Shipbuilding Industry Statistics in Canada

With thousands of lakes and hundreds of thousands of rivers and shorelines, Canada is an ideal place for shipbuilding. For a long time, the Canadian shipbuilding industry has been important for the country’s economy, especially in the coastal regions. In recent years, especially following the launch of the National Shipbuilding Strategy (NSS) in 2010, the industry has experienced substantial growth. 

In this article, you will find key statistics about the shipbuilding industry in Canada. We look at employment, GDP, and activity at the biggest shipyards in Canada among other interesting shipbuilding statistics. 

Shipbuilding Industry Statistics for Canadians

• The National Shipbuilding Strategy was launched in 2010 to renew Canadian fleets and support the domestic shipbuilding industry. 
• The shipbuilding industry supports nearly 10,000 jobs in Canada. 
• The average salary for manufacturing jobs at Canadian shipyards is around 35% higher than the average manufacturing salary
• Irving Shipbuilding are expected to create over 5,000 jobs across Nova Scotia through NSS-related projects.
• Seaspan’s projects support over 8,000 jobs annually.
• Chantier Davie became the third NSS shipyard in May 2023.
• in 2024, the global shipbuilding industry’s market value reached approximately US$156 billion.

The National Shipbuilding Strategy in Canada

The National Shipbuilding Strategy (NSS) in Canada is a long-term initiative that was launched by the Canadian Government in 2010. The strategy’s goal is to rejuvenate the maritime capabilities of Canada through the building of new combat and non-combat vessels.

Part of the strategy is to construct new fleets for the Navy and Coast Guard, which aims to ensure that Canada has the vessels it needs to defend its sovereignty and participate in international missions. Simultaneously, it is supporting the creation of a sustainable and globally competitive shipbuilding industry in Canada.

It is estimated that the NSS will add approximately $13.2 billion to Canada’s Gross Domestic Product and generate around $3.6 billion in government revenues between 2013 and 2030. Employment within Canada’s shipbuilding sector has increased by over 50% since the implementation of the strategy, with the industry supporting around 10,000 jobs according to industry and union estimates. 

Employment in Shipbuilding

Advances in shipbuilding technology and increased employment in the sector has led to the creation of high-quality manufacturing jobs. The average salary for manufacturing jobs at Canadian shipyards is around 35% higher than the average manufacturing salary across the country.

In addition, the industry has a higher rate of innovative and skilled workers with approximately 2.7 times higher employment share in the fields of science, engineering, technology, and mathematics than total manufacturing. In 2023, the Canadian Government awarded about $3.8 billion in new shipbuilding-related contracts, including around $150 million that went to companies with under 250 full-time employees.

Irving Shipbuilding

One of the main shipyards in Canada is the Irving Shipyards in Halifax. The shipyard is supported by the NSS and is working on future surface combatants for the Royal Canadian Navy. This is the largest and most complex initiative on shipbuilding in Canada since the Second World War.

Between 2013 and 2032, projects at the Irving Shipyards are expected to contribute over $15 billion to Canada’s GDP and more than $10 billion in labour income. The projects linked to the NSS at Irving Shipbuilding are expected to create over 5,000 jobs across Nova Scotia. In addition, the shipbuilding projects are anticipated to generate approximately $4.5 billion in revenue for provincial and federal governments during this period.

Projects at the shipyards include Arctic and offshore patrol ships HMCS Margaret Brooke in July 2021 and HMCS Max Bernays in October 2021. The projects, including these ships, have a total value of approximately $5.2 billion.

Seaspan Shipyards

Another major shipyard in Canada is the Seaspan Shipyard located in Vancouver. Like the Irving Shipyards, Seaspan is working on NSS projects. The projects include a joint support ship for the Royal Canadian Navy, HMCS Protecteur, and HMCS Preserver. Although Seaspan’s shipyard is in Vancouver, the projects extend further with multiple companies across Canada contributing to them.

Since the launch of the NSS, Seaspan has contributed over $6.5 billion to Canada’s GDP. It is estimated that the company will contribute a further approximately $22 billion by 2036. According to the company’s website, Seaspan has awarded over $2.7 billion to over 800 Canadian businesses in contracts.

Seaspan’s projects support over 8,000 jobs annually. According to Seaspan, the number of jobs is expected to rise to around 12,000 by 2036. The shipyard has invested a significant amount of money in infrastructure, including approximately $240 million on modernising to maintain its status among the most advanced shipyards in North America and to deliver 19 large vessels within about 25 years for the Royal Canadian Navy and Canadian Coast Guard.

Chantier Davie

Chantier Davie, of Lévis, Quebec, which is one of Canada’s oldest and most significant shipbuilding companies, became the third NSS shipyard in May 2023. This additional capacity is needed to renew the combat and non-combat fleets and to support further economic opportunities in the marine sector in Canada.

This inclusion in the NSS came after the shipyard executed over $2.6 billion in contracts successfully for several federal fleet projects, including the conversion of three interim icebreakers for the Coast Guard. Under the NSS, Davie will build six program icebreakers in addition to one polar icebreaker for the Coast Guard. The projects are part of a package totalling approximately $9 billion to modernise the Canadian Arctic fleet.

In addition, the Government of Quebec is committing around $520 million to the modernisation of Davie’s facilities. This will create approximately 2,000 jobs during peak construction periods, added to the around 1,100 who currently work at the shipyard.

Construction of Small Vessels in Canada

The NSS also includes contracts on small ship construction. Between 2012 and 2024, these contracts contributed nearly $520 million (approximately $40 million per year) to Canada’s GDP and created or maintained around 350 jobs annually.

Repair, Refit, And Maintenance Projects

As well as building new ships, Canadian shipyards also carry out repair, refit, and maintenance projects under the NSS. During the period between 2012 and 2024, these projects contributed an estimated $13.6 billion (or approximately $1.05 billion per year) to Canada’s GDP. These projects help to create and maintain over 9,500 jobs each year both within the marine industry and through its Canadian suppliers.

These projects have included a $21 million contract to extend the vessel life of the Louis S. St-Laurent, which is the largest icebreaker in Canada. They also include a refit project of a search and rescue vessel worth approximately $19.5 million at the Allied Shipbuilders located in North Vancouver, which includes updating navigation equipment, replacing propulsion thrusters, and modifying the ballast system among other updates.

Global Shipbuilding Industry

Similarly to Canada, the global shipbuilding industry has experienced growth and in 2024, its market value reached approximately US$156 billion. It is predicted that by 2031, the market value will be approximately US$205 billion. This represents annual growth at the rate of around 3.8% between 2024 and 2031.

This growth can be attributed to several factors: there has been an increasing demand for commercial vessels across the globe, the oil and gas industry’s increased offshore operations requiring specialised vessels, increased demand for leisure vessels and cruise ships, and advancements in shipbuilding technologies which reduce costs and improve efficiency.

Asia Pacific

In this region, the shipbuilding market is dominated by countries such as China, Japan, and South Korea. These countries have established themselves as shipbuilding hubs thanks to their infrastructure, technological expertise, and cost advantages. In 2024, the region held over 42% of the global shipbuilding market.

Europe

In Europe, shipbuilders specialise in high-value vessels, including luxury yachts, cruise ships, and complex offshore structures. While there is shipbuilding in various European countries, Germany, Norway, and Italy have a particularly strong presence in the shipbuilding market globally. Europe represents around 17% of the global market value, while Germany is the sixth-largest shipbuilding country in the world, Norway eighth, and France ninth. 

North America

The United States and Canada have an over 18% share of the global shipbuilding market. Individually the US is the fifth-largest shipbuilding country and Canada the seventh. The shipbuilding industry caters to a range of sectors, such as offshore energy, defence, and inland water transportation. In particular, there is demand for offshore support vessels, naval vessels, and specialised vessels for the oil and gas sector.

Advances in Materials and Techniques Used in Shipbuilding

Shipyards across the world are increasingly using modules that are prefabricated and can be assembled into bigger ship sections or even whole ships. This means higher quality, better efficiency, and reduced build times and costs. For example, the Hyundai Heavy Industries, a major shipbuilder in Korea, have invested in modular construction capabilities. 

Using modular shipbuilding techniques has reduced shipbuilding time by 15-30% according to the United Nations Conference on Trade and Development report from 2021. During the same year, the American Bureau of Shipping estimated that composites, which can be used instead of heavy steel in some ship types, now comprise between 5% and 10% of the structural weight of commercial ships compared to almost 0% only a decade ago. 

Conclusion

Canada has a long tradition of shipbuilding and it is home to some world-class shipyards. The National Shipbuilding Strategy, which was launched in 2010, aims to support the domestic shipbuilding industry as well as to rejuvenate Canada’s marine capabilities. 

Globally, Canada is one of the leading countries for shipbuilding with China, South Korea, and Japan taking the top three spots. In Canada, as well as globally, the industry has seen growth in recent years. Increasing demand for new and refitted ships is partly driven by new shipbuilding technologies and materials which can reduce both build time and cost and improve the profit margin for shipbuilders.