Chemicals and Chemical Products (Total)
This profile provides a brief overview of the overall chemical and chemical products industry. More detailed information is available for select sub-industries in the other industry profiles available on this web site.
The chemical industry is a diverse group of manufacturing companies that operate in all regions of Canada. Companies in this industry exhibit one of two features. One group uses chemical reactions to convert one substance into a different substance. The second group, blends a variety of inputs to produce a functional product for specific end-use applications.
According to the North American Industry Classification System (NAICS), the chemical industry is identified as NAICS 325. Within this grouping the 4-digit sub-industries are:
For the most part, formulated product manufacturing processes do not involve chemical reactions, but rather involve the blending of a number of chemical products together to meet a particular end-use application. This part of the industry is characterized by a predominance of small and medium-sized firms.
Within each 4-digit NAICS industry, there are further subdivisions into more specific industry groups. The distribution of industry shipments by each of the major sub-industry groupings is shown in Figure 1.
Size and Structure of the Industry
In 2010, there were about 2730 establishments in Canada in the chemical industry. This generated shipments valued at $42.4 billion and employed 77 670 people. See the statistical tables on the statistics page for additional information. Compared to all 21 3-digit NAICS industries in Canada, chemicals ranks fifth according to value of shipments and ninth according to employment.top of page
In 2010, exports totalled $27.9 billion and imports were valued at $40.9 billion. On the basis of exports, chemicals ranks second among all 3-digit NAICS industries in Canada. Canadian exports of chemicals grew from 25 percent of shipments in 1990 to 64 percent in 2010 (Figure 2). Imports have also increased significantly during this period. In 1990, imports satisfied 31 percent of total domestic consumption, and by 2010 this had risen to 72 percent.
The United States is the dominant export partner, being the destination for 76 percent of exports and the source of 60 percent of imports. The next largest export markets are: United Kingdom (4 percent), China (3 percent) and Brazil (2 percent). The next largest import sources were: Germany (5 percent), Switzerland (4 percent) and France (4 percent).top of page
Over the past 10 years, the regional distribution of the industry has not changed dramatically. In 2009, 41 percent of all establishments were located in Ontario, 27 percent in Quebec, 16 percent in the Prairie provinces (mainly Alberta), 12 percent in British Columbia, and 4 percent in the Atlantic provinces (Figure 3). On the basis of shipments, the distribution changes, primarily due to the presence of some very large production facilities in Alberta, to Ontario (45 percent), Prairies (31 percent), Quebec (20 percent), British Columbia (3 percent) and Atlantic Canada (1 percent).
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