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Manufacturing in Canada is A Substantial Contributor to Their GDP

manufacturing in Canada

Canada has a very important manufacturing industry and is among the wealthiest nations in the world with a purchasing power of $1.75 trillion and a nominal GDP of $1.6 trillion, ranking it the 10th largest GDP in 2016. Canada is also known to be one of the countries with a highest economic freedom index. The Canadian economy, as the economy of most developed countries, is dominated by the tertiary sector, where about three-quarters of Canadians are employed.

Today, manufactured products account for 11 percent of the Canadian GDP. It is the second largest economic sector after real estate.  In Canada, manufacturing is a well-paying and high-skilled sector that pays about 1.85 billion dollars weekly to Canadians, which is more than any other sector in the country. It benefits about 1.7 million Canadian workers through full-time jobs and it also impacts about 3 million indirect jobs. Canadian manufactured products represented 61% of total merchandises exported by Canada.

Autos and Aircraft

The top manufacturing sector by sales in Canada is transportation equipment which generates $112.6 billion annually. Canada is home to major automobile makers from the United States, Japan and different Canadian firms such as Magna International and Linamar Corporation. However, Canada produces much more than just cars and motorcycles. They also provide a significant amount of jets.  For example, Bombardier Inc. is a Canadian multinational aerospace and transportation company and the third largest manufacturer of commercial aircraft in the world.

Food Processing

The second most important manufacturing industry is food processing which sold more than $107.1 billion each year since 2014. Companies such as Beaver Buzz (energy drinks and teas), Just Us! Coffee Roasters Co-op (Coffee), DavidsTea (teas) represent the largest companies in this sector. The US is the largest purchaser of Canadian food products buying more than half of all food exports. Their stricter regulations of GMOs-free and organic specialty foods have made them a primary producer for the US health food market.


Petroleum and natural gas products are responsible for generating 83.1 billion of the Canadian economy. In fact, Canada has the third-largest oil reserves in the world and is the fifth largest oil producer. There are about a dozen of oil companies in Canada and among the most important are Imperial Oil, Shell Canada, and Suncor Energy. Guess who buys the majority of Canadian petroleum and petroleum product exports? The US, of course. In fact, Canada is the largest source of US petroleum imports.

The key to understanding the prosperous Canadian economy is the development of the manufacturing industry. Canada has been focused on having one of the most educated labor forces, which is an important basis to sustain the development of the economy and the welfare of the population. With a well-developed infrastructure since the 1960’s, Canadian industry has thrived. The investment and growth of this sector have allowed the promotion of technology and other public projects further fueling wealth and stability.

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