Employment in equipment manufacturing in Canada fell in 2025, group says

In 2025, the off-highway equipment manufacturing industry supported 147,000 jobs in Canada, and contributed $24 billion in “value added” to the economy. Photo by Blair Gable/Postmedia

Article content

Direct employment by manufacturers of agriculture, construction and mining equipment in Canada declined 1.9 per cent in 2025 due to trade uncertainties, weak growth in housing development and limited demand for farm equipment, according to a new report.

Article content

“This is an industry that has held up well, but one that is still navigating a volatile operating environment,” Megan Tanel, president of the Association of Equipment Manufacturers (AEM), said on Monday after her organization released a report on the economic role played by its members.

Article content

Article content

Article content

Tanel added that the push for critical minerals development and investment in infrastructure in Canada helped offset some of the weaker areas.

Article content

Article content

Although direct employment also fell in 2024 by 0.7 per cent, the report said employment grew 5.9 per cent in 2023 and remains 3.3 per cent higher than it was in 2022.

Article content

In 2025, the off-highway equipment manufacturing industry supported 147,000 jobs here and contributed $24 billion in “value added” to gross domestic product, nearly one per cent of the country’s total nominal gross domestic product (GDP).

Article content

Tanel said the outcome of the Canada-United States-Mexico Agreement (CUSMA) review, scheduled for this summer, will be crucial for her members, which includes companies in Mexico and the U.S.

Article content

Article content

Article content

Still, she said the impacts have been somewhat muted for her Canadian members compared to other countries.

Article content

Canadian construction machinery exports to the U.S. fell 2.2 per cent year over year, which was less than the 35.3 per cent decline the United Kingdom experienced and the 28.6 per cent Germany had.

Article content

Article content

The AEM attributed Canada’s relatively lower export decline to the integration of supply chains in North America. More than 85 per cent of Canadian equipment exports comply with the terms of CUSMA, which protects them from tariffs, according to the AEM.

Article content

Article content

“CUSMA is working as a stabilizer for Canada, but stability cannot be taken for granted,” Tanel said.

Article content

The federal government has been working to help offset some of the impacts of U.S. tariffs, including a $1-billion program announced on Monday that will be administered by the Business Development Bank of Canada and provide financing “at favourable terms” to help companies that have been affected by tariffs.

Article content

It also added $500 million to an existing program to help smaller manufacturing firms diversify their products and technology.

Article content

Last week, Statistics Canada said GDP grew 0.2 per cent in February, led by a manufacturing sector that expanded 1.8 per cent.

Article content

Article content

Article content