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Economic Analysis and Statistics  Canadian Industry Statistics

About Canadian Industry Statistics
Data Sources
Valuation
About NAICS Canada
Glossary of Terms
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Glossary of Terms

A

Administrative Employee

Same as non-manufacturing employee.

Includes all employees designated as executive, administrative, clerical/office and sales staff. Also included are employees on the payroll of the establishment and engaged in such non-manufacturing activities as: cafeterias or restaurant counters operated by the establishment; new construction, major repairs or alterations of buildings, machinery and equipment for the use of the establishment, when such work is chargeable to the fixed assets accounts

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Apparent Domestic Market

The apparent domestic market is estimated by adding total imports to manufacturing shipments and subtracting total exports.

Important Information:

Caution should be exercised when interpreting statistics relating to the apparent domestic market. The reason it is called apparent and not real domestic market is due to a number of factors which can distort the results.

  • Trade data are valued at the border on a commodity-by-commodity basis and may be different from the value at the plant gate due to such factors as freight, handling charges, third-party mark-ups and the like. In short, the value at the factory door may be lower than at the border and in some cases where a very larger proportion of the product is exported, it may appear as though one exports more than one produces. While this would appear illogical, it is not due to errors in recording necessarily. See Data integration - International trade data and manufacturing shipments data for more information.
  • Some large plants manufacture products classified to industries other than their own yet all of their plants output, for statistical purposes, is attributed to the industry to which it is classified. In this case, the market for a particular set of goods may be smaller than it appears to be.
  • Reporting periods for shipments and trade differ.

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Average Annual Salary

The average annual salary per employee is caculated by dividing the total wages paid by the number of employees.

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Average Hours Worked Per Week

The average number of hours worked per week per employee is calculated by dividing the total number of hours worked per year by 52 and by the number of employees. This applies here only to production employees.

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B

Building and Engineering Construction (expenditures on)

As defined for compiling capital investment by type of asset. Building and engineering construction expenditures cover :

  • manufacturing plants;
  • warehouses;
  • office buildings;
  • the cost of demolition of buildings, land servicing and site preparation;
  • additions to construction work in progress; and,
  • all preconstruction planning and design costs such as engineering and consulting fees as well as any materials supplied to construction contractors for installation.

The cost of any machinery and equipment which is an integral or built-in feature of the structure (i.e. elevators, heating equipment, sprinkler systems, environmental controls, intercom systems, etc.) are reported as part of the cost of that structure as well as landscaping, parking lots and the like.

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Business Sector

As defined for compiling labour productivity indices..

The business sector extends to all facets of the Canadian economy other than public administration, non-profit organizations and the Canadian System of National Accounts (CSNA) imputation of the rental value of owner-occupied dwellings. These are excluded because it is difficult to draw inferences on labour productivity in these areas.

As such, it does not correspond to a sector as defined under the North American Industry Classification System (NAICS).

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C

Canadian Company Capabilities (CCC)

The Canadian Company Capabilities is a centrally maintained, searchable database containing the business profiles of over 50,000 Canadian companies.

It is an innovative platform designed to connect companies in order to enhance their business opportunities. It is intended to increase the visibility of companies in Canada to foreign and domestic buyers, sellers, distributors and partners. Search results from the database can be printed in comprehensive, short or custom reports.

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Capital Investment

Capital expenditures are the gross expenditures on fixed assets for use in the operation of an establishment or lease or rent to others.

Included are :

  • cost of all building and engineering construcrion and machinery and equipment which normally have a life of more than 1 year and are charged to fixed assets accounts;
  • modifications, additions and major renovations;
  • capital costs such as feasibility studies and architectural, legal, installation or engineering fees;
  • subsidies;
  • capitalized interest charges on loans with which capital projects are financed;
  • work done by an establishment"s own labour force; and
  • additions to work in progress.

Assets acquired for lease to others are included, but assets acquired as a lessee are not.

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Chained Dollars

A methodology implemented by Statistics Canada which takes into account fluctuations in relative prices and the composition of output over time. In Canadian Industry Statistics, real Gross Domestic Product (real GDP) is presented in chained dollars.

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Compound Annual Growth Rate (CAGR)

The year over year growth rate applied to a statistical variable using a base amount as calculated using the following formula :

CAGR = ((Last Value /FirstValue ) raised to the (1 / Years) power) - 1

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Cost of Fuel and Electricity

Cost of purchased energy and water utility expenses and electricity consumed for energy purposes only, both in manufacturing and non-manufacturing operations. This covers amounts used in all vehicles, plant and office operations, and any support units which are part of the establishment.

Any fuel purchased as an input into the manufacturing process as a feedstock or processing material (e.g. crude oil processed into gasoline) or for other non-energy purposes is excluded.

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Cost of Materials and Supplies

The total cost of all manufacturing inputs purchased, owned and used in manufacturing operations. Only commodity items or physical goods are reported and not costs of services or overhead charges. The cost of materials and supplies includes :

  • purchases of raw materials and components (including any fuel used for non-energy purposes);
  • containers and shipping materials;
  • cost of supplies used to operate, maintain and repair buildings and equipment; and,
  • amount paid to other business units for work done on materials owned.

Excluded are :

  • costs of services or overhead charges such as advertising, insurance, depreciation, interest, contract services;
  • GST; and,
  • fuel used for energy purposes.

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Current Dollars

Measurements are valued at the current price within the given period of time.

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Customs Bonded Warehouses

Bonded warehouses are authorized by Canadian or U.S. Customs for storage of goods on which payment of duties is deferred until the goods are exported or consumed domestically.

These goods are not subject to duties if re-shipped to foreign points.

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D

Depreciation of Assets

Refers to the value of wear and tear on physical assets (buildings and machinery and equipment) resulting from use in the production of goods and services. Different formulas of depreciation exist, such as linear (straight-line) depreciation, hyperbolic (delayed) and geometric (infinite).

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Domestic Exports

Domestic exports consist of the exports of all goods grown, produced, extracted or manufactured in a country leaving the country (through Customs) for a foreign destination. Exports of imported merchandise which has been substantially enhanced in value are also included.

Domestic exports differ from total exports in that re-exports are not included.

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E

Employer (Type of Establishment)

Defined as an establishment where total employment equals one or more regular worker(s).

Regular workers exclude :

  • contract workers (not part of an establishment's payroll);
  • company pensioners;
  • working owners, owners and partners of unincorporated businesses;
  • persons working on a full commission basis for whom the establishment makes no pension fund or unemployment insurance contributions;
  • outside directors of incorporated companies.

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Employment per Establishment

Employment per establishment is calculated by dividing total employment by the number of principal establishments.

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Employment Size Category

Employment size categories from the Canadian Business Patterns database have been re-grouped into Canadian Industry Statistics.

Employment size categories differ depending on whether the business is a goods-producer versus a services-producer. Note the distinction at the small and medium size categories.

Goods-producers are categorized under the following employment size ranges:
  • Micro
1-4 employees
  • Small
5-99 employees
  • Medium
100-499 employees
  • Large
500 + employees
Service-producers are categorized under the following employment size ranges:
  • Micro
1-4 employees
  • Small
5-49 employees
  • Medium
50-499 employees
  • Large 
500 + employees

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Employment Type (in Manufacturing Sector)

Employment within the manufacturing sector is separated into two major types of workers : production employee and administrative employees.

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Enterprise

The standardised model developed at Statistics Canada for business surveys consists of a four level hierarchy of Statistical Entities. The four statistical entity subtypes are - the enterprise, the company, the establishment and the location. Each subtype is associated with a particular class or level of economic data.

The enterprise (the top of the hierarchy) is associated with a complete set of financial statements. The enterprise, as a statistical unit, is defined as the organisational unit of a business that directs and controls the allocation of resources relating to its domestic operations, and for which consolidated financial and balance sheet accounts are maintained from which international transactions, an international investment position and a consolidated financial position for the unit can be derived.

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Establishment

The standardised model developed at Statistics Canada for business surveys consists of a four level hierarchy of Statistical Entities. The four statistical entity subtypes are - the enterprise, the company, the establishment and the location. Each subtype is associated with a particular class or level of economic data.

The establishment (third in the hierarchy) is the level at which the accounting data required to measure production is available (principal inputs, revenues, salaries and wages).The establishment, as a statistical unit, is defined as the most homogeneous unit of production for which the business maintains accounting records from which it is possible to assemble all the data elements required to compile the full structure of the gross value of production (total sales or shipments, and inventories), the cost of materials and services, and labour and capital used in production.

Generally, the establishment corresponds to a plant, mill or factory. However, the establishment may comprise more than one plant if accounting records do not permit separate reports for each one. An establishment may also include ancillary or support units, such as sales offices or warehouses.

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Export Intensity

Export intensity is defined as the ratio of domestic exports to manufacturing shipments X 100. The more an industry is export oriented, the higher is this ratio.

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Exports

See total exports.

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F

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G

Gross Capital Stock

Gross Capital Stock provides a measure of accumulated capital investment.

Gross capital stock is the value of all fixed assets still in use, at the actual or estimated current purchasers prices for new assets of the same type, irrespective of the age of the assets. It should be mentioned that these data are not adjusted for depreciation of assets.

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Gross Domestic Product (GDP)

Gross Domestic Product (GDP) by industry measures the value of output of an industry less the value of intermediate inputs required in the production process. In this sense, it is an output-based measure of economic activity and is commonly referred to as the value-added of an industry.

GDP is gross in the sense that it does not deduct the depreciation of capital, and domestic as it measures production occurring within the political boundaries of Canada. GDP by industry is expressed in basic prices, that is, it includes taxes paid and subsidies received on the factors of production (labour or capital).

At the industry level, GDP represents the value each industry adds to the production process. At the aggregate level, it is represents the total value of (traditional) production in the economy.

The Data Sources section offers further information on the source of GDP estimates.

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H

Hours Worked by Production Workers

The total number of hours worked by production employees in a year was available from the Annual Survey of Manufactures.

As of the release of data for the 2000 reporting period, hours worked data is no longer reported on the survey. Historical estimates on hours worked by production workers are available in the Production chapter reports for the Manufacturing sector and its sub-sectors, industry groups, industries and national industries.

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I

Imports

See total imports.

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Indeterminate Employees

An employment size category defined as establishments with no or an indeterminate quantity of employees.

Unfortunately, it is not known what percent of the indeterminate category actually have no employees.

The establishments in the indeterminate category do not maintain an employee payroll, but may have a workforce which consists of contracted workers, family members or business owners. However, the Business Register does not have this information available, and has therefore assigned the establishments to an indeterminate category.

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Industry

Corresponds to the 5-digit level designation in the 1997 North American Industry Classification System (NAICS).

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Industry Group

Corresponds to the 4-digit level designation in the 1997 North American Industry Classification System (NAICS).

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Inventories

Inventories are reported at values maintained in the establishments accounting records (book value) and include inventory at the plant and at any warehouse or selling outlet which is treated as part of the establishment. Inventories only include inventory held or in transit in Canada or on consignment in Canada, as well as goods owned and held in inventory abroad

Excluded from inventories are any goods held on consignment from others.

Inventories include, but are not limited to :

  • raw materials, purchased components and supplies to be used in manufacturing (including fuel used for feedstock or as a processing material, and packaging materials);
  • goods in process (reported as value of work completed);
  • finished products of goods of own manufacture;
  • goods purchased for resale (in same condition as purchased);
  • materials and supplies used by own labour force for new construction, the production of machinery and equipment for own use, cafeteria supplies, safety supplies, fuel for energy purposes.

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J

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K

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L

Labour Productivity - Manufacturing Value-added per Hour (in Manufacturing Sector)

Labour productivity measures manufacturing output per unit of labour input. Manufacturing output is expressed in terms of manufacturing value-added. Labour productivity is calculated by dividing manufacturing value-added by the hours worked by production employees.

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Labour Productivity Index

Labour productivity is defined in simple terms as output, measured as real Gross Domestic Product (in chained dollars), per hour worked in the business sector. Labour productivity derived from real GDP is presented as an index in order to avoid methodological problems associated with level comparisons.

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M

Machinery and Equipment (Capital Expenditures on)

As defined for compiling capital investment by type of asset.

Capital expenditures on machinery and equipment cover such items as :

  • boilers, compressors, motors, pumps, generators, transformers and other machinery;
  • automobiles, trucks and other transportation equipment;
  • appliances, and office and store furniture;
  • any capitalized tooling expenses;
  • professional and scientific equipment; and
  • progress payments paid out in the reporting before delivery is made.

The following is excluded :

  • any machinery and equipment which is an integral or built-in feature of the structure (i.e. elevators, heating equipment, sprinkler systems, environmental controls, intercom systems, etc.)

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Manufacturing Intensity

Manufacturing intensity is defined as the ratio of manufacturing value-added to manufacturing shipments.

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Manufacturing Shipments

Also called Shipments of Goods of Own Manufacture or Sales of Manufactured Goods .

The value of manufacturing shipments represents the net selling value of goods made by the reporting establishments.

It includes :

  • transfers to other establishments of the same company;
  • the value of non-returnable containers;
  • the book value of goods produced and shipped for the first time on a rental basis; and
  • shipments on consignment to other countries (provided these are already sold).

It excludes :

  • discounts;
  • returned sales;
  • sales allowances;
  • sales tax;
  • excise taxes and duties;
  • the value of returnable containers; and
  • common or contract carriers" charges for outward transportation.

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Manufacturing Shipments per Employee

Manufacturing shipments per employee is obtained by dividing manufacturing shipments by the number of employees - either all employees or only the production employees.

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Manufacturing Value-Added

Manufacturing value-added, a measure of net output, consists of manufacturing shipments plus net change in inventory of goods in process and finished goods, less cost of purchased inputs (which are the cost of materials and supplies used and the cost of fuel and electricity) for manufacturing activities.

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Manufacturing Value-Added per Employee

Manufacturing value-added per employee is obtained by dividing manufacturing value-added by the number of employees - either all employees or only the production employees.

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N

National Industry

Corresponds to the 6-digit level designation in the 1997 North American Industry Classification System (NAICS).

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Net Capital Stock

Net Capital Stock is equal to gross capital stock adjusted for the depreciation of assets.

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Non-Manufacturing Activity (Revenues from)

Also called Other Revenues.

Manufacturing establishments may also engage in non-manufacturing activities and receive revenue from these additional activities. These include :

  • sales of goods purchased for resale (in same condition as purchased);
  • revenues from the rental or lease of manufactured products, machinery and equipment, and real property;
  • revenues from operations performed by their own labour force :
    • service revenues;
    • commissions on sales;
    • revenues from contracted shipping;
    • operation of cafeterias;
    • outside installation or construction not related to own products;
    • sale of used materials;
    • research and development.
  • royalties and franchise fees.

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North American Industry Classification System (NAICS)

See About NAICS Canada

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O

Other Revenues

See revenues from non-manufacturing activities.

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Output Per Employee

See manufacturing shipments per employee or manufacturing value-added per employee

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Output Per Hour

See labour productivity.

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P

Performance Plus

Performance Plus is an on-line performance bench marking tool available on Industry Canada's Strategis web site.

It provides detailed financial and employment data on more than 600 business sectors across Canada, including more than 30 performance benchmarks to help small businesses determine how they measure up against their competitors.

This tool uses the Small Business Profiles (SBP) created from a sample of Canada Customs and Revenue Agency (CCRA) tax returns for both incorporated and unincorporated businesses operating in Canada.

The data are for the year 1997 and business sectors are classified according to Statistics Canada's 1980 Standard Industrial Classification for Establishments (SIC-E) rather than the North American Industry Classification System (NAICS). Thus, direct comparisons to the information on this site may not be valid.

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Principal Establishments

An incorporated business with employees having sales of manufactured goods greater than or equal to $30,000.

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Production Employee

Same as production worker or manufacturing employee.

Production employees include all employees working directly in manufacturing operations such as :

  • processing and assembling;
  • storing, handling, packing, warehousing, etc.;
  • inspecting (including quality control);
  • maintenance, repair, janitorial and watchman services;
  • erecting or installation for customers when such work is carried out as an extension of manufacturing operations and does not constitute a separate establishment; and
  • working foremen doing work similar to that of employees they supervise;

Employees working in cafetarias or restaurant counters operated by the establishment are counted as production workers.

Workers in head administrative, executive, sales or service offices are counted as administrative employees.

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Q

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R

Real Gross Domestic Product by Industry

Real Gross Domestic Product (real GDP) by industry is presented in chained dollars.The process of chaining takes into account fluctuations in relative prices and the composition of output over time. Chained GDP preserves original growth rates of industries and is especially important in examining the performance of industries which have been susceptible to rapid price changes (such as information technology and related industries).

Statistics Canada expresses GDP in basic prices, which is measured as output valued at basic prices (subsidized prices less taxes on the products at the time of sale and separately invoice transport charges) less intermediate consumption valued at purchasers prices.

The reader should be aware that this measure of GDP differs from those which are expenditure-based and income-based rather than by industry.

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Re-Exports

Re-Exports (sometimes also called Foreign Exports) refer to the export of goods that have previously entered a country and are leaving in (essentially) the same condition as when first imported. Exports of imported merchandise which has been minimally processed but not substantially enhanced in value are also counted as re-exports.

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S

Sector

Corresponds to the 2-digit level designation in the 1997 North American Industry Classification System (NAICS). Note that a set of 2 digit numbers was needed to define the Manufacturing (NAICS 31-33), Retail Trade (NAICS 44-45) and Transportation and Warehousing (NAICS 48-49) sectors.

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Shipments

See manufacturing shipments.

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Small and Medium Size Establishment (SME)

An establishment who employees, on average, less than 500 employees in a given year. For specific information on small and medium size categories for establishments refer to employment size categories.

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Standard Industrial Classification (SIC)

A method used to classify establishments (SIC-E) and companies or enterprises (SIC-C) into industry groups.

Replaced by the North American Industry Classification System (NAICS) in 1997.

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Standard of Living

The most frequently used formula to calculate the standard of living for a country is Gross Domestic Product per capita (per person). However many indices have been created to incorporate other factors which contribute to a countries standard of living, such as infant mortality rate, life expectancy, fertility rate, literacy and education, to name a few.

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Statistics Canada

Canada's central statistical agency. Statistics Canada produces statistics that help Canadians better understand their country.

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Sub-Sector

Corresponds to the 3-digit level designation in the 1997 North American Industry Classification System (NAICS).

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T

Total Employment

Accounts for all personnel on the payroll of the establishment, including those working in ancillary units which form part of the establishment.

Employees are defined as those workers for whom an establishment completes a Canada Customs and Revenue Agency (CCRA) T4 - Statement of Remuneration Paid form. Because the size of the labour force may change in the course of a year, the establishments effectively report the average number employed for the reporting period.

This includes employees of manufacturing and non-manufacturing operations:

  • manufacturing operations;
  • product installation;
  • logging, quarrying and mining activity (in integrated operations, where applicable);
  • construction for own use;
  • production of machinery for own use;
  • executive, administrative, sales and research staff ;

In the Manufacturing sector, employees are usually divided into two groups :production employees and administrative employees.

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Total Exports

Total exports include all goods leaving the country (through Customs) for a foreign destination. It consists of the sum of domestic exports and re-exports.

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Total Imports

Total imports include all goods entering the country (through Customs) from a foreign destination, whether for immediate domestic consumption or for storage in customs bonded warehouses.

Goods re-entering (returned to) Canada after having been exported abroad (without having been materially altered or substantially enhanced in value while abroad) are also counted. These are sometimes called re-imports.

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Total Revenues

Also called Sales of Manufactured Goods and Other Revenues, consists of the value of manufacturing shipments plus other revenues derived from non-manufacturing activity.

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Total Wages Paid

Salaries and wages are gross, before any deductions from employees for income tax and employee contributions for sickness, accident, pension, insurance, or other benefits. Fringe benefit contributions by the employer are not included.

Included are:

  • overtime payments;
  • vacation pay;
  • directors pay;
  • bonuses (including profit sharing);
  • commissions paid to regular employees (such as the manufacturer's agents);
  • taxable allowances (e.g., room and board, gifts such as air tickets for holidays);
  • retroactive wage payments;
  • any other allowance forming part of the employee's earnings.

Excluded are:

  • amounts paid out to other establishments for labour costs only;
  • all payments and expenses associated with outside contract workers;
  • payments to employment agency or personnel suppliers (e.g., pay for temporary workers paid through an agency and charges for personnel search services);
  • payments to casual labour without a T4 Supplementary Form;
  • monies withdrawn by working owners and partners of unincorporated businesses;
  • directors fees or distribution of profits to shareholders of incorporated companies.

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Trade Balance

The balance of trade represents the difference between exports and imports of goods between a country and one (or more) of its international trading partners.

TRADE BALANCE = TOTAL EXPORTS minus TOTAL IMPORTS

If the country imports more goods than it exports, the trade balance is negative (trade deficit). If the country exports more goods than it imports, the trade balance is positive (trade surplus).

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U

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V

Value-Added

Also see manufacturing value-added.

The value-added is a measure of net output, that is, of gross output less those purchased inputs that have been embodied in the value of the product.

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W

Wages

See total wages paid.

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X

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Y

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Z


    Last Updated: 2006-02-27
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