This study reviews the importance of the manufacturing sector to the Canadian economy. The first part analyzes the sector in seven sections, each of which outlines a different thread related to sectoral performance: the presence of manufacturing industries in the Canadian economy, labour productivity in Canada and in comparison with other countries, employment performance, destinations of manufacturing shipments, production costs, and capital investment by industrial group. The second & final part attempts to explain the similarities & differences found in the performance of individual industries described in part one. It reports on the use of advanced technologies, summarizes connectedness in manufacturing, discusses innovation and human capital issues, and notes major challenges faced by the sector.