Manufacturing AUTOMATION

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Canadian manufacturing sales down in 2013: StatsCan


February 25, 2014
By Manufacturing AUTOMATION

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Total manufacturing sales fell 0.5 per cent to $591 billion in 2013, following gains of 3.5 per cent in 2012 and eight per cent in 2011. The decline in 2013 was a result of lower sales in 13 of 21 industries, according to Statistics Canada.

The principal contributors to the decline in 2013 were the primary metal, petroleum and coal product, fabricated metal product and motor vehicle parts industries. Offsetting the declines in 2013 were gains in the wood product, aerospace product and parts, and chemical industries.

The 10-year high for total manufacturing sales was set in 2006 at $605.5 billion. Sales then declined to a low of $489.2 billion in 2009. Sales levels in 2013 were 20.8 per cent above the 2009 low and 2.4 per cent below the high of 2006.

In the primary metal industry, sales were down 6.7 per cent to $43.2 billion in 2013. The decline mostly reflected lower prices. The average price for products manufactured in the industry, as recorded by the Industrial Product Price Index (IPPI), decreased 5.6 per cent from 2012 to 2013.

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Petroleum and coal product sales decreased 2.2 per cent to $83.4 billion in 2013. In 2012, sales had reached a record high of $85.3 billion. The decline in 2013 was caused by lower volumes of product sold, as prices rose two per cent from 2012, according to the IPPI.

Sales in the fabricated metal product industry fell 4.6 per cent to $33.4 billion in 2013. The decline reflected lower volumes of product sold by manufacturers. Almost all sub-industries posted lower sales in 2013.

The motor vehicle parts industry posted the fourth largest decline in 2013 in dollar terms, with sales falling 6.4 per cent to $23.4 billion. The decline was attributable to lower volumes of product sold in 2013. Sales in this industry had gone from a high of $31.6 billion in 2004 down to a low of $17.2 billion during the recession in 2009. They then rebounded to a post-recession peak of $25 billion in 2012.

Despite declines from 2012 to 2013, sales for the petroleum and coal product and motor vehicle parts industries still surpassed levels posted from 2008 to 2011. However, sales in the fabricated metal product manufacturing industry were 8.3 per cent below their 2008 high, and sales for the primary metal industry were almost 20 per cent lower than 2008 levels.

Total wood product manufacturing reached a high of $35.8 billion in sales in 2004 and subsequently fell to a low of $16.8 billion in 2009. However, sales in recent years have been on the rise. The increase from 2012 to 2013 was particularly noteworthy, with sales up 18.7 per cent to $24.2 billion.

Production in the aerospace product and parts industry rose 14.1 per cent to $17.7 billion in 2013. The advance mostly reflected higher volumes of product manufactured, although a 3.8 per cent price gain also contributed to the gain.

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Source: Statistics Canada