OTTAWA (CU)_After a tumultuous 2020, when Canada’s manufacturing sales dropped to its lowest level since 2015, the industry bounced back to reach its highest level of sales on record last year. Although 2021 was also marked by several supply chain issues, including shortages in raw materials like microchips, and increases in the prices of metals, manufacturing sales rose for a third consecutive time in December.
Recent figures published by Statistics Canada show that manufacturing sales reached $64.0 billion by the end of 2021, following a 0.7 per cent increase in the final month of that year. These higher sales were registered on the back of growth in sales in plastic and rubber, fabricated metals, motor vehicles and wood product industries.
The biggest increases were reported in plastic and rubber products, with an 11.8 per cent hike in sales to a record-high $3.5 billion in December. Meanwhile, manufacturers of motor vehicles and motor vehicle parts were able to ramp up production for a third consecutive month in December, as sales of motor vehicles rose by 8.2 per cent, while in the motor vehicle parts industry, sales grew by 1.6 per cent.
In terms of geographic classification, manufacturing sales increased in seven of the 10 provinces in the final month of 2021, with Ontario and Alberta at the top of the list. Sales in Ontario rose by 1.1 per cent to $27.9 billion in December, while in Alberta, total manufacturing sales reached $7.7 billion, following a 1.8 per cent increase that month. On the other hand, the largest decline was registered in the province of Quebec, where sales dropped by 1.2 per cent to $16.4 billion. According to the national statistical office, this was predominantly a result of lower production of aerospace product and parts.
