Summary Report of Energy Use
in the Canadian Manufacturing
Sector, 1995-2010

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5. Selected Manufacturing subsectors

Although the Manufacturing sector has 21 subsectors,¹⁴ 91.0 percent of all energy consumption in 2010 was by only seven subsectors, as shown in Figure 8. These subsectors (in order of their share of energy consumption) are

• Paper Manufacturing (NAICS 322)
• Primary Metal Manufacturing (NAICS 331)
• Petroleum and Coal Product Manufacturing (NAICS 324)
• Chemical Manufacturing (NAICS 325)
• Wood Product Manufacturing (NAICS 321)
• Food Manufacturing (NAICS 311)
• Non-Metallic Mineral Product Manufacturing (NAICS 327)

This section examines these seven subsectors in greater detail.

As demonstrated in Figure 8 (and Table A.4 in Appendix A), the share of energy consumption of the Paper Manufacturing subsector decreased substantially from 1995 to 2009 (9.7 percentage points), then remained steady in 2010. The Petroleum and Coal Manufacturing subsector experienced an increase in its share of energy consumption from 1995 to 2009 (5.5 percentage points) but this decreased slightly in 2010. The share of the other selected subsectors remained relatively stable from 1995 to 2010.

Figure 8. Share of the Manufacturing sector’s energy consumption by subsector, 1995, 2009 and 2010

*Other includes NAICS 312, 313, 314, 315, 316, 323, 326, 332, 333, 334, 335, 336, 337 and 339.

5.1 Paper Manufacturing subsector (NAICS 322)

Establishments in the Paper Manufacturing subsector produce pulp, paper and paper products. The 2010 ICE survey estimated that this subsector consumed 546.6 petajoules (PJ) of energy, corresponding to nearly 26 percent of the Manufacturing sector’s energy consumption – making it the largest energy-consuming manufacturing subsector in Canada.

5.1.1 Paper Manufacturing subsector’s energy consumption, output and energy intensity trends

Of the seven largest consumers of energy within the Manufacturing sector, Paper Manufacturing is the only subsector that had a decrease in gross domestic product (GDP) between 1995 and 2010 (16.9 percent, falling from $10.6 billion in 1995 to $8.8 billion in 2010). At the same time, its energy consumption decreased 39.3 percent, from 901.1 PJ to 546.6 PJ. Consequently, the subsector’s associated energy intensity diminished 27.0 percent, from 85.4 megajoules per dollar of GDP (MJ/$GDP) to 62.4 MJ/$GDP, which is a 1.8 percent average annual decline over this period.

Figure 9 illustrates the indexed growth of energy use, GDP and energy intensity from 1995 to 2010 for this subsector (see also Table A.12 in Appendix A). When GDP fell 17.7 percent between 2004 and 2008, energy use declined 31.8 percent. The increasing gap between the two indicators resulted in a decrease of energy intensity over this time. It is possible that this subsector’s output and energy intensity decreased from 2004 to 2008 by closing their most energy-intensive operations first. However, between 2008 and 2009, GDP fell substantially (12.2 percent), while energy use decreased only by 5.4 percent. This resulted in an increase of energy intensity of 7.7 percent in 2009, as it too was faced with the impact of the recession. Between 2009 and 2010, output increased slightly for the first time since 2006–2007, while energy use decreased slightly, causing energy intensity to also decrease, as the economy started to improve.

Figure 9. Indexed growth of energy use, GDP and energy intensity for the Paper Manufacturing subsector, 1995–2010

In 1995, the Paper Manufacturing subsector was consuming 397.3 PJ more than the second most energy-consuming subsector. In 2010, this gap was reduced to only 98.4 PJ, due in large part to market conditions for Canadian paper products, as indicated by its decline in GDP. A full breakdown of the seven subsectors’ energy consumption, GDP and energy intensity is provided in Tables A.5, A.6 and A.7 in Appendix A.

As shown in Figure 10, the drop in energy consumption in the Paper Manufacturing subsector from 2004 to 2008 cannot be entirely associated with capacity utilization. In fact, this subsector coped better than the rest of the Manufacturing sector with the recent economic downturn. While capacity utilization for the entire sector decreased 12.0 percentage points from 2007 to 2009, it decreased by only 5.0 percentage points for the Paper Manufacturing subsector. Both the sector and subsector saw a resurgence in capacity utilization in 2010. For a breakdown of capacity utilization rates for the sector and selected subsectors, refer to Table A.11 in Appendix A.

Figure 10. Comparison of capacity utilization rates for the Manufacturing sector and Paper Manufacturing subsector, 1995–2010

5.1.2 Paper Manufacturing subsector’s energy consumption trends by industry

Figures 11a and 11b illustrate the energy used by the industries that make up the Paper Manufacturing subsector for the period 1995–2010. Three of the four industries experienced substantial decreases in energy consumption during the period. The only industry that increased its energy consumption (47.7 percent from 1995 to 2008, then another 50.0 percent from 2008 to 2010) was the Converted Paper Product Manufacturing industry (NAICS 3222), (even though its output decreased slightly [5.7 percent from 1995 to 2010]), mostly due to a diversification of products and services over the past few years. However, this industry accounted for only 4.5 percent of the energy use of the Paper Manufacturing subsector in 2010. For a detailed breakdown of energy consumption and GDP of the four industries that make up the Paper Manufacturing subsector, refer to Tables A.13 and A.14 in Appendix A.

Figure 11a. Energy consumption of the Paper Manufacturing industries,
1995–2010

Figure 11b. Energy consumption of the Paper Manufacturing industries,
1995–2010

5.1.3 Paper Manufacturing subsector’s energy consumption by source

Table 5 lists the energy consumption by energy source for the Paper Manufacturing subsector in 1995 and 2010. Energy consumption for this subsector decreased by 39.3 percent during this period.

Table 5. Paper Manufacturing subsector’s energy use by energy source, 1995 and 2010

According to ICE survey estimates, Paper Manufacturing is the only subsector that produces and consumes spent pulping liquor. The demand for this type of energy, which is the most commonly used energy source in the subsector (37.1 percent, or 203.1 PJ, in 2010), decreased 40.9 percent (140.5 PJ) between 1995 and 2010. Since 2001, natural gas moved from the third most used energy source to fourth, after spent pulping liquor, electricity and wood. Natural gas consumption decreased 50.9 percent or 79.6 PJ from 1995 to 2010. The use of heavy fuel oil, electricity and wood also decreased considerably from 1995 to 2010 (83.4 percent, 26.1 percent and 22.9 percent respectively). Although steam remains one of the least used energy sources by the Paper Manufacturing subsector, it was the only energy source to increase in use from 1995 to 2010 (43.9 percent). The increasing use of steam, combined with the significant drop in the use of heavy fuel oil and the fact that coal was no longer being used, contributed toward making the Paper Manufacturing subsector less greenhouse gas intensive.

Table A.15 in Appendix A provides a complete breakdown of the energy sources used by this subsector from 1995 to 2010.

Table 6. Paper Manufacturing subsector’s energy use by energy source, 2009 and 2010

Most of the trends observed with respect to energy sources used by the Paper Manufacturing subsector from 1995 to 2010 also applied for the period 2009 to 2010, with the exception of spent pulping liquor, which increased by 6.3 percent.

5.2 Primary Metal Manufacturing subsector (NAICS 331)

The Primary Metal Manufacturing subsector includes establishments that perform smelting and refining of ferrous metals (those that contain iron, including iron-containing alloys such as steel) and non-ferrous metals (those that do not contain iron, such as aluminum and copper). Smelting refers to the “heat treatment of an ore to separate the metallic portion.” Refining is “a separation process whereby undesirable components are removed to give a concentrated and purified product.”¹⁵

The 2010 ICE survey estimates that the Primary Metal Manufacturing subsector consumed 448.2 PJ of energy, which accounted for 21.0 percent of the Manufacturing sector’s energy consumption, and was the second most energy-consuming subsector in the Manufacturing sector.

5.2.1 Primary Metal Manufacturing subsector’s energy consumption, output and energy intensity trends

As was the case with the Paper Manufacturing subsector, the energy intensity of the Primary Metal Manufacturing subsector declined steadily from 1995 to 2008 (see Table A.16 in Appendix A). This decline was due to a 38.9 percent increase in output over this period combined with relatively stable energy use (only 4.1 percent growth). Between 1995 and 2008, this subsector saw its energy intensity decrease 25.0 percent, from 60.7 MJ/$GDP to 45.5 MJ/$GDP, or an average annual decrease of 1.9 percent. However, between 2008 and 2009, both GDP and energy use fell substantially (27.1 percent and 18.4 percent, respectively). This resulted in an increase of energy intensity of almost 12 percent in 2009.¹⁶ Figure 12 illustrates this changing trend and shows that in 2010, both GDP and energy use grew (by 13.3 percent and 4.8 percent, respectively) over the previous year, causing energy intensity to fall by almost 8 percent from the previous year.

Figure 12. Indexed growth of energy use, GDP and energy intensity for the Primary Metal Manufacturing subsector, 1995–2010

As demonstrated in Figure 13, between 2008 and 2009, capacity utilization of the Primary Metal Manufacturing subsector (and in particular the Iron and Steel industry) decreased significantly (12.6 percentage points) compared with a 4.0 percentage point decrease for the overall sector. The continuing recession in the United States and the impact of the temporary import restriction on foreign steel¹⁷ were felt by this subsector in 2009. In 2010, capacity utilization grew for both the Manufacturing sector as a whole and this subsector by 6.2 percentage points and 5.2 percentage points, respectively (see Table A.11 in Appendix A).

Figure 13. Comparison of capacity utilization rates for the Manufacturing sector and Primary Metal Manufacturing subsector, 1995–2010

Although the Primary Metal Manufacturing subsector experienced the largest decrease in output among the seven subsectors from 2008 to 2009 (see Table A.6 in Appendix A), it experienced substantial growth in 2010 (13.1 percent). Figure 14 illustrates the share of GDP among the Primary Metal Manufacturing industries for 1997,¹⁸ 2009 and 2010. As this figure shows, the subsector experienced some structural changes over the years. The largest decrease in the share of output was experienced by the Iron and Steel Mills and Ferro-Alloy Manufacturing (NAICS 3311) industry, (14.4 percentage points from 1997 to 2009). However, this industry’s GDP grew by 5.0 percentage points the following year.¹⁹ In contrast, the Alumina and Aluminum Production and Processing (NAICS 3313) industry’s share of the subsector’s GDP increased 23.4 percentage points from 1997 to 2009²⁰ but subsequently decreased 4.8 percentage points in 2010. For further breakdown of the distribution of GDP for this subsector, refer to Tables A.17 and A.18 in Appendix A.

Figure 14. Distribution of GDP* of the Primary Metal Manufacturing subsector by industry, 1997, 2009 and 2010

*GDP at basic price in constant 2002 dollars; 1997 share is based on the sum of the subindustries, which is slightly different than the sector estimate.

5.2.2 Primary Metal Manufacturing subsector’s energy consumption trends by industry

Figure 15 illustrates energy use for the three largest energy-consuming industries in the Primary Metal Manufacturing subsector.21 These three industries accounted for 95.9 percent of the subsector’s energy use in 2010.

Even though energy use in the subsector remained relatively constant from 1995 to 2008 (see Table A.3 in Appendix A), then decreased substantially between 2008 and 2009 (18.5 percent), and finally increased again in 2010 (4.8 percent), this trend did not hold true for all industries. Energy consumption of the Primary Production of Alumina and Aluminum industry (NAICS 331313) increased 35.0 percent between 1995 and 2008, then decreased 11.2 percent between 2008 and 2009, and increased once again (5.3 percent) between 2009 and 2010. The Iron and Steel Mills and Ferro-Alloy Manufacturing industry (NAICS 3311) and the Non-Ferrous Metal (except Aluminum) Smelting and Refining industry (NAICS 33141) partially offset the aforementioned increase with 2.2 percent and 18.5 percent reductions in their respective energy consumption for the period 1995 to 2008. These two industries experienced further 24.4 percent22 and 16.0 percent reductions in their respective energy consumption from 2008 to 2009, followed by respective increases and decreases of 7.6 percent and 4.5 percent in 2010. Table A.19 in Appendix A demonstrates the energy consumption trends of the subsector’s industries form 1995 to 2010.

Figure 15. Energy consumption of the selected Primary Metal Manufacturing industries, 1995–2010

5.2.3 Primary Metal Manufacturing subsector’s energy consumption by energy source

Table 7 shows the energy consumption by energy source for the Primary Metal Manufacturing subsector in 1995 and 2010. Considering the substantial increase in energy use in the Primary Production of Alumina and Aluminum industry between 1995 and 2010 (26.2 percent), it not surprising that electricity consumption continued to grow in this subsector, as this industry is known to be electricity-intensive.²³ Offsetting this increase in electricity consumption was the combined decrease in the use of all other non-confidential energy sources (with the exception of coal and middle distillates).

Table 7. Primary Metal Manufacturing subsector’s energy use by energy source, 1995 and 2010

For a complete breakdown of the energy sources used by this subsector from 1995 to 2010, refer to Table A.20 in Appendix A.

Although natural gas consumption decreased overall for this subsector between 1995 and 2010, it increased slightly between 2009 and 2010, as outlined in Table 8. The significant increase in the use of coal between 1995 and 2010 (95.9 percent) was evidenced mostly from 2009 to 2010, when this energy source’s consumption increased from 10.7 PJ to 19.5 PJ (82.5 percent).

Table 8. Primary Metal Manufacturing subsector’s energy use by energy source, 2008 and 2009

5.3 Petroleum and Coal Product Manufacturing subsector (NAICS 324)

Establishments in the Petroleum and Coal Product Manufacturing subsector transform crude petroleum and coal into usable products. Petroleum Refineries (NAICS 32411) represent the main industry of the subsector in terms of energy use. The petroleum refining process separates various hydrocarbons contained in crude oil to produce many products, such as gasoline, diesel fuel oil, light and heavy fuel oils, and asphalt.

The 2010 ICE survey estimates that the Petroleum and Coal Product Manufacturing subsector consumed 338.5 PJ of energy in 2010, which is 15.8 percent of the Manufacturing sector’s energy consumption. This ranks it third among the most energy-consuming subsectors of Canada’s Manufacturing sector.

5.3.1 Petroleum and Coal Product Manufacturing subsector’s energy consumption, output and energy intensity trends

Figure 16 illustrates the indexed growth of energy consumption, GDP and energy intensity for the Petroleum and Coal Product Manufacturing subsector from 1995 to 2010 (see also Table A.21 in Appendix A). From 1995 to 1998, both output and energy use increased in the subsector, the latter at a slower pace, causing energy intensity to fall. Between 1998 and 2007, output remained fairly constant while energy use rose 22.0 percent. The combination of these two factors yielded a 19.7 percent increase in energy intensity in that period. This increase may partly be attributable to the refining of more heavy crude during that period, as well as fluctuations in the price of oil. Finally, between 2007 and 2010, while energy use decreased substantially (11.4 percent), GDP remained constant, causing energy intensity to decrease (10.2 percent).

Figure 16. Indexed growth of energy use, GDP and energy intensity for the Petroleum and Coal Product Manufacturing subsector, 1995–2010

Overall, in 2010, Canada’s Petroleum and Coal Product Manufacturing subsector used 15.5 percent more energy and produced 16.4 percent more output than it did in 1995 (see Table A.21 in Appendix A).

Canada’s Petroleum and Coal Product Manufacturing subsector used 25 percent more energy and produced 13 percent more output in 2009 than it did in 1995.

Due to data limitations, it is not possible to accurately calculate the energy intensity of the industries that compose this subsector. However, because the Petroleum Refineries industry represented 93.4 percent of the subsector’s energy consumption, it can be inferred that this industry made a significant contribution to the 7.3 percent decrease in energy intensity of the subsector between 2009 and 2010.

As demonstrated in Figure 17 (and Table A.11 in Appendix A), capacity utilization of the Petroleum and Coal Product Manufacturing subsector was significantly higher than that of the sector as a whole from 1995 to 2004, after which time the rate for the subsector began to decrease and be more consistent with that of the sector. From 2008 to 2009, capacity utilization for the subsector increased by 3.1 percentage points, compared with a 4.0 percentage point decrease for the overall sector. In 2010, capacity utilization remained steady for this subsector, while the Manufacturing sector as a whole regained its loss from the previous year.

Figure 17. Comparison of capacity utilization rates for the Manufacturing sector and Petroleum and Coal Product Manufacturing subsector, 1995–2010

5.3.2 Petroleum and Coal Product Manufacturing subsector’s energy consumption trends by industry

The ICE survey collects information for only the Petroleum Refineries industry in the Petroleum and Coal Product Manufacturing subsector. As previously mentioned, this industry accounts for about 93.4 percent of all energy used to process petroleum and coal.

5.3.3 Petroleum and Coal Product Manufacturing subsector’s energy consumption by source

Table 9 shows the energy consumption by energy source for the Petroleum and Coal Product Manufacturing subsector in 1995 and 2010. The only non-confidential energy sources that decreased from 1995 to 2010 were heavy fuel oil and coal (coal is no longer being used), although these sources were not among the most used in the subsector. All other energy sources increased over the period. The most significant increase occurred in refinery fuel gas – the most commonly used energy source in the subsector – which increased 31.4 percent (40.1 PJ) since 1995.

Table 9. Petroleum and Coal Product Manufacturing subsector’s energy use by energy source, 1995 and 2010

Refer to Table A.22 in Appendix A for the full breakdown of energy sources used by this subsector from 1995 to 2010.

Although there was a significant increase in use of refinery fuel gas from 1995 to 2010 in this subsector, Table 10 shows that its consumption decreased from 2009 to 2010 (10.8 percent). Both this decrease and that in the use of heavy fuel oil (34.3 percent) contributed to the overall decrease in energy consumption in the Petroleum and Coal Product Manufacturing subsector in 2010.

Table 10. Petroleum and Coal Product Manufacturing subsector’s energy use by energy source, 2009 and 2010

5.4 Chemical Manufacturing subsector (NAICS 325)

Establishments in the Chemical Manufacturing subsector (NAICS 325) manufacture chemicals and chemical products from organic and inorganic raw materials.²⁴ The 2010 ICE survey estimated that the Chemical Manufacturing subsector consumed 282.6 PJ of energy in 2010, corresponding to 13.2 percent of the Manufacturing sector’s energy consumption.

5.4.1 Chemical Manufacturing subsector’s energy consumption, output and energy intensity trends

Figure 18 and Table A.23 in Appendix A illustrate the indexed growth of energy consumption, GDP and energy intensity from 1995 to 2010 for the Chemical Manufacturing subsector. From 1998 to 2003, output in the subsector grew rapidly while energy consumption declined. These two factors yielded a significant decrease in energy intensity over the period (34.5 percent). From 2004 to 2006, growth in GDP and energy use was relatively flat. From 2007 to 2009, both GDP and energy use decreased (14.3 percent and 7.0 percent respectively), causing energy intensity to rise by 8.4 percent. In 2010, both GDP and energy use increased, although the latter at a faster rate (4.7 percent and 16.6 percent respectively) and this caused energy intensity to increase once again (11.3 percent).

Figure 18. Indexed growth of energy use, GDP and energy intensity for the Chemical Manufacturing subsector, 1995–2010

Over the 15-year period from 1995 to 2010, Canada’s Chemical Manufacturing subsector increased its output by 11.2 percent as well as its energy consumption by 1.9 percent. This resulted in an 8.4 percent decrease in energy intensity (an average annual decrease of 0.56 percent), from 23.0 MJ/$GDP to 21.1 MJ/$GDP.

As demonstrated in Figure 19 (and Table A.11 in Appendix A), between 2007 and 2010, capacity utilization for the Chemical Manufacturing subsector followed a very similar pattern to that of the overall sector. Both rates decreased substantially from 2007 and 2009, and then followed a similar increase the following year.

Figure 19. Comparison of capacity utilization rates for the Manufacturing sector and Chemical Manufacturing subsector, 1995–2010

5.4.2 Chemical Manufacturing subsector’s energy consumption trends by industry

Figure 20 and Table A.24 in Appendix A illustrate the six industries for which energy consumption data are available for the entire study period. In 2010, these industries accounted for 88.6 percent of the Chemical Manufacturing subsector’s energy use.

Substantial fluctuations within the Chemical Manufacturing subsector and the lack of output data make it difficult to properly analyze energy consumption trends among the industries. That being said, it is evident nevertheless that between 1995 and 2010, the largest changes in energy consumption occurred in Industrial Gas Manufacturing, with a 154.3 percent increase, and Petrochemical Manufacturing, with a 130.3 percent increase. In absolute terms, the Petrochemical Manufacturing industry increased its energy consumption the most (44.6 PJ), half of which occurred from 2009 to 2010. In 1995, the Chemical Fertilizer Manufacturing industry was one of the largest consumers of energy, but in 2004, the Petrochemical Manufacturing industry took over as the largest energy consumer. Many factors, such as increased energy efficiency and decreased production, can influence yearly variation in energy consumption.

Figure 20. Energy consumption of selected Chemical Manufacturing industries, 1995–2010

5.4.3 Chemical Manufacturing subsector’s energy consumption by source

Table 11 shows the energy consumption by energy source for the Chemical Manufacturing subsector in 1995 and 2010. Natural gas consumption, which is the most widely used energy source in the Chemical Manufacturing subsector, decreased slightly (2.4 percent) between 1995 and 2010. Electricity consumption (the second largest energy source used in this subsector) also decreased from 1995 to 2010 (6.8 percent). Unfortunately, it is not possible to analyze the trend in energy consumption for the coal/coke, refined petroleum products, steam and wood categories because of the unavailability of data for 2009 and 2010.

Table 11. Chemical Manufacturing subsector’s energy use by energy source, 1995 and 2010

Table A.25 in Appendix A provides a full breakdown of energy sources used by this subsector from 1995 to 2010.

Between 2009 and 2010, the Chemical Manufacturing subsector increased its energy consumption by 16.6 percent. As outlined in Table 12, consumption of both natural gas and electricity grew during this period (13.2 percent and 2.2 percent, respectively).

Table 12. Chemical Manufacturing subsector’s energy use by energy source, 2009 and 2010

5.5 Wood Product Manufacturing subsector (NAICS 321)

Establishments in the Wood Product Manufacturing subsector produce products from wood. These establishments are engaged in activities such as sawing logs and making products that improve the natural characteristics of woods (veneers, plywood etc.). The 2010 ICE survey estimated that this subsector was the fifth largest energy consuming Manufacturing subsector in Canada, consuming 128.2 PJ of energy, corresponding to 6.0 percent of the sector’s energy consumption.

5.5.1 Wood Product Manufacturing subsector’s energy consumption, output and energy intensity trends

Figure 21 illustrates the indexed growth of energy consumption, GDP and energy intensity from 1995 to 2010 for the Wood Product Manufacturing subsector (refer also to Table A.26 in Appendix A). Two distinct trends in energy use and GDP are observed for this subsector, one from 1995 to 2005 and the other from 2006 to 2009.

From 1995 to 2005, GDP grew by 73.6 percent (from $7.7 to $13.4 billion), while energy use increased 19.4 percent (from 108.2 PJ to 129.2 PJ). This resulted in a decrease in energy intensity of 31.2 percent (from 14.0 MJ/$GDP to 9.6 MJ/$GDP). Between 2006 and 2009, the opposite situation happened: GDP fell 32.9 percent (from $13.3 to $8.9 billion), while energy use declined 19.8 percent (from 141.8 PJ to 113.5 PJ), causing energy intensity to increase by 19.3 percent (from 10.7 MJ/$GDP to 12.7 MJ/$GDP). This is the opposite of what has been observed in the Paper Manufacturing subsector (see Section 5.1). One explanation may be that despite decreasing production, few wood products plants have closed, thereby reducing the establishments’ scale effects (for a description of scale effect, see Chapter 3). Finally, between 2009 and 2010, both output and energy use grew at similarly significant rates such that energy intensity was relatively unaffected.

Figure 21. Indexed growth of energy use, GDP and energy intensity for the Wood Manufacturing subsector, 1995–2010

Overall, from 1995 to 2010, the Wood Product Manufacturing subsector’s output increased 28.0 percent (from $7.7 billion to $9.9 billion), while energy consumption increased 18.0 percent (from 108.2 PJ to 128.2 PJ). Consequently, the associated energy intensity decreased by 7.5 percent (from 14.0 MJ/$GDP to 13.0 MJ/$GDP).

As demonstrated in Figure 22 (and Table A.11 in Appendix A), in 2001, capacity utilization of the Wood Product Manufacturing subsector grew, then peaked in 2004, unlike that of the overall sector. However, from 2004 to 2009, the capacity utilization of the subsector decreased significantly (31.0 percentage points) compared with a 12.6 percentage point decrease for the overall sector. Finally, in 2010, capacity utilization grew at a slightly faster rate for this subsector (7.6 percentage points) than the sector as a whole (6.2 percentage points).

Figure 22. Comparison of capacity utilization rates for the Manufacturing sector and Wood Product Manufacturing subsector, 1995–2010

5.5.2 Wood Product Manufacturing subsector’s energy consumption trends by industry

The ICE survey collects energy consumption data for only two Wood Product industries: Sawmills (except Shingle and Shake Mills) (NAICS 321111) and Particle Board and Fibreboard Mills (NAICS 321216). These two industries accounted for 50.0 percent of the energy use of the Wood Product Manufacturing subsector in 2010.

Figure 23 illustrates the variations in energy consumption in both industries (see also Table A.27 in Appendix A). Both Sawmills (except Shingle and Shake Mills) and Particle Board and Fibreboard Mills experienced an increase in energy use from 1995 to 2010 (12.6 percent and 35.1 percent, respectively). These variations appear to be caused by changes in production, but unfortunately, supporting output data are not available for these industries. However, as outlined in Table A.26 in Appendix A, GDP for the subsector increased in 2000 (similar to that of the Sawmills industry) and again in 2002 (as also experienced by the Particle Board and Fibreboard Mills industry).

Figure 23. Energy consumption of selected Wood Product Manufacturing industries, 1995–2010

5.5.3 Wood Product Manufacturing subsector’s energy consumption trends by energy source

Table 13 lists the energy consumption by energy source for the Wood Product Manufacturing subsector in 1995 and 2010. Energy consumption for this subsector increased by 18.5 percent during this period.

Table 13. Wood Product Manufacturing subsector’s energy use by energy source, 1995 and 2010

This subsector’s energy mix changed from 1995 to 2010. The use of wood increased from 50.7 PJ in 1995 to 75.9 PJ in 2010, while natural gas consumption decreased from 29.5 PJ in 1995 to 15.7 PJ in 2010. The use of electricity also increased over the period, but at a slower pace, as outlined in Table A.28 in Appendix A, which provides a full breakdown of energy sources used by this subsector from 1995 to 2010.

Between 2009 and 2010, the Wood Product Manufacturing subsector increased its energy consumption by 13.0 percent. As outlined in Table 14, use of all energy sources grew during this period.

Table 14. Wood Product Manufacturing subsector’s energy use by energy source, 2009 and 2010

5.6 Food Manufacturing subsector (NAICS 311)

Establishments in the Food Manufacturing subsector are primarily engaged in producing food for human or animal consumption. The 2010 ICE survey estimated that this subsector consumed 102.4 PJ of energy, corresponding to 4.8 percent of the Manufacturing sector’s energy consumption.

5.6.1 Food Manufacturing subsector energy consumption, output and energy intensity trends

Figure 24 illustrates the indexed growth of energy consumption, GDP and energy intensity from 1995 to 2010 for the Food Manufacturing subsector (see also Table A.29 in Appendix A). With the exception of two plateaus, one from 1995 to 1997 and one from 2001 to 2005, GDP in the Food Manufacturing subsector increased more or less constantly over the 15 years. Energy use, after spiking in 1997 and again in 2000, started increasing steadily in 2001, at a slightly faster pace than that of GDP. Energy use decreased slightly from 2009 to 2010 (0.9 percent) even though GDP grew (1.5 percent). Energy intensity decreased between 1995 and 2001 with notable spikes in 1997 and 2000, which correspond to the aforementioned spikes in energy consumption. Since 2001, energy intensity in this subsector has been relatively stable, experiencing a slight decrease from 2009 to 2010 (3.2 percent).

Figure 24. Indexed growth of energy use, GDP and energy intensity for the Food Manufacturing subsector, 1995–2010

Over the 1995 to 2010 period, the Food Manufacturing subsector’s output increased 34.5 percent, from $14.4 to $19.4 billion, while its energy consumption increased 20.7 percent, from 84.9 to 102.4 PJ. Consequently, its associated energy intensity diminished by 10.3 percent, from 5.9 MJ/$GDP to 5.3 MJ/$GDP.

As demonstrated in Figure 25 (and Table A.11 in Appendix A), capacity utilization of the Food Manufacturing subsector remained relatively stable from 1995 to 2010, compared with that of the overall sector. It is not surprising that this subsector was less affected by the effects of the recession, due to the nature of the Food industry and the fact that it is less prone to cyclical variations in the economy. Unlike the Manufacturing sector, which experienced a 12.0 percentage point decrease between 2007 and 2009, the Food Manufacturing subsector’s capacity utilization rate decreased only slightly from 2007 to 2008 (2.4 percentage points), then rebounded in 2009.

Figure 25. Comparison of capacity utilization rates for the Manufacturing sector and Food Manufacturing subsector, 1995–2010

5.6.2 Food Manufacturing subsector energy consumption trends by industry

Figure 26 illustrates the growth in energy use by selected Food Manufacturing industries. The four industries presented accounted for 62.2 percent of the energy consumption of the Food Manufacturing subsector in 2010.

A portion of the fluctuation in the industries’ energy consumption can be explained by variations in output as measured by GDP. For example, the Meat Product Manufacturing (NAICS 3116) industry’s GDP and energy use increased significantly from 1995 to 2008 (64.6 percent and 73.3 percent respectively). Both increased again from 2008 to 2009, but energy consumption grew at a faster rate. Finally, in 2010, GDP increased and energy consumption decreased, both slightly, causing energy intensity to fall 10.5 percent.

Figure 26. Energy consumption of selected Food Manufacturing industries, 1995–2010

The Dairy Product Manufacturing industry (NAICS 3115) was the only Food Manufacturing industry with relatively stable energy consumption patterns from 1995 to 2010, while its GDP increased over that period by 11.0 percent. Because of this, it was also the only industry to experience a decrease in energy intensity over the study period. A full breakdown of energy consumption, GDP and energy intensity for these four Food Manufacturing industries is provided in Tables A.30, A.31 and A.32 in Appendix A.

5.6.3 Food Manufacturing subsector energy consumption by energy source

Table 15 lists the energy consumption by energy source for the Food Manufacturing subsector in 1995 and 2010. Energy consumption for this subsector increased by 20.6 percent during this period.

Table 15. Food Manufacturing subsector’s energy use by energy source, 1995 and 2010

Since 1995, natural gas, electricity and heavy fuel oil have made up 91.7 percent of all energy used by the Food Manufacturing subsector. Natural gas is its most commonly used energy source, and it increased by 3.3 percent, from 57.1 PJ to 59.0 PJ from 1995 to 2010.

However, the increased use of electricity encapsulated most of the subsector’s energy consumption increase since 2004. Over the entire period, electricity use increased by 50.7 percent from 20.6 PJ to 31.0 PJ. The use of heavy fuel oil decreased by 11.4 percent from 1995 to 2010 and accounted for 3.8 percent of the energy source share in 2010.

Table A.33 in Appendix A provides a full breakdown of energy sources used by this subsector from 1995 to 2010.

Table 16 demonstrates that overall energy consumption decreased slightly for this subsector from 2009 to 2010 (1.0 percent), which was evidenced mostly in the use of electricity.

Table 16. Food Manufacturing subsector’s energy use by energy source, 2009 and 2010

5.7 Non-Metallic Mineral Product Manufacturing (NAICS 327)

Rounding out the top seven energy-consuming Manufacturing subsectors is Non-Metallic Mineral Product Manufacturing. Establishments in this subsector “cut, grind, shape and finish granite, marble, limestone, slate and other stone; mix non-metallic minerals with chemicals and other additives; and heat non-metallic mineral preparations to make products, such as bricks, refractories, ceramic products, cement and glass.”²⁵

According to 2010 ICE survey estimates, the Non-Metallic Mineral Product Manufacturing subsector consumed 96.2 PJ of energy in 2010, which accounted for 4.5 percent of the sector’s energy consumption.

5.7.1 Non-Metallic Mineral Product Manufacturing subsector’s energy consumption, output and energy intensity trends

Figure 27 illustrates the indexed growth of energy consumption, GDP and energy intensity from 1995 to 2010 for Non-Metallic Mineral Product Manufacturing. Between 1995 and 2007, despite significant growth in output (81.6 percent), the subsector’s energy use was relatively constant (9.4 percent increase), yielding a strong decrease in energy intensity (39.8 percent). From 2007 to 2010, energy intensity continued to decrease (10.5 percent) as both energy consumption and GDP decreased (25.2 percent and 16.5 percent respectively). For a complete breakdown of these trends, refer to Table A.34 in Appendix A.

Figure 27. Indexed growth of energy use, GDP and energy intensity for the Non-Metallic Mineral Product Manufacturing subsector, 1995–2010

As demonstrated in Figure 28 (and Table A.11 in Appendix A), capacity utilization of the Non-Metallic Mineral Product Manufacturing subsector was somewhat lower than that of the overall sector from 1995 to 2002, with the exception of 1997. From 2002 to 2010, capacity utilization of the subsector followed a very similar pattern to that of the sector, except in 2009, when it fell 12.4 percentage points from the previous year (compared to 4.0 percentage points for the sector), then rebounded in 2010.

Figure 28. Comparison of capacity utilization rates for the Manufacturing sector and Non-Metallic Mineral Product Manufacturing subsector, 1995–2010

5.7.2 Non-Metallic Mineral Product Manufacturing subsector’s energy consumption trends by industry

Figure 29 illustrates the three industries for which energy consumption data are available for the entire period. In 2010, they accounted for 70.3 percent of the subsector’s energy consumption. From 1995 to 2010, all three industries saw their energy consumption decrease. The largest decrease in energy consumption occurred in Glass Manufacturing (NAICS 327214), where consumption declined from 14.3 to 4.0 PJ between 1995 and 2010, a 72.0 percent decrease.

Energy used by Cement Manufacturing (NAICS 32731) decreased by 10.7 percent from 1995 to 2010, which included a 20.0 percent increase between 1995 and 2006, followed by a 25.6 decrease from 2006 onward. These variations in energy consumption were caused, at least in part, by a 37.7 percent increase in GDP between 1997²⁶ and 2006 and a 25.5 percent decrease afterwards. Another reason for the recent decrease in energy consumption for this industry was the switch from wet kilns to more energy efficient dry kilns.²⁷ Cement Manufacturing represented 53.9 percent of the subsector’s energy consumption in 2010, and therefore, significant decreases in energy consumption in that industry impacted the entire subsector.

Figure 29. Energy consumption of selected Non-Metallic Mineral Product Manufacturing industries, 1995–2010

For a breakdown of the industries’ energy consumption and GDP,²⁸ refer to Tables A.35 and A.36 in Appendix A.

5.7.3 Non-Metallic Mineral Product Manufacturing energy consumption by energy source

Table 17 shows the energy consumption by energy source for the Non-Metallic Mineral Product Manufacturing subsector in 1995 and 2010. Energy consumption for this subsector decreased by 18.2 percent during this period.

Table 17. Non-Metallic Mineral Product Manufacturing subsector’s energy use by energy source, 1995 and 2010

As with many subsectors that have been substituting natural gas for other energy sources, Non-Metallic Mineral Product Manufacturing also underwent a substantial decline in the use of natural gas (60.6 percent) from 1995 to 2010. This decline was partially offset by an increase in the use of coal as well as petroleum coke and coke oven gas, the two most-used energy sources in this subsector in 2010 (see Table A.36 in Appendix A). In particular, the Lime Manufacturing industry (NAICS 32741) doubled its use of coal from 1995 to 2010, from 2.85 PJ to 5.73 PJ, whereas its use of natural gas decreased from 8.06 PJ in 1995 to 1.01 PJ in 2010.

It is not possible to know the consumption rates for heavy fuel oil, propane, coke from coal and steam energy sources in 2010, due to data confidentiality. However, the total use of these four sources decreased over the period from 4.7 PJ in 1995 to 2.2 PJ in 2010.

Table 18 demonstrates that overall energy consumption increased in this subsector from 2009 to 2010 (5.9 percent), which was evidenced mostly in the increased use of natural gas and electricity.

Table 18. Non-Metallic Mineral Product Manufacturing subsector’s energy use by energy source, 2009 and 2010

¹⁴ For a list of the 21 subsectors, see Appendix C, North American Industry Classification System.
¹⁵ N.I. Sax and R.J. Lewis, Hawley’s Condensed Chemical Dictionary, Tenth Edition
(ISBN 0-442-28097-1).
¹⁶ The decrease in output experienced by this subsector between 2008 and 2009 is discussed further in this section.
¹⁷ The provisions of the American Reinvestment and Recovery Act of 2009 (the ARRA) explicitly limited foreign companies’ access to the estimated US$275 billion in procurement funds contained in the US$787–billion stimulus package. As a result, ARRA-financed procurement at the state and local levels for iron, steel and manufactured products was effectively closed to Canadian bidders. House of Commons Canada, Canada-United States Agreement on Government Procurement Report of the Standing Committee on International Trade, May 2010, www.buildingtrades.ca/Files/Documents/403_CIIT_Rpt01-e.aspx.
¹⁸ The data for 1995 and 1996 data were not available for all industries.
¹⁹ “This increase was as a result of the Canada-U.S. Agreement on Government Procurement, which provided the opportunity for U.S. subfederal governments and contractors to continue to work with Canadian suppliers or renew those relationships”. Foreign Affairs and International Trade Canada, Information on Canada - U.S. Agreement on Government Procurement, www.international.gc.ca/trade-agreements-accords-commerciaux/fo/information_renseignements.aspx
²⁰ This was due to an almost two-fold increase in the sales of manufactured goods of the Primary Production of Alumina and Aluminum industry (NAICS 331313) between 1995 and 2009.
²¹ Due to data limitations for some industries, five- and six-digit NAICS code details are presented.
²² The Iron and Steel Mills industry experienced a significant decrease (48.5 percent) in GDP from 2008 to 2009, largely due to the U.S. Congress enacting a statute requiring recipients of stimulus money to (temporarily) buy American iron and steel only. Indeed, exports to the United States (the largest market for these products) by this industry decreased 46.7 percent between 2008 and 2009. However, exports to the United States increased by 50.8 percent from 2009 to 2010. (Source: Industry Canada, Trade Data Online (TDO), ic.gc.ca/tdo).
²³ John Nyboer and Kristin Lutes, A Review of Energy Consumption and Related Data – Canadian Aluminum Industries, 1990 to 2009, p.2. Canadian Industrial Energy End-Use Data and Analysis Centre, 2011.
²⁴ For a detailed description of the 18 industries that make up this subsector, refer to North American Industry Classification (NAICS) 2007, section NAICS 325, Statistics Canada, at http://www.statcan.gc.ca/pub/12-501-x/12-501-x2007001-eng.pdf.
²⁵ http://stds.statcan.gc.ca/naics-scian/2007/cs-rc-eng.asp?criteria=327
²⁶ GDP data for NAICS 32731 were not available for 1995 and 1996.
²⁷ John Nyboer and Sally Rudd, A Review of Energy Consumption and Related Data – Canadian Cement Manufacturing Industry 1990 to 2009, p. 1. Canadian Industrial Energy End-Use Data and Analysis Centre, 2011.
²⁸ GDP data for NAICS 32741 and 3272144 were not available for the study period.

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