A Bas-Saint-Laurent entrepreneur had to close his electronic card assembly SME last month because he did not have enough employees and components for his 10,000 square foot factory.
“I started the business in La Pocatière for the economy there. That’s what hurt my heart the most: closing a business like mine in the region,” says the Journal Guy Gilbert, PDG d’Ampère Inc.
Founded in 2008 with a down payment of $20,000, his SME had managed to employ a dozen people in the area thanks to sales exceeding $1.2 million at one time.
Despite excellent customers
Creaform (Lévis), ABB (Québec), Technologies Lanka (La Pocatière), Soucy International (Drummondville)… his company had excellent clients.
“I made the decision to close. Not because I didn’t have contracts, but because I didn’t have employees and electronic components,” shares Guy Gilbert, who carried out his entrepreneurial project at arm’s length.
Despite an average salary of 26 dollars, including 23 dollars an hour for storekeepers, young people went to work for their customers or they left the region altogether, attracted by the aura of the big cities.
As labor shortages exacerbate supply chain issues, more than 60% of SMEs saw declining profits and 80% delivered contracts late last year, according to Industry Barometer Quebec industrial subcontracting Quebec (STIQ).
More than 73% of them even admitted to having a problem retaining their specialized employees in 2021, notes the association.
Au Journal Guy Gilbert insists: Investissement Québec (IQ) was there for him, but he simply mightn’t hope to get out of it.
“I might have tried to continue with them [IQ], but I had no more employees and I worked 60 hours a week. It was too heavy for the inventories too, ”he illustrates.
In addition to the lack of employees, it was the difficulty in finding the necessary components at a good price that got the better of the company following 14 years.
Prices that have exploded
“A connector that used to sell for $8 now costs $180 because you have to find it at a reseller,” he says.
“The big problem it was really providers Americans who weren’t able to help us deliver the components » –Guy Gilbert, PDG d’Ampère inc.
“A $2.60 microconnector can easily go for $120 or even $170,” he goes on to point out.
As a result, customers canceled their orders and started redesigning to avoid being too greedy with these expensive parts.
Today, Guy Gilbert is turning the page, proud to continue his work in the field.
“I’m now director of business development at Gentec,” he concludes.
According to the Quebec Industrial Barometer of Quebec Industrial Subcontracting (STIQ), more than 15% of SMEs have had to relocate certain activities outside Quebec to counter the labor shortage.
