AEM today released its triennial report, “The Economic Impact of the Canadian Equipment Manufacturing Industry.” The report finds that the industry experienced overall growth compared to 2022, with an 11% increase in sales and 3.3% growth in employment. While equipment manufacturers faced economic uncertainty due to fluctuating trade relationships, limited farm equipment demand, and weak growth in housing developments, strong infrastructure investment and critical minerals projects is bolstering demand for construction and mining equipment.
Commissioned by AEM and prepared by S&P Global Market Intelligence, the report quantifies the industry’s direct, indirect, and induced contributions to the Canadian economy across jobs supported, total industry output (sales activity), value added (GDP contribution), labour income, and tax revenues.
The report finds that in 2025, the Canadian off-highway equipment manufacturing industry generated $54 billion in total industry output, supported 147,000 jobs nationwide, and contributed $24 billion in total value added to the Canadian GDP, representing nearly 1% of the 2025 total nominal GDP, and generated $13.7 billion in total labour income.
“As Canada continues to focus on its nation-building agenda, equipment manufacturers play a key role,” said Megan Tanel, AEM’s President and CEO. “Representing 7% of Canada’s manufacturing employment base, the number of jobs supported by the industry would fill the Montreal Bell Centre more than seven times. Despite headwinds, the industry has proven its adaptability and resilience.”
The report notes that while the three-year employment total grew, annual changes in industry employment showed more volatility. The industry’s direct employment grew 5.9% in 2023 before experiencing a slight contraction in 2024 and 2025. Despite these fluctuations, the sector continues to provide highly skilled, lucrative career paths. Average labour income per job for those directly employed by the industry amounted to $102,000, roughly 30% above the national average. Industry-supported activity also generated $1.1 billion in taxes, a 10.5% increase from 2022.
"Constructing a more resilient, future-ready Canada starts with the equipment that powers its critical industries, and that is built and operated by skilled Canadian labour in communities nationwide,” said Linda Hasenfratz, Executive Chair of Linamar Corporation and member of the AEM Board of Directors. “The report underscores that removing obstacles to growth, such as commercial barriers between provinces, can foster a more integrated Canadian economy with more pathways for commercial investment as the country seeks to offset the impacts of global trade volatility.”
A major factor in the industry's ongoing resilience has been the protective shield of the Canada-United States-Mexico Agreement (CUSMA). Despite the negative economic impact of ongoing tariff measures, CUSMA has positioned Canada well in comparison to other United States trade partners, with Canadians construction machinery exports only falling 2.2 % year over year compared to Germany (28.6%) and the United Kingdom (35.3%). However, the main risk moving forward remains policy uncertainty, including tariff changes, rules-of-origin enforcement, and retaliatory measures that create volatility in costs and lead times.
"Canada’s equipment manufacturers have proven their ability to weather storms, but resilience alone is not a growth strategy,” said Kip Eideberg, AEM’s Senior Vice President of Government and Industry Relations. “To ensure long-term economic security, Canada must double down on championing the mutual benefits of free trade with current and prospective partners while also investing in the large-scale infrastructure projects that support manufacturing competitiveness. When we champion pro-manufacturing policies, we ensure the people who build, power, and feed Canada can continue to thrive."
Key national findings:
- $54 billion in total industry output (sales activity) generated by the industry.
- 147,000 total jobs supported in Canada (direct, indirect, and induced), representing 0.5% of Canada’s total employment base.
- 70,900 direct jobs in the industry in 2025.
- $24 billion contributed to Canada's GDP (total value added), representing nearly 1% of total nominal GDP.
- $13.7 billion in total labour income supported.
- $102,00 average annual labour income per direct job, 30% above the national average.
- $1.1 billion in tax revenues generated, an increase of 10.5% from 2022.
Provincial impact: The report highlights the evolving regional footprint of the industry across the country, noting a divergence in fortunes among the provinces that account for the largest shares of direct employment.
- Ontario: Continues to represent the largest share industry operations and jobs, supporting 27,785 direct jobs (nearly 39% of the national total) and 59,521 total jobs.
- Quebec: Remains the second largest employer of industry jobs in Canada, supporting 13,625 direct jobs (19% of the national total) and 29,193 total jobs.
- Alberta: Outpaced national growth trends, with the province supporting 11,395 direct jobs (16% of the national total) and 22,024 total jobs.
To read the report, click here.
AEM's report is based off an S&P Global Market Intelligence analysis titled, “Market Size and Economic Contributions of the Canadian Off-Highway Equipment Industry.” Access to the full report and its corresponding underlying data is available upon request.
About the Report
AEM commissioned S&P Global Market Intelligence, a global data, analytics and software provider, to complete a report that estimates the contributions of the agriculture, construction, and mining equipment manufacturing to the Canadian economy. The report relies upon a well-established approach grounded upon government data and augmented by AEM member data and Market Intelligence’s proprietary industry analysis. The economic contribution of the industry is measured in terms of employment, output, value added (i.e. contribution of the GDP), labour income, and tax revenue. For each measure, the direct, indirect, and induced contributions of the industry are calculated using a combination of data from Market Intelligence and Statistics Canada.
