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1. W.E. Are Globally Connected: An Examination of Transportation, Distribution, Logistics and Warehousing 2. We would like to thank everyone who contributed their time,…
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  • 1. W.E. Are Globally Connected: An Examination of Transportation, Distribution, Logistics and Warehousing
  • 2. We would like to thank everyone who contributed their time, ideas and expertise to W.E. Are Globally Connected: Workforce Opportunities Arising From the New International Trade Crossing. This report represents the collaborative efforts of the Windsor-Essex transportation, distribution, logistics and warehousing communities. Workforce WindsorEssex would also like to thank Mina Girges for his work in developing and authoring this report. The information in this report is current at the time of printing: December 2014. Printing and Design by Imaginative Imaging. Translation by Alexa Translations. How did we do? We invite your feedback on all publications produced by Workforce WindsorEssex. www.WorkforceWindsorEssex.com 98 Chatham St. E. Windsor, ON N9A 2W1 Phone: 519-255-6545 Fax: 519-256-3100 info@workforcewindsoressex.com This document may be freely quoted and reproduced without permission from Workforce WindsorEssex provided that the content remains the same and that the organization is acknowledged as the author of this document. Workforce WindsorEssex is committed to ongoing research to enhance local labour market planning in the Windsor-Essex region. Workforce WindsorEssex assumes no responsibility for its use or for the consequences of any errors or omissions. The views expressed in this document do not necessarily reflect those of Employment Ontario or the Government of Ontario. A special thanks to our funding partners:
  • 3. Executive Summary How can we ensure Windsor-Essex has talent for its Transportation, Distribution, Logistics, and Warehousing (TDLW) sector? What are the locational advantages for the sector? What are the industries and sectors that make up TDLW and may benefit from the New International Crossing? What are skills and training required by local employers? These are all very important questions to be answered as the Windsor-Essex community welcomes the New International Trade Crossing. A supply of skilled individuals is needed to fuel the sector, as it exists today and allow local employers to grow their businesses. Workforce WindsorEssex spoke with 20 local employers in the TDLW sector. Learning employer perspectives, combined with statistical analysis will develop a framework to answer the questions above. This report identifies the promising TDLW occupations in our community that will stand to benefit from enhanced cross-border infrastructure. Local employers identified the following occupations that are poised for growth: • Aviation Maintenance Engineer • Custom Broker • Dispatcher • Material Handler • Truck Driver The needs and challenges identified locally are similar to the needs and challenges of the TDLW sector provincially, nationally, and internationally. Identifying these opportunities and providing awareness about the industry is the first step in creating workforce that can support Windsor-Essex and the TDLW sector.
  • 4. 4 Table of Contents Research Design................................................................................................................................... 5 Transportation and Warehousing......................................................................................................... 5 Industry Overview...............................................................................................................................................6 Air Transport........................................................................................................................................................6 Water Transport...................................................................................................................................................7 Rail Transport......................................................................................................................................................8 Road Transport...................................................................................................................................................8 Warehousing and Distribution Centers...............................................................................................................8 Employment........................................................................................................................................... 9 Occupation Profile............................................................................................................................... 10 Cindy- She Repairs and Maintains Planes........................................................................................................11 Linda the Custom Broker..................................................................................................................................12 Joe the Longshoreman.....................................................................................................................................13 Peter- He Drives a Truck...................................................................................................................................14 Mark the Dispatcher..........................................................................................................................................15 Education for TDLW............................................................................................................................ 16 St. Clair College................................................................................................................................................16 Trios College.....................................................................................................................................................16 University of Windsor........................................................................................................................................16
  • 5. Introduction The Ontario Ministry of Training, Colleges and Universities has funded Workforce WindsorEssex (WFWE) to do a year-long research project that examines transportation, distribution, logistics, and warehousing (TDLW) in Windsor-Essex the impact the New International Trade Crossing (NITC) on these industries. Over 7,517 trucks per day cross the Windsor-Detroit border contributing to the local, provincial, and national economies of both Canada and the US1 . The TDLW industries are well positioned to take advantage of this improvement in Canadian infrastructure. Workforce WindsorEssex surveyed organizations from within TDLW. 45% of respondents were small business owners and 95% conducted cross-border business regularly. All respondents employed a combination of full-time and part-time staff to manage their cross-border or logistics needs2. TDLW employers have experienced an aging workforce and a growing skills gap. Companies are looking to replace retiring employees and keep pace with international growth. Strategic importance has been placed on recruitment, attraction and retention is rising. Small, large, and medium size businesses are struggling with staffing; candidates do not have the required hard skills3. Businesses are increasing wages to address the skills mismatch. In the TDLW sector for the province of Ontario, 22% of the workforce is over the age of 54. Comparatively, in manufacturing 20% of the workers are over 54. With upcoming retirements, these figures show the importance of attracting young people and showcasing the opportunities that exist in TDLW 4. 1Rose, A., Roberts, B., Heatwole, N., Wei, D., Avetisyan, M., Chan, O., & Maya, I. (2014). The impact on the US economy of changes in wait times at ports of entry. Transport Policy, 35, 162-175. 2Employer Consultation 3Kaushcke, P., Ruske, K. & von der Gracht, H. (2012). Winning the talent race. Transportation and Logistics 2030, 5, 8-45. DOI: www.pwc.com/tl2-3- 4Statistic Canada, CANSIM table 282-0007 Research Design Workforce WindsorEssex examined data from various sources including statistics, research, reports, and consultations to answer the following research questions: 1. What are the locational advantages that Windsor-Essex has and how can we ensure we have the workforce to benefit from this competitive advantage? 2. What are the industries and sectors in Windsor-Essex that stand to grow/benefit from the enhanced 5 cross-border infrastructure? 3. What are the occupations within these sectors and industries? 4. What is the skill sets required by local employers in order to promote growth in their sectors? a) Are there skills gaps between the required skill sets and the current skill sets of the local workforce? 5. What training is available locally for the occupations identified and is there any training gap present? Workforce WindsorEssex conducted 20 consultations with businesses in transportation and warehousing, industry associations, and educational institutions to determine what opportunities will arise from the NITC. Local trends were captured through interviews, data from Statistics Canada, Economic Modeling Specialist International (EMSI) Analyst, and The Cross Border Institute. The data examined age, sex, and business patterns and confirmed the national trends indicating that indeed the workforce is aging, there is a skills gap and youth will be key to supporting TDLW.
  • 6. Transportation and Warehousing Transportation, Logistics, Distribution, and Warehousing (TDLW) in Canada can be classified into five sectors. These include air, marine, rail, road, and warehousing and are the main components in the movement of goods. Table 1 illustrates an overview of employment in Windsor-Essex by Industry. Nationally, TDLW has performed better than other sectors of the Canadian economy in terms of employment and economic growth. In 2013, employment in Canada grew at 1.3% while TDLW grew nationally at 1.8%, with an increase of 6.1% in average weekly wages from 2012 to 2013. Despite national growth, 10,500 positions remained vacant5. In Windsor-Essex, TDLW sectors have outperformed national trends, with employment growing at 1.6% in 20116. Historically, Windsor-Essex has been important for trade and currently employs double the persons in customs, shipping, and other brokers compared to all other urban centers in Canada7. The Ambassador Bridge, which links Windsor to Detroit, carries 25% of all Canada-U.S. trade, and is the busiest commercial land border crossing in North America8. Employers are confident that the NITC and the current infrastructure will further growth in TDLW9. Windsor-Essex has focused on expanding logistics and warehousing in the region by developing key infrastructure (i.e. Herb Gray Parkway and NITC) to support the TDLW industry10. Given the region’s economic development strategy, attracting and retaining these businesses require a workforce that will meet the demands of employers. 5Transportation In Canada. (2012). Overview Report, 2012E-PDF(1920-0846), 1-12. Retrieved April 28, 2014, from http://www.tc.gc.ca/media/documents/policy/ Transportation_in_Canada_2012_eng_ACCESS.pdf) 6Economic Modeling Specialist International, 2014, Industry Report 7Logistics/Warehousing & Cross-Border Activities. (2011, January 1). Retrieved July 3, 2014, from http://www.choosewindsoressex.com/transportation 8Transportation In Canada. (2012). Overview Report, 2012E-PDF(1920-0846), 1-12. Retrieved April 28, 2014, from http://www.tc.gc.ca/media/documents/policy/ Transportation_in_Canada_2012_eng_ACCESS.pdf) 9Employer Consultation 10Workforce WindsorEssex. Promising Sectors and Occupations Windsor-Essex 2012-2015. Retrieved January 1, 2014, from http://www.workforcewindsoressex.com/ parents_youth/promising-sectors-and-occupations-windsor-essex-2012-2015/#sthash.AYiWfLp0.dpuf 6
  • 7. Table 1 identifies the number of jobs in each industry within TDLW for 2008, 2014 and 2020. The figures from 2014 and 2008 are predictions from the data source EMSI Analyst. The predicted jobs indicated in the table validate the growth in employment anticipated by employers in each of these industries who were consulted in the research phase. It is important to include data over the time periods presented in Table 1 to include a picture of how TDLW looked before the economic downturn, where things sit currently and what we can prepare for in the future. From the data, it identifies that there will be nearly 850 new jobs in TDLW compared to the number of jobs in 2008. Table 1: Windsor-Essex Employment by Industry Industry 2008 Industry Overview Air Transport In the early 1990s, Canadian airports were owned, operated, or subsidized by the federal government through Transport Canada. In 1992, the National Airports Policy was implemented. Ownership of airports was transferred of airports to municipalities. The federal government leased airports to airport authorities. Today, aviation is considered an economic driver and Canadian airports add a combined value of $45 billion annually to their home communities11. In Windsor-Essex, the airport, Your Quick Gateway Windsor International Airport (YQG), is an important structure for the continued development to grow TDLW. In an attempt to expand further, a transportation cluster is being developed and the YQG Windsor international airport is at the heart of it. A transportation cluster is a group of logistics and transportation related companies and distributors within a region. Transportation clusters serve a multitude of manufacturers, retailers and distributors and are not dependent on any one industry12. 11Lufthansa Consulting. (2009, September). Feasibility Study Air Cargo Development at Windsor International Airport Phase 1: Market Potential Analysis. Retrieved from City of Windsor. 12Kosk, N. (2013, January). Logistics Clusters: The Next Hub of Environmental Innovation. Retrieved September 1, 2014, from http://www.sdcexec.com/article/10851246/ logistics-clusters-the-next-hub-of-environmental-innovation 7 Jobs 2014 Jobs 2020 Jobs Change ’08-’20 Air Transportation 52 106 120 68 Rail Transportation 262 134 100 (162) Water Transportation 40 61 64 24 Truck Transportation 2172 2327 2436 264 Transit & Ground Passenger Transportation 1002 1242 1306 304 Support Activities for Transportation 1219 1335 1394 175 Couriers and Messengers 404 448 469 65 Warehousing and Storage 149 240 252 103 Total 5300 5893 6141 841 Source: EMSI Analyst, November, 2014
  • 8. The Windsor international airport, YQG, has invested $40 million into major projects, including new and expanded terminals and more runways to improve the flow of passenger and cargo. YQG is adjacent to major transportation passages and multimodal facilities that support different types of logistic purposes. A multimodal facility is a transportation element that adapts and connects different modes of transportation allowing for the efficient movement of people and goods. The airport has 2,000 acres of development potential for distribution, manufacturing, office, and retail developments. Windsor-Essex is the only transshipment point for cargo between Toronto and Detroit13. Windsor-Essex has attracted several commercial airlines including Porter Airlines, Air Canada and West Jet. This has opened Windsor-Essex up to a larger network for transportation. In 2012, Premier Aviation expanded operations in Windsor-Essex. Premier Aviation performs full service maintenance, repairs, and overhaul (MRO) for medium and large-size aircrafts. Since Premier’s expansions into Windsor-Essex, the demand for MRO technicians and mechanics has increased14. In 2014, Windsor-Essex announced further development of this multi-modal facility at the airport and FedEx was welcomed as an anchor tenant. These companies chose Windsor-Essex for it’s locational advantages15. This industry continues to grow and since 2009 four employers have become established in Windsor- Essex16. Employers, through the consultation process confirmed a positive outlook regarding future growth and hiring17. Water Transport The marine industry in Windsor-Essex has had great success as a result of its geographical location and increased construction activity, which include the Herb Gray Parkway and future construction of NITC. The port is along the Great-Lakes seaway system and is the fourth most active port in Canada. Waterborne cargo activity at the marine terminal contributes an estimated 937 direct and indirect jobs by marine activity. The port supports activity in various business sectors including trucking, construction, and marine services. In 2013, the total number of documented ships that docked in Windsor were 1,082. In 2010, direct business revenues received by cargo at the marine terminal were $130.5 million18. These ships brought more than 7.1 million tons of commodities. There are 3 businesses that operate in the marine industry19. Based on consultations businesses on the port have doubled property size to support port activity20. The Port of Windsor is the primary access point best suited to accommodate for the transportation of bulk commodities such as asphalt, cement, and salt. When commodities are received at the port, 90% are then moved by truck to their final destinations21. The movement of goods from one mode of transportation to another demonstrates the importance of having a local intermodal facility and how industries in TDLW rely on each other for delivery of goods and materials. Mortem is a cargo facility that sits on the Great Lakes seaway and provides a range of material handling, stevedoring, and warehousing services. In 2012, the Port of Windsor received a $10 million infrastructure grant to expand the existing Sterling Fuels Dock and to develop a new terminal for construction materials. Sterling Fuel is the largest fueling station for freight ships on the Great Lakes Seaway system and boasts an innovative refueling and off-loading facility22. This encourages ships to stop, refuel, unload, and/or pickup goods in Windsor-Essex. 13 Nazzani. F (2012, November) Your Quick Gateway Letter from the President. Your Quick Gateway. Retrieved March, 2014, from http://www.yqg.ca/news/ 14 Thompson, C. (2014, October). Windsor Aviation Industry Faces Challenges to Grow. Windsor Star. Retrieved October 1, 2014, from http://blogs.windsorstar.com/ news/windsor-aviation-industry-faces-challenges-to-grow 15 Van Wageningen, E. (2012, September). Windsor Airport Taking Off. Windsor Star. Retrieved March 1, 2014, from http://www.yqg.ca/windsor-airport-taking-off/ 16 Canadian Business Patterns, 2009, Essex Census 17 Employer Consultation 18 Martin & Associates. (October 18, 2011). The Economic Impacts of the Ports of Windsor. 19 Canadian Business Patterns, 2014, Essex Census 20 Employer Consultation 21 Employer Consultation 22 Cree, D. (2012, July 1). Port of Windsor looks forward to a bright future. Retrieved September , 2014, from http://www.canadiansailings.ca/?p=4396 8
  • 9. Rail Transport Rail transportation is the most fuel efficient and environmentally friendly mode of transportation . In 2013, short lines nationally averaged total revenues of $500,100.00 . A short line operates in a small geographical area (i.e. Windsor to Amhurstburg). Provincially, Ontario is a leader in rail trade with 23% of total rail exports and 45.6% of total rail imports in Canada . The Continental Rail Gateway (CRG) was built in 1909 and continues to be one of Canada’s most active rail lines to the United States. Annually, 400,000 rail cars cross through Windsor-Essex into Detroit . The Essex Terminal Rail (ETR) is responsible for the movement of goods between Windsor and Essex. On a larger scale, ETR connects a variety of industries to larger rail lines such as the Canadian Pacific Rail and Canadian National Rail. ETR allows for businesses to gain
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