Canadian Industry Statistics (CIS)
Performance
Manufacturing (NAICS 31-33)
Under this topic you will find information on manufacturing efficiency,
revenue sources and profits in Canada's Manufacturing (NAICS
31-33) sector. This information can be used as a benchmark
against the performance of your business and can help you to identify
opportunities to gain efficiencies and to increase revenues.
First, we analyse manufacturing revenues per employee over time. This can be
calculated counting all employees or only production workers.
Manufacturing Revenues per Employee: 2001-2010
All Employees vs. Production Employees
Manufacturing (NAICS 31-33)
Manufacturing revenues per production worker for this sector
increased from $342.6 thousand in 2001 to
$485.2 thousand in 2010, or at an average compound annual rate
of 3.9% per year. In the most recent year, manufacturing revenues
increased by 5.7%.
If administrative workers are included, manufacturing revenues
grew 2.8% per year on average between 2001 and
2010, with a 5.9% increase observed in the most recent
year.
Output Per Employee: 2001-2010*
Manufacturing Revenues and Manufacturing Value-Added
Manufacturing (NAICS 31-33)
Type of Output |
Value in
$ thousands |
CAGR**
2001-2010 |
% Change
2009-2010 |
2001 |
2010 |
|
|
Manufacturing Revenues
per Employee |
277.7 |
355.5 |
2.8% |
5.9% |
Manufacturing Revenues
per Production Worker |
342.6 |
485.2 |
3.9% |
5.7% |
Manufacturing Value-Added
per Employee |
109.6 |
126.5 |
1.6% |
3.8% |
Manufacturing Value-Added
per Production Worker |
135.2 |
172.6 |
2.8% |
3.6% |
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Manufacturing value added per worker is another measure of performance.
Value added reflects net output; that is, gross output less those purchased
inputs which have been embodied in the value of the product. Value added avoids
double counting since products purchased from other establishments are deducted
as input costs. Thus, manufacturing value added per employee is a measure of
net output per worker and is a better indicator of labour productivity as
variations in the cost of materials, supplies and purchased energy, water and
vehicle fuel are excluded.
Manufacturing Value-Added per Employee: 2001-2010
All Employees vs. Production Employees
Manufacturing (NAICS 31-33)
Manufacturing value-added per production worker for the sector
increased from $135.2 thousand in 2001 to
$172.6 thousand in 2010, or at an average compound annual rate
of 2.8% per year. A 3.6% increase was
observed in the most recent year.
If administrative workers are included, between 2001 and 2010
manufacturing value-added per employee increased by 1.6%
annually on average, with a 3.8% increase observed
between 2009 and 2010.
Changes in output per employee may result from changes in one or more of the
following factors:
- the level of capital expenditures for the purchase of more efficient
equipment;
- the amount and type of employee training and work incentives offered;
- the degree to which work flows are adjusted over time;
- the size and composition of the work force.
Output per employee may fall if an industry does not adequately invest in
the competence of its labour force, in modernizing its plants or in improving
the efficiency of operations.
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Almost all manufacturing industries derive revenues from non-manufacturing
activities. In some cases, such as Retail Bakeries (NAICS 311811) or Cut and
Sew Clothing Contracting (NAICS 31521), these are reported with manufacturing
revenues, but more generally revenues from non-manufacturing activity are
obtained by subtracting manufacturing revenues from total revenues.
This residual amount is usually composed of the following:
- Revenues from the sale of goods purchased for resale in the same
condition;
- Revenues from the lease or rental of property, machinery or equipment;
- Revenues from the operation of cafeterias, laboratories and the like;
- Revenues from other services rendered.
There may also be cases where non-manufacturing revenues actually outstrip
those from manufacturing revenues. This would occur, for instance, when there
are a significant number of establishments within an industry that have a
variety of other earnings from investments, wholesale or retail outlets and
where none of these are large enough in themselves to cause the establishment
to be assigned to another sector. For classification purposes, an establishment
is assigned according to the sphere of economic activity where the highest
proportion of the revenue is earned.
Total Revenue: 2001-2010*
Manufacturing vs Non-Manufacturing Activity
Manufacturing (NAICS 31-33)
Type of Output |
Value in
$ billions |
% of Total
2010 |
CAGR**
2001-2010 |
% Change
2009-2010 |
2001 |
2010 |
|
|
Manufacturing Revenues |
543.8 |
526.2 |
92.9% |
-0.4% |
6.8% |
Other
Revenues |
35.6 |
40.1 |
7.1% |
1.3% |
-4.5% |
| |
Total
Revenue |
579.4 |
566.3 |
100% |
-0.3% |
5.9% |
Total revenues in the Manufacturing sector have decreased from
$579.4 billion in 2001 to $566.3 billion
in 2010 or by 0.3% per year on average. In the latest year
total revenues increased by 5.9%.
Over the 2001-2010 period, manufacturing revenues decreased by
0.4% on average, while revenues from non-manufacturing activities
increased by 1.3% during the same time span. In the most
recent year manufacturing revenues increased 6.8% while other
revenues decreased by 4.5%.
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A business will be judged successful if its profits are high enough to
provide adequate return on investment. Profits will only be stable or increase
if expenses do not outstrip revenues.
Prior to 2004, net revenues are estimated by subtracting the total cost of
material and supplies, the cost of energy, water and vehicle fuel and the total
wages paid to all workers from the total revenues, as recorded.
Beginning in 2004, a total expenses variable became available in the Annual
Survey of Manufactures and Logging data. From 2004 onward, net revenues are
calculated by subtracting total expenses from total revenues. This should
provide more accurate estimates of profitability than those previously
available, but estimates prior to 2004 will not be comparable with those for
2004 forward.
Net Revenues: 2001-2010
Manufacturing (NAICS 31-33)
Net revenues in the Manufacturing sector have decreased from
$144.0 billion in 2001 to $43.0 billion
in 2010 or by 12.6% per year on average. In the latest year net
revenues increased by 15.9%.
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Due to methodological changes to the Annual Survey of 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.
In this section manufacturing output is expressed in terms of manufacturing
revenues or manufacturing value added, while labour input is measured in terms
of the number of workers. The Labour
Productivity section of Canadian Industry Statistics provides
information related to performance in the form of indices measuring GDP per
hour of labour worked.
For performance indicators that focus on financial analysis and emphasize
profitablity see Industry Canada's SME Benchmarking
site for businesses earning between $30,000 and $5 million in gross annual
revenues.