Canadian Occupational Projection System (COPS)

NAICS 3391; 3399

This industry comprises establishments not classified in any other manufacturing industries. These establishments manufacture a diverse range of products, including medical equipment and supplies (such as blood transfusion equipment, surgical instruments, dental equipment, eyeglasses, contact lenses, prosthetics and wheel chairs) and miscellaneous products (such as jewellery and silverware, sporting and athletic goods, toys and games, and office supplies). Miscellaneous products are the largest of the two segments, accounting for 63% of production in 2021. Overall, about 50% of the industry’s production is shipped to foreign countries, primarily to the United States which accounts for 70% of exports. The industry employed 113,800 workers in 2021 (6.6% of total manufacturing employment), with 73% in miscellaneous products and 27% in medical equipment and supplies. Employment is mostly concentrated in Ontario (54%), Quebec (21%) and British Columbia (10%), and the workforce is mainly composed of men (62%). Key occupations (4-digit NOC) include:^[1]

• Other products assemblers, finishers and inspectors (9537)
• Supervisors, other products manufacturing and assembly (9227)
• Other labourers in processing, manufacturing and utilities (9619)
• Dental technologists, technicians and laboratory assistants (3223)
• Other medical technologists and technicians (except dental health) (3219)
• Denturists (3221)

Since the products manufactured by the industry are largely utilized by consumers and businesses, production is primarily tied to household consumption and business spending. Furthermore, many of the industry’s products can be classified as recreational or leisure goods, making demand for such products very sensitive to discretionary expenditures and business cycles. As a result, production and employment in the industry fell markedly during the global recession of 2008-2009, mainly reflecting lower demand for products in the miscellaneous segment due to rapid declines in discretionary income and corporate profits. After recovering in 2010-2011, driven by the release of the pent-up demand accumulated during the recession, output in the industry fell again from 2012 to 2014, partly in response to growing household debt and lower business confidence. Production increased back from 2015 to 2019, stimulated by a rise in exports following the significant decline in the value of the Canadian dollar, and by a strong acceleration in household consumption attributable to robust labour markets in both Canada and the United States. In contrast with many other industries, miscellaneous manufacturing was not negatively impacted by the COVID-19 pandemic, as output continued to grow in 2020 and jumped significantly in 2021. Indeed, the surge in hospitalizations during the pandemic increased demand for medical equipment and supplies, while home confinement led to a shift in recreational spending from services (tourism, travel, entertainment, restaurants, etc.) toward goods (such as sporting and athletic equipment, toys and games, etc.). The resulting pace of growth in the industry’s real GDP averaged a solid 2.6% per year for the entire period 2012-2021. Employment largely tracked the movement in output, but at a faster pace of 3.6% annually, due to a modest decline in productivity (-1.0% per year). Declining productivity primarily reflected softer capital spending in the industry over the past decade and the fact that a large number of firms are relatively small and highly labour intensive.

Over the period 2022-2031, the output in miscellaneous manufacturing is projected to contract, driven by significant declines in the early years of the forecast. This primarily reflects the unwinding of strong pandemic-related demand for medical equipment and supplies, and the fact that consumer spending is expected to move away from goods, given the accumulation of a significant pent-up demand for recreational services that were less accessible during the pandemic (such as tourism, travel, entertainment, and restaurants). Starting around 2025, output growth is projected to resume, primarily driven by renewed growth in demand for medical equipment and supplies as population aging is expected to increase spending on health care. Canadian firms have unique expertise in developing and producing the latest health-related equipment and are well positioned to take advantage of growing market opportunities, particularly in developed countries planning to improve their health care infrastructure. However, demand for recreational and leisure products is expected to be restrained by the slower pace of growth anticipated in disposable income in Canada and the United States (resulting from the gradual slowdown in overall employment growth and massive retirements of baby-boomers). Strong inflation and higher interest rates are also expected to put pressures on household budgets, restraining discretionary spending on luxury and recreational goods. On average, real GDP is projected to contract by 0.8% annually over the period 2022-2031, primarily reflecting lower demand for the industry’s products in the near term, following a strong increase during the pandemic years. The anticipated decline in production is expected to result in weaker employment growth relative to the previous decade, averaging 1.8% per year. Overall, productivity will keep declining, down by 2.6% annually, essentially reflecting lower production and higher employment during the early years of the projection period. Thereafter, productivity growth is expected to resume modestly, restraining job creation in the industry.

Real GDP and Employment Growth Rates in Miscellaneous Manufacturing

Sources: Statistics Canada (historical) and ESDC 2022 COPS industrial projections.

Sources: Statistics Canada (historical) and ESDC 2022 COPS industrial projections.

^[1]Key occupations for manufacturing industries in general also include: Manufacturing managers (0911); Construction millwrights and industrial mechanics (7311); Material handlers (7452); Shippers and receivers (1521); Transport truck drivers (7511); Industrial engineering and manufacturing technologists and technicians (2233); Industrial electricians (7242); and Industrial and manufacturing engineers (2141).Back to text.