--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-21/industry-mix-plant-turnover-and-productivity-growth-a-case-study-of-the-transportation-equipment-industry-in-canada/" title: "Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in Canada" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:31:46+00:00" date_modified: "2026-07-13T07:31:46+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2011" ipm_keyword: - "Annual Survey of Manufactures" - "Canada" - "capacity utilization" - "industry mix" - "manufacturing" - "motor vehicles" - "plant-level" - "productivity" - "transportation equipment" ipm_research_theme: - "Sectoral and firm-level dynamics" ipm_country_focus: - "Canada" - "United States" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in Canada Canonical URL: https://csls.ca/ipm-archive/ipm-issue-21/industry-mix-plant-turnover-and-productivity-growth-a-case-study-of-the-transportation-equipment-industry-in-canada/ # Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in Canada [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-21-2-Chan-Tang-Gu.pdf) Cite this article × Cite this article as: Chan, Kelvin, Jianmin Tang, and Wulong Gu. 2011. “Industry Mix, Plant Turnover and Productivity Growth: A Case Study of the Transportation Equipment Industry in Canada.” International Productivity Monitor, No. 21 (Spring 2011): 24–47. https://www.csls.ca/ipm-archive/ipm-issue-21/industry-mix-plant-turnover-and-productivity-growth-a-case-study-of-the-transportation-equipment-industry-in-canada/ ## Authors: - Kelvin Chan Innovation, Science and Economic Development Canada; Statistics Canada - Jianmin Tang Innovation, Science and Economic Development Canada - Wulong Gu Micro-Economic Analysis Division, Statistics Canada ## IPM Issue 21 Spring 2011 pp. 24–47 ## Related IPM articles [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [Appendix: Variable Definitions and Country/Sector Coverage for Regulatory Reform Analysis Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 1–18](https://csls.ca/ipm-archive/ipm-issue-49/appendix-variable-definitions-and-country-sector-coverage-for-regulatory-reform-analysis/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [De-industrialization and the Great Productivity Slowdown: What Comes Next? 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However, labour productivity growth in the Canadian transportation equipment industry declined from 4.5 per cent per year in 1981-2000 to 1.7 per cent per year in 2000-2007. This article investigates whether restructuring and the reallocation of output and resources within the industry after 2000 contributed to this decline. It shows that the dramatic decline in productivity growth was mainly due to the slowdown in productivity growth in sub-industries, which can largely be traced to the decline in labour productivity growth of continuing plants. Finally, the article shows that even if the Canadian industry mix were the same as the U.S. mix, the productivity growth profile of the Canadian transportation equipment industry would not change. RÉSUMÉ L’industrie des matériels de transport est l’un des secteurs canadiens dont la productivité est comparable à celle des États-Unis. Force est cependant que le Canada a connu un ralentissement de la croissance de la productivité du travail dans ce secteur, de 4,5 % par an entre 1981 et 2000 à 1,7 % par an entre 2000 et 2007. Cette étude s’attache à déterminer si la restructuration de ce secteur et la réaffectation de la production et de ressources après 2000 ont participé à ce recul. Elle montre que la baisse spectaculaire de la croissance de la productivité est principalement due à un ralentissement de celle-ci dans les sous-industries, laquelle est en grande partie imputable à une baisse de la croissance de la productivité dans les usines établies. Les auteurs concluent en montrant que le profil de croissance de la productivité du secteur des matériels de transport au Canada serait resté inchangé, même si sa composition industrielle avait été identique à celle des États-Unis. 1 L’industrie des équipements de transport est l’une des rares industries canadiennes aussi productive que son homologue américaine. Cependant, la croissance de la productivité du travail dans l’industrie canadienne des équipements de transport a reculé de 4,5 % par année en 1981-2000 à 1,7 % par année en 2000-2007. Cet article examine si la restructuration et la réaffectation de la production et des ressources au sein de l’industrie après 2000 ont contribué à ce déclin. Il montre que le recul spectaculaire de la croissance de la productivité était principalement dû au ralentissement de la croissance de la productivité dans les sous-industries, qui peut être largement attribué au recul de la croissance de la productivité du travail des établissements en activité. Enfin, l’article montre que même si la composition industrielle canadienne était identique à celle des États-Unis, le profil de croissance de la productivité de l’industrie canadienne des équipements de transport ne changerait pas. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-21-2-Chan-Tang-Gu.pdf)