Canada’s manufacturing sector saw a 1.4% decline in sales in March 2025, reaching $71.9 billion. The primary metal subsector saw the largest decrease, with a 6.5% drop to $5.9 billion, while petroleum and coal product sales fell 4.2% to $7.8 billion. However, sales in the furniture and related products sector rose by 11.9%.
Ontario and Quebec were the hardest-hit provinces, with both seeing significant declines in manufacturing sales. Ontario’s sales fell by 1.0% to $31.8 billion, while Quebec’s sales decreased by 1.6%, dropping to $18.7 billion, in key industries, including chemical products and primary metals.
On the other hand, Manitoba saw a 2.9% increase in manufacturing sales, driven by strong growth in the transportation equipment sector.
Total manufacturing inventories decreased slightly by 0.7%, totalling $120.3 billion in March, mainly in raw materials and goods in process. The inventory-to-sales ratio increased slightly to 1.67, suggesting a slight slowdown in sales.
Meanwhile, unfilled orders increased by 1.4%, reaching $109.4 billion due to higher unfilled orders in ship and boat building, although a decline was seen in aerospace products and parts.
On a more positive note, Canada’s manufacturing sector experienced a boost in its capacity utilization rate, which increased to 80.7% in March, up from 77.7% in February. It was attributed to gains in the transportation equipment, petroleum and coal products, and food product subsectors. However, the primary metal manufacturing subsector saw a slight dip of 0.2 percentage points.
Despite the March decline, manufacturing sales showed a year-over-year increase, and the sector remains poised for recovery in the coming months. However, the sector will need to navigate ongoing challenges, particularly related to global trade tensions and energy prices.