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Who buys products made in Alberta?

Who buys products made in Alberta?

Posted on: 12/15/2017 | Author: ATB Financial's Economics + Research Team

Alberta stands out among the provinces in terms of the proportion of its manufacturing output that is sold into the domestic market. More than 60 per cent of products manufactured in Alberta are sold within the province or within Canada.

This reflects the strong linkages between Alberta’s manufacturing sector and the Canadian energy sector with the latter being a key buyer of products from Alberta. It also reflects the fact that most of the gasoline manufactured in Alberta is sold within Canada rather than to US buyers.

The opposite is true in Ontario where two-thirds of its manufactured products are exported to the US and other countries. Ontario’s numbers reflect the large number of auto parts manufactured in Ontario that head south of the border.

Chemical products accounted for a third (32.7 per cent) of all manufactured goods sold abroad by Alberta exporters between 2012 and 2016. Plastic resin, petrochemicals, basic organic chemicals and fertilizer are key products in the chemicals category.

Food products are second on the list at 16.4 per cent of Alberta’s manufactured exports. Beef and pork, canola oil and frozen potatoes are key products in this category.

Canada will remain a key market for the products we make in Alberta but opportunities to expand our international sales abound and, if seized, will help ensure that our economy remains strong in the decades ahead.

Want to learn more about Alberta’s manufacturing sector? Check out the new edition of Perch.

Manufacturing sales as per cent of total international exports, graph

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