Machinery and Equipment

Canada ranks among the world’s top machinery-manufacturing countries. For foreign investors in the machinery and equipment sector, domestic Canadian demand itself provides significant opportunities for growth. Foreign investors in the machinery manufacturing sector can expect to become part of a deep value chain with strengths in a diverse range of verticals including: automotive and aerospace metalworking, extractive field machinery, construction machinery, agribusiness machinery and equipment, and environmental systems.

“With the recently launched Japanese-designed trucks, our goal is to increase the production volume for these new models as well as increase our current line of construction, quarry and mining-size trucks. We believe this complete product offering will allow Hitachi continued growth and solidify our footprint here in Canada. On behalf of Hitachi, I would like to express our appreciation and thanks to the federal government for the funding granted for the plant expansion.”

Hideo Kitawaki, Former President, Hitachi Construction Truck Manufacturing

  • With over 9,000 companies and a direct production labour force of more than 170,000, Canada’s machinery and equipment industry recorded sales of nearly $45 billion, and exports accounted for more than 60 % of all sales.Footnote 1
  • The Canadian economy is specialized in machinery-intensive industries. Companies in the agriculture, minerals, oil and gas, utilities, construction, and manufacturing (AMUCM) spent over $42.5 billion on machinery and equipment in 2012 alone.Footnote 2 Foreign investors in this sector will therefore find a large domestic market for their offering to complement any export advantages they are seeking by locating to Canada.
  • Metal machining and precision component operations based in Canada typically enjoy an 11% and 13.1% saving on total labour cost – including benefits – relative to their U.S. - based counterparts.Footnote 3

Leading Networks, Research Groups and Organizations

Footnotes

Footnote 1

Industry Canada, Canadian Industry Statistics for NAICS 333 (Machinery Manufacturing) and NAICS 335 (Electrical Equipment, Appliance and Component Manufacturing) (December 2012)

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Footnote 2

Statistics Canada, Capital expenditures for machinery and equipment by sector (2012)

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Footnote 3

KPMG, Competitive Alternatives (2014)

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