Manufacturing is the business of embodying value for customers in tangible goods or products. Manufacturing is about making things; but, it is also much more than that. Manufacturers no longer see their activities simply in terms of transforming raw materials into components or finished products.
Today, manufacturing is a business system encompassing all the activities that are required to deliver products that meet customer needs – a system that extends from research and development, design and engineering, to production, finance, sales and marketing, and after-sales service. It is a system that extends beyond any single enterprise, across supply chains and business networks that are increasingly global in scope and that incorporate services as well as production activities.
Manufacturing is not simply about producing goods and selling them to customers. It is really about providing solutions to customers and providing the right mix of products and services to ensure customer success.
The business of manufacturing is rapidly changing in the face of competitive challenges, new market opportunities, and global trends that are redefining the industry. The pace of change in Canadian manufacturing has quickened over the past decade as a result of freer trade across North America. It is now accelerating even more rapidly thanks to the emergence of new competitors and new markets around the world. Today, what is “made in Canada” must incorporate both global vision and global excellence – and increasingly products, services, and knowledge from around the world.
Manufacturing is the largest business sector in Canada. The jobs and quality of life that communities across this country enjoy depend on a strong and prosperous manufacturing sector, capable of competing on a global basis and expanding as a result of new investments and new business opportunities.
Canada’s manufacturing sector has expanded dramatically since the early 1990s. Available statistics by and large reflect the performance of companies that are primarily engaged in production activities. As such, they underestimate the total value of goods manufactured in Canada and exclude the value added by services companies that are an integral part of manufacturers’ networks. Even so, the statistics tell the story of a dynamic sector that has become an even more important part of the Canadian economy over the past ten years. Manufacturing contributes to the Canadian economy as a source of high paying jobs, personal savings, and consumer spending. Profits made in the sector are channeled into capital investments in construction, machinery, and equipment. Manufacturing also generates over 30% of the taxes revenues paid by businesses to all levels of government in Canada.