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 9,000 jobs in Canada.
- Irving Shipbuilding employs over 4,000 people in Nova Scotia.
- Projects at Seaspan Shipyards are predicted to support around 11,000 jobs by 2035.
- In April 2023, Chantier Davie, of Lévis, Quebec, became the third NSS shipyard.
- Small vessel construction contributes over $30 million to Canada’s GDP each year.
- Refit, repair, and maintenance works to existing ships under NSS contribute almost $12 million to the GDP.
- In 2023, the market value of the global shipbuilding industry reached US$149.76 billion.
- Asia Pacific represents over 40% of the global shipbuilding industry, while North America represents around 20% and Europe 15% of the industry.
- Canada is the sixth-largest shipbuilding country in the world.
- Shipbuilding time has been reduced up to 30% by using modular units.
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 $9.8 billion to Canada’s Gross Domestic Product and generate $2.9 billion in government revenues between 2013 and 2024. Employment within Canada’s shipbuilding sector has increased by 46% since the implementation of the strategy, with the industry supporting approximately 8,800 jobs according to Unifor.
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 30% higher than the average manufacturing salary across the country.
In addition, the industry has a higher-rate of innovative and skilled workers with approximately 2.5 times higher employment share in the fields of science, engineering, technology, and mathematics than total manufacturing. In 2021, the Canadian Government awarded about $2.86 billion in new contracts, including around $106 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 2025, projects at the Irving Shipyards are expected to contribute over $11.8 billion to Canada’s GDP and close to $8 billion in labour income. The projects linked to the NSS at Irving Shipbuilding are expected to create over 4,000 jobs across Nova Scotia. In addition, the shipbuilding projects are anticipated to generate a revenue of $3.7 billion 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 $4.98 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 $5.7 billion to Canada’s GDP. It is estimated that the company will contribute a further $20.7 billion by 2035. According to the company’s website, Seaspan has awarded over $2.4 billion to over 700 Canadian businesses in contracts.
Seaspan’s projects support over 7,000 jobs annually. According to Seaspan, the number of jobs is expected to rise to almost 11,000 by 2035. The shipyard has invested a significant amount of money in infrastructure, including $215 million on modernising to maintain its status among the most advanced shipyards in North America and to deliver 19 large vessels within 25 years for the Royal Canadian Navy and Canadian Coast Guard.
Third NSS Shipyard
Chantier Davie, of Lévis, Quebec, which is one of Canada’s oldest and most significant shipbuilding companies, became the third NSS shipyard in April 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 $2.2 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 a polar icebreaker for the Coast Guard. The projects are part of a package totalling $8.5 billion to modernise the Canadian Arctic fleet.
In addition, the Government of Quebec is committing $519 million to the modernisation of Davie’s facilities. This will create around 1,800 jobs during peak construction periods, added to the around 1,000 who currently work at the shipyard.
Construction of Small Vessels in Canada
The NSS also includes contracts on small ship construction. Between 2012 and 2022, these contracts contributed nearly $389.4 million (approximately $32.4 million per year) to Canada’s GDP and created or maintained close to 300 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 2022, these projects contributed an estimated $11.8 billion (or $984.3 million per year) to Canada’s GDP. These projects help to create and maintain over 8,800 jobs each year both within the marine industry and through its Canadian suppliers.
These projects have included a $16.5 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 $17.4 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 2023, its market value reached approximately US$149.76 billion. It is predicted that by 2030, the market value will be approximately US$191.67 billion. This represents annual growth at the rate of 3.6% between 2023 and 2030.
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 2023, the region held an over 40% share 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 over 15% of the global market value, while Germany is the fifth-largest shipbuilding country in the world, Norway seventh, and France eighth.
North America
The United States and Canada have an over 20% share of the global shipbuilding market. Individually the US is the fourth-largest shipbuilding country and Canada the sixth. 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.
Frequently Asked Questions
Does Canada have a large shipbuilding industry?
Yes, Canada has a long history of shipbuilding, especially in seaside provinces such as Nova Scotia and Vancouver. However, the benefits of the shipping industry reach further than the shipyards with shipbuilding materials being supplied from locations across the country.
What are the biggest shipyards in Canada?
Irving Shipbuilding in Nova Scotia, Seaspan Shipyards in Vancouver, and Chatier Davie in Quebec are key shipyards in Canada. They are involved in the National Shipbuilding Strategy aimed at rejuvenating the Canadian fleet. Projects involve both combat and non-combat vessels, such as Arctic ice breakers.
What are the biggest shipbuilding countries in the world?
China is the biggest shipbuilding country, followed by South Korea and Japan. Canada is also one of the biggest shipbuilding countries, often ranked the sixth-biggest in the world.
What kind of jobs can you get at shipyards?
Shipyards employ people with a wide range of skills and experience from construction and machine driving to customer service and administration. Some of the key jobs at shipyards include fabricators, plumbers, electricians, carpenters, and riggers.