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Canadian Industry Statistics (CIS)

Manufacturing Production
Manufacturing (NAICS 31-33)

Under this topic you will find information on revenue and value-added generated in the Manufacturing (NAICS 31-33) sector in Canada. This information can help you to assess the health of the subsector, the intensity of the manufacturing process at this level, and can help you to determine your share of the market.




Manufacturing Revenues

Initially we examine production in Canada as measured by the total value of manufacturing revenues of the industry, which is the value of goods produced by its establishments, including custom and repair work, as well as goods made under contract. They are valued in current Canadian dollars.

Value of Production: 2001-2010
Manufacturing Revenues and Manufacturing Value-Added
Manufacturing (NAICS 31-33)

Graph of 
Manufacturing Revenues and Value-Added

Source: Statistics Canada, special tabulation, unpublished data, Annual Survey of Manufactures, 2001 to 2003; Annual Survey of Manufactures and Logging, 2004 to 2010.

Manufacturing revenues for this sector decreased from $543.8 billion in 2001 to $526.2 billion in 2010, or at an average compound annual rate of 0.4% per year. Between 2009 and 2010, manufacturing revenues increased by 6.8%.

In comparison, manufacturing revenues for the sector @TOPS1mshp_lg_fyr@ @TOPF4mshp_lg_fyr@% on average between 2001 and 2010, and @TOPS14mshp_sg_fyr@ @TOPF4mshp_sg_fyr@% in the most recent year.

Manufacturing value-added for the sector decreased from $214.6 billion in 2001 to $187.2 billion in 2010, or at an average annual rate of 1.5%. Between 2009 and 2010, value-added increased by 4.7%.

Manufacturing value-added for the demonstrated average annual @TOPS21mvad_lg_fyr@ of @TOPF4mvad_lg_fyr@% between 2001 and 2010, and @TOPS6mvad_sg_fyr@ by @TOPF4mvad_sg_fyr@% between 2009 and 2010.

Value of Manufacturing Production: 2001-2010*
Manufacturing Revenues and Manufacturing Value-Added
Manufacturing (NAICS 31-33)
Measure of Production
Value in
$ billions
CAGR**
2001-2010
% Change
2009-2010
2001
2010

*Prior to 2004, data covers incorporated establishments with employees, primarily engaged in manufacturing and with sales of manufactured goods equal or greater than $30,000.

**Compound Annual Growth Rate

Source: Statistics Canada, special tabulation, unpublished data, Annual Survey of Manufactures, 2001 to 2003; Annual Survey of Manufactures and Logging, 2004 to 2010.

Manufacturing Shipments
543.8
526.2
-0.4%
6.8%
Manufacturing Value-Added
214.6
187.2
-1.5%
4.7%

Changes in domestic production within a particular sector will depend on a variety of factors such as evolving international export markets, trends in consumer demand and patterns of consumption, competition with imports in the domestic market, economic conditions which affect production (including labour costs), profitability, and so on. Technological changes can impact an industry segment by affecting consumer demand, the cost of production and competition within the industry.

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Manufacturing Intensity

The manufacturing intensity ratio, calculated by dividing manufacturing value-added by manufacturing revenues, gives a sense of how much transformation takes place within an industry and what proportion of value is added.

For example, in industries where relatively significant capital and labour is applied (for example : NAICS 31222 - Tobacco Product Manufacturing), the manufacturing intensity ratio is relatively high. It is relatively low where lower amounts of capital and labour are needed to produce the final output (for example: NAICS 31221 - Tobacco Stemming and Redrying).

Manufacturing Intensity Ratio: 2001-2010
Comparison with Manufacturing Sector
Manufacturing (NAICS 31-33)

Graph of 
Manufacturing Intensity Ratio

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

The manufacturing intensity ratio for the Manufacturing sector decreased from from 39.5 in 2001 to 35.6 in 2010. In 2009 the ratio was 36.3.

In the manufacturing sector overall, the ratio @TOPS2mint_lg_fyr@ from @TOPF4mint_fyr@ to @TOPF4mint_lyr@ between 2001 and 2010. In 2009 the ratio was @TOPF4mint_plyr@.

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Important Notes on Manufacturing Production 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 data in the Manufacturing Production section focuses on the value of manufacturing outputs regardless of the destination of the products (wholesale and retail markets, export markets or to serve as inputs for other industries). It does not focus on the products themselves or the quantities produced, but on the monetary value of the outputs.

For information on manufacturing inputs, visit the manufacturing costs and salaries and wages sections of Canadian Industry Statistics.

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Understanding Manufacturing Value-Added

The value added is a measure of net output (i.e. of gross output less those purchased inputs - such as cost of materials and supplies and of energy, water and vehicle fuel) which has been embodied in the value of the product. In contrast to the measure of manufacturing revenues, value added provides some insight into the degree of transformation which occurs within industries.

In short, manufacturing value-added consists of the value of manufacturing revenues plus net change in the inventory of goods in process and finished goods, less the costs of materials and supplies and of the energy, water and vehicle fuel used.

The value-added concept is used to avoid double counting in the measurement of output (such as the Gross Domestic Product measure) for an economy. For instance, the value-added in the Retail Bakeries industry would not include the value of the flour used to make a loaf of bread, it would only include the value the Retail Bakeries industry adds by turning the flour into bread (for example, the mixing, leavening and baking process).