Factors affecting the evolution of manufacturing in Canada: An historical perspective

This paper examines the factors that influenced developments in industry and manufacturing in Canada from the 17th to the 20th century. Although Canada's abundance of natural resources led to the development of primary industries in the 17th and 18th centuries, the manufacturing industry was not significant until the early 19th century. Four representative manufacturing industries are discussed to illustrate the overall trend in the chronological evolution of Canadian manufacturing in the 19th and 20th centuries. The role and impact of factors such as transportation, electricity, foreign investment, particularly by U.S. entrepreneurs, and government support for industry is reviewed to understand their impact on manufacturing as it has evolved to the present. It appears that these were indeed influential and thus are factors that other countries in a less developed stage of their manufacturing evolution may look to for directions. Our analysis also shows that Canadian manufacturing which began by producing simple items in small volumes due to geographical diversity and the absence of a large market, moved into the mass manufacturing age only in the 20th century. But in the 21st century due to competition from low labour cost countries Canada has moved back to customized manufacturing though in sophisticated goods such as aircraft manufacturing and biotech. While there are bright spots in Canadian manufacturing, recent studies also show that work needs to be done to produce more value added products and ensure Canadian manufacturing competitiveness in the global market place.