Manufacturing Production
Petroleum and Coal Products Manufacturing
(NAICS 324)
This section reviews trends in manufacturing production for Canada's
Petroleum and Coal Products Manufacturing (NAICS 324) subsector between 1994 and
2003.
It concentrates on the transformation of goods into manufactured products
destined for retail and wholesale markets, exports to international markets, or
to serve as inputs for other industries. It does not focus on the products
themselves or the quantities produced, but on the monetary value of the
outputs. As far inputs, manufacturing
costs and salaries and wages
are covered more fully in other sections.
The data is obtained from Statistics Canada's Annual Survey of
Manufactures (ASM) and covers incorporated establishments with employees
primarily engaged in manufacturing and with sales of manufactured goods equal
to or greater than $30,000, herein, referred to as principal
establishments. Thus, unless otherwise stated, it would exclude
non-employers, unincorporated establishments as well as establishments where
manufacturing activity is minimal.
Because of major conceptual and methodological changes to the Annual Survey
of Manufactures made in the year 2000, the reader should exercise caution
when interpreting data and subsequent rates of change between the years 1999
and 2000. The magnitude of the effect from these changes on the statistics
from the Annual Survey of Manufactures will differ between industries.
It should be noted that, starting in 2000, the Annual Survey of
Manufactures no longer collects data on Head Offices.
This will affect the following variables:
- the number of administration employees;
- the total number of employees;
- the wages paid to administration employees;
- the total wages paid to all employees;
- the cost of materials and supplies and goods for resale;
- total revenues (i.e. the value of shipments and other revenues);
- total value-added.
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Position in NAICS Hierarchy
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Canada's Petroleum and Coal Products Manufacturing (NAICS 324) subsector is comprised of the following industry groups :
It is part of the Manufacturing (NAICS 31-33) sector.
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Initially we examine production in Canada as measured by the total value of
manufacturing shipments of the industry which is essentially the value of goods
produced by its establishments, including custom and repair work, as well as
goods made under contract . They are valued in current Canadian dollars.
Value of Production
Manufacturing Shipments and Manufacturing Value-Added
1994-2003
Principal Establishments
Petroleum and Coal Products Manufacturing
(NAICS 324)
Manufacturing shipments for this subsector increased from $16.7
billion in 1994 to $37.5 billion in 2003, or at an average
compound annual rate of 9.4% per year. Between 2002 and 2003,
manufacturing shipments increased by 11.7%
Value of Production
Principal Establishments**
Manufacturing Shipments
and
Manufacturing Value-Added
1994-2003
Petroleum and Coal Products Manufacturing Subsector
(NAICS 324) |
Measure
of Production |
Value in
$billions |
CAGR*
1994-2003 |
% Change
2002-2003 |
1994 |
2003 | Manufacturing Shipments | 16.7 | 37.5 | 9.4% | 11.7% | Manufacturing Value-Added | 2.7 | 4.2 | 5.0% | -13.0% | | | Notes:
* Compound annual growth rate
** Incorporated establishments with employees, primarily engaged in manufacturing and with sales of manufactured goods equal or greater than $30,000 |
Changes in domestic production within a particular subsector will depend on a
variety of factors such as evolving international export markets, trends in
consumer demand and patterns of consumption, competition with imports in the
domestic market, economic conditions which affect production (including labour
costs), profitability, and so on. Technological changes will impact the
Petroleum and Coal Products Manufacturing subsector by affecting consumer demand as well as
the cost of production.
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Manufacturing Value-Added
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The value added is a measure of net output (i.e. of gross output less those
purchased inputs - such as cost of materials and supplies and of fuel and
electricity) which have been embodied in the value of the product. In contrast
to the measure of total shipments, value added provides some insight into the
degree of transformation which occurs within industries.
In short, manufacturing value-added consists of the value of manufacturing
shipments plus net change in the inventory of goods in process and finished
goods, less the costs of materials and supplies and of the fuel and electricity
used.
Manufacturing value-added for the Petroleum and Coal Products Manufacturing subsector
increased from $2.7 billion in 1994 to $4.2
billion in 2003, or at an average rate of 5.0% per annum.
Over the course of the two latest years, the growth rate was -13.0%.
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The manufacturing intensity ratio, calculated by dividing manufacturing
value-added by manufacturing shipments, gives a sense of how much
transformation takes place within an industry and what proportion of value is
added.
For example, in industries where relatively significant capital and labour is
applied (for example : NAICS 31222 - Tobacco Product
Manufacturing), the manufacturing intensity ratio is relatively high.
It is relatively low where lower amounts of capital and labour are needed to
produce the final output (for example : NAICS 31221 - Tobacco Stemming
and Redrying).
Manufacturing Intensity Ratio
1994-2003
Principal Establishments
Petroleum and Coal Products Manufacturing
(NAICS 324)
Comparison with Manufacturing Sector
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Hours Worked by Production Workers
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Starting in 2000, the Annual Survey of Manufactures no longer collects
data on hours worked by production workers. Other statistics on
production hours are not available nor can be derived from other
Statistics Canada sources.
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