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Manufacturing Sector
The manufacturing sector is composed of companies who
transform materials or substances into new products
using physical-mechanical or chemical processes.
Manufacturing creates new products or semi-finished
products that will be used by other manufacturers to
process into finished products, and as well creates
products that will be used right away in the form of
finished industrial products or consumer products.
In Calgary, the manufacturing sector is a major
employer. According to Calgary Economic Development
statistics the total employment in the manufacturing
sector was higher than the construction industry and the
energy sector (oil and gas, utilities).
Calgary has a great diversity of manufacturers and most
of them are small entrepreneurial companies who have
less than 50 employees. In Calgary, the manufacturing
sector is less visible because there are only a few head
offices of large manufacturing companies; these examples
are Agrium Inc. and Dow Chemicals Canada.
In 2003, Alberta shipped over $45.8 billion in
manufactured products, compared to $37.1 billion in
1999. The manufacturing sector accounts for 10% of
Calgary�s GDP, and employs 9% of the labor force. Latest
figures demonstrate surging performance in April 2004,
with manufactured shipments raising 0.5 percent to $48.5
billion in the fifth straight monthly gain.
As a characteristic for Calgary, the manufacturing
sector is predominantly industrial oriented, serving key
industry sectors in Calgary: energy, construction and
delivering parts for other manufacturing operations.
Calgary is one of the most dynamic cities in the
country; it ranks as the second highest concentration of
corporate head office in Canada, after Toronto. Major
North American manufacturers who serve the energy sector
(oil & gas producers, pipelines, utilities) and the
construction industry have their own technical customer
service offices in Calgary, or at least an authorized
distributor or dealer located in the city.
Manufacturer�s authorized equipment repair centers and
authorized distributors for major manufacturers are an
important part of Calgary�s economy.
What types of trades and professional occupations are in
the manufacturing sector?
Alberta Learning Information Service - ALIS provides
listing of occupations specific to industry sectors,
Occupations by
Industry Search you can select the following
options:
. Metal Fabrication and Machinery Manufacturing Industry
. Other Manufacturing Industries (Printing, Electrical &
Electronic Products & Other)
In addition to the occupations that are specific to the
manufacturing operations, there are professionals and
support staff working for manufacturing companies in
general areas, such as: accounting and finance,
information technology, health and safety, human
resources, marketing, purchasing, sales and
transportation logistics. Specialized manufacturers who
sell to industrial customers often employ technical
sales and customer support representatives who have a
technical or science educational background.
The manufacturing sector contributes to growth in other
economic sectors, generating employment in related
business services, consulting, high technology �
information technology and transportation.
Manufacturing Sector Employment Information
In Calgary, the total employment demand in
manufacturing reached 55, 900 people in 2003. Calgary
Economic Development forecasts a relatively high annual
employment growth rate at 2.9% from 2003 to 2009.
2003 MANUFACTURING EMPLOYMENT FACTS: Calgary
Economic Region
8.8 % of the total employment demand was in the
manufacturing sector
55,900 people represent the total employment demand in
the manufacturing sector, in Calgary
2.9% annual average employment growth rate forecasted
for manufacturing operations in Calgary
In
addition, it is expected that after the year 2005 there
may be more opportunities for employment due to
increased retirements. A contrary trend is also
emerging, as some people continue to work past
retirement age, reducing the number of replacement
positions due to retirements.
Annual Growth Rate in the Occupation Group
(Forecast for next four yrs.)
Supervisors +2.4% currently 2,600
Machine Operators +2.5% currently 9,140
Assemblers +2.4% currently 5,080
Labourers +2.6% currently 4,510
Types of Manufacturing Operations in Calgary
In Calgary manufacturing operations are very
diverse, covering a wide range of companies from
companies that have supplied for decades equipment and
machinery for the oil and gas industry to high
technology companies.
Among Alberta�s fastest growing companies in 2004 there
are several manufacturers located in Calgary: BW
Technologies, CSI Wireless Inc. (developer of wireless
and global positioning systems products), Spindle Stairs
& Railing Ltd. (manufacturer and installer of stairs and
railings). The top performing manufacturing companies
located in Calgary are Dow Chemical Canada and Winroc
Corporation.
Manufacturers of Construction Products
Calgary has several manufacturers for products used
in residential, commercial and industrial construction.
Some examples of products manufactured in Calgary are:
drywall, stairs and railings, ornamental forged iron
railings and bars, cement for construction. The larger
manufacturers in this category are: Lafarge Cement
(Calgary factory located in S.E), Spindle Stairs &
Railing Ltd. (stairs and railings), and Winroc
Corporation (drywall, stucco).
Manufacturers of Machinery and Equipment
Calgary has a concentration of manufacturers who
serve the energy sector, specializing in compressors,
pipes, storage tanks and custom equipment design,
manufacturing and installation. Examples of
manufacturers with head offices located in Calgary are
as following: Core Export Intl., Hanover Maloney, United
Oilfield Inc. (centrifuges), Universal Industries
(processing equipment), Wemas Metal Products (custom
metal products). In addition, a unique company BW
Technologies specializes in sensor technologies to
detect toxic gases.
Manufacturers of Metal Structures and Piping
Calgary has several companies who specialize in
steel structures for the energy sector, examples of
companies in this category are: C & V Portable
Accommodations (steel structures for oilfield
operations), MaXfield Inc. (pressure vessels), Petro
Field Industries Inc. (pressure vessels and piping),
Universal Industries (tanks and silos), Wemas Metal
Products (custom metal products and finishing).
Manufacturers of Specialty Plastics and Chemicals
Calgary has several manufacturers specializing in
casting and moulding plastics for the oil and gas
industry, and construction applications. Examples of
larger manufacturers with head offices and operations
located in Calgary are: Inerline Plastics (specialty
container linings), Plasti-Fab Division of PFB Corp
(expanded polystyrene for construction and geotechnical
applications), Shaw Pipe Protection Ltd. - Berdero Shaw
(insulated polyethylene pipe systems and insulating
sprays/foam), Western Polymers - Wescan Precision
Machine Inc. (casting plastics and manufacturing foam).
All global chemical manufacturers have sales and
customer support offices in Calgary and Edmonton, the
only chemical companies with the head offices located in
Calgary are: Agrium Inc. (fertilizers) and Dow Chemical
Canada (chemicals and plastics).
Manufacturers of High Technology Devices
Calgary has a growing high technology sector that
provides software and hardware solutions for key
industry sectors, such as: energy and transportation
logistics. In the manufacturing category there are
innovative companies such as: BW Technologies (sensors
for toxic gases and fumes), CSI Wireless Inc. (developer
of wireless and Global Positioning Systems GPS
products).
Manufacturers of Consumer Products
Calgary has a large microbrewery manufacture, Big
Rock Brewery Income Trust who also owns several
breweries in British Columbia. Other manufacturers in
this category include small entrepreneurial operations
that produce specialty products (examples: Alberta Boot
Company, Dairy Delight Corporation, Smithbilt Hats,
Stampede Sewing Concepts, Wallaby Holdings - active
wear)
Manufacturers of Furniture and Partitions
Calgary has one large manufacturer of office
partitions and furniture systems: SMED Manufacturing. In
addition, there are several small furniture shops that
manufacture limited and unique custom made products for
homes and small offices.
Trends that Impact on the Manufacturing Sector in
Calgary
Trends with Positive Impact:
. Availability of a highly educated workforce Calgary
for the energy sector: has the highest educated
population in Canada with more than 60% of people with
post-secondary education.
. There are a number of post-secondary institutions in
Calgary that prepare graduates for technology oriented
careers and provide skills upgrading: Southern Alberta
Institute of Technology (SAIT), DeVry Institute,
University of Calgary, Mount Royal College, Bow Valley
College.
. Calgary is the transportation hub for Western Canada,
with railway tracks crossing the city; in addition new
road construction and major expansions are planned for
the next several years.
. Alberta has the lowest corporate and small business
taxes in Canada.
Trends with Negative Impact:
. Higher uncertainty about the global political and
economic outlook, and in particular record high oil
prices in the world.
. Tremendous growth of residential construction reducing
land availability for industrial operations.
. The high value of the Canadian dollar combined with
high-energy costs, create a difficult economic climate
for Canadian manufacturers, increasing production costs
and slowing exports.
. Globalization of businesses and especially the
migration of Canadian and American manufacturing
operations to other parts of the world to allow for
lower production costs.
. Impending gas emission controls and other regulatory
measures may contribute to increasing extraction and
refining costs in oil and gas sector, increasing in turn
the cost of raw materials, production and transportation
for manufacturers.
Sources:
.
Alberta Employment Immigration and Industry
.
Calgary Economic Development
.
City of Calgary
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This project is made possible by funding through Alberta Employment, and Immigration and the Government of Canada. DITPC and this web site are operated by Bow Valley College. Contents of this website are �2008 Alberta Employment, and Immigration please see our web site terms of use. l LAST UPDATED AUGUST 2008 l
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