Canadian Industry Statistics (CIS)
Gross Domestic Product (GDP)
Manufacturing (NAICS 31-33)
Data on Gross Domestic Product
(GDP) at basic prices by industry for the Manufacturing (NAICS
31-33) sector are unavailable.
However, Statistics Canada publishes Gross Domestic Product (GDP) at basic
prices by industry for the Finance and Insurance (NAICS 52), Real Estate and
Rental and Leasing (NAICS 53) and Management of Companies and Enterprises
(NAICS 55) sectors combined. Herein, this grouping is referred to as the
FIRE and Management sectors.
Note: GDP data is presented in chained dollars which are non-additive. Thus,
it is not possible to obtain an estimate of GDP for Management of Companies and
Enterprises (NAICS 55) sector by subtracting components from estimates for the
FIRE and Management sectors.
Under this topic you will find information on Gross Domestic Product (GDP)
levels and growth in Canada's Manufacturing (NAICS 31-33)
sector. You can use this information to assess the general health of the
subsector and to identify trends in its growth.
The following graph illustrates annual GDP for the FIRE and Management
sectors between 2002 and 2011.
Gross Domestic Product (GDP): 2002-2011
FIRE and Management Sectors (NAICS 52, 53 and 55 combined)
GDP in the combined FIRE and Management sectors decreased from
$182.7 billion in 2002 to $162.1 billion in 2011. The
decrease in GDP reported between 2002 and 2011 represented a compound
annual rate of 1.3%. Between 2010 and 2011, the total value-added
of the FIRE and Management sectors increased by 2.4%.
Top of Page
The following graph illustrates annual GDP for the Manufacturing (NAICS
31-33) sector between 2002 and 2011.
Gross Domestic Product (GDP): 2002-2011
Manufacturing (NAICS 31-33)
GDP in the Manufacturing sector decreased from $182.7
billion in 2002 to $162.1 billion in 2011. The decrease
in GDP reported between 2002 and 2011 represented a compound annual rate of
1.3%. Between 2010 and 2011, the total value-added of the
Manufacturing sector increased by 2.4%.
Top of Page
The GDP by Industry data in
the present section are maintained by Statistics Canada's Canadian System of
National Economic Accounts. The data are expressed in basic prices and
presented in chained 2002 dollars. The process of chaining removes the effect
of changes in price while minimizing distortion over time. In this section data
are available for the years 2002-2011.
Readers should be aware that there are other ways of expressing Gross
Domestic Product aside from those presented here (e.g. expenditure-based and
income-based rather than by industry; at factor cost and market prices rather
than at basic prices and in constant dollars as opposed to chained dollars). As
a result, caution is recommended when comparing the data presented herein with
other published sources.
The Gross Domestic Product
(GDP) by Industry data within the present section does not define or
examine recessionary periods for the Canadian economy, sectors, subsectors or
industries. This type of analysis is possible through examining more precise
quarterly and monthly trends. Monthly data are available from the Statistics
Canada website (see Gross domestic
product at basic prices by industry).
Top of Page
Gross Domestic Product (GDP) by
Industry measures the value of output of an industry less the value of
intermediate inputs required in the production process. In this sense, it is an
output-based measure of economic activity and is commonly referred to as the
total value-added of an industry.
The value-added concept is used to avoid double counting. For instance, GDP
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).
This example of value-added (GDP) can be broadened to illustrate the total
value of a loaf of bread. Let us suppose we live in a simple world where the
only two inputs needed to make bread are flour and water. And for the moment,
let us assume water is free.
So as before, it is the baker who turns the flour into bread. This process
is his value-added (GDP). For the baker, flour is an input into the production
of bread, thus the value of the flour is not included in the value-added (GDP)
of the baker.
The baker buys his flour from the miller, who produces flour by grinding
wheat. So the value-added (GDP) of manufacturing flour is captured by the
miller. Since the miller purchases wheat as an input, the value of wheat is not
included in the value-added (GDP) of the miller.
Who does the miller buy his wheat from? From the farmer, who harvests the
wheat from his land using his blood, sweat and tears. Then, the value-added
(GDP) of wheat, which is ground to produce flour by the miller to make a loaf
of bread by the baker, is captured by the farmer.
Since our baker owns a retail bakery, and sells his wares directly to
market, the total value of the bread would equal the value-added of the farmer
plus the value-added of the miller plus the value-added of
the baker.
Top of Page
Economic growth is often measured as the percentage increase in GDP,
adjusted for inflation, from one year over an earlier year. Trend growth rates
for an economy, sector or industry are calculated over a series of years. In
Canadian Industry Statistics, the compound annual growth rate (CAGR) is
frequently used to depict trends in real GDP growth and other economic
indicators.
GDP growth is an important economic indicator. It measures progress or the
rate of expansion of the economy's capacity to produce output (goods and
services). It is examined as a measure of the short term stability or
instability of the economy. GDP growth is also reflective of the future
consumption possibilities for a nation and is the main source of improvements
to our standard of
living over time.
Economic growth occurs from accumulating human capital (knowledge and
skills), investing in physical capital (factories, machinery and equipment) and
the implementation of new technologies in the production process.
With benefits to economic growth come costs. One cost to economic growth is
that in order to increase the consumption possibilities for tomorrow, we have
to forego some consumption today. To maintain economic growth more effort has
to be placed on the production of technology and capital in order to produce
goods for future consumption, rather than the production of goods for current
consumption.
Other costs may occur from sustaining a high rate of economic growth, such
as resource and environmental degradation. However, the impact faster economic
growth has on our environment and resources are not reflected in the measure
GDP growth.