WaterlooWellingtonDufferin

Total

55

35

310

150

135

55

740

4823 Water Transportation

Source: Statistics Canada, 2006 Census

Age of workforce In 2006, the majority of workers were prime working age, that is, workers between 25 to 54 years of age, while 20% of workers were approaching retirement.

The marine transportation sector does not show any workers between 15-24 years of age. According to employer interviews, attracting youth is a tremendous barrier and will continue to impact this workforce as retiring workers leave the sector.

80% 60% 40% 20% 0%

20

WATER TRANSPORTATION

100%

ALL INDUSTRIES 87,028

Chart#1: Age of workforce in marine transportation, Hamilton, 2006

n 15-24 years old n 25-54 years old n 55 years and older

Occupational Analysis Hamilton is the busiest Canadian Great Lakes port, and the 8th busiest in Canada as a whole.18 The St. Lawrence Seaway connects the city of Hamilton with Lake Erie and other Great Lakes, as well as international shipping lanes.

Hamilton’s proximity to the St. Lawrence Seaway offers labour market entrants the opportunity to work among some of the largest vessels travelling through Hamilton and around the world.

There are two sides of business operations in the marine transportation sector: corporate and shipboard personnel. In Hamilton, 65 people were employed in this industry in 2006. Most of these jobs reflect the corporate, less traditional side of the industry. However, interviews with local employers indicate very high demand for shipboard personnel, including captains, marine engineers, deckhands, and cooks.

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

Make It Move It Ship It The following chart shows the number of people and jobs in the marine transportation industry in Hamilton as of 2006. The sector most commonly employs shippers and receivers, but managers in human resources, purchasing and engineering can also find employment.

In Hamilton, over 50% of workers in this sector have attained post-secondary education, usually completing a college diploma or university degree. The table below shows the number of workers and median income for workers in these occupations.

Table #9: Top occupations in water transportation in Hamilton NOC

Occupational title

Industry employment

Total workforce

Median employment income

Total – all occupations

65

1471

Shippers and receivers

15

23.08%

1,350

0.68%

$36,689

0112

Human resources managers

10

15.38%

320

0.16%

$72,950

0113

Purchasing managers

10

15.38%

155

0.08%

$74,259

0211

Engineering managers

10

15.38%

220

0.11%

$91,124

0431

Accounting and related clerks

10

15.38%

1,885

0.96%

$36,880

6663

Janitors, caretakers and building superintendents

10

15.38%

2,810

1.42%

$34,964

197,200

$43,970

Source: Statistics Canada, 2006 Census

sector. All are shipboard or seafaring employees. While Hamilton does not report a large number of people employed in these occupations, local employers do recruit for them. Most often the head offices of marine transportation companies are responsible for hiring in these positions. Once hired, these workers have the opportunity to travel throughout the country and abroad.

High Demand Occupations Interviews with key industry professionals identified six occupations that are in high demand in the marine transportation

The following chart presents the top six occupations in high demand in this sector along with the skills required, education and number of people working throughout the province. Note that the majority of these jobs are located in Central and Western Ontario, which includes the Hamilton area.19

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Table #10: Top in-demand occupations in water transportation NOC 2148

Occupational title Marine engineers

Eastern Ontario

Western Ontario

Northern Ontario

Central Ontario

Total Ontario

230

120

15

295

660

Skills required: Reading text, writing, computer use, oral communication, money, scheduling or budgeting and accounting, measurement and calculation, data analysis, numerical estimation, job task planning and organizing, problem solving, finding information Education: Bachelor’s degree in marine engineering, mechanical engineering, or ocean engineering 2273

Captains

80

210

45

185

525

45

185

525

Skills required: Document use, measurement and calculation Education: Several years of experience at sea, training at a marine academy 2273

Marine navigation officer

80

210

Skills required: Document use, measurement and calculation Education: Completion of secondary school, certificate of competency issued by Transport Canada is required 6242

Cooks

9,865

18,020

4,800

23,615

56,305

Skills required: Oral communication, scheduling or budgeting and accounting, numerical estimation, job task planning and organizing, problem solving Education: Completion of secondary school is required.

7433

Deckhands

10

115

0

65

195

0

65

195

Skills required: Reading text, document use, oral communication Education: Completion of secondary school, on-the-job training is provided 7433

Seaman

10

115

Skills required: Reading text, document use, oral communication Education: Completion of secondary school, on-the-job training is provided Source: Statistics Canada, 2006 Census; Ontario Skills Passport; Human Resources and Skills Development

Marine Transportation in Hamilton While the numbers may be small in terms of direct port/marine-related employment in Hamilton, analysis of the broader marine sector in Canada shows significant economic and employment activity and impact. Of the 98,000 jobs created in Canada by activity of the Great Lakes St. Lawrence Seaway, almost 40% or 38,000 jobs are created by activity in the Port of Hamilton. As noted above, this was borne out in interviews with local employers

22

indicating the high demand for marine employees. Furthermore, the economic activity generated by the Port of Hamilton totals over $5.9 billion or 37% of the Canadian activity generated by the Great Lakes St. Lawrence Seaway.

Research shows that a single ship can transport the same amount of merchandise as 870 trucks.20 Recognizing the strength in marine transportation, the City of Hamilton and the Hamilton Port Authority joined an alliance of

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

Make It Move It Ship It transportation stakeholders, actively promoting marine transportation on the Great Lakes / Seaway System. Highway H20 is a 3,700 kilometre marine highway that offers shippers direct access to the commercial, industrial and agricultural heartland of North America.21 Recent studies suggest the marine industry will have to replace upwards of 50% of its current workforce due to retirement alone.22 The need to replace retiring workers and increase youth awareness is echoed in Hamilton.

Key HR Issues Interview and survey results from industry professionals indicate the following main human resources challenges facing the marine transportation sector: Attracting Youth There has been a mass reduction in the number of young people opting for seafaring as a career. There are many contributing factors to this decline in participation, in particular the extended periods away from home life.

Georgian College is the major marine trainer in Ontario.

Find out more about the Great Lakes International Marine Training and Research Centre at: www.marinetraining.ca

Lack of Awareness When contemplating career options, few individuals understand the wide range of occupations available in the marine transportation industry. Despite many interesting and high paying careers in the shipping sector, awareness of these career opportunities appears to be a problem, making recruitment difficult. Interviews with key industry professionals highlight that existing perceptions of the working environment and the associated work life balance are a huge barrier for this sector.

The current working environment and associated work life balance are evolving into a much more family friendly form of employment.

Lucrative shore-based jobs are proving to be a bigger attraction. Local employers are working with Georgian College to recruit youth and provide co-operative learning and graduate placement opportunities for those looking to work in this field.

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Truck Transportation NAICS 484 • Specialized freight trucking (NAICS 4842)

Quick Facts • 80% of businesses are owneroperated or have less than five employees

Industry Presence

• Over 1,900 employed in Hamilton • 20% of workforce is over 55 years of age

Industry Overview This subsector includes companies primarily engaged in the truck transportation of goods. These establishments may carry general or specialized freight. Specialized freight comprises goods that, because of size, weight, shape or other inherent characteristics, require specialized equipment for transportation. Businesses may operate locally (within a metropolitan area and its surroundings) or over long distances (between metropolitan areas).

The following are additional subsectors of truck transportation: • General freight trucking (NAICS 4841)

According to Canadian Business Patterns, from December 2007 to June 2011 the total number of businesses in this sector decreased 8% from 1,114 to 1,024.

Small sized businesses, employing 1-4 people experienced the greatest change between 2007 and 2011 with an increase of 82 employers. In fact nearly 80% of businesses in the trucking sector are either owner operated or have less than five employees.

Labour Force Characteristics There were 1,915 people employed in the truck transportation sector in Hamilton in 2006. This accounted for 0.97% of all employment in Hamilton, compared to 1.12% across Ontario. Overall, the employment profile is predominantly full time, male, 34 to 44 years of age, nonimmigrant, and high school educated. The median income for workers in this industry is slightly below average at $39,767 compared to $43,279 for all industries.

Table #11: Number of people employed in truck transportation in Hamilton NAICS 484 Truck Transportation

Hamilton

Ontario

Ontario Minus Toronto

#

%

#

%

#

%

1,915

0.97%

62,655

1.12%

12,930

0.31%

197,200

5,570,865

Source: Statistics Canada, 2006 Census

24

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

4,234,325

Make It Move It Ship It Occupational Analysis The table below highlights the top 10 occupations in truck transportation in Hamilton. Not surprisingly, the most prevalent occupations include truck drivers, dispatchers and radio operators, and automotive service technicians.

Twenty per cent of the total workforce in this sector were over 55 years of age. This points to future opportunities coming from the need to replace retiring workers.

Trucking Sector Highlights In 2006, 20% of the total workforce in this sector was over 55 years old.

Truck drivers will need a strong skill set in the future to cope with the new technologies used in daily operations.

Table #12: Top occupations in truck transportation in Hamilton NOC

Occupational title

Industry employment

Total workforce

Median employment income

Total – all occupations

1,915

7411

Truck drivers

1,100

57.44%

2,610

1.32%

$42,728

1475

Dispatchers and radio operators

115

6.01%

590

0.30%

$39,741

7321

Automotive service technicians, truck and bus mechanics and mechanical repairers

85

4.44%

2,000

1.01%

$44,498

0713

Transportation managers

75

3.92%

225

0.11%

$63,617

7452

Material handlers

70

3.66%

1,830

0.93%

$39,798

1241

Secretaries (except legal and medical)

60

3.13%

2,650

1.34%

$34,913

1411

General office clerks

55

2.87%

3,645

1.85%

$36,658

1431

Accounting and related clerks

45

2.35%

1,885

0.96%

$36,880

0016

Senior managers - goods production, utilities, transportation and construction

40

2.09%

630

0.32%

$90,166

1231

Bookkeepers

20

1.04%

1,465

0.74%

$34,034

197,200

$43,970

Source: Statistics Canada, 2006 Census

Future demand According to the Canadian Trucking Alliance, the trucking industry will be unable to rely on its traditional sources of labour in the future.23 Truck drivers and other workers in this industry will have to be better trained and have achieved

higher education levels to cope with the new technologies used in daily operations.

Interviews and employer surveys with local businesses confirm that the top occupations mentioned above will continue to be in demand in the next 3-5

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

25

Make It Move It Ship It Local Training In 2006, 34% of workers had obtained a high school diploma while 38% had completed some form of post secondary education.

To develop or enhance the skills necessary to be successful in this industry may require the completion of a degree, diploma or certification program.

Educational programs and certifications that relate specifically to the truck transportation industry are: • Accounting • Business Administration and Management • Construction/Heavy Equipment/ Earthmoving Equipment Operation years in Hamilton. In addition, employers emphasized the importance of entrants having a variety of skill sets to assist with an ever changing workplace. The top skills identified by employers include: Technical Skills • Computer skills • Scheduling or budgeting and accounting • Project management • Technical ability • Safety awareness Soft Skills • Ability to work independently • Flexibility/adaptability • Customer service • Oral and written communication

26

• Economics • Logistics and Materials Management • Purchasing, Procurement/Acquisitions and Contracts Management • Office Management and Supervision • Office Administration • Truck and Bus Driver/Commercial Vehicle Operation In our online survey, employers identified these additional occupations: • Civil engineer • Construction manager

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

Make It Move It Ship It Truck Transportation in Hamilton Trucks haul 90% of all consumer products and foodstuffs both locally, regionally and into the U.S. The trucking industry has an important role in supporting value-added jobs in the goods producing sector. As noted by the Ontario Trucking Association, “in the new era of increased reliance on global competitiveness and trade, employment growth will increasingly come from sectors, like trucking, which support or supply other sectors that explore their goods and services.”24 Recent data reveals that the total employment produced by commercial trucking activity in Ontario creates direct employment for 200,000 workers, of which 75,000 are truck drivers.

While the economic downturn in the United States had a significant impact on the trucking industry, it is expected to rebound. The City of Hamilton anticipates further growth and has invested in major infrastructure developments to support future expansion. These include the completion of the Red Hill Creek Expressway and the opening of the Hwy #6 extension. In addition, the McMaster Institute of Transportation and Logistics (MITL) was formed in 2005 to facilitate world class research and training at the local level.

Aging Workforce Truck drivers account for 57% of total employment in Hamilton’s truck transportation industry. According to the Canadian Trucking Alliance, 35% of the current driver pool is between 45 and 54 years of age and almost a quarter of drivers are more than 55 years old.25 A major concern for the trucking industry is replacing retiring workers. Respondents to our local employer survey confirmed this concern as truck drivers are and will continue to be the largest occupation in this sector.

Recruitment As mentioned, almost 60% of truck drivers are over 45 years of age. Unfortunately, this occupation shows a lower proportion of young workers entering the field.

The potential increase of retirements in the near future combined with the low participation rate by youth suggests an alarming shortage of qualified workers.

Key HR Issues Interview and survey results from industry participants indicate the following main human resources issues facing the truck transportation sector:

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Supply Chain Management and Logistics Quick Facts • More than 13,000 people work in SCL jobs in Hamilton • Most are employed in the transportation and warehousing and wholesale trade sectors

Industry Overview Logistics is the process of planning, implementing and controlling the flow and storage of goods and services and related information from the point of origin to the point of consumption. Supply chain management provides supervision and direction for the various parts of the distribution system including production scheduling and inventory control, transportation, warehousing, retailing and brokerage.26 Over the last decade, logistics has flourished as the flow of information has become vital to supply chain efficiency across industries.

Unlike other subsectors of goods movement profiled in this report, the supply chain management and logistics (SCL) industry covers a wide range of sectors. For the purpose of this report, SCL will refer to the following sectors: manufacturing, wholesale and retail trades, and transportation and warehousing.

Research shows that the majority of

28

logistics and supply chain management operations occur in the aforementioned sectors largely because the flow of goods is paramount to business operations.

Industry Presence According to the Canadian Supply Chain Sector Council, there are four subsectors that together make up the supply chain management and logistics industry. Within these four subsectors are additional sectors that are understood as shared corporate services.

Principal Subsectors of SCL • Freight • Procurement • Operations • Logistics Shared Corporate Services • Information technology • Human resources • Administration, customer services and quality assurance • Health and safety • Accounting and finance

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Table #13: Number of people employed in supply chain and logistics occupations in Hamilton # employed in industry

# employed in supply chain and logistics occupations

% total employment in supply chain and logistics

32,905

6,325

46%

41 Wholesale Trade

7,645

2,695

19%

44-45 Retail

23,885

2,050

15%

48-49 Transportation & Warehousing

7,610

2,775

20%

Total

72,045

13,845

19%

NAICS 31-33 Manufacturing

Source: Statistics Canada, 2006 Census

The Canadian Supply Chain Sector Council offers a matrix of subsectors and occupations in the supply chain and logistics industry (refer to appendix A).

Drawing on this list, WPH found 50 unique occupations and then cross referenced with these occupational codes to the primary sectors of SCL (manufacturing, wholesale and retail trades, transportation and warehousing). The following table illustrates the number of people working in occupations related to supply chain and logistics among the 5 primary subsectors of this industry.

In 2006, approximately 13,845 people were working in supply chain and logistics occupations in Hamilton. The majority of employment opportunities were found in the manufacturing subsector. To view a list of occupations included in this calculation, refer to appendix A.

Labour Force Characteristics In Hamilton, the majority of people employed in supply chain and logistics occupations have attained post-secondary education. More specifically, 31% have completed a college diploma, 19% have attained a university degree, and 5% have completed an apprenticeship or trades certificate program. The chart below illustrates the distribution of education among supply chain and logistics occupations compared to all occupations employed in Hamilton.

Many employers offer continued education opportunities.

This offers employees from entry-level to management the chance to work while developing the skills needed to advance.

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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50%

n No certificate, diploma or degree

ALL OCCUPATIONS

100%

87,028 OCCUPATIONS IN SUPPLY CHAIN AND LOGISTICS

Chart#2: Educational attainment in supply chain and logistics occupations, Hamilton, 2006

n High school certificate or equivalent

n Apprenticeship or trades certificate or diploma

n College diploma n University certificate or degree

0%

a significant impact on the SCL industry.

Similar to other industries experiencing higher rates of attrition, new opportunities will become available to existing and new entrants to pursue as a result of this exodus. In addition, many employers fear there is a disconnect between senior management and younger workers, which will impact the knowledge and experience shared within this industry.

Chart#3: Age of workforce in supply chain and logistics occupations, Hamilton, 2006

Age of workforce In 2006, 17% of workers employed in supply chain and logistics occupations were approaching retirement. This number is slightly higher than the average for all occupations in Hamilton. According to employer interviews, retirements will have

80% 60% 40% 20%

ALL OCCUPATIONS

100%

87,028 OCCUPATIONS IN SUPPLY CHAIN AND LOGISTICS

Source: Statistics Canada, 2006 Census

n 15-24 years old n 25-54 years old n 55 years and older

0% Source: Statistics Canada, 2006 Census

Occupational Analysis Local supply chain and logistics employers identified a broad range of occupations currently employed and in demand in Hamilton. These occupations have various requirements for education and experience. The following chart shows a few of the more common occupations in Hamilton’s supply chain and logistics industry.

30

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Table #14: Top occupations in supply chain and logistics industry, Hamilton NOC

Occupational title

# employed in SCL industries

% of total SCL employment

Median employment income

0016

Senior managers – goods production, utilities, transportation and construction

385

3%

$90,166

Skills required: Reading text, writing, oral communication, scheduling or budgeting and accounting, job task planning and organizing, measurement and calculation, decision making, problem solving, finding information Education: A university degree or college diploma in engineering, business administration, commerce or other discipline related to company’s product; several years of experience as a middle manager 0213

Computer and information systems managers

90

1%

$77,536

Skills required: Reading text, writing, oral communication, computer use, scheduling or budgeting and accounting, job task planning and organizing, data analysis, decision making, problem solving, finding information Education: A bachelor’s or master’s degree in computer science, business administration, commerce or engineering; several years of experience in systems analysis, data administration 0611

Sales, marketing and advertising managers

850

6%

$80,470

Skills required: Reading text, writing, oral communication, scheduling or budgeting and accounting, job task planning and organizing, decision making, problem solving, finding information Education: A university degree or college diploma in business administration or a related field with a specialization in sales or marketing; several years of experience in sales or marketing 1431

Accounting and related clerks

240

2%

$36,880

Skills required: Oral communication, scheduling or budgeting and accounting, job task planning, organizing, problem solving Education: Completion of secondary school is usually required; completion of college or other courses certified by the Certified General Accountants Association of Canada, Canadian Securities Institute or Canadian Bookkeepers Association may be required 2172

Database analysts and data administrators

10

0%

$49,841

Skills required: Reading text, writing, computer use, oral communication, scheduling or budgeting and accounting, measurement and calculation, data analyst, finding information Education: A bachelor’s degree usually in computer science or mathematics or completion of a college program in computer science 2233

Industrial engineering and manufacturing technologists and technicians

335

2%

$54,870

Skills required: Reading text, writing, oral communication, money math, scheduling or budgeting and accounting, measurement and calculation, data analysis, numerical estimation Education: Completion of a two- or three-year college program or equivalent in a related discipline such as engineering technology, pulp and paper technology, industrial engineering technology, manufacturing technology; certification may be required 2263

Occupational health and safety officer

75

1%

$53,641

Skills required: Reading text, document use, oral communication, measurement and calculation, decision making Education: Bachelor’s degree in science, engineering or a related discipline, or a related post-secondary diploma; several years of work experience

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Table #14: Top occupations in supply chain and logistics industry, Hamilton (continued) NOC 7414

Occupational title Delivery drivers

# employed in SCL industries

% of total SCL employment

Median employment income

785

6%

$33,929

Skills required: Reading text, document use, oral communication, job task planning and organizing Education: Completion of secondary school may be required; driver’s licence appropriate to the class of vehicle being driven is required; one year of safe driving experience; on the job training is provided; eligibility for bonding and transportation of dangerous goods (TGD) certification may be required 7452

Forklift operators

1,625

12%

$39,798

Skills required: Reading text, document use, oral communication, measurement and calculation, numerical estimation Education: Some secondary school education may be required 7452

Warehouse workers

1,625

12%

$39,798

Skills required: Reading text, document use, oral communication, measurement and calculation, numerical estimation Education: Some secondary school education may be required; physical strength is required for manual handlers who work with heavy materials Source: Statistics Canada, 2006 Census; Human Resources and Skills Development Canada; Ontario Skills Passport

The above mentioned occupations highlight a few of the many promising occupations in this industry. In addition, respondents of our employer survey revealed five specific occupations expected to be in demand in the next 3-5 years in this industry. These include: refrigeration engineer, systems analyst, sales representative, and skilled trades occupations, specifically technicians and mechanics.

Local Training Because there are a variety of occupations in the supply chain and logistics industry, several educational pathways are available to those interested in working in this field.

Depending on the chosen occupation, apprenticeship, college or university may be required. Education programs in business administration, communications,

32

computer science, engineering, and science generally apply to different career opportunities in this industry.

For more specialized training in supply chain and logistics, there are a small number of options available in Hamilton and across Ontario. Mohawk College and McMaster University offer several partnership programs wherein candidates gain hands-on experience along with theoretical knowledge. These programs are generally offered through the joint Bachelor of Technology programs, with streams in Civil Engineer Infrastructure Technology; Computing and Information Technology; Energy Engineering Technologies; Manufacturing Engineering Technology. For more information, go to: http://mybtechdegree.ca/home.

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

Make It Move It Ship It Supply Chain Management and Logistics in Hamilton The City’s current economic development strategy suggests that continued growth in traffic congestion and resulting gridlock in the GTA will increase the number of major warehousing and distribution companies looking to relocate to more effective and cost efficient locations. Hamilton’s excellent transportation infrastructure and close proximity to the GTA make this area a prime location for SCL businesses seeking to escape the GTA gridlock.27 However there is some uncertainty around the utility of distribution centres as more companies look to ship directly from China to stores, and remove the distribution centres altogether.

Logistics and supply chain operations will continue to play a large role in the movement of goods all over the world.

The SCL industry offers smarter, more efficient ways of doing business. The SCL professional must possess a breadth of skills that reflect a balanced blend of technical and non-technical skills to meet the changing demands of this industry.

SCL offers a tremendous opportunity for displaced workers to use the skills gained in other industries in a SCL career.

Key HR Issues Interview and survey results from industry professionals indicate the following main human resources issues facing the supply chain and logistics sector:

Youth Attraction Key informants and employers surveyed identified the lack of awareness and limited number of young people entering the supply chain and logistics industry.

Students, new workforce entrants and those in career transition typically do not enter the supply chain and logistics sector by choice but rather by circumstance.

There is a distinct lack of awareness of careers in this sector.

Skills and Training The demand for logistics and supply chain operations has grown tremendously over the past decade. The education sector has been slow to catch up with this trend.

In Hamilton, skills training opportunities are available through private colleges, Mohawk College and McMaster University.

Retirements According to the Canadian Logistics Skills Committee, the total annual demand for employees to fill new jobs as well as vacancies resulting from retirements and turnover is estimated to be approximately 86,330, or 12.3% over the next three to five years across the nation.28 The concern around retiring workers is due to not only loss of labour but also lack of knowledge transfer between senior management and young workers in this industry. Key informants suggests there is a great need for upper management to work more closely with middle management and entry level employees as a means to impart their knowledge before exiting the sector.

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Survey Results To gain a greater understanding of the Goods Movement and Supply Chain and Logistics industry, our methodology included a literature review and thorough analysis of the labour market data. From this research we identified 8 industry sectors as being important in the goods movement cluster in Hamilton. For a local perspective, we distributed an online survey to companies deemed contributors to this industry. The survey asked participants to comment on their workforce challenges, more specifically on occupations, skills, and advice for new entrants.

Summary of Responses The survey distributed throughout Hamilton’s Goods Movement and Supply Chain and Logistics industry resulted in a total of 34 respondents, providing a snapshot of this industry in our community.

We advise readers to use discretion when examining the results as this information may not necessarily be representative of the broader employer experience.

The following is a brief summary of the responses collected.

• 50% of businesses who responded to the employer survey were small- to medium-sized enterprises (SMEs), ranging from 1 to 49 employees, while 13% employed over 200 workers.

• Over 65% of respondents have been in business for 10 years or

34

more. Based on the responses, well established businesses are less likely to have difficulty recruiting qualified workers.

• When asked what worker attribute was most difficult to find when recruiting new workers, 32% of respondents stated the right attitude is most difficult to find, followed by right skill set and experience in their sector.

• The top 3 technical skills needed to work in this industry, according to respondents, are computer skills, project management and technical ability.

• The top 3 soft skills identified by respondents are teamwork, ability to work independently, and oral and written communication.

We also asked employers for advice to new entrants in this field. Their responses are below: • “Complete grade 12, always give your best, be reliable.”

• “There are many aspects to driving a transport truck. The student driver needs to ensure he/she is getting the proper training which should include everything needed to be known for the first day on the job with emphasis on safety training.”

• “Drivers need to be prepared to work under present regulations.”

• “Pursue professional development through continuous learning.”

• “Education and training is key.”

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Findings and Recommendations Evidence shows that the Goods Movement and Supply Chain and Logistics industry has a strong and increasing presence in our city with expanding opportunities. Key to expansion is a skilled labour force. Based on current research and discussions with local employers, the following recommendations will support future access to talent:

1. Increase the promotion of traditional goods movement careers Many employers, specifically in marine and rail, report difficulty with recruiting workers largely due to the unglamorous image associated with the nature of the work. Increased promotion of traditional goods movement careers would serve to educate young and displaced workers.

2. Create mentorship opportunities for senior management to connect with new labour market entrants and youth Interviews with key professionals in the supply chain and logistics industry identified the need for senior management to connect and share their knowledge of the industry with younger workers. As with other sectors in this industry, retirements will impact recruitment needs in the near future. Mentorship would give the supply chain and logistics workforce the opportunity to share

firsthand knowledge of the industry.

The entire workforce would benefit from open discussions around best practices, lessons learned, education, and the skills needed to work and excel in the supply chain and logistics industry.

3. Expand Specialist High Skills Major (SHSM) to include supply chain and logistics careers Specialist High Skills Majors allow high school students to customize their education to fit their career interests. Currently the Hamilton Wentworth District School Board and the Hamilton Wentworth Catholic District School Board provide a range of SHSM career exploration programs. SHSM would help increase awareness of the opportunities available in this emerging and expansive industry amongst students in Hamilton.

4. Expand public transit opportunities to the airport area The John C. Munro Hamilton International Airport is positioned on the southern fringes of the city and most freight and cargo companies operate outside of normal business hours. Interviews with local employers indicated the need for increased public transit routes and hours of operation to help workers in this sector commute to and from work.

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Summary This industry presents a considerable opportunity for Hamilton. The city’s location, existing industrial base and market accessibility have made this community a major hub for Goods Movement, Logistics and Supply Chain operations. As businesses expand and others relocate to this area, there is a strong need for workforce development to support the industry’s evolving skills requirements and future labour force growth.

36

In 2005 the City of Hamilton identified the goods movement cluster as an important source for economic growth and demonstrated Hamilton’s potential as a regional intermodal transportation centre. In 2006 the provincial government highlighted Hamilton as a prospect for its growth in the transportation and logistics industry. For those with the right skills, education and attitude, career options are bright in this sector.

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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Appendix A Careers in Supply Chain Subsector Freight

Procurement

Operations

NOC

Formal Occupational Title

Other Job Titles

0016

Senior Managers – Goods Production, Utilities, Transportation and Construction

VP, Transportation

0713

Transportation Managers

Manager, Transportation

1236

Customs, Ship and Other Brokers

Customs Broker

1476

Transportation Route and Crew Schedulers

Transportation Route Scheduler

1475

Dispatchers and Radio Operators

Dispatcher

1471

Shippers and Receivers

Shipper/Receiver Import/Export Brokerage Clerk

7414

Delivery and Courier Service Drivers

Pickup and Delivery Driver

1461

Mail, Postal and Related Clerks

Small Parcel Clerk

0113

Purchasing Managers

Senior Management in Procurement

1225

Purchasing Agents and Officers

Purchasing Agent

6233

Retail and Wholesale Buyers

Retail/Wholesale Buyer

1474

Purchasing and Inventory Clerks

Contract Administrator Purchasing Clerk Purchasing Assistant

0721

Facility Operation and Maintenance Managers

Plant Manager Production Manager

0132

Postal and Courier Services Managers

Postal and Courier Service Manager

1214

Supervisors, Mail and Message Distribution Occupations

Foreman, Operations

1215

Supervisors, Recording, Distributing and Scheduling Occupations

Team Leader, Operations

7452

Material Handlers

Material Handler, Forklift Operator

9617

Labourers in Food, Beverage and Tobacco Processing

1472

Storekeepers and Parts Clerks

Order Filler

7451

Longshore Workers

Dock Worker

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

37

Make It Move It Ship It Careers in Supply Chain Subsector Logistics

Information Technology

Human Resources

Administration, Customer Service and Quality Assurance

38

NOC

Formal Occupational Title

Other Job Titles

0114

Other Administrative Services Managers

Logistics Technical Manager

1215

Supervisors, Recording, Distributing and Scheduling Occupations

Logistics Technical Manager

0713

Transportation Managers

Manager, Logistics Planning

2141

Industrial and Manufacturing Engineers

Logistics Engineer

1474

Purchasing and Inventory Clerks

Inventory Planner

1122

Professional Occupations in Business Services to Management

Logistics Analyst

0213

Computer and Information Systems Managers

Manager, Electronic Data Processing Manager, System Development/Planning

2233

Industrial Engineering and Manufacturing Technologists and Technicians

Inventory Auditor

2171

Information Systems Analysts and Consultants

Systems Analyst

2172

Database Analysts and Data Administrators

Systems Analyst

2175

Web Designers and Developers

Programmer

2281

Computer Network Technicians

Network Technician

2282

User Support Technicians

Software Support

0013

Senior Managers – Financial, Vice President, Communications and Other Business Services Human Resources

0112

Human Resources Managers

Manager, Human Resources Manager, Employee Relations

1223

Personnel and Recruitment Officers

Benefits Coordinator Human Resources Coordinator

1211

Supervisors, General Office and Administrative Support Clerks

Time and Attendance Administrator

1442

Personnel Clerks

Human Resources Administrative Assistant / Administrator

0611

Sales, Marketing and Advertising Managers

Vice President, Sales

1221

Administration Officers

Manager, Administration Manager, Customer Service

2141

Industrial and Manufacturing Engineers

Manager, Quality Assurance

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

Make It Move It Ship It Careers in Supply Chain Subsector Administration, Customer Service and Quality Assurance

Health & Safety

Accounting & Finance

NOC

Formal Occupational Title

Other Job Titles

0013

Senior Managers – Financial, Business Development Communications and Other Business Services Manager

2262

Engineering Inspectors and Regulatory Officer

Quality Assurance Officer

1453

Customer Service, Information and Related Clerks

Customer Service Representative

1414

Receptionists and Switchboard Operators

Administrative Assistant Receptionist

--

--

Health and Safety Risk Management

0112

Human Resources Managers

Director, Health and Safety

6465

Other Protective Service Occupations

Supervisor, Loss Prevention Officers Trainer, Safety and Hazard Awareness

2263

Inspectors in Public and Environmental Health and Occupational Health

Resource Protection Investigator

3152

Registered Nurses

Occupational Health Nurse

1453

Customer Service, Information and Related Clerks

Claims Clerk

6651

Security Guards and Related Occupations

Patrol

1411

General Office Clerks

Administrative Assistant

0013

Senior Managers – Financial, Chief Financial Officer Communications and Other Business Services

0111

Financial Managers

Director, Financial Services

0123

Other Business Services Manager

Accounting Manager

1212

Supervisors, Finance and Insurance Clerks

Payroll Administrator

1112

Financial and Investment Analysts

Financial Analyst

1431

Accounting and Related Clerks

Accounts Payable, Payroll and Receivable Clerks

Source: Canadian Supply Chain Sector Council

Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

39

Make It Move It Ship It

End Notes City of Hamilton, Economic Development Strategy 2010-2015, 22 City of Hamilton, Hamilton Goods Movement Study, 2005, 2 3 Statistics Canada, 2007 and 2011, Canadian Business Patterns Data (CBP). CBP data reflects counts of business establishments and locations by 9 employment size ranges, including “indeterminate”; geography groupings: province/territory, census division, census subdivision, census metropolitan area and census agglomeration; and industry using the North American Industry Classification System.

4 Statistics Canada, Canadian Business Patterns Data (CBP). CBP data reflects counts of business establishments and locations by 9 employment size ranges, including “indeterminate”; geography groupings: province/ territory, census division, census subdivision, census metropolitan area and census agglomeration; and industry using the North American Industry Classification System.

5 Statistics Canada, 2007, North American Industry Classification System (NAICS). NAICS is a numeric system that provides common definitions of the industrial structure of Canada, Mexico and the United States, and facilitate economic analysis.

6 Human Resources Skills Development Canada, 2010, National Occupational Classification System (NOC).

NOC is a tool that classifies occupations with a four-digit code according to skill type and skill level.

7 McMaster Institute for Transportation and Logistics, A Sustainable Strategy for Developing Hamilton as a Gateway, 2009, 65 8 McMaster Institute for Transportation and Logistics, A Sustainable Strategy for Developing Hamilton as a Gateway, 2009, 65 9 City of Hamilton – Public Works, Airport Employment Growth District. October 3 2011. <http://www.hamilton. ca/CityDepartments/PlanningEcDev/Divisions/IndustrialParksAirportDevelopment/AirportEmploymentGrowth District/?WT.mc_id=aegd&WT.hamilton_redirect_friendly=1>.

10 Airport Employment Growth District. August 15 2011. <http://www.aegd.ca/about-aegd>.

11 Canadian Business Patterns reports the number of business establishments in a given area based on the location their accounting and administrative paperwork is filed. This discrepancy is especially pronounced with complex units, those companies that have more than one location.

12 Research and Traffic Group, Southern Ontario Gateway Transportation & Logistics Issues, 2008, 8 13 Statistics Canada. August 25 2011. <http://www40.statcan.gc.ca/l01/cst01/trad50-eng.htm>.

14 Ministry of Public Infrastructure Renewal, Places to Grow: Growth plan for the Greater Golden Horseshoe, 2006, 16 15 Ministry of Public Infrastructure Renewal, 16 16 Human Resources and Skills Development Canada. September 14 2011. <http://www.hrsdc.gc.ca/eng/hip/ hrp/sp/industry_profiles/railway_transport.shtml>.

17 Human Resources and Skills Development Canada. September 14 2011. <http://www.hrsdc.gc.ca/eng/hip/ hrp/sp/industry_profiles/railway_transport.shtml>.

18 McMaster Institute for Transportation and Logistics, A Sustainable Strategy for Developing Hamilton as a Gateway, 2009, 63 19 Eastern Ontario includes Lennox and Addington, Frontenac, Leeds and Grenville, Hastings, Prince Edward, Stormont, Dundas and Glenary, Prescott and Russell, Lanark, Refrew, Northumberland, Peterborough, Kawartha Lakes, Haliburton; Western Ontario includes Elgin, Middlesex, Oxford, Bruce, Grey, Huron, Perth, Brant, Haldimand-Norfolk, Hamilton, Niagara, Lambton, Waterloo, Wellington, Dufferin, Essex, ChathamKent; Central Ontario includes Durham, Simcoe, Muskoka, Peel, Halton, York, Toronto; North Ontario includes Algoma, Timiskaming, Cochrane, Nipissing, Parry Sound, Rainy River, Kenora, Thunder Bay, Budbury, Manitoulin, Greater Sudbury.

20 Green Marine. December 20 2010. < http://www.green-marine.org>.

21 HWY H20. December 20 2010. < http://www.hwyh2o.com>.

22 Canada’s Marine Industry Alliance. Canada’s Marine Industry: A Blueprint for a Stronger Future, 2009, 41 23 Canadian Trucking Alliance, Carrier Business Briefs, 2010.

24 Ontario Trucking Association. August 24 2011. <http://www.ontruck.org/iMISpublic/Content/ NavigationMenu/OTAIndustry/TruckingIndustryinOntario/default.htm>.

25 Canadian Trucking Alliance, Carrier Business Brief, 2010 26 Industry Canada. October 4 2011. <http://www.ic.gc.ca/eic/site/dsib-logi.nsf/eng/home>.

27 City of Hamilton, Economic Development Strategy 2010-2015, 229 28 Canadian Logistics Skills Committee. Strategic Human Resources, Study of the Supply Chain Sector. 2005.

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Careers in the Goods Movement and Supply Chain & Logistics Sector in Hamilton

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