Primary Metal Manufacturing (NAICS 331): Ontario, 2025
Highlights
- Ontario represents about two-fifths of all employees (39.8%) in Canada’s primary metal (PM) manufacturing subsector and nearly a half of all PM businesses (45.7%).
- There were 24,900 people employed in the PM manufacturing subsector in Ontario, comprising 0.3% of the province’s total workforce in 2024.
- Employment in Ontario’s PM manufacturing subsector decreased by 18.4% in 2024.
- Employment in the industry is expected to decline over the 2025-2027 forecast period, due to uncertain economic conditions and softened demand in key end user industries.
About the Sector
Composition and importance of the sector
The primary metal (PM) manufacturing subsector plays a crucial role in Ontario’s industrial landscape as it provides intermediary and end-use goods for other industries in the province, including construction, motor vehicle manufacturing and natural resources.
In 2024, the PM manufacturing subsector accounted for 6.0% of the total provincial manufacturing gross domestic product (GDP) and 5.9% of Ontario’s total exports, with over 78% of the exports headed for the United States.
| Iron and steel mills and ferro-alloy manufacturing | Steel product manufacturing from purchased steel | Foundries | Alumina and aluminum production and processing | Non-ferrous metal (except aluminium) production and processing | |
|---|---|---|---|---|---|
| 68% | 15% | 3% | 13% | 1% |
Description of graphic in accessible text
A pie graph that shows the employment breakdown of primary metal manufacturing by industry groups. Iron and steel mills and ferro-alloy manufacturing accounts for the largest share of employment (68%), followed by steel product manufacturing from purchased steel (15%), alumina and aluminum production and processing (13%), and foundries (3%). Non-ferrous metal (except aluminum) production and processing made up the remaining 1%.
Source: Statistics Canada, Labour Force Survey, Custom Table
Geographical distribution of employment
The Hamilton-Niagara Peninsula economic region (ER) represents over a third (39.8%) of Ontario’s employment in PM manufacturing, given the City of Hamilton’s rich history in steel production.
Hamilton has one of the highest concentrations of steel manufacturing activity in Canada with large steelmakers and steel product manufacturers, such as Stelco Inc. and ArcelorMittal Dofasco Inc. present in the region. More than half of all workers in iron and steel mills and ferro-alloy manufacturing in Ontario worked in this region in 2021.
Employment in primary metal manufacturing was overrepresented in the Northeast, Toronto, and Hamilton-Niagara Peninsula ERs, accounting for 2.4%, 2.4%, and 1.1% of total employment in the ER, respectively, compared to 0.3% for Ontario as a whole.
| Ottawa | n/a | n/a |
| Kingston-Pembroke | n/a | n/a |
| Muskoka-Kawarthas | n/a | n/a |
| Toronto | 4,800 | 19.3% |
| Kitchener-Waterloo-Barrie | 1,900 | 7.6% |
| Hamilton-Niagara Peninsula | 9,900 | 39.8% |
| London | n/a | n/a |
| Windsor-Sarnia | 1,700 | 6.8% |
| Stratford-Bruce Peninsula | n/a | n/a |
| Northeast | 4,100 | 16.5% |
| Northwest | n/a | n/a |
Source: Statistics Canada, Labour Force Survey, Custom Table
*Note: Totals may not sum due to rounding.
Workforce
Workforce characteristics
- The PM manufacturing subsector is male-dominated, with men representing 88.0% of the provincial employment in 2024, notably higher than the average for all industries (52.8%).
- Nearly one in three workers (29.3%) in the industry were aged 55 years and over in 2024, higher than the proportion of older workers across all industries in Ontario (21.2%).
- University graduates make up a smaller proportion of the industry’s workforce at just 22.9% in 2024, compared to 41.7% of the total provincial workforce.
- Average weekly earnings for PM manufacturing employees in Ontario was $1,707 in 2024, higher than the average weekly earnings for manufacturing employees overall in Ontario ($1,371).
| 95100 Labourers in mineral and metal processing | 1,885 | 7.6% |
|---|---|---|
| 72400 Construction millwrights and industrial mechanics | 1,480 | 6.0% |
| 90010 Manufacturing managers | 1,145 | 4.6% |
| 94100 Machine operators, mineral and metal processing | 1,050 | 4.2% |
| 72500 Crane operators | 955 | 3.8% |
| 72106 Welders and related machine operators | 900 | 3.6% |
| 94105 Metalworking and forging machine operators | 875 | 3.5% |
| 92010 Supervisors, mineral and metal processing | 815 | 3.3% |
| 72201 Industrial electricians | 710 | 2.9% |
| 75101 Material handlers | 600 | 2.4% |
Source: Statistics Canada, Labour Force Survey, Custom Table
*Note: The NOCs listed make up approximately half of those employed in the sector.
Recent History
The PM manufacturing industry plays a significant role in Ontario’s economy, providing base materials for many of the province’s core industries, including manufacturing (automotive, fabricated metal, machinery, transportation), construction, and oil and gas extraction. Provincial employment in PM manufacturing has declined in 2024, with a decrease of 5,600 jobs (-18.4%). Comparatively, overall manufacturing employment in Ontario increased by 0.2% over the same period. In 2024, Ontario represented two-fifths (39.8%) of the workers in Canada’s PM manufacturing subsector, making it the largest manufacturer of primary metals in Canada.
In 2025, Ontario’s PM manufacturing industry has experienced challenges from the U.S. steel and aluminum tariff policy, which has created economic uncertainty and slowed growth in key downstream industries. For one, PM manufacturing is among the top ten sectors in the province supplying goods to the U.S., and is also heavily dependent on that market. Additionally, Canada expanded a metals ban on Russian and Chinese steel and aluminum imports in June 2025, and reset steel tariff rate quotas for all importing countries, effective December 26, 2025. Both policies impact domestic manufacturers who rely on imported semi-finished steel and aluminum products. Recently, there have been several notable layoffs and workforce reductions in the PM manufacturing subsector that can be attributed to the steel and aluminum tariffs.
However, even amid the trade uncertainty, there is positive news in the subsector with a focus on local production into 2026. For example, ArcelorMittal Tailored Blanks is expanding in Ingersoll, Vale Canada Limited and Glencore Canada Corporation are continuing to update their production and processing facilities in Sudbury and Port Colborne, and Tenaris (Algoma Tubes Inc.) has invested more than $300 million in industrial and automation improvements for its steel pipe manufacturing operations in Sault Ste. Marie. Supporting the domestic battery materials supply chain, Vianode is establishing a synthetic graphite facility in St. Thomas, Electra Battery Materials is building a cobalt sulfate refinery near Temiskaming Shores, and Frontier Lithium is continuing to develop their lithium conversion facility in Thunder Bay.
Additionally, several major projects continue to drive demand for the PM manufacturing subsector, including transit expansion projects such as Metrolinx’s Ontario Line in Toronto, the rehabilitation of Parliament buildings in Ottawa, and the nuclear power plant refurbishment projects at Bruce Power and the Pickering and Darlington Nuclear Generating Stations. On the whole, these types of investments and projects have supported the strong employment witnessed in Ontario’s primary metal manufacturing subsector.
Companies in the PM manufacturing subsector continue to require higher skilled labour to meet the shift towards advanced manufacturing, such as knowledge of computer-controlled tools, robotics, and manufacturing software (e.g., computer-aided design and computer-aided manufacturing). The PM manufacturing subsector is increasingly requiring engineers, technologists and technicians to work on process improvements and new products to meet the demands of downstream industries – for example, steel wire and high strength steel for the auto industry, to help reduce weight and boost fuel efficiency. Newer and greener methods in steelmaking have improved productivity in PM manufacturing, but may have impacts on the number of workers required.
| Year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Employment | 100.0 | 100.9 | 84.7 | 90.3 | 81.5 | 76.4 | 80.7 | 73.3 | 75.6 | 86.6 | 70.7 |
| Sales | 100.0 | 89.5 | 90.0 | 96.0 | 106.1 | 100.3 | 82.9 | 128.6 | 144.2 | 136.3 | 128.5 |
| GDP | 100.0 | 95.8 | 89.6 | 92.4 | 97.9 | 93.1 | 79.1 | 91.3 | 100.5 | 98.8 | 96.5 |
Description of graphic in accessible text
This line graph shows changes in three indicators related to Ontario’s primary metal manufacturing industry over a 10-year period. Employment has been on a downward trajectory since 2014, despite a brief uptick in 2023. Sector GDP has also declined, most notably in 2020. It has recovered slightly since 2014, reaching a level comparable to 2014. Sector sales follow a similar trajectory to GDP but has increased more significantly since 2020.
Sources: Statistics Canada, Labour Force Survey, Custom Table; Statistics Canada, Manufacturing Sales by Industry - Provincial and Territorial (Monthly), Table 16-10-0048-01; and Statistics Canada, Gross Domestic Product by Industry - Provincial and Territorial (Annual), Table 36-10-0711-01
*Data are expressed as an index, where year 2014 = 100%
Employment Outlooks
Employment in Ontario’s PM manufacturing industry is expected to experience a decrease in employment over the 2025 to 2027 forecast period.
The PM subsector in Ontario is directly affected by the current U.S. steel and aluminum tariff policy, and Canada’s retaliatory measures. Following announcements by the U.S. administration to impose tariffs from March 2025 onwards on all steel and aluminum imports from Canada, Ontario’s PM industry has begun to experience significant disruptions. There have been layoffs, a slowdown in customer orders, contract cancellations, and considerations given to pausing investments. Shipments to the U.S. initially surged as companies sought to mitigate impacts prior to the imposition of the tariff. However, once the tariff was imposed, shipments to the U.S. have declined throughout 2025. This softened demand owing to tariffs is causing some downward pressure on new orders and sales for primary metal manufacturing in Canada.
Local steel producers also face other market challenges that will likely impact demand for PM manufacturing during the forecast period, such as a surplus of steel pushing prices down, and increased competition in the global market narrowing profit margins. High transportation costs associated with shipping steel over long distances poses limits to Ontario’s ability to access alternative markets in Europe and Asia.
Public sector initiatives are being implemented to help offset these challenges, such as financial grants and loans to help the PM subsector avoid closures and layoffs. By 2026, federal government contractors will also have to source steel for defence and construction projects from Canadian companies. Meanwhile, large industrial and construction projects will provide added stimulus for PM manufacturing products. Investments in aerospace manufacturing, public transit expansion, shipbuilding, defence, pipelines, high-speed rail, utilities and mining projects in northern Ontario with the use of domestic steel will also support demand and employment in this subsector. In contrast, it is expected that there will be less steel and aluminum needed by Ontario’s automotive sector, due to retooling and postponed investment plans for electric vehicle plants in the forecast period.
Key trends affecting the outlook of the primary metal manufacturing subsector
- Subdued global and domestic demand, and new industry tariffs from the United States.
- Large investments in shipbuilding, defence and aerospace manufacturing, public transit expansions, construction and mining projects in northern Ontario.
- Shifts toward advanced manufacturing techniques requiring higher skilled labour.
For Further Information
Note: In preparing this document, the authors have taken care to provide clients with labour market information that is timely and accurate at the time of publication. Since labour market conditions are dynamic, some of the information presented here may have changed since this document was published. Users are encouraged to also refer to other sources for additional information on the local economy and labour market. Information contained in this document does not necessarily reflect official policies of Employment and Social Development Canada.
Portions of this sector profile were prepared with support from artificial intelligence (AI) tools, in accordance with Employment and Social Development Canada (ESDC) guidelines. All AI-assisted content has been reviewed for accuracy and compliance with ESDC standards.
Prepared by: Labour Market and Socio-economic Information Directorate, Service Canada, Ontario Region
For further information, please contact the Labour Market Information Directorate.
Appendix
| 2022-2024 Average | 2022-2024 Average | |
| Ontario | 100.0% | 0.3% |
| Ottawa | n/a | n/a |
| Kingston-Pembroke | n/a | n/a |
| Muskoka-Kawarthas | 2.2% | 0.3% |
| Toronto | 22.2% | 0.2% |
| Kitchener-Waterloo-Barrie | 4.3% | 0.1% |
| Hamilton-Niagara Peninsula | 36.2% | 1.2% |
| London | 1.8% | 0.1% |
| Windsor-Sarnia | 7.3% | 0.6% |
| Stratford-Bruce Peninsula | n/a | n/a |
| Northeast | 14.9% | 1.5% |
| Northwest | n/a | n/a |
Source: Statistics Canada, Labour Force Survey, Custom Table
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|---|---|---|---|---|---|
| Employment, 2024 | Share of Total (%) | AAGR (%)* | Share of Total (%) | AAGR (%)* | |
| Employment | 24,900 | 100.0% | -2.9% | 100.0% | 1.8% |
| Male | 21,900 | 88.0% | -2.6% | 52.8% | 1.9% |
| Female | 3,100 | 12.4% | -1.2% | 47.2% | 1.7% |
| 15-24 years old | n/a | n/a | n/a | 12.6% | 1.0% |
| 25-54 years old | 16,900 | 67.9% | -2.8% | 66.2% | 1.8% |
| 55 years and older | 7,300 | 29.3% | 0.6% | 21.2% | 2.6% |
| Worked full-time | 24,400 | 98.0% | -2.9% | 82.4% | 2.1% |
| Worked part-time | n/a | n/a | n/a | 17.6% | 0.8% |
| Self-employed | n/a | n/a | n/a | 13.5% | 0.9% |
| Employees | 24,900 | 100.0% | -2.9% | 86.5% | 2.0% |
| Permanent job | n/a | n/a | n/a | 77.0% | 2.2% |
| Temporary job | n/a | n/a | n/a | 9.5% | 0.8% |
| Less than high school | n/a | n/a | n/a | 5.8% | -2.0% |
| High school graduate | 7,000 | 28.1% | -3.2% | 21.2% | -0.9% |
| Postsecondary cert. or diploma | 10,600 | 42.6% | -1.1% | 31.3% | 1.3% |
| University degree | 5,700 | 22.9% | 12.6% | 41.7% | 5.1% |
Sources: Statistics Canada, Labour Force Survey, Custom Tables
*Average annual growth rate for last ten years available data