Canadian manufacturing sector gateway

Overview

Manufacturing is a cornerstone of our modern economy. Accounting for approximately $174 billion of our GDP, manufacturing represents more than 10% of Canada's total GDP. What is more, manufacturers export more than $354 billion each year, representing 68% of all of Canada's merchandise exports.

All of this adds up to 1.7 million quality full-time, well-paying jobs—all across the country. And as the sector has modernized, manufacturers have become innovative and high-tech, relying on a highly skilled and knowledgeable workforce that includes designers, researchers, programmers, engineers, technicians and tradespeople.

Canada's manufacturing industry has huge potential for Canada's economic future. The world is changing, and new technologies are not just opening new markets for Canadian goods, they are changing the ways these goods are produced. For manufacturing in Canada to remain a vibrant, innovative and competitive contributor to our economy, business and government will need to work together. A vibrant manufacturing community encourages industrial clusters that develop skills, knowledge and technology. Success breeds success: when Canada's manufacturers grow and compete, they act as magnets for new investment and for new young people wanting to be part of this great industry, making the products of tomorrow.

 

Skills

Manufacturing is one of Canada's most important economic sectors, employing 1.7 million people in a wide range of industries across the country. A strong manufacturing industry needs skilled workers to grow, innovate and be globally competitive.

Today, Canada's manufacturing sector faces skills shortages that are expected to grow as the population ages. Greater skills development and participation in training, including through apprenticeships, will play an important role in improving the process of matching people with jobs and jobs with people and help alleviate potential future skills shortages.

Canadian companies are getting more involved in finding solutions to skills shortages as they understand that it will aid their businesses. Companies offer training to improve the skills of existing workers and to better integrate new employees. They also invest in technology-driven programs given at post-secondary institutions to ensure that graduates from these programs will have the necessary skills to immediately enter the workforce. Where such programs do not already exist, some companies are investing in the development of partnerships between the private sector and post-secondary institutions.

The Government is working with its partners to increase support for and access to skills training initiatives, including those that benefit skills development for the manufacturing sector, such as the Apprenticeship Job Creation Tax Credit, Apprenticeship Incentive Grant, Apprenticeship Completion Grant and the Canada Apprentice Loan. In doing so, it is promoting a highly skilled and mobile workforce.

 

Trade

Rapid globalization of markets, lowering of trade barriers and increasing global demand has led to both growing competition and new opportunities for Canadian manufacturers.

With Canada's highly educated population, strong science base and strong existing clusters, knowledge- and technology- intensive manufacturing industries, including niche manufacturers, represent the most strategic opportunity for the future of the domestic manufacturing sector.

Today, Canadian manufacturers are increasingly linked into growing emerging markets through participation in global value chains, providing the products world markets need at the right price and produced with the latest technologies. In 2016, close to half of what manufacturers sold was exported ($354 billion), and over three-quarters of exports were destined for the U.S. Customized export and import statistics on international trade can be found on Innovation, Science and Economic Development Canada's Trade Data Online.

In a highly competitive global environment, the Government plays a role to promote fair competition for Canadian firms seeking to grow abroad and ensures that the Canadian market remains open and competitive. Trade negotiations to open markets and reduce duties can create new opportunities in manufacturing and other industries. Progress in trade helps promote competition in Canadian markets, making our firms more productive and innovative. Information on how to find new markets, grow your business and learn about doing business with other countries can be found on Innovation, Science and Economic Development Canada's Import, export and investment.