Understanding how manufacturing is performing at the local level has always been a challenge.
National data tells part of the story. But it often misses what is happening on the ground, where investment decisions are made, where labour pressures are felt, and where supply chains are built. The Business Data Lab’s Canadian Industry Tracker helps close that gap. It provides a clearer view of how industries are performing across major regions, including the Greater Toronto Area.
A highly concentrated and export-driven sector
The data shows that manufacturing in the Toronto region remains one of the most concentrated in the country.
There are approximately 9,960 manufacturing businesses in the region, supported by a workforce of over 346,000 workers. On a national scale, Toronto ranks first among major Canadian cities in both total exports and business concentration for manufacturing.
Exports are particularly significant. Manufacturing exports from the region total roughly $83.9 billion, with Toronto ranking first among 41 major census metropolitan areas. This reinforces the region’s role as a key driver of Canada’s trade performance.
At the same time, manufacturing represents about 9.4% of the total workforce in the region, with a notable youth workforce of over 23,000, indicating a continued pipeline of talent entering the sector.
Competitiveness pressures are emerging
While scale and output remain strong, the data points to growing pressure on competitiveness.
The average weekly wage in manufacturing sits at approximately $1,362, placing Toronto around the middle of the national ranking for wage competitiveness. This suggests that while the sector is large, it is operating in a cost environment that is becoming increasingly challenging.
Productivity indicators are also mixed. While Toronto leads in total output, its position relative to other regions on productivity metrics is less consistent. This gap between scale and productivity reflects a broader challenge facing Canadian manufacturing.
Business sentiment reflects uncertainty
The Business Data Lab’s expectations index provides another important signal. Recent data shows that manufacturing sentiment in Toronto has remained below the 100 threshold in multiple recent quarters, indicating expectations of weakening conditions. While there have been periods of improvement, the overall trend points to ongoing uncertainty.
At the same time, businesses continue to identify a consistent set of pressures. Costs remain elevated. Labouravailability continues to fluctuate. Supply chain challenges persist, even as conditions stabilize compared to previous years.
Together, these trends suggest that while the sector remains resilient, it is operating in a more constrained environment.
What this means for policy and planning
The GTA remains a national leader in manufacturing scale, exports, and business concentration. But maintaining that position will require addressing the structural pressures that are beginning to show in the data.
This includes:
- Improving productivity through technology adoption and modernization
- Ensuring access to a skilled and growing workforce
- Supporting export competitiveness in an increasingly uncertain trade environment
- Reducing cost pressures that impact investment decisions
Why local data matters
One of the most important insights from the Canadian Industry Tracker is how much variation exists across regions. What works at the national level does not always reflect local conditions. And without that local lens, it becomes more difficult to design effective policy or business strategy. For a region like the GTA, where manufacturing plays a critical role in economic output and trade, having access to this level of data is essential.