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Manufacturing Gross Domestic Product

Manufacturing Gross Domestic Product is the total value of manufacturing goods and services produced over a specific time period.

Key Highlights

  • In Q3 2021 and for the second consecutive quarter, the GDP of the Canadian manufacturing sector contracted, down 0.5 per cent.
  • Lower manufacturing GDP helped to influence a fall in the GDP of the goods producing sector.
  • Since the start of the COVID-19 pandemic, the demand for semiconductor chips that are used in the gaming industry and in many manufacturing processes, including in the manufacturing of motor vehicles and parts, increased. This resulted in a global shortage of the product which contributed to the decline in manufacturing GDP.

Peel’s manufacturing sector represents an important (though diminishing) part of the Canadian manufacturing sector. In the absence of Peel specific data on output, changes in the Gross Domestic Product of the Canadian manufacturing sector offer some indication of possible changes in Peel.

Based on this, an assessment of both Canadian indicators of manufacturing production (GDP) and available Peel specific manufacturing indicator (manufacturing employment) are included in this section.

Quarterly Canadian Manufacturing GDP

In Q3 2021, and for the second consecutive quarter, Canadian manufacturing GDP declined (-0.5 per cent).

Non-durable goods manufacturing1 GDP increased, but durable goods manufacturing2 GDP fell by 1.9 per cent to influence the overall decline in Canadian manufacturing GDP.

Manufacturing of motor vehicles and parts was among the largest contributor to the decline in durable manufacturing, as the global shortage of semiconductors continued to negatively affect production.

Manufacturing Employment in Peel’s Labour Market

In Q3 2021, approximately 89,400 Peel residents were employed in the manufacturing sector, 12.3 per cent below the number of residents employed in the sector in Q3 2020.

Over the past year, manufacturing employment in Peel has fluctuated due to the influences of COVID-19 pandemic and associated measures, and more recently, other factors such as supply chain challenges and the global shortage of semiconductors.

Manufacturing employment in Peel will likely continue to be influenced by a number of factors, chief among them is the continuation of the pandemic given new COVID-19 variants, and ongoing challenges in motor vehicle manufacturing which will constrain employment growth in that sub-sector.