Overview of the Canadian marine industry

Summary:
Overview of the Canadian marine industry

This report is based on the 2014 Canadian Defence, Aerospace and Commercial and Civil Marine Sectors Survey, conducted by Statistics Canada in collaboration with Innovation, Science and Economic Development Canada.

It presents the latest figures and facts for Canada's maritime sector. The economic impact relating to the entire sector is presented, followed by an analysis of sale’s types according to the commercial, civil and defence sectors. Attention is also directed at the industry's ecosystem according to size, region, employment type, research and development, as well as an overview of supply and exports for the sector.

The Canadian marine industry contributed close to $2B in GDP and 20,000 FTEs to the Canadian economyFootnote * in 2014…

Marine Sector generated over $3.1B sale revenues and 11,100 direct full time employment attributable to 314 businesses in 2014

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  GDP ($Billion) Employment (K FTE)
2014
Direct  0.9   11.1 
Indirect  0.5   4.1 
Induced   0.5   4.4 

Source: Canadian Defence, Aerospace and Commercial and Civil Marine Sectors Survey (2014), 2016

Canadian marine industry sales categories—2014

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Canadian marine industry sales categories — 2014 Sales
Unmanned marine vehicles, manned sub-surface vehicles and marine robotics and components 1.8%   $30.8 M
Ship-borne software, sensors, electronics, navigation systems, and equipment control systems and components 4.7%   $82.2 M
Ship Design, engineering and related professional services 5.6%   $99.0 M
Ship propulsion systems, electrical power systems and related components 6.5%   $114.0 M
Shipbuilding, ship hulls and structural components 7.1%   $124.5 M
Marine sciences and ocean technology (other acoustic, radar, sonar, communication, surveying, mapping, imaging and geomatics equipment, components and services) 12.3%   $215.6 M
Offshore oil and gas structures and components 13.5%   $236.8 M
Ship repair and maintenance services 20.5%   $360.2 M
Other commercial and civil marine products and services not otherwise captured in the above categories 28.0%   $490.8 M
Total commercial and civil 57% $1,754.0 M
Simulation systems for naval vessels 0.8%   $10.9 M
Naval ship fabrication, structures and components 21.5%   $289.4 M
Naval ship-borne systems (i.e., mission systems) and components 35.9%   $483.1 M
Naval ship maintenance, repair and overhaul 41.8%   $562.0 M
Total defence 43% $1,345.5 M
Source: Canadian Defence, Aerospace and Commercial and Civil Marine Sectors Survey (2014), 2016

More than 1B of marine sector exports in 2014…

  • Export intensity of close to 35%
  • Over 85% of the firms operate only domestically; these account for over half of the sector sales

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Sales $3.1 B - 2014
Domestic 59%
Export to U.S. 14%
Export to the rest of the world 13%
Export not specified 7%
Not specified 7%

Source: Canadian Defence, Aerospace and Commercial and Civil Marine Sectors Survey (2014), 2016

More than 50% of domestic sales are related to the Canadian federal government…

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Sales $3.1 B - 2014
Domestic 59%
Export to U.S. 14%
Export to the rest of the world 13%
Export not specified 7%
Not specified 7%

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Domestic Sales - 2014
Canadian federal government — 52.0% $958.7 M
To other Canadian customers— 32.7% $602.9 M
Non-government entities in Canadian defence, aerospace or commercial and civil marine sectors (including subcontracts) —13.0% $239.5 M
Not specified — 2.3% $41.7 M

Source: Canadian Defence, Aerospace and Commercial and Civil Marine Sectors Survey (2014), 2016

Canadian marine industry 5% of the largest firms have over 40% of sales

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  Number of marine enterprises % of Total marine sector sales
2014
Enterprises with less than 100 employees 81.8% 22.9%
Enterprises with between 100 and 249 employees 9.6% 24.3%
Enterprises with between 250 and 499 employees 3.5% 12.3%
Enterprises with 500 or more employees  5.1% 40.5%

Source: Canadian Defence, Aerospace and Commercial and Civil Marine Sectors Survey (2014), 2016

Source: Canadian Defence, Aerospace and Commercial and Civil Marine Sectors Survey (2014), 2016

Nonetheless marine SMEs capture a significantly higher share of their sector activity compared to defence, aerospace and space systems…

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Sector Businesses with 249 and less employees' Share of Sales
Marine 47.2%
Defence 16.7%
Aerospace 9.4%
Space systems 4.0%

Source: Canadian Defence, Aerospace and Commercial and Civil Marine Sectors Survey (2014), 2016

Limited R&D investment level mainly focused on experimental development…

  • More than half of R&D investment performed by firms with a Canadian parent or no parent (similar pattern to overall sales)
  • Limited R&D investment in basic research

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Research $ 42.4 M - 2014
Experimental development 72%
Applied research 21%
Not specified 7%

Source: Canadian Defence, Aerospace and Commercial and Civil Marine Sectors Survey (2014), 2016

Canadian marine industry type of employee—11,000 — 2014

  • More than 20% of position related to innovation activities
  • Close to 40% of employment related to production / manufacturing activity

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Type of employee in the marine sector—11,000—2014
Engineers, scientists and/or researchers 14%
Technicians and technologists 8%
Production workers 39%
All other employees (including management, administration, marketing etc.) 25%
Breakdown not specified 14%

Source: Canadian Defence, Aerospace and Commercial and Civil Marine Sectors Survey (2014), 2016

Canadian marine industry employment region—2014

  • East and West Coast capture more than 60% of the sector workforce
  • Central Canada represent more than 25% of the sector workforce

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Region Employment
2014
Atlantic Canada 29%
Quebec 11%
Ontario 16%
Western and Northern Canada 34%
Breakdown not specified 10%

Source: Canadian Defence, Aerospace and Commercial and Civil Marine Sectors Survey (2014), 2016

Canadian marine industry supply $1.1 B—2014

  • Close to 60% of supply are from domestic sources
  • US does not represent the main location of supply for the marine sector

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Supply $ 1.1 B— 2014
From domestic companies or distributors 57%
From U.S. companies or distributors 14%
From other foreign companies or distributors 16%
Not specified 13%

Source: Canadian Defence, Aerospace and Commercial and Civil Marine Sectors Survey (2014), 2016

Key findings

  • The Canadian marine industry contributed close to $2B in GDP and 20,000 FTEs to the Canadian economy in 2014
  • Marine systems represent more than 30% of the overall sector activity
  • Sector is a mix of commercial and defence activities
  • More than 50% of domestic sales are related to the Canadian federal government
  • More than 1B of marine sector exports (close to 30% export intensity)
  • SME represent a significant share of the sector activity
  • Limited R&D investment level mainly focused on experimental development
  • Close to 60% of supply are from domestic sources
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