This year, April 10th marked National Siblings Day. Known as Brothers and Sisters Day in Europe, where it is typically celebrated at the end of May, Siblings Day was created over 30 years ago by Claudia Evart to honour the memory of her older siblings, brother Alan and sister Lisette, after their untimely passing in tragic accidents. Today, as Founder and Director of the non-profit Siblings Day Foundation, Evart “has dedicated herself to ensuring that the bond of brother and sister is forever acknowledged as the special gift it is,” according to the Foundation.
Evart’s message about recognizing, honouring, and celebrating the special bond between siblings rings especially true in the world of family-led manufacturing. Despite what we might think about many manufacturers being multinational corporations with thousands of employees, over 60 percent of Canada’s small and medium-sized (SMEs) manufacturers are family-owned. These range from small mom-and-pop operations with a handful of workers to large operations with hundreds of staff across multiple locations. No matter the size, all have one thing in common: their invaluable contribution to the nation.
According to Family Enterprise Canada, which supports and provides a voice to this important sector, family-owned businesses are not only important but “a critical component of the Canadian economy.” Family-owned businesses account for 63.1 percent of all Canadian private sector firms. Responsible for generating almost half (48.9 percent) of the country’s real Gross Domestic Product (GDP), totalling $574.6 billion, family firms are also responsible for 6.9 million jobs Canada-wide—equivalent to 46.9 percent of private sector employment.
Economic backbone
In the United States, family businesses also play an essential role in the economy, accounting for 54 percent of the country’s GDP. Responsible for 83.3 million jobs, family-owned companies generate 59 percent of U.S. employment.
Even when faced with economic challenges like inflation, labour shortages, and taxes, family-led businesses keep growing across the United States. In mid-2024, Family Enterprise USA’s Annual Family Business Survey—the largest to date, with 789 respondents spanning 40 states—revealed that America’s family businesses remain the country’s greatest private employer. In fact, the survey revealed 61 percent of family businesses grew in 2023. Many of these companies are engaged in the manufacturing sector.
“Despite the many challenges facing family businesses, this year’s survey shows family businesses continue to grow, add jobs, and pay more than non-family enterprises,” stated Pat Soldano, President of Family Enterprise USA and the Policy and Taxation Group, in a media release. “This year’s survey was our largest to date and the information in it we use to help educate our legislators on Capitol Hill so they understand the importance and size of family businesses in our economy.”
Sweat, tears and missed holidays
From cogs to car parts, North America’s SME manufacturers invest a great deal in their businesses. More than a nine-to-five job with weekends off and paid vacations, owners of family-run manufacturing businesses make countless sacrifices, especially in the early years. This includes everything from missing their children’s school performances to working long into the night—sometimes every night for weeks or months—skipping family functions, and even deferring their own salaries so staff and suppliers are paid.
Even decades later, many owners say it was worth it because they created a family legacy positioned to last for generations.
Then there is the cost of the business itself. Even small manufacturing facilities need all the basics of any office, plus a suitable location and the necessary machinery. Depending on the products being made, this can include drilling and grinding machines, lathes, CNC machines, extruders, mixers, laser cutters and waterjet cutting machines, forklifts, cranes, conveyors—the list is practically endless. And to keep up with the competition, merely investing in equipment isn’t enough. Many of today’s manufacturers need to invest in Artificial Intelligence, expensive software like AutoCAD and SolidWorks, automated assembly machines, 3D printers, and even industrial robots to remain competitive.
Manufacturing is unlike many other sectors because of the amount of capital involved, especially in fields such as automotive, which requires massive amounts of investment in training, tools, technology, and machinery.
Changing gears
Well-structured family-run companies often have a board and governance structure that has a say in the business, including decisions about spending thousands or even millions of dollars on automation, robotics, and other expensive technology. While these investments can be instrumental to a company’s long-term success, the outlay can also leave a manufacturer vulnerable to unexpected changes in the market. The same thing applies to expanding facilities. Many Canadian companies have put building bigger facilities on hold, something they wouldn’t have considered before U.S. President Donald Trump signed an executive order levying tariffs on Canadian exports to the U.S. in February 2025.
In his book Succession for Change: Strategic transitions in family and founder-led businesses, author Harry Korine underscores how there is an overrepresentation of large family businesses in manufacturing, retail, mining, and finance, sometimes exceeding 50 percent. “These are capital-intensive sectors, where the patient capital provided by families has played an important role in supporting long-term investment,” states Korine. “Traditionally, capital intensity has also served as a barrier to entry, protecting these sectors and their firms from the threat of radical change from the outside.”
Korine goes on to state that four of the world’s largest eight family-controlled businesses are automobile manufacturers, namely Volkswagen, FCA, Ford, and BMW. And no matter how big or how small, family-owned manufacturers must reinvent themselves through technology, something sometimes overlooked by founders set in their ways.
“Reinvention is hard enough when attempted by the existing leadership of a family business, or the founder of a business,” writes Korine. “So many questions have to be answered: does the firm have the necessary capabilities? If not, should these be bought in, or is this the time to sell out to a more capable rival? Will there be resistance to a change of strategy, and how might that resistance be overcome? Bringing succession into the picture complicates matters considerably.”
Yet for all family-run businesses, there needs to be a successor. Sometimes the successor is not obvious. It is surprising how many manufacturers don’t have a successor, let alone a succession plan, in place. In these cases, or when there is disagreement among family stakeholders, it is best to work with financial planners, tax attorneys, and other experts to ensure a smooth transition.
According to a 2023 report from the Canadian Federation of Independent Business (CFIB), the country’s largest association of small and medium-sized businesses, “76 percent of business owners plan to exit their business within the next decade, a process that could involve the transfer of over $2 trillion worth of business assets.” This is compounded by Canada’s aging population and waves of retires in the wings. Exit strategies vary, including selling to non-relatives, selling to other families, selling to employees, transferring to existing family members (through inheritance), closing the business completely, or selling to international buyers. In all cases, there is no ‘one size fits all’ solution to business success.
What remains consistent, however, is the importance of thoughtful planning and open communication, particularly in family enterprises where business decisions are deeply intertwined with personal relationships. As one generation prepares to step back and another considers stepping forward, the same bonds that National Siblings Day seeks to celebrate can become a source of strength, continuity, and resilience. Ultimately, the future of family-led manufacturing will depend not only on market conditions and technological adoption, but on the ability of families to navigate change together while preserving the legacy that made their businesses possible in the first place.
