Industry Canada
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Canadian Industry Statistics (CIS)

Manufacturing Costs
Manufacturing (NAICS 31-33)

Under this topic you will find a breakdown of manufacturing costs by category for the Canadian Manufacturing (NAICS 31-33) sector. This information can be used as a benchmark against your manufacturing costs and can help you to identify trends in particular expense categories.




Manufacturing Costs by Category

In general, the three most important categories for manufacturing costs are:

  • cost of materials and supplies;
  • cost of energy, water and vehicle fuel; and
  • production worker wages.

Manufacturing costs in the Manufacturing sector were dominated in 2010 by the costs of materials and supplies. Considering these costs are the major factor in its manufacturing activities, this sector is vulnerable to any fluctuation in the prices of materials and supplies.

Manufacturing costs in the Manufacturing sector were dominated in 2010 by the costs of fuel and electricity. Considering these costs are the major factor in its manufacturing activities, this sector is vulnerable to any fluctuation in the prices of energy, water and vehicle fuel.

Manufacturing costs in the Manufacturing sector were dominated in 2010 by the costs of labour. Considering these costs are the major factor in its manufacturing activities, this sector is vulnerable to any fluctuation in salaries and wages.

Manufacturing Costs by Category: 2010
Manufacturing (NAICS 31-33)

Manufacturing 
Costs by Type - Distribution

Source: Statistics Canada, special tabulation, unpublished data, Annual Survey of Manufactures, 2001 to 2003; Annual Survey of Manufactures and Logging, 2004 to 2010.

The costs of materials and supplies (for manufacturing activities) increased from $315.4 billion in 2001 to $325.5 billion in 2010, or at a compound annual growth rate of 0.4%. Between 2009 and 2010 materials and supplies costs increased 9.2%.

In 2010 production wage costs reached $47.6 billion while energy, water and vehicle fuel costs were $15.0 billion.

Manufacturing Costs by Category: 2001-2010
Manufacturing (NAICS 31-33)

Manufacturing 
Costs by Category

Source: Statistics Canada, special tabulation, unpublished data, Annual Survey of Manufactures, 2001 to 2003; Annual Survey of Manufactures and Logging, 2004 to 2010.

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Cost of Energy, Water and Vehicle Fuel

Total cost of energy, water utility and vehicle fuel was introduced as a new variable in the Annual Survey of Manufactures and Logging beginning in 2004. In previous years, data for a similar variable, Cost of fuel and electricity were published. In Canadian Industry Statistics these variables are treated as a continuous variable, but readers should use caution when interpreting trends, especially between 2003 and 2004, as the two measures are not strictly comparable. The degree to which this conceptual change affects the data will vary between industries.

The cost of energy, water and vehicle fuel increased from $13.9 billion in 2001 to $15.0 billion in 2010, or at an average rate of 0.9% per year. Over the course of the most recent year, a 4.7% increase was observed.

Cost of Energy, Water and Vehicle Fuel: 2001-2010
Manufacturing (NAICS 31-33)

Cost of Energy, 
Water and Vehicle Fuel

Source: Statistics Canada, special tabulation, unpublished data, Annual Survey of Manufactures, 1999 to 2003; Annual Survey of Manufactures and Logging, 2004 to 2010.

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Important Notes on Manufacturing Costs Data

The data in this section come from Statistics Canada's Annual Survey of Manufactures and Logging. Data are available for the years 2001-2010.

Due to methodological changes to the Annual Survey of Manufactures and Logging (summarized in the Data Sources section of this site), caution should be used when interpreting trends in the data presented below.

The salaries and wages expense category is analysed in greater detail in the salaries and wages section of Canadian Industry Statistics. For information on manufacturing outputs, visit the manufacturing production section.