Annual Survey of Manufacturing Industries, 2017

Released: 2019-02-27

Total revenue reported by Canadian manufacturers rose 5.3% or $35 billion from 2016 to $700 billion in 2017. This follows a $7 billion or 1.1% increase in 2016. Total expenses followed the same trend, rising by $32 billion or 5.4%.

Revenue from goods manufactured (see note to readers) increased 5.0% or $31 billion to $651 billion, accounting for 93% of all revenues earned by Canadian manufacturers in 2017. The $49 billion difference between total revenue and revenue from goods manufactured was comprised of revenues from financial investments, sales of goods purchased for resale (as is) and business activities other than manufacturing such as wholesaling activities.

Total cost of materials and supplies kept pace with revenue from goods manufactured, increasing 5.7% ($22 billion) and accounting for 64% of total expenses in 2017. Petroleum and coal product (86%) and transportation equipment (75%) manufacturing had the highest proportion of cost of materials to total expenses, with printing and related support activities manufacturing (43%) reporting the lowest ratio.

Total energy and electricity costs increased 4.9% or $713 million from 2016, and accounted for 2% of total expenses. Total salaries and wages increased 5.2% or $4 billion from 2016, and accounted for 14% of total expenses.

Revenue from goods manufactured up in every province

Every province registered an increase in revenue from goods manufactured, ranging from 1.7% in Ontario to 18.5% in New Brunswick. For Ontario, Quebec and British Columbia, 2017 marked the eighth consecutive year of growth in manufacturing activities.

Together, the Northern Territories posted the sole decline (-0.9%) following a 39.9% increase in 2016.

Ontario, Quebec, Alberta and British Columbia together accounted for 90% of the total revenue from goods manufactured. Individually, Ontario represented 47% ($303 billion) of total revenue from goods manufactured, Quebec 24% ($156 billion), Alberta 11% ($73 billion) and British Columbia 8% ($51 billion).

Revenue from goods manufactured increases for two-thirds of manufacturing industries

Revenue from goods manufactured increased for 14 of the 21 industries in 2017, up $38 billion in total. The largest year-over-year gain was in petroleum and coal products (up $11 billion or 22.1%). This large increase followed a $8.9 billion (-14.9%) decline in 2016 compared with 2015. Price fluctuations had a large impact on this industry as the annual average Industrial Product Price Index grew by 13.4% in 2017 compared with a 9.0% decline in 2016.

Other important increases came from primary metal (up $6 billion or 12.6%), food (up $4 billion or 4.0%), machinery (up $4 billion or 11.4%) and chemical (up $4 billion or 6.9%) manufacturing.

These increases were partially offset by declines in seven industries (down $7 billion). The most significant decreases originated from transportation equipment (down $6 billion or 4.3%), miscellaneous manufacturing (down $931 million or 7.4%) and printing and related support activities (down $297 million or 3.1%).

Although revenue from goods manufactured was down for transportation equipment manufacturing, it still accounted for the largest share of the manufacturing sector at 20%. This was the first decrease in its share since the 2008-2009 recession. Food manufacturing held the second rank in terms of its share with 15% and has been relatively stable since 2009. The petroleum and coal product industry's share was down to 9% in 2017 after reaching a plateau of 14% from 2011 to 2014. The chemical manufacturing industry has been stable at 8% since 2003, followed closely by the primary metal industry, which showed only slightly more variation, hovering from 7% to 9% since 2004.

Chart 1 
Share of revenue from manufacturing goods by subsector in Canada, 2000 to 2017

Increases in Ontario moderated by a decline in transportation equipment

In Ontario, revenue from goods manufactured has been rising since 2010, up 1.7% or $5 billion to $303 billion in 2017. Together, the transportation equipment ($102 billion), food ($36 billion) and chemical ($23 billion) industries accounted for 53% of the provincial revenue from goods manufactured.

In 2017, two-thirds of the 21 manufacturing industries grew by $13 billion compared with the previous year. The largest contributors to this increase were primary metals (up $3 billion or 14.8%), petroleum and coal products (up $2 billion or 14.8%), chemicals (up $2 billion or 8.6%) and food (up $1 billion or 4.2%).

Seven industries posted declines totalling $8 billion. The largest decreases were in transportation equipment (down $6 billion or 5.9%), miscellaneous (down $774 million or 11.2%) and computer and electronic product (down $210 million or 2.9%).

Widespread increases in Quebec

Revenue from goods manufactured rose 5.3% or $8 billion from 2016 to $156 billion in 2017. Increases were widespread among the different industries, while three industries posted declines. The largest contributors to the overall increase were petroleum and coal products (up $2 billion or 18.9%), primary metal (up $2 billion or 9.9%), machinery (up $743 million or 11.8%) and wood products (up $630 million or 7.8%).

As in Ontario, revenue from goods manufactured in Quebec has been increasing since 2010.

Manufacturing activities in Quebec were not dominated by one particular industry. In 2017, half the revenue from goods manufactured in the province was generated by four industries: food ($25 billion), primary metals ($21 billion), transportation equipment ($20 billion) and petroleum and coal product ($12 billion) manufacturing.

Revenue from goods manufactured continues to grow in British Columbia

In British Columbia, revenue from goods manufactured increased 6.2% or $3 billion from 2016 to $51 billion in 2017. This marks the eighth straight year of annual increases in revenue from goods manufactured. In 2017, 15 of the 21 industries grew compared with the previous year.

The largest contributors to the increase in British Columbia were wood products (up $1 billion or 10.0%), primary metals, and paper manufacturing (up $347 million or 7.8%). Prices were up for these industries, helping to push up revenue from goods manufactured. According to the annual average Industrial Product Price Index, wood products prices in Canada increased 5.4%. Prices in the paper manufacturing industry rose at a similar pace (+5.3%), while those of the primary metal manufacturing industry increased 6.7%.

Of those industries reporting declines in revenues from goods manufactured, the largest decreases were in the plastic and rubber products, printing and related support activities and computer and electronic product industries.

Wood product manufacturing ($12 billion) was the largest industry in British Columbia, accounting for 23% of revenue from goods manufactured, followed by food ($8 billion) and paper manufacturing ($5 billion) industries.

Revenue from goods manufactured on the Prairies increase for the first time in three years

In the Prairie region, revenue from goods manufactured rose $11 billion or 11.2% from 2016 to $106 billion in 2017. Alberta accounted for the majority of this increase ($9 billion or 13.5%). Saskatchewan also contributed $1 billion or 8.4% to the regional gain, while the increase in Manitoba was more moderate ($811 million or 4.8%).

More than two-thirds of the manufacturing industries reported higher revenue from manufactured goods. Industries accounting for the majority of this increase included petroleum and coal products (up $4 billion or 24.9%), food (up $2 billion or 10.1%), machinery (up $2 billion or 23.7%) and chemical manufacturing (up $1 billion or 5.6%).

In 2017, 58% of revenue from goods manufactured in the Prairie region were derived from food ($23 billion), petroleum and coal products ($19 billion) and chemical manufacturing ($19 billion).

The Atlantic Region saw revenue from goods manufactured increase for the first time in five years

Compared with 2016, revenue from goods manufactured in the Atlantic Region increased 13.7% or $4 billion to $35 billion in 2017. The largest contributor to this gain was petroleum and coal product manufacturing.

In the Atlantic Region, manufacturing was concentrated in petroleum and coal products and food. Together, they accounted for more than half of all revenue generated from goods manufactured in this region.

Contact information

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