Canadian Manufacturing PMI strongest in seven years, creating a candidate’s market for new talent
The Canadian Manufacturing Purchasing Managers Index (PMI) was released earlier today, and shows the sector achieving “their strongest overall performance since April 2011, with the headline PMI reading boosted by faster new order growth and the greatest increase in pre-production inventories for six years.”* Regionally, “Quebec experienced the strongest overall improvement in manufacturing conditions” according to the study.
Manufacturing demand outstripping supply, despite raw material uncertainty
The main driver behind these figures is strong consumer purchasing. This is fuelling demand in the manufacturing sector, which is simultaneously experiencing capacity issues on their output. Again, Quebec saw the fastest new order growth in six years, while all regions reported strong input cost inflation and longer delivery times for materials. There are a few reasons for this, one being uncertainty around raw materials, particularly steel which was hit by new tariffs from the United States this week. Purchasing managers have been working to build stock for several months but this – paired with reported deficiencies in the supply chain – mean manufacturers are operating at full capacity.
Demand for new talent becoming competitive, plan to act quickly
From our perspective as recruiters, we’re seeing continuous demand for talent from our clients. Hiring is continuing to be strong despite trade and supply chain uncertainties because of sustained product demand. We feel that it is a candidate’s market, and we’re seeing salaries rise for top talent. We are telling clients they need to act quickly and make decisions fast as most applicants will have at least one other offer on the table. Employers need to consider whether it will be better to wait for someone that ticks all their boxes, or decide what they can accept and plan to develop individuals once they’re hired.
Using a recruiter means you can find talent quickly and still guarantee a thorough process. Get in touch with myself, Kevin Leh, or President and Senior Recruiter Henry Goldbeck, to discuss the market and what you’re looking for over the next year or two.
* IHS Markit Canada Manufacturing PMI™ News Release, June 1, 2018
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