British Columbia Sector Profile: Manufacturing

Highlights

  • In 2021, British Columbia's manufacturing industry accounted for 6.1% of the province's GDP for a total contribution of $16.3 billion.
  • The average wage in British Columbia's manufacturing sector is $30.10/hour as of 2021.
  • The sector is based heavily in and around the Metro Vancouver area with 68% of the province's manufacturing employment being in the Lower Mainland - Southwest region.

Provincial Overview

In 2021, there were 179,300 workers in British Columbia employed in manufacturing, representing 6.8% of provincial employment. Manufacturing includes a diverse set of subsectors, with the top three by employment being food and beverage manufacturing (28,100 workers); wood manufacturing (24,000 workers); and transportation equipment manufacturing (12,900 workers). Full-time employees represent the overwhelming majority of workers in the sector, making up 90.7% of all workers in 2021.

In 2021, British Columbia's manufacturing industry accounted for 6.1% of the province's GDP for a total contribution of $16.3 billion.

Charts showing sector employment and GDP statistics in 2021

Source: Statistics Canada Labour Force Survey; Statistics Canada Table: 36-10-0402-01 (GDP at basic prices, chained 2012 dollars); Statistics Canada Table: 36-10-0400-01 (GDP at basic prices, current dollars)

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In 2021, the sector contributed to:

  • 7% of provincial employment
  • $16.3B of provincial Gross Domestic Product
  • 6% of the province's total GDP

The manufacturing workforce is predominantly male with females representing only 27.1% of those employed in the sector. The sector is primarily composed of workers in the 25 to 55 years age range, who account for 61.3% of the workforce. In 2021, about 9.6% of manufacturing workers in British Columbia were young workers (15 to 24 years), whereas 29.1% of workers were over the age of 55.

Charts showing sector employment distribution in 2021

Source: Statistics Canada Labour Force Survey, ESDC custom table

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Of those employed in 2021:

  • 91% worked full-time
  • 27% were female, 73% were male
  • Employment distribution by age
    • 15-24 years: 10%
    • 25-54 years: 61%
    • 55+ years: 29%

The manufacturing sector is an important industry for many communities in British Columbia with establishments spread over the entire province. However, the majority of manufacturing operations are concentrated in the province's more metropolitan regions. The Lower Mainland – Southwest region accounted for 68% of all employed workers in the sector as of October 2022. The next largest regions by percentage of the province's manufacturing workforce are the Thompson-Okanagan (11%) and Vancouver Island and Coast (10%). The other regions across the province represent the remaining 11% of the manufacturing workforce.

Sector Trends

One of British Columbia's largest manufacturing subsectors is wood product manufacturing, which is closely linked to the province's forestry sector. A variety of challenges over the past decade have led to job losses in the subsector. Log supply continues to be at the forefront of issues in the industry. In 2021, the Government of British Columbia announced an old growth logging deferral to protect large areas of forest in the province. [1] This announcement was met with mixed reactions from those within the forestry and wood manufacturing industries, as they claim this will worsen an already shrinking log supply for the industry. [2]

Line graph showing subsector employment from 2011 to 2021

Source: Statistics Canada Labour Force Survey, ESDC custom table

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Top Subsectors by Employment

Year Food Wood
Product		 Paper Transportation
Equipment
2011 22,500 30,700 8,500 8,800
2012 25,100 27,700 11,800 11,000
2013 22,100 30,100 10,800 8,700
2014 22,000 32,100 12,500 9,800
2015 26,800 35,700 10,300 8,200
2016 30,100 33,300 8,800 9,500
2017 26,500 30,000 11,500 9,900
2018 30,300 25,300 9,200 11,800
2019 29,600 22,400 9,400 10,600
2020 25,800 21,400 10,200 10,700
2021 28,100 24,000 12,800 12,900

Note: Figures shown are employment estimates

Despite the challenges, major forestry companies in the province continued posting strong earnings in 2021 and 2022. [3], [4], [5] Earnings in the wood manufacturing sector have been bolstered by record lumber prices and high demand amid the COVID-19 pandemic. [6] In line with higher lumber prices, the value of wood product exports in British Columbia increased 53% year-over-year to more than $12.3 billion in 2021. [7]

In wood manufacturing, forest product facilities have undergone a number of curtailments and production slowdowns throughout 2022. Declines in wood prices, log shortages, increasing pulp prices and lower demand for products are cited as the driving reasons for curtailments.

Food manufacturing has continued to grow even after surpassing wood manufacturing in 2018 to become British Columbia's largest manufacturing subsector in terms of employment. The subsector is often grouped together with beverage manufacturing, which employed 9,000 workers in 2021. Food and beverage manufacturing totals over 2,500 companies in British Columbia [8] including the highest number of breweries in Western Canada. [9]

In October 2022, the Government of British Columbia announced the implementation of regulatory changes to provincial employment standards, raising the minimum age for workers across various sectors to 16 and 18 years according to risk level. Many professions affected by these changes are in manufacturing. Eighteen years old is now the minimum age for a variety of manufacturing jobs, specifically in wood products and paper manufacturing in pulp, paper, saw, shake or shingle mills. As well, foundries, metal processing or metal fabrication operations and refineries or smelters can only be staffed by those 18 and older. Fish, meat or poultry processing facilities may no longer allow those below the age of 18 to work with dangerous equipment [10]

These new regulations, which will come into effect on January 1, 2023, are aimed at improving health and safety measures for young workers in British Columbia. Training programs overseen by SkilledTradesBC will allow younger workers to engage in higher risk activities through apprenticeships and training programs. The regulations will include a phase-in period allowing workers who are less than six months from reaching the prescribed age for high-risk activities to continue their employment. [11]

Line graph showing sector employment from 2011 to 2021

Source: Statistics Canada Labour Force Survey, ESDC custom table

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Manufacturing Employment

Year Employment
2011 156,500
2012 168,400
2013 154,600
2014 163,300
2015 174,700
2016 175,800
2017 182,300
2018 180,400
2019 172,400
2020 167,900
2021 179,300

Note: Figures shown are employment estimates

Employment Outlook

The manufacturing sector is composed of many diverse subsectors. While Canada's GDP is forecast to rise slightly in 2023 [12] and manufacturers expect output to rise in 2023 [13] , challenging global economic conditions may limit production.

British Columbia's manufacturing shipments rose 20.8% from 2020 to 2021, reaching nearly $63 billion in value [14] . Wood product manufacturing led the way with 50.0% growth over this period. There was also strong growth in paper manufacturing (18.4%) and machinery manufacturing (16.6%). Over the same period, there were contractions in transportation equipment manufacturing (-4.1%), computer and electronic product manufacturing (-2.5%), and non-metallic mineral product manufacturing (-1.8%).

The outlook for employment will vary not only by subsector but within subsectors. Firms that are export-oriented may benefit from recent weakness in the Canadian dollar that means their products cost less in US dollars. Firms that are domestically focused may struggle with the weaker Canadian dollar if they purchase materials or equipment from the United States. Forestry, for example, is highly export oriented and the provincial industry should benefit from strength in the US dollar. At the same time, declining construction activity will reduce demand. Across manufacturers, however, many consider labour shortages and a potential recession as their main risks. [15]

Consumer demand overall may rise slightly in 2023. [16] But demand for goods used in residential and non-residential construction may decline as those segments are forecast to contract in 2023. [17]

Occupation of Interest: Manufacturing Managers (NOC 90010)

Manufacturing managers plan, organize, direct, control and evaluate the operations of a manufacturing establishment or of a production department within a manufacturing establishment, under the direction of a general manager or other senior manager. They are mainly employed by manufacturing companies.

Line graph showing occupational employment from 2011 to 2021

Source: Statistics Canada Labour Force Survey, ESDC custom table

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Occupational Employment

Year Employment
2011 7,100
2012 9,600
2013 6,600
2014 6,300
2015 9,900
2016 6,200
2017 10,400
2018 6,600
2019 8,200
2020 8,700
2021 10,600

Note: Figures shown are employment estimates

The median wage for manufacturing managers in British Columbia is $42.00/hour compared to the national median of $43.00/hour for this occupation. Within British Columbia the median wage is highest in the Lower Mainland – Southwest region ($43.27/hour) and lowest in the Thompson-Okanagan ($36.06/hour). To work as a manufacturing manager, candidates typically need to have completed a college or university program in engineering or business administration. Five to ten years of supervisory experience in manufacturing may also be needed. [18]

Endnotes

  1. Government of British Columbia. (November 02, 2021) Government taking action on old-growth deferrals ↑

  2. Global News. (November 03, 2022) ‘A gut punch': Forestry sector pushes back against B.C. plan to defer old-growth logging ↑

  3. Wood Business. (February 17, 2022) West Fraser posts record full-year earnings in 2021 ↑

  4. Wood Business. (March 02, 2022) Canfor nearly tripled record earnings in 2021 ↑

  5. Wood Business. (August 04, 2022) Western Forest Products records strong results in Q2 ↑

  6. United States Department of Agriculture. (May 13, 2022) How the pandemic drove up the cost of wood products ↑

  7. Government of British Columbia. International Commodity Trade - Annual B.C. exports (accessed November 15, 2022) ↑

  8. Government of British Columbia. Food and beverage processing (accessed November 16, 2022) ↑

  9. Vancouver Sun. (July 03, 2022) B.C. has the most breweries in Western Canada but the fewest beer drinkers. Why? ↑

  10. Government of British Columbia. (October 11, 2022) New rules increase safety for young workers ↑

  11. Ibid. ↑

  12. The Conference Board of Canada. (October 18, 2022) Canadian Outlook: Shocks and Struts ↑

  13. Trading Economics. (November 1, 2022) Canadian manufacturing activity contracts further ↑

  14. Statistics Canada. (November 18, 2022) Manufacturing sales by industry and province, monthly ↑

  15. Business in Vancouver. (October 14, 2022) B.C. manufacturers to benefit from declining Canadian dollar ↑

  16. Trading Economics. (November 2022) Canada Consumer Spending ↑

  17. BuildForce Canada. (November 18, 2022) British Columbia: An Assessment of Construction Labour Markets from 2023 to 2032 (Committee presentation) ↑

  18. Government of Canada Job Bank. (November 18, 2022). Manufacturing manager in British Columbia ↑

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