Source: www.aem.org Earlier this year, AEM released its latest economic impact report for the equipment manufacturing industry in Canada. While the latest data shows a modest contraction in direct employment during the last three years, the total output of the industry in Canada expanded by 2.6% from $38 billion to $41 billion during the same period. The Canadian data is part of a report prepared by the Market Intelligence Team at S&P Global and details the impact of the three major sectors – agriculture, construction and mining – that make up the equipment manufacturing industry.
Key findings on the state of the Canadian equipment manufacturing industry include:
• The off-highway equipment and ancillary products industry supports 152,000 total employees in Canada, including 66,000 direct jobs involved in firms producing off-highway equipment.
• Direct employment contracted by 2.1% from 2019 to 2022, a reduction of nearly 1,500 jobs.
• The direct employment driven by the off-highway equipment and ancillary products industry represented 4.2% of Canada’s total manufacturing employment in 2022. The 152,000 total jobs supported by the industry generate $11.5 billion in labor income, with an average annual wage for direct industry employees of $75,500.
• The off-highway equipment and ancillary products industry generated $17.6 billion in economic value in Canada, which represented just under 1 percent of 2022 total nominal GDP.
The latest report forecasts a slight recession followed by a recovery for the equipment manufacturing industry in Canada, as real output is expected to decline by 1% only to increase again by 1% in 2024.