Manufacturing is the bedrock of the Canadian economy
The impact of manufacturing extends deeply throughout the country. It generates demand for raw materials, semi-finished goods and professional services. It supplies a host of sectors with critical products and materials. Research and innovation in manufacturing contribute to the betterment of Canadians’ lives. Today, the sector directly represents:
- 1.7 million employees — 10 per cent of the Canadian total;
- $114 billion paid in total compensation to workers — more than any other sector;
- $174 billion in GDP — 10.5 per cent of Canada’s total;
- $348 billion in exports — 67 per cent of Canada’s total; and,
- 42 per cent of all private sector research and development activity.
However, manufacturing in Canada today is stagnant and it risks becoming an afterthought to the public, society generally and political leaders. This is more of a risk as manufacturing continues to evolve in Canada and around the world.
The integration of technology — both hardware and software — into our manufacturing processes and products is rapidly changing the business of manufacturing. Technologies that have now become commonplace, such as computers, email and smart phones will soon be joined by autonomous vehicles, self-learning robots, digital factories and 3D printers in standard business operations. This integration of technology into our processes and products is often referred to as the Fourth Industrial Revolution.
Many countries around the world have developed national strategies aimed at capitalizing on the benefits of the Fourth Industrial Revolution. Canada, to date, has not. Industrie 2030 aims to create that strategy and leverage the opportunities of the Fourth Industrial Revolution and create a roadmap for change which will lead to the doubling of value-added manufacturing and exports by 2030.
While this goal is aggressive, the results for Canada would be dramatic and positive:
- Manufacturing sales would rise from $610 billion in 2015 to $1.2 trillion;
- Exports of manufactured goods would increase from $348 billion in 2015 to $696 billion;
- Create nearly $448 billion in additional GDP in the Canadian economy; and,
- Create an estimated 4.1 million additional jobs.
Together, we can manufacture change.