Warehouse Growth in Ontario: Navigating Workforce Challenges with Staffing Solutions

Introduction

Ontario’s warehousing and logistics landscape is evolving rapidly. Companies are investing in new, large-scale facilities, leveraging automation, and enhancing sustainability initiatives. However, these expansions also create pressure to attract, train, and retain a skilled workforce. For many warehouses, staffing agencies have become an important tool to address these issues, providing a flexible and cost-effective workforce management solution.

Key Developments in Ontario Warehousing

• DSV in Innisfil: DSV is building a 1.3 million-square-foot distribution centre in Innisfil, Ontario, scheduled to open in Q3 2025. The facility is designed to achieve LEED certification and integrate green technologies, including solar panels and electric vehicle charging stations (DSV, 2025).

• SoftMoc’s AutoStore Implementation: SoftMoc, a footwear retailer, has implemented the AutoStore system at its Ontario fulfillment centre. This system enhances picking efficiency and scalability, optimizing warehouse operations (Robotics and Automation News, 2025).

• Stardust Solar in Owen Sound: Stardust Solar has established a national distribution hub in Owen Sound, expected to begin operations in June 2025. This facility will distribute over 25 MW of photovoltaic products annually, supporting Canada’s clean energy goals (Newsfile Corp., 2025).

• Kenco in London: Kenco has expanded its Canadian presence by acquiring Drexel Industries’ 3PL business, including four warehouses in London and 100 employees. This acquisition strengthens Kenco’s capacity to serve the Canadian market (Kenco Group, 2025).

• Walmart in Vaughan: Walmart Canada is set to open a high-tech distribution centre in Vaughan in spring 2025 as part of a $6.5 billion supply chain investment across Canada (Retail Insider, 2025).

Navigating Workforce Challenges in Ontario’s Warehousing Sector

Ontario’s warehousing boom comes with challenges: seasonal demand spikes, evolving technology, and regulatory compliance. Staffing agencies can help warehouses address these challenges by providing:

• Flexible Workforce Solutions: Staffing agencies enable warehouses to quickly scale up during peak seasons and reduce headcount when demand declines.

• Specialized Talent: Warehousing increasingly requires workers skilled in automation and warehouse management systems. Staffing partners can source and place talent with the right technical skills.

• Cost Efficiency: Staffing firms streamline the hiring process, reducing administrative burdens and training costs.

• Compliance Support: Agencies help ensure that workers meet Ontario’s labor and safety regulations, minimizing legal risks for warehouse operators.

Conclusion

Ontario’s warehousing industry is on a growth trajectory, driven by significant investments and technological advancements. However, workforce management remains a critical factor in ensuring operational success. By partnering with staffing agencies, warehouse operators can effectively manage workforce challenges and position themselves for sustainable growth in an increasingly competitive market.

References

DSV. (2025). Canada East Region warehouses - DSV. Retrieved from https://www.dsv.com/en-ca/our-solutions/contract-logistics/warehousing/ca-east-region

Robotics and Automation News. (2025). Footwear company SoftMoc adopts AutoStore warehouse system for Ontario, Canada facility. Retrieved from https://roboticsandautomationnews.com/2025/05/04/footwear-company-softmoc-adopts-autostore-warehouse-system-for-ontario-canada-facility/90321/

Newsfile Corp. (2025). Stardust Solar Secures National Supply Chain with Owen Sound Distribution Hub. Retrieved from https://www.newsfilecorp.com/release/252875/Stardust-Solar-Secures-National-Supply-Chain-with-Owen-Sound-Distribution-Hub

Kenco Group. (2025). Kenco Expands Canadian Footprint with Acquisition of Drexel Industries’ 3PL Business. Retrieved from https://kencogroup.com/news/kenco-expands-canadian-footprint-with-acquisition-of-drexel-industries-3pl-business/

Retail Insider. (2025). Walmart Canada to Invest $6.5 Billion in Nationwide Expansion. Retrieved from https://retail-insider.com/retail-insider/2025/01/walmart-canada-to-invest-6-5-billion-in-nationwide-expansion/