Kyle G. Groulx, MA, PMP, CPIM, CCI – Program Lead, Business at MCG Career College

In the 1980s, Canada embarked on a new trade policy with the United States under the
Free Trade Agreement (FTA). Buttressed by a wave of neoliberal economics promulgated the
conservative governments of Ronald Reagan, Margaret Thatcher, and Canada’s own Brian
Mulroney, neoliberal economics became normalized by ruling political parties. The logic of
neoliberal economics was simple and powerful— countries with reduced trade barriers should
see greater trade flows, more specialization, and trade partners benefitting from the principle of
comparative advantage, elucidated on by David Ricardo almost 200 years earlier.

The FTA was by many measures a success: although the number of manufacturing
plants in Canada declined slightly, the scale and output per plant increased by 34% (Head &
Ries, 1999). This may indicate that plants were moving towards a more efficient scale of
production. Likewise, geographical mobility and specialization led to increased technical
efficiency, with some short run adjustment costs offset by longer term productivity gains on
account of 17% (Trefler, 2004). Economic theory would posit that as scale and technical
efficiency increase, the long run average cost of production would fall, leading to lower prices for
consumers—a win for both industry and the consumer.

Equally as important a change during the period of free trade agreements was the
development of more globalized and complex supply chains. In a world with corporate mobility
and lower barriers to trade, companies now face a plethora of decisions: where to locate, where
to produce, where to place headquarters for taxation purposes, where to source materials and
inventory, and where to locate distribution centers. In an autarkic economy, this decision is
simple: everything is sourced, inventoried, produced, and distributed within a narrow
geographical scope. With a globalized world, however, each of these decisions becomes unique
and independent. The net effect is that supply chains became markedly more complex.

The modern supply chain is complex and lengthy; it operates across multiple legal
jurisdictions, employs labour from many countries, and sources raw materials from many
regions. This means that the modern supply chain demands highly skilled personnel to ensure
continuity of product from origin to point of sale. For example, a US firm may require a strategic
sourcing partner to locate the best supply of silicon for a semiconductor It produces. Previously
this supply chain was simple, as the procurement team found a U.S. firm, but now it is more
complicated, and the strategic sourcing partner may find a firm in China, where 70% of global
silicon is produced (BBNC, n.d.). It then requires a variety of other inputs, from wafers to
polysilicon and photomasks. The underlying logic is that for each material or component piece,
there is correspondingly a region or state that is more abundant in it or has developed superior
manufacturing capacity for it. The modern supply chain procurement professional is faced with
the arduous task of scouting the entirety of earth for the best source, rather than within their own
country.

So what does this mean for supply chain as a topic of study? It means the opportunities
are endless. Supply chain and logistics is a rapidly evolving field. It is crucial to the success of
the firm, and firms are inundated with requests to find skilled individuals in logistics,
procurement, and inventory management, to produce a cheaper, higher quality product. Supply
chain analysts are crucial in rapidly responding to geopolitical uncertainty—from COVID to the
current Trump administration tariffs, supply chain analysts are on the frontlines, making tough
and quick decisions to keep firms internationally competitive. This is why the field has growth

projected well above average, with an approximate compound annual growth rate as an industry
estimated at 11.1% through 2032 (Allied Market Research, 2024). Given the demand for the
modern supply chain professional and their skillset, the future is bright for research
opportunities, high paying jobs, and a rapidly evolving playbook that defines the theoretical
underpinnings of the field.

References

Allied Market Research. (2024, September 26). Supply chain management market size to reach
$85.3 billion globally by 2032 at 11.1% CAGR. GlobeNewswire.
https://www.globenewswire.com/news-release/2024/09/26/2953793/0/en/Supply-Chain-
Management-Market-Size-to-Reach-85-3-Billion-Globally-by-2032-at-11-1-CAGR-Allied-Market-
Research.html
BBNC. (n.d.). Semiconductors – Page 3: Key inputs. BBNC.
https://bbnc.bens.org/semiconductors—page-3-key-inputs
Head, K., & Ries, J. (1999). Rationalization effects of tariff reductions. Journal of International
economics, 47(2), 295-320.
Trefler, D. (2004). The long and short of the Canada-US free trade agreement. American
Economic Review, 94(4), 870-895.
Zinn, W., & Goldsby, T. J. (2020). Global supply chains: globalization research in a changing
world. Journal of Business Logistics, 41(1), 4.

Kyle G. Groulx, MA, PMP, CPIM, CCI
(He/Him)
Program Lead – Business, MCG Career College

Kyle G. Groulx is an experienced educator, operations manager, and logistician with a strong background in supply chain management, financial planning and analysis, and business leadership. As the Program Lead for Business at MCG Career College, he plays a pivotal role in student conflict resolution, scheduling, faculty management, hiring, and training—all while actively engaging in instructional duties.

Kyle’s career spans various educational institutions, including Durham College and Trillium College, where he has developed and instructed courses in supply chain management, procurement, and business strategy. In addition, he has an extensive background in logistics and financial forecasting, having served as a Logistics Officer in the Royal Canadian Navy for nearly a decade.

Kyle holds multiple advanced degrees, including a Master of Arts in War Studies from the Royal Military College of Canada and a Master of Arts in Economics from Lakehead University. He is currently pursuing a Juris Doctor (JD) at the University of Calgary, further strengthening his expertise in legal and financial disciplines.

With professional designations as a Project Management Professional (PMP), Certified in Production and Inventory Management (CPIM), and a Canadian International Freight Forwarder Association Certified Instructor (CCI), Kyle brings a wealth of industry knowledge and practical experience to the classroom. His passion for education and leadership ensures that students at MCG Career College receive an enriched learning experience that prepares them for success in business and logistics.

The views and research presented in this article are those of the author and do not necessarily reflect the opinions or positions of MCG Career College.