Alberta is a major commodities producer, so prices typically have an overarching impact on factory revenues earned. Remember that factory sales peaked in 2022 when surging industrial prices pushed up the value of Alberta’s manufacturing shipments. As commodity prices have eased since that time, factory revenues have followed suit but still remain on steady footing.

New Statistics Canada data show that the aggregate value of manufacturing shipments* in Alberta climbed to $25.6 billion in Q2. Compared to last year, this marked a 3% gain buoyed by a 2% increase in national industrial product prices.

Despite the improvement, factory sales edged down by 1.3% year-to-date (YTD) from the first half of 2023. Lower revenues for refined petroleum and chemical products continue to outweigh gains in food, wood and electrical equipment.

The story was similar elsewhere in the country as Canadian manufacturing sales were 2.3% lower YTD with Ontario alone driving the majority (84%) of the national pull back.

Now, let’s look at how the sector is performing in the labour market. Employment in Alberta’s manufacturing sector has been making advances since the early months. Relative to the first seven months of 2023, manufacturing employment was up 5.3% and responsible for nearly 10% of Alberta’s total job gains so far this year.

Looking ahead, employment (initially in construction and later on the manufacturing side) will get a boost from projects like Dow’s first ever net-zero ethylene derivatives facility, which is presently under construction in Fort Saskatchewan. Factory revenues will ebb and flow with prices, but expanded capacity in food processing and petrochemicals is expected to provide a boost to Alberta volumes over the next three years. 

*All data in today’s Twenty-Four have been adjusted for seasonal variation.

Answer to the previous trivia question: There are over 760,000 kilometres of pipeline transporting crude oil, natural gas, natural gas liquids, and refined petroleum products in Canada.

Today’s trivia question: What is the only U.S. state that shares a land border with only one other state?