Logistics (Transportation and Warehousing)
Saskatoon is widely recognized as one of the best and most cost effective locations for the warehousing and distribution of goods throughout North America and the world, particularly because of the extremely low outgoing transportation costs. These low costs, combined with our central location, some 120 transportation companies and superior telecommunications technology are all factors that establish the infrastructure for this industry in Saskatoon.
Saskatoon lies at the junction of two of Canada's major highway systems: the Yellowhead, Highway 16 from Winnipeg to Edmonton and west; and Highway 11, a four-lane highway with a direct connection to the Trans-Canada Highway at Regina. Both of these systems join the U.S. Interstate system through border crossings that serve both the eastern and western states. The Saskatoon region has excellent highway, air and rail transportation links throughout North America.
The second-largest industry sector in the Saskatoon region, the transportation and warehousing sector, comprises establishments engaged in transporting passengers and goods, warehousing and storing goods, and providing services to these establishments. The modes of transportation are road (trucking, transit and ground passenger), rail, water, air and pipeline.
For a list of companies in the logistics (transportation and warehousing) industry in Saskatoon, visit the Business Directory.
Industry Successes
- 72 per cent of goods manufactured in Saskatchewan are exported.
- There are approximately 2,400 trucking companies registered in Saskatchewan.
- Both Canadian National and Canadian Pacific Rail have lines that run through the City of Saskatoon.
IDP Survey Results
Each year, SREDA conducts an industry development program survey. The purpose of this survey is to maintain product information on industrial companies operating within the Saskatoon region and assess specific industry sectors' prospects for growth and labour market needs.
Of the 144 companies contacted, 73 participated, representing a 51 per cent response rate to the survey.
Labour
A continuing trend of decreasing labour supply is stemming growth for this sector in the Saskatoon region. The last five years have seen decreasing availability of skilled and unskilled labour, as industrial managers have indicated.
Labour shortages are an issue in the transportation and warehousing sector. Forty-five percent of the respondents indicated difficulty finding employees to fill the following positions:
- Administrative Personnel
- Mechanics
- Movers
- Truck Drivers (1A)
Of the 31 companies that were having challenges filling open positions, 27 (87 per cent) were in need of 1A licensed truck drivers.
The available labour was ranked as high quality according to respondents.
Fig. 2.43 Quality of Labour – Transportation and Warehousing
Sales and Growth
The transportation and warehousing sector has enjoyed stable or increasing revenues over the last five years. Industrial managers are pleased with the results and are optimistic about future growth as well. As indicated above, many respondents indicated that 1A truck drivers were in short supply. While this factor is not stopping growth in this sector, it is delaying it slightly.
Thanks to strong revenues, expansion plans are taking place for 14 per cent of the survey participants. These plans have the potential of creating three per cent employment growth for the transportation and warehousing sector in the Saskatoon region.
