Manufacturing industries process the products of extractive industries into finished products.Manufacturing industries transform raw materials into many different forms to be used by consumers or by other companies. This processing may be done in one or more stages. For example, iron ore is transformed into steel in factories. This is called primary manufacturing. The steel is then sent to companies for further processing into cars, mining equipment, machines, nails, and other products—such as bicycle frames. This is called secondary manufacturing.

　　Manufacturing industries are located in many towns and cities across Canada. Companies try to build their factories in densely populated areas because they want to near the people who buy their products. If they locate near their customers, then they save money on shipping costs. Manufacturing industries provide more jobs to Canadians than do extractive industries. Yet the number of people employed in manufacturing is still small in comparison to the third category, services. As with extractive industries, manufacturing process use many machines that require relatively few workers.

　　Service industries provide services needed by the extractive and manufacturing industries, and by society in general. Without these services, society could not operate. The majority of Canadian workers do not produce “goods” in their jobs. Instead, they provide “services” for others. The range of services is very great and includes such things as retailing, office work, education, health care, communications, government, transportation, and personal services.

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