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Industrial Consumption of Energy (ICE) Survey – Summary Report of Energy Use in the Canadian Manufacturing Sector, 1995–2009

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6 Conclusion

The global economic downturn that started in 2008 continued to affect economic activity in Canada and in the United States and other countries to which Canada exports goods and services. It also weakened domestic and foreign demand for manufacturing products. As a result, most indicators of activity in the Canadian Manufacturing sector declined in 2009 for the second consecutive year.

According to Statistics Canada, weakened global and domestic demand for manufactured goods continued to drive down capacity utilization rates.28 Of the 21 subsectors in the Manufacturing sector, 18 registered lower capacity utilization rates in 2009 than in 2008.

However, the capacity utilization rate in the Manufacturing sector has been on an upward trend since the second quarter of 2009, when it reached a record low of 64.8 percent. The rate in the third quarter of 2010 of 81.2 percent is comparable with the rate in the fourth quarter of 2007.29 Of the 21 major subsectors in the Manufacturing sector, 15 posted gains in capacity use in the third quarter of 2010, while 6 recorded declines.

Further analysis, including results of the 2010 Industrial Consumption of Energy Survey, will be presented in our next report, due for publication in 2012.

28 See Appendix A, Glossary, for a definition of capacity utilization rate.
29 Statistics Canada, The Daily, December 13, 2010, www.statcan.gc.ca/daily-quotidien/101213/dq101213b-eng.htm.

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