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The North American primary metals manufacturing sector includes businesses that process raw materials, like iron ore and scrap metal, to produce basic metal products such as steel, aluminum, and copper. These metals serve as the foundation for making parts and products in other industries, such as automotive, construction, and machinery manufacturing. The sector covers everything from smelting and refining metals to rolling, casting, and alloying, resulting in a wide range of products used in everyday goods and infrastructure.

The welding and materials joining industry and the primary metals manufacturing sector intersect in numerous ways to support a productive economy. Understanding the challenges the sector faces will help the welding and materials joining industry meet evolving market demands.

The ÒõAPPµ¼º½ recently released a report entitled Canada’s Metals Industry: A Global and Domestic Analysis. Selected workforce-related highlights and insights drawn from this report are featured in this article.

Economic and workforce characteristics

The primary metals manufacturing sector plays a critical role in the economies of Canada and the United States. In Canada, the industry contributed CAD $11.1 billion to the GDP in 2023. In the US, that figure was USD $91.7 billion. Despite its economic impact, the sector experienced a significant decline during the COVID-19 pandemic in both Canada and the US. The primary metals manufacturing sector has rebounded more effectively in the US than in Canada in terms of GDP.

In Canada, the sector employs nearly 55,000 people, with the workforce concentrated in Ontario (52.1%) and Quebec (33.7%). Employment declined 8.4% in 2020 due to the pandemic and has not yet recovered, despite an increase in 2021. One notable workforce characteristic in Canada is the concentration of employment in small and micro-sized businesses – 81% of the employer establishments in the sector are categorized as small, employing fewer than 100 people.

Ontario employs more than half of the workers in Canada’s primary metals manufacturing industry. There is a clear gender differential, with men making up 83% of the workforce. A significant portion of the workforce is aging, with more than 30% aged 55 and over, which is higher than the provincial average across all industries. The average weekly earnings for the sector were CAD $1,541.85 in 2021, higher than the provincial manufacturing average.

While Canada as a whole has experienced employment challenges since the pandemic, Quebec’s primary metals manufacturing sector grew at an average annual growth rate of 3.2% from 2019 to 2023. The province’s resilience during the pandemic suggests that Quebec’s workforce is adapting to market disruptions.

In the US, the industry employed 374,000 people in 2023, demonstrating a 2.6% increase compared to 2022. However, this recovery has not yet restored pre-pandemic employment levels. The average hourly earnings of workers in primary metals manufacturing in the US have consistently risen over time, with an average annual growth rate of 3.7% between 2019 and 2023. By 2023, the average hourly wage had reached USD $32.45.

Challenges facing the sector

The workforce in this sector is facing several challenges. In both Canada and the US, economic uncertainty, inflation, and supply chain disruptions continue to have an impact, creating instability in workforce planning. In Ontario and Quebec, skilled labour shortages are presenting barriers to growth.

The aging workforce across North America remains a significant challenge. As more workers near retirement, the sector risks losing institutional knowledge as well as labour. Addressing this challenge will require a combination of new recruitment strategies to entice more younger people and initiatives to retain older workers through flexible working arrangements and mentorship opportunities.

Opportunities in technology and sustainability

As the primary metals manufacturing industry looks ahead, two dominant trends will shape the workforce and provide new opportunities: the need for technological adaptation and the shift toward sustainability.

In both Canada and the US, there is an increasing demand for skilled workers who can operate and maintain sophisticated automation systems such as robotics, CAD (computer-aided design), and CAM (computer-aided manufacturing). As Ontario, for instance, sees increased demand in high-tech sectors like electric vehicle production and aerospace, recruiting workers with expertise in robotics, computer-controlled tools, and advanced manufacturing software will be critical to filling the skills gap.

Innovations like these are becoming essential as companies strive to remain competitive. The focus on technological adaptation will require a highly skilled workforce that is capable of managing these new technologies. However, recruiting and training enough workers to meet the industry’s evolving needs could prove difficult, given the aging workforce and the persistent shortage of skilled tradespeople.

The trend toward sustainability is also shaping workforce needs, as environmental priorities can lead to opportunities for workforce development. With attention focused on green manufacturing, Quebec, for example, is well-positioned to capitalize on government investments aimed at boosting production and innovation in low-carbon technologies.

Similar efforts may be taking shape in the US, where clean energy projects could drive demand for metals like aluminum, copper, and steel. With initiatives like the Inflation Reduction Act of 2022, digitization, and supply chain resilience, US manufacturers have been investing in workforce training that aligns with the growth of renewable energy projects, which rely heavily on primary metals. If the sustainability trend persists in 2025 and beyond, there will be job growth potential along with the need for significant upskilling, particularly in areas like material recycling and environmental compliance. It remains to be seen if this focus on sustainability shifts in the coming years.

Impacts on the North American economy

The workforce characteristics of the primary metals manufacturing sector have significant implications for North America's broader economy. Both Canada and the US rely heavily on the production of primary metals to support key industries like automotive manufacturing and infrastructure development. As both countries continue to recover from the pandemic, adapt to technological innovations, and lean into sustainability initiatives, a stable and adaptive workforce is needed for economic resilience.

Sufficient investment in workforce development – which should start as early as primary and secondary school and continue through to employer investment in upskilling – will help prevent labour capacity issues from hindering economic growth.

For North America as a whole, the primary metals manufacturing sector's workforce is key to driving economic growth. With proper workforce planning, investment in training, and a focus on sustainability, the primary metals manufacturing industry can continue to be a cornerstone of the North American economy in the years to come.

Download the full report, Canada’s Metals Industry: A Global and Domestic Analysis, here.