Annual Survey of Manufacturing Industries, 2022

Released: 2023-12-20

Canadian manufacturing growth continues

After rebounding in 2021, the Canadian manufacturing sector continued to grow and reach new heights in 2022, as total revenue was up 17.4% (+$136.6 billion) to $922.4 billion. While demand for Canadian manufactured goods rose slightly, the growth in revenue was also fuelled by significant price increases in most subsectors.

Revenue from goods manufactured made up 94.0% of total revenue, increasing 17.4% (+$128.4 billion) to $866.7 billion in 2022.

Of the 21 manufacturing subsectors, 19 saw increases in revenue from goods manufactured in 2022. The petroleum and coal product, transportation equipment, food, fabricated metal product, and chemical manufacturing subsectors contributed the most to the annual increase, adding a combined $97.6 billion to it. Only the wood product (-3.1%; -$1.7 billion) and miscellaneous (-0.9%; -$133.2 million) manufacturing subsectors decreased in 2022.

Ontario, Quebec and Alberta continue to lead gains in manufacturing sector

In 2022, Ontario, Quebec and Alberta again accounted for most of the manufacturing activities in the country, their share (81.5%) of total revenue from goods manufactured in Canada being unchanged from 2021. These three provinces contributed 85.0% of the $128.4 billion increase in revenue from goods manufactured in Canada in 2022.

Ontario's largest gains in 2022 were in its transportation equipment subsector (+$19.2 billion), followed by the petroleum and coal product (+$12.3 billion) and food (+$7.6 billion) subsectors.

Food manufacturing remained the leading subsector in terms of manufacturing revenue in Quebec in 2022; their revenues surpassed those of the transportation equipment subsector for the first time in 2020. The largest year-over-year gains in this province in 2022 were seen in the petroleum and coal product manufacturing subsector.

Expenses grow faster than revenue, as prices increase

Total expenses increased faster than total revenue in 2022, rising 18.3% (+$127.8 billion) to $827.5 billion, resulting in a slight decline in the profitability of Canadian manufacturers. Overall, they spent $0.90 on total expenses for every dollar generated in total revenue, up from $0.89 in 2021. Wood product manufacturing has been the most profitable subsector for two consecutive years, spending $0.75 for every dollar earned in total revenue in 2021 and $0.81 in 2022. Conversely, transportation equipment was the least profitable subsector for the past two years, spending $0.97 in both 2021 and 2022.

The cost of materials and supplies increased 21.4% (+$95.2 billion) to $540.5 billion in 2022. The petroleum and coal product manufacturing subsector spent the most on materials and supplies, at $0.77 for every dollar earned in revenue from goods manufactured, followed by the transportation equipment subsector ($0.73) and the food subsector ($0.67).

Total cost of energy, water utility and vehicle fuel increased 20.0% (+$3.3 billion) in 2022. This increase was driven largely by higher prices for natural gas liquids (including condensates) and related products (+41.6%), as well as refined petroleum energy products (including liquid biofuels) (+56.6%).

For every dollar earned in revenue from goods manufactured, $0.12 was spent on salaries and wages in 2022, down from $0.13 in 2021. The most labour-intensive subsectors were apparel manufacturing ($0.29), printing and related support activities ($0.28) and leather and allied product manufacturing ($0.27).

Petroleum and coal product manufacturing records largest growth for manufacturing subsector

Petroleum and coal product manufacturing experienced the largest increase in revenue from goods manufactured of all manufacturing subsectors in 2022. It increased 55.3% (+$40.7 billion) to $114.4 billion, which was 34.6% ($29.4 billion) higher than its previous peak seen in 2013. Similarly, its share of Canadian manufacturing revenue from goods manufactured rose to 13.2% in 2022, its highest level since 2014.

The increased demand for Canadian energy products in 2022 was a result of economic recovery as well as uncertainty around the supply of European energy products due to Russia's invasion of Ukraine. This was reflected in the price of industrial products, such as diesel and biodiesel fuels (+72.4%) and motor gasoline (including blending components and ethanol fuel) (+37.4%).

Transportation equipment manufacturing rebounds

After two consecutive years of decreases, the transportation equipment manufacturing subsector increased its revenue from goods manufactured by 24.7% (+$24.6 billion), reaching $124.2 billion in 2022, but it was still below the pre-COVID-19 pandemic level of 2019 ($138.3 billion).

Automobile and light-duty motor vehicle manufacturing (+$12.2 billion) alone accounted for 49.4% of the increase in revenue from goods manufactured, followed by other transportation equipment manufacturing (+$2.5 billion) and aerospace product and parts manufacturing (+$2.5 billion).

Food manufacturing subsector in top spot three years in a row

Food manufacturing has been the largest manufacturing subsector in terms of revenue since 2020. Revenue from manufactured goods rose by 11.9% (+$15.7 billion) to $147.7 billion in 2022, its 17th consecutive year of growth. This increase was driven by animal slaughtering and processing (+$3.0 billion), starch and vegetable fat and oil manufacturing (+$2.1 billion), animal food manufacturing (+$1.8 billion) and bread and bakery product manufacturing (+$1.7 billion). The gain in revenue can be attributable to the price increase of food in 2022.

Fabricated metal product manufacturing revenue driven by higher prices

Fabricated metal product manufacturing experienced a 19.5% (+$8.4 billion) increase in revenue from goods manufactured in 2022, reaching $51.8 billion. Gains in revenue can be explained mainly by higher prices for products such as other fabricated metal products (+25.7%) and other architectural metal products (+17.8%).

Chemical manufacturing continues to grow

In 2022, revenue from goods manufactured grew 12.7% (+$8.1 billion) in the chemical manufacturing subsector, reaching $ 71.6 billion. This growth in revenue is attributable to increases in prices of fertilizers, pesticides and other chemical products (+34.8%), petrochemicals (+19.8%) and basic chemicals (+13.7%) in 2022.

Chart 1 
Subsector share of revenue from goods manufactured in Canada, 2001 to 2022

Contact information

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