Canada’s Metals Industry: A Global and Domestic Analysis - Challenges and Opportunities
Canada’s Metals Industry: A Global and Domestic Analysis - Challenges and Opportunities
Executive summary
Metals are essential to the modern world, supplying the fundamental materials needed for infrastructure, technology, and countless everyday products. This report from the Íâ¹úÃÀŮɫÇéƬ research team provides an overview of the metals industry in Canada and globally, focusing on primary metal manufacturing, steel, and aluminum. It highlights each industry's economic contributions, employment statistics, regional distribution, and global market trends.
Primary Metals Manufacturing
In 2023, Canada's primary metals manufacturing sector contributed $11.1 billion to the GDP, making it the 7th largest in manufacturing. The sector faced a 12.3% GDP decline in 2020 due to COVID-19 and has not fully recovered. In 2022, there were 579 employer establishments, mostly micro and small businesses, and 327 non-employer establishments. The industry employed 54,643 people in 2023, mainly in Ontario (52.1%) and Quebec (33.7%). Employment declined 8.4% in 2020 due to the pandemic and has not yet recovered, despite an increase in 2021. Quebec is the largest manufacturer of primary metal, followed by Ontario.
Steel
The global steel industry saw a 4.4% production drop in 2022 due to the Russia-Ukraine conflict and China's COVID-19 policies. The industry is adopting sustainable practices, notably using steel scrap. Canada’s steel industry, contributing $2.8 billion to GDP and employing over 23,700 people, faces labour shortages and regulatory challenges. It remains closely tied to the U.S., significantly affecting trade dynamics. Canada produced 12.1 million tonnes of steel in 2023, ranking 16th globally.
Aluminum
Driven by sustainability efforts, demand for aluminum is projected to increase by 33.3 million tonnes by 2030, mainly from the transportation, electrical, construction, and packaging sectors, with China leading the growth. In 2023, global primary aluminum production reached 70.5 million tonnes. Canada, a key producer with a low carbon footprint, produced 3 million tonnes in 2022 and expects an increase to 3.2 million tonnes in 2023. The Canadian aluminum industry supports numerous jobs, primarily exports to the U.S., and imports bauxite and alumina, with strong long-term growth prospects despite price fluctuations.
Conclusion
The metal industry in Canada is at a crossroads, facing numerous challenges such as economic uncertainties, labour shortages, and environmental pressures. However, opportunities abound in the form of technological advancements, sustainable practices, and growing global demand for greener products. Strategic investments in clean technologies, workforce development, and embracing sustainability will be critical for the sector's long-term growth and competitiveness.
Download the full report here: Canada’s Metals Industry: A Global and Domestic Analysis – PRIMARY METALS MANUFACTURING, STEEL & ALUMINUM