Introduction
The Canadian manufacturing industry is different from it used to be in the 18th century because of its numerous transformations throughout Canada’s history. The manufacturing industry has evolved, and its evolution can be traced to early economic activities such as fur trade and timber processing. However, the manufacturing industry has changed starting from the technological form of production in the 18th century and the benefits it brought during this time. The effects obtained by the ancient Canadian manufacturing industry have yet to be given so much credit in the Canadian historical context. Still, almost everything running in Canada was brought by the old manufacturing industry. It is one of the most integral factors that drove Canada’s growth and innovation and boosted employment. This research paper’s main objective is to deeply explore the Canadian manufacturing industry, looking at the key factors that influenced the industry, such as government policies, technologies, innovations, and trade.
Thesis statement: Although the historical manufacturing industry faced challenges such as global competition and automation, it can be concluded that it was one of the critical drivers of economic development in the 18th century because it led to innovation, employment, increased production, and economic expansion.
Background Information
The manufacturing process in Canada began in the 18th century by producing small-scale essential goods such as flour, which was processed from grains by gristmills. Flour production by 1840 has increased in Canada, with both Upper and Lower Canada having about 400 gristmills. On the other hand, iron smelting activity began in 1730 and was introduced at Forges St. Maurice. By mid-1740, the people in Canada could enjoy products made from iron, such as stoves and household utensils (Baldwin & Macdonald, 2009).
As time went by, in the 19th century, the manufacturing industry had expanded, and other products such as sawmills, textiles, and other light products were produced due to the improvement of the technology and the level of infrastructure, such as the building of the Canadian Pacific Railway(Belshaw, 2015). The emergence of the world war also improved the manufacturing industry in areas such as steel industries, shipbuilding, and paper in the 19th century.
The Canadian manufacturing industry expanded further in the 20th century by introducing heavy products such as vehicles. Significant expansion in the industry was promoted by several factors, such as urbanization, industrialization, and increased demand for weapons during the World Wars (Belshaw, 2015). The government policies supported the growth and development of other industries, such as machinery and steel, improving the manufacturing sector. In the late 20th and early 21st century, t Canadian manufacturing industry faced challenges such as stiff global competition and technological advancement, affecting customers’ choices (Balakrishnan et al., 2006). Despite the challenges, the Canadian manufacturing industry still stood as an integral factor in the economy if Canada contributed heavily to the country’s employment level, innovation, and economic growth.
Main Arguments
The Canadian manufacturing industry is pivotal to Canadian economic growth because of the factors it brought during its evolution. There are factors such as the increased employment rate that the Canadian manufacturing industry brought in from the rom 18ththe 20th2oth century, improved technology, innovation and economic activity, ties, and economic growth in general. The Canadian manufacturing industry’s benefits are highlighted in the following paragraphs.
The most significant contribution brought by the Canadian manufacturing industry from the 18th to 20th century was employment, showing how vital the Canadian manufacturing industry was in Canada’s economic growth during that time(Baldwin & Macdonald, 2009). In the 18th century, securing employment was the hardest since many traders only produced and sold domestic products. However, after the coming of the manufacturing industry in the 18th century and the discovery of sources of energy that helped the industry, the rate of employment in Canada started to grow faster.
During 1920, the manufacturing sector in Canada employed over 600,000 workers, about 17% of the Canadian labor force. This was because the production rate was high with the world, and war forced the industry to produce more weapons, war materials, meals, and warships that needed more laborers (Baldwin & Macdonald, 2009). The manufacturing industry continued to grow and expand in Canada, with the increased manufacturing rate of heavy industries such as ships, vehicles, and armaments during the World War. During the mid-1940s, the manufacturing industry expanded mo, directly employing over one million employees (Baldwin & Macdonald, 2009). This was more than 25% of the total Canadian labor force. The lives of the Canadians became easy as the manufacturing sector offered many employment opportunities that promoted the living standards of citizens in general and economic growth.
In the 20th century, the Canadian Manufacturing Industry heavily contributed to Economic growth and well-being, promoting Canadian society. From 1945 to 1999, the manufacturing sector in Canada offered about as high as 24 % of Canada’s total actual output of both goods and services and 15 % low of the overall Canadian actual output of goods and services. After the manufacturing sector offered over 1.9 million job opportunities, hiring as many workers as possible in 1999, the sector contributed to about 19% of Canada’s Gross Domestic Product. During this period, the manufacturing sector was producing more jobs and promoting the gross domestic product of Canada because of the new inventions, and the industry was using computer technology (Baldwin & Macdonald, 2009). However, it was affected by trade liberation and the high-priced energy despite its effectiveness in Canada. The economic growth and the well-being Canada is enjoying in the current century were brought about by the efforts of the ancient manufacturing sector from the 18th century. This sector’s positive economic escalation and impact has been felt until today in industrial sectors such as technology.
Apart from the increase in Canadian GDP and increased level of employment, the manufacturing sector of Canada in the 19th century also led to technological improvement in the field of manufacturing, promoting the quality of products produced in Canada (Cozzarin, 2004). The very first ever invented manufacturing computer was introduced in 1957 in Canada. This first computer in the manufacturing industry opened the way for other computers in the industry because of the variety of uses and benefits that it brought to the industry. It has various uses, such as information storage, accounting, and calculating values. Another computer technology was introduced in the industry and later used in production processes, accounting, and inventory control. The other use of computer–aided design, robotics, and computer-aided manufacturing has ever since found its use in Canada and spread faster in other industries (Cozzarin, 2004). Electronics innovation entered the manufacturing industry after the introduction of computers, promoting the growth of the telecommunication industry in CA, which reached the world in the 1980s (Hanel, 2000).
In addition, the Canadian manufacturing industry took part in the aerospace industry by designing and producing other constituents for aircraft and spacecraft.
Innovation in the industry has promoted the quality of products produced in the manufacturing industry and in other industries. The increased price of oil, the primary source of energy used in the manufacturing industry in Canada, led to the industry looking for other alternative sources of energy to use in production (Cozzarin, 2004). The other energy sources include the bitumen in the oil sands region in Alberta, natural gas, coal, hydroelectric power, and uranium. The demand rate for machines and equipment applied in these sources’ exploration, development, and distribution increased. The increased energy supply rate in Canada enabled manufacturers to access an internationally competitive scale of operation. The machines and equipment manufactured in Canada have ever since been used within and outside Canada until today.
Conclusion
In conclusion, despite the impacts that the Canadian manufacturing industry brought in Canada, this sector faced several challenges in the expansion process. In the 20th century, four famous critical trade policy developments affected Canada’s manufacturing sector badly. The Canada-US Automotive Products Agreement, the General Agreement on Tariff that affected international trade, multilateral free trade agreements, and Globalization all affected the industry. The 20th-century economics and regulations that were set affected the manufacturing industry, further declining manufacturing sector operations (Balakrishnan et al., 2006). The increased global competition in the 20th century also promoted the decline of the Canadian manufacturing sector. The high manufacturing jobs Canadians enjoyed in the 19th century declined significantly with the entry of other powerful economic countries, such as China, into the international market. The decline in population, the aging experienced population reduction, and the tariffs also affected the industry. However, despite the challenges, the effect and the importance of the ancient Canadian manufacturing sector are still honored.
References
Balakrishnan, J., Eliasson, J. B., & Sweet, T. R. C. (2006). Factors affecting the evolution of manufacturing in Canada: A historical perspective. Journal of Operations Management, 25(2), 260–283. https://doi.org/10.1016/j.jom.2006.05.014
Baldwin, J. R., & Macdonald, R. (2009). The Canadian Manufacturing Sector: Adapting to Challenges. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1444021
Belshaw, J. D. (2015). 9.9 Manufacturing, Railways, and Industry: Early Days. Ecampusontario.pressbooks.pub. https://ecampusontario.pressbooks.pub/preconfedcdnhist/chapter/9-9-manufacturing-railways-and-industry-early-days/
Cozzarin, B. P. (2004). Innovation quality and manufacturing firms’ performance in Canada. Economics of Innovation and New Technology, 13(3), 199–216. https://doi.org/10.1080/10438590410001628378
Hanel, P. (2000). R&D, Interindustry and International Technology Spillovers and the Total Factor Productivity Growth of Manufacturing Industries in Canada, 1974-1989. Economic Systems Research, 12(3), 345–361. https://doi.org/10.1080/09535310050120925
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