Manufacturing shipments in Alberta are largely resource-based with refined petroleum (27%), food (23%), chemical (15%) and wood (5%) products constituting the major sub-sectors. 

According to new Statistics Canada data, the aggregate value of manufacturing shipments* in Alberta grew by 2.5% to reach $8.6 billion in April, reversing some of the decline observed in March and up 2.4% from last April.

However, due to a major pullback in January, year-to-date (YTD) revenues remained 3.4% lower than the first four months of 2023. This is largely a function of lower commodity prices, especially for refined petroleum and chemical products.

One big exception is food manufacturing where revenues were more upbeat, up 4.2% YTD. 

What’s driving this gain in food shipments? Recent trade data show that the value of meat exports to Japan surged 83% while starch, vegetable fat and oil manufacturing exports to the U.S. have jumped 15% during the same timeframe.

Manufacturing revenues spiked in 2022 on surging prices for petroleum & coal, chemicals and food products. The leveling off since that time is a theme experienced nationally too. In Canada, sales were down by 2.6% YTD with Ontario alone responsible for the majority (over half) of the pullback.

Looking ahead, factory revenues will ebb and flow with prices, but ongoing/forthcoming expansions in food processing and petrochemicals are expected to provide a boost to volumes over the next 3 years. Look for more details on that in our latest Alberta Economic Outlook, scheduled for release this week!

*All data in this report have been adjusted for seasonal variations

Answer to the previous trivia question: The last time the benchmark interest rate in the U.S. was higher than Canada’s benchmark rate (prior to the current period which began when inflation peaked in June 2022) was in September 2019.

Today’s trivia question: What does contango refer to?