Canadian Industrial Profile: Chemicals—Winter 2018

U.S. Industrial Production—Following the dip in 2015 and 2016, U.S. manufacturing activity rebounded last year, helping boost demand for Canadian chemical exports.

Rising Oil Prices—Many chemical products are crude oil derivatives, implying that the higher crude prices expected over the forecast will filter down to chemical products. This will provide a boost to industry revenues.

NAFTA—Canada’s manufacturing exports are valued at around $300 billion per year, and chemical products are used in more than 95 per cent of manufactured goods. Any new regulatory burdens that result from the renegotiation of NAFTA threaten the future of chemical manufacturing in Canada.