Canadian Manufacturing Industry: Fabricated Metals Manufacturing

EXECUTIVE SUMMARY

Welding is integral to the manufacturing and metal fabrication sectors, providing the backbone for constructing and maintaining essential infrastructure and products. This report delves into the Canadian manufacturing industry and the fabricated metal product manufacturing subsector, offering a comprehensive analysis of the current and emerging trends shaping these industries.

In 2023, manufacturing accounted for 9.7% of Canada’s total GDP by industry, amounting to $213.2 billion. It was the second-largest sector after real estate rental and leasing, which contributed 13.2% of total GDP ($291.7 billion). The COVID-19 pandemic significantly impacted the manufacturing sector, leading to substantial declines in GDP, revenues, and employment in 2020. Despite a steady recovery since, employment levels have not yet returned to their 2019 figures. The sector employed over 1.56 million people in 2023, with the majority based in Ontario (44%) and Quebec (28%). Emerging trends for 2024 include the expansion of as-a-service financing, increased IoT integration for enhanced efficiency, and a focus on sustainability initiatives.

Fabricated Metal Product Manufacturing ranked as the fifth largest contributor to Canada’s manufacturing GDP in 2023, generating $16.5 billion. This subsector represented 7.7% of the manufacturing industry’s total GDP and 0.75% of Canada’s overall GDP. Like the broader manufacturing sector, the fabricated metal product manufacturing industry experienced a notable downturn due to the COVID-19 pandemic, with a GDP decrease of 11.9% in 2020 and an 8.8% drop in employment.

In 2023, approximately 13,000 businesses were involved in metal product fabrication across Canada, employing around 162,000 individuals. Ontario and Quebec led the national workforce in this industry, accounting for 42% and 29% of the employment, respectively. Welders and related machine operators constitute one of the largest occupational groups in the industry, representing 8.7% of the sector’s employment in Ontario in 2022.

The sector continues to face challenges due to the lingering effects of the pandemic, but it is also poised for growth with advancements in technology and increased focus on sustainability.

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