Canadian Manufacturers Face Steel Supply Chain Hurdles
Higher costs and lengthy delivery times for steel are challenging Canadian manufacturers as the sector navigates trade volatility.
Updated on Oct. 31, 2026 in Manufacturing
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Canadian manufacturers are grappling with increased steel prices and four-month delivery delays due to trade uncertainty and import restrictions. This market pressure has contributed to 27,100 manufacturing job losses across the country as of Q3 2026.
Why it matters
Trade uncertainty and limited domestic steel availability have forced companies to adjust operations, while tariffs and quotas on offshore steel continue to restrict essential imports. The industry relies heavily on imported steel, with 54.1 per cent of galvanized and coated imports originating from the United States in the first nine months of 2026.
The federal government launched a $100 million rebate program in August 2026 to cover 50 per cent of eligible rail and marine shipping costs for steel. Meanwhile, Greenstone Building Products maintains an annual production of 20,000 building panels.
The players
Greenstone Building Products
This company is a manufacturer of building panels that ships products to multiple provinces and the United States.
Cleveland-Cliffs
A major steel producer that acquired Stelco and currently manages operations at the Hamilton facility.
Stelco
A Canadian steelmaker based in Hamilton, Ontario, that has faced recent workforce reductions due to trade disputes.
The details
Greenstone Building Products in Brandon, Manitoba, is mitigating supply chain issues by ordering steel in larger batches to counteract the four-month wait time. Cleveland-Cliffs also implemented layoffs affecting 175 employees at Stelco in Hamilton, Ontario, following the U.S.-Canada trade dispute.
Timeline
March 2025 marked the beginning of manufacturing job growth in Manitoba.
Cleveland-Cliffs purchased Stelco in 2024.
Steel price increases and supply delays emerged in Summer 2026.
The federal government launched the steel transport rebate program in August 2026.
Cleveland-Cliffs aims to recall laid-off staff by Christmas 2026.
Market Landscape
This move to support the steel industry follows the implementation of the federal government's $100 million steel transport rebate program. The industry is currently trying to balance competitive pressures against the U.S. market while managing domestic capacity constraints.
Canadian consumers and businesses may face higher costs for finished building products as manufacturers pass on increased logistics and material expenses. The uncertainty surrounding trade also threatens stability for local manufacturing workers in regions like Hamilton and Brandon.
The takeaway
Manufacturers are adapting to supply chain volatility by adjusting ordering strategies to maintain production levels. Companies and workers continue to monitor trade relations as a primary driver for both potential recalls and future operational capacity.
Further reading
Learn more about the current industrial trends in Manufacturing.
Source note: This article includes information reported by Winnipeg Free Press.
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