Annual Survey of Manufacturing Industries, 2018

Released: 2019-12-23

In 2018, total revenue reported by Canadian manufacturers increased 5.6%, up $39.3 billion from 2017 to $737.8 billion. This was the third consecutive annual increase, with revenues rising of 12.1% compared with 2015.

Total expenses rose at a faster pace than total revenue, increasing by 6.4% from 2017.

Revenue from goods manufactured (see note to readers), which accounted for 94% of all revenue earned by Canadian manufacturers in 2018, rose 5.7% to $691.5 billion. All but 3 of the 21 manufacturing industries showed increases.

The industries that showed the largest increases were petroleum and coal product manufacturing (up $11.2 billion to $73.1 billion), food manufacturing (up $4.0 billion to $104.4 billion), primary metal manufacturing (up $3.6 billion to $54.3 billion), fabricated metal product manufacturing (up $3.1 billion to $39.1 billion), and chemical manufacturing (up $3.1 billion to $56.0 billion).

In 2018, revenue from goods manufactured in the petroleum and coal product industry reached its highest level since 2015. Although revenue rose significantly in 2018 (+18.2%), it remained 13.5% below the previous high of $84.6 billion in 2014. Prices were the main driver of the 2018 increase in revenues, as they were up 15.4% from 2017 according to the Industrial Product Price Index.

Revenue from goods manufactured in the primary metal industry increased for a second consecutive year, although at a slower pace in 2018 (+7.0%) than in 2017 (+13.8%). These increases were largely due to primary metal prices, which were up 3.5% in 2018 and 6.7% in 2017.

Only three industries exerted downward pressure on the total revenue from goods manufactured, with the biggest impact from transportation equipment manufacturing, down $143.6 million (-0.1%). This downturn is partially attributable to a decrease in US demand for automotive vehicle models built in Canada. Textile product mills manufacturing decreased $57.2 million (-3.5%), while textile mills manufacturing was down $5.9 million (-0.3%).

Although revenue from goods manufactured was down for transportation equipment, this industry accounted for the largest share of the manufacturing sector in 2018, at 19%. This was the second consecutive decrease in its share since the 2008/2009 recession. The food industry ranked second, with a share of 15%, followed by petroleum and coal products, at 11%.

Chart 1 
Industry share of revenue from goods manufactured in Canada, 2000 to 2018

Growth in costs of materials and salaries outpaces growth in revenues

For every dollar made in total revenue in 2018, manufacturing companies spent an average of 91 cents in total expenses. The beverage and tobacco product manufacturing industry spent the least, at 76 cents, while the transportation equipment manufacturing industry spent the most, at 96 cents for every dollar of revenue.

The total cost of materials and supplies increased at a faster pace (+7.0%, or $28.0 billion) than revenue from goods manufactured (+5.7%, or $37.5 billion). This cost accounted for almost two-thirds of total expenses in 2018. This proportion reached 87% for petroleum and coal products and 75% for transportation equipment, while the lowest proportion (43%) was reported by the beverage and tobacco product industry.

Total salaries and wages increased 6.2%, or $5.6 billion, from 2017, and accounted for 14% of total expenses. In 2018, petroleum and coal product manufacturing was the least labour-intensive industry, with 2% of total expenses spent on total salaries and wages. Printing and related support activities had the highest share, at 30%, followed closely by furniture and related product manufacturing, at 29%.

The total cost of energy, water utility and vehicle fuel increased 3.2%, or $484.5 million, from 2017. It accounted for 2% of total expenses. Paper manufacturing was the most energy-intensive industry, with 7% of its revenue from goods manufactured going toward energy, water utility and vehicle fuel costs.

Contact information

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