Industrial capacity utilization rates
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Canadian industries operated at 76.4% of their production capacity in the fourth quarter, up slightly from 76.2% in the third quarter. This was the sixth consecutive quarterly increase in the rate, although the pace of growth slowed progressively during 2010.
Overall capacity utilization rates for both manufacturing and non-manufacturing sectors recorded slight changes in the fourth quarter.
For 2010 as a whole, capacity use in Canadian industries intensified to 75.8% from 71.3% in 2009.
Manufacturing: Little overall change
Canada's manufacturers operated at 76.7% capacity in the fourth quarter, virtually unchanged from 76.8% in the previous quarter, following five consecutive quarterly increases.
Utilization rates rose in 11 of the 21 major manufacturing industries in the fourth quarter.
Note to readers
The industrial capacity utilization rate is the ratio of an industry's actual output to its estimated potential output. For most industries, the annual estimates are obtained from the Capital and Repair Expenditures survey while the quarterly distribution is derived from output-to-capital ratio series, the output being the real gross domestic product at factor cost, seasonally adjusted, by industry.
This program covers all manufacturing and selected non-manufacturing industries.
With this release, rates have been revised back to the first quarter of 2008 to reflect updated source data.
Among the industries that recorded an increase, the ones that contributed most were computer and electronic products, machinery, paper, clothing and fabricated metals. These were offset by declines in the transportation equipment, primary metals, food, chemicals and beverage industries.
Capacity use in the computer and electronic products industry rose from 87.0% in the third quarter to 97.0% in the fourth quarter, one of the highest rates ever for this industry. This increase was mainly the result of higher production of communications equipment.
Capacity use in machinery manufacturing reached 79.3%, up from 76.9%. This growth was due to increased production of construction, mining and oil and gas field machinery, as well as commercial and service industry machinery.
In the paper industry, capacity use rose from 85.0% to 87.0%, as a result of higher output from pulp mills and paperboard mills.
Non-manufacturing: Capacity use increases in the oil and gas extraction industry
Among non-manufacturing industries, fourth-quarter utilization rates were either stable or underwent moderate change.
Capacity use in the oil and gas extraction industry rose from 81.4% in the third quarter to 83.9% in the fourth quarter.
In the forestry and logging industry, the rate of capacity use declined from 92.9% to 91.6% in the fourth quarter. However, this was still one of the highest rates in the last five years.
The rate of capacity use in the mining sector, excluding oil and gas extraction, remained unchanged at 68.8%. Increased activity in metal ore and non-metallic mineral mining was offset by weakness in support activities.
Capacity utilization in the construction industry also stayed unchanged, its rate remaining at 73.2%. The decline in residential construction was offset by a pickup in engineering construction activity.
In the electric power generation, transmission and distribution industry, the utilization rate was nearly unchanged at 76.7% as production remained stable.
Annual 2010: Capacity use up
Canadian industries operated at 75.8% capacity in 2010, up from 71.3% in 2009. Despite this increase, the 2010 rate was still below the rate of 77.5% in 2008.
Among manufacturing industries, annual capacity use strengthened to 76.2% in 2010, from 70.9% in 2009 and 75.6% in 2008. However, the 2010 rate was lower than the 2007 rate of 82.8%.
Capacity use also increased strongly in 2010 in forestry and logging, mining, and in transportation equipment and non-metallic mineral products manufacturing.
Some industries declined moderately in their capacity use in 2010. These are electric power generation, transmission and distribution, and manufacturers in electrical equipment, appliances and components, printing and related support activities, beverage, food, and plastic products.
Available on CANSIM: table 028-0002.
Definitions, data sources and methods: survey number 2821.
Data on industrial capacity utilization rates for the first quarter of 2011 will be released on June 14.
For more information, or to enquire about the concepts, methods or data quality of this release, contact Haaris Jafri (613-951-4307; haaris.jafri@statcan.gc.ca), Investment and Capital Stock Division.
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