Canadian manufacturing sales in 2014 increased 5.3 percent to C$621.7 billion (US$466.9 billion), surpassing the prerecession high of $605.5 billion (US$454.8 billion) in 2006, according to Statistics Canada. Among the 21 manufacturing industries, 19 posted higher sales in 2014, with transportation, primary metals and food recording the largest gains. Constant dollar sales rose 2.7 percent, indicating a higher volume of goods sold.
Despite the current dollar gains, constant dollar manufacturing sales in 2014 remained below prerecession levels, which peaked at $611.1 billion (US$459 billion) in 2005, indicating that higher prices were partly responsible for the growth in sales over the past few years.
Sales for the transportation equipment industry rose 9.6 percent in 2014, the largest increase among manufacturing industries. Motor vehicle manufacturing (+5.6 percent) was mainly responsible for the gain, while motor vehicle parts manufacturing was up 12.2 percent. Together, these two subindustries accounted for more than half of the increase in transportation equipment. Gains partially reflect prices, which rose 4.6 percent for motor vehicles and 3.4 percent for motor vehicle parts. Sales of motor vehicles and motor vehicle parts have trended upwards in recent years; however, they remained below the prerecession value recorded in 2007.
Aerospace products and parts also contributed to the gains in the transportation equipment industry. Aerospace production increased 13.2 percent in 2014, reaching its highest level since the beginning of the series. The value of the Canadian dollar, on average, depreciated in 2014, especially in the second half of the year. As a result, the Canadian-dollar value of aerospace production increased.
Sales of food products rose 7.1 percent, representing more than half of the dollar gain in nondurable industries. The increase stemmed primarily from meat product manufacturing, which rose 15.2 percent. Manufacturing sales of animal slaughtering (except poultry) increased 28.3 percent, following three years of declines. The gains in this subindustry reflect prices, which rose 17.8 percent on average in 2014.
Sales of primary metals rose 10.5 percent to $48 billion in 2014, reflecting widespread increases among manufacturers in the industry. Manufacturers of iron and steel mills and ferro-alloy posted the largest gains, as sales for the sub-industry rose 26.9 percent, partly as a result of higher prices.
Sales by Province
Sales rose in seven provinces in 2014, with the largest manufacturing provinces contributing the most to the gain in dollars terms. Ontario manufacturers were responsible for over half of the national gain in dollar terms, as sales in the province rose 6.1 percent. While Ontario accounts for most manufacturing sales in Canada, the province has seen its share of manufacturing sales decline since the early 2000s.
Sales increased 6.4 percent in Quebec and 7.6 percent in Alberta. Meanwhile, Nova Scotia, New Brunswick, and Newfoundland and Labrador posted declines.
Transportation equipment, primary metals and food manufacturing were mainly responsible for the advance in Ontario. Transportation equipment rose 8.7 percent, with sales of motor vehicles and motor vehicle parts representing three-quarters of the dollar gains.
In Quebec, transportation equipment was also the main contributor to the sales growth, mainly as a result of higher production of aerospace products and parts (+14.1 percent). Despite the upward trend in the province, aerospace production remained slightly below its high recorded in 2008.
Annual gains in Alberta were mainly the result of a 10.8 percent increase in sales of petroleum and coal products. Despite the decline in petroleum prices and sales during the third and fourth quarters, petroleum and coal products posted higher sales in 2014.
The declines in Nova Scotia and New Brunswick were due to lower sales of non-durable goods. Exports of refined petroleum products declined in New Brunswick in 2014.
