Major Industries in Saskatchewan: Key Economic Drivers Explained

Saskatchewan, a province located in the heart of Canada’s prairies, is known for its diverse economy and thriving industries. From agriculture to mining, and from manufacturing to tourism, Saskatchewan has established itself as a major player in various sectors. The province’s vast natural resources, coupled with its skilled workforce and innovative spirit, have contributed to the growth and success of these industries.
In this article, we will explore the major industries that form the backbone of Saskatchewan’s economy. We will delve into the history, current state, and future prospects of each industry, highlighting their significance and impact on the province’s overall economic well-being. By understanding the key drivers of Saskatchewan’s economy, we can gain valuable insights into the opportunities and challenges that lie ahead for this dynamic region.
Overview of Saskatchewan’s Economy
Saskatchewan’s economy is primarily based on its abundant natural resources, with agriculture, mining, and energy being the key drivers of economic growth. In 2023, Gross Domestic Product at basic prices in Saskatchewan increased by 1.6% from 2022, second in terms of percentage change among the provinces.
The province is known as the “Bread Basket of Canada” due to its strong agricultural sector, which produces a significant portion of the country’s grains, oilseeds, pulses, livestock, and agri-food products.
Mining is another crucial component of Saskatchewan’s economy, with the province being a major producer of potash, uranium, and oil and gas. In fact, mining, quarrying, and oil and gas extraction accounted for 26.62% of Saskatchewan’s GDP in 2022.
The province has also been focusing on diversifying its economy and has seen significant growth in other sectors such as manufacturing and technology. As a result, Saskatchewan led the nation in economic growth in 2022.
Major Industries in Saskatchewan
1. Agriculture and Forestry
Saskatchewan is renowned for its strong agricultural sector. The region is a leading supplier of grains, oilseeds, pulses, livestock, and agri-food products. In 2023, the province exported $20.2 billion worth of agricultural goods, setting a new record. This increase reflects the region’s reputation for producing safe and high-quality products.
Forestry is another significant industry in Saskatchewan, particularly in the northern part of the province. The sector supports over 7,000 jobs and includes major facilities that manufacture lumber, pulp, and oriented strand board. More than 210 small businesses also contribute by producing various forest products.
Key Highlights:
- Agricultural Exports: $20.2 billion in 2023
- Forestry Jobs Supported: Over 7,000
The provincial government plays a vital role in ensuring sustainable forest management. They issue Forestry Term Supply Licences, granting the right to harvest specified forest volumes for up to 10 years. This initiative helps maintain a balance between economic development and environmental sustainability.
To learn more about Saskatchewan’s agriculture and forestry sectors, visit the Government of Saskatchewan’s website.
Products:
- Agriculture: Grains, oilseeds, pulses, livestock, and agri-food products
- Forestry: Lumber, pulp, OSB, and various small-scale forest products
Both agriculture and forestry are pillars of Saskatchewan’s economy, driven by a combination of large-scale operations and smaller, community-focused businesses. These industries not only contribute to the job market but also help Saskatchewan maintain its stance as a globally competitive economy.
2. Mining and Oil Extraction

Mining and oil extraction are key players in Saskatchewan’s economy. The province is the second largest oil producer in Canada and ranks sixth in North America. In March 2024, Saskatchewan produced 2,268,683 barrels of oil. A significant portion of this production, around 65%, is shipped to the United States.
The mining sector in Saskatchewan is diverse, including potash, uranium, and other critical minerals. Potash, in particular, plays a significant role, with Saskatchewan being one of the world’s leading producers.
In 2022, the value of mineral sales hit a record high, surpassing $19.4 billion. Exploration expenditures were also substantial, amounting to $291.6 million.
Employment Breakdown:
- Oil and Gas: 27%
- Mining: 37%
- Support Activities: 36%
The overall employment in the sector was approximately 18,800 people as of 2021.
Quick Facts:
- GDP Contribution: The oil and gas industry contributes significantly to the province’s GDP, with oil and gas extraction and related support activities accounting for 3.2% in 2022.
- Oil Reserves: The province boasts estimated oil reserves of almost 1.2 billion barrels.
Saskatchewan’s mining and oil sectors are essential to its economic stability and growth, providing jobs and contributing heavily to the GDP.
3. Advanced Manufacturing
Saskatchewan is home to a thriving advanced manufacturing sector. This field encompasses a variety of high-tech industries, producing products such as continuous mining equipment, autonomous farm tools, and unmanned aerial vehicles.
The sector has shown remarkable growth. Between 2012 and 2022, the value of manufacturing shipments in Saskatchewan increased from $14.3 billion to $25.6 billion. This represents an average annual growth rate of 6.0%, which is notably higher than the national average of 3.8%.
Advanced manufacturing in Saskatchewan is also closely linked with other key sectors like technology, aerospace, and defense. This integration creates a wealth of supply chain opportunities. For instance, companies in the region are leveraging technologies from the aerospace sector to produce deep-space antenna systems.
A significant part of this growth can be attributed to the focus on cutting-edge technologies. Many manufacturers are adopting Industry 4.0 technologies such as the Industrial Internet of Things, enhancing their production capabilities and efficiency.
The region’s commitment to advanced manufacturing is also supported by organizations like NGen, which aim to enrich the lives of Canadians through digital transitions in manufacturing.
By using technology and innovation, Saskatchewan’s advanced manufacturing sector continues to provide high-quality products and contribute significantly to the local and national economy.
4. Technology and Innovation
The technology sector in Saskatchewan is a key driver of the province’s economy. This industry not only generates significant revenue but also plays a crucial role in job creation and investment attraction.
The tech sector in Saskatchewan generates over $10 billion in revenue each year, contributing 5.6% to the province’s GDP. This highlights the significant impact of technology and innovation on Saskatchewan’s economic landscape.
In addition to revenue, the Saskatchewan tech sector contributed $1.3 billion to both provincial and federal tax coffers, reinforcing its importance to broader economic stability and growth.
Innovation Saskatchewan has been instrumental in fostering startup growth. Their initiatives, such as the doubled investment cap under the Saskatchewan Technology Startup Incentive, help early-stage tech companies raise private funds, contributing to the sector’s robust expansion.
Similarly, the government consistently supports technological advancements with substantial investments. For instance, a recent commitment of $2.2 million went into various technology projects across core sectors, underscoring their dedication to fostering a thriving innovation ecosystem.
Key funding initiatives from Innovation Saskatchewan include the Saskatchewan Advantage Innovation Fund and Agtech Growth Fund. These funds have supported numerous projects, driving forward technology development in critical sectors such as agriculture and clean technologies
5. Trade and Export

Saskatchewan’s economy relies heavily on its robust trade and export activities. The province is known for exporting approximately 65% of what it produces, highlighting its role as a significant player in global markets.
The total value of Saskatchewan exports in 2023 reached an impressive $49.3 billion. This achievement underscores the importance of trade in driving the local economy and creating opportunities.
Key sectors in Saskatchewan’s export industry include:
- Agriculture: A leading exporter of grains, oilseeds, and pulses.
- Energy: Notable for its oil and natural gas exports.
- Forestry: Northern Saskatchewan’s largest industry supports nearly 8,000 direct and indirect jobs, contributing significantly to export revenues.
The Ministry of Trade and Export Development plays a crucial role. It advances economic growth by fostering a competitive business environment and facilitating trade.
Additionally, Saskatchewan has earned a global reputation as a safe and reliable supplier, particularly in agriculture and energy sectors.
Highlights:
- Top per capita exporter among Canadian provinces.
- A well-coordinated cross-government approach attracts investment and grows export markets.
- Sustainable management practices in industries like forestry ensure long-term competitiveness.
These efforts and strategic initiatives help Saskatchewan maintain and expand its presence in international markets, supporting economic stability and growth.
6. Life Sciences
Saskatchewan is a hub for innovation in the life sciences sector. The region boasts some of the most advanced facilities in Canada, making it a key player in biotechnology and life sciences.
Many leading institutions, such as the Saskatchewan Research Council, drive this thriving sector. SRC’s 2022-23 annual economic impact assessment shows that last year they achieved more than $930 million in direct economic benefit to Saskatchewan.
One of the notable strengths in Saskatchewan’s life sciences is its research cluster focused on crop plants and animals. This cluster includes international players with global reputations, making it a vibrant part of the local economy.
For businesses and researchers, Saskatchewan offers a 10% tax credit for R&D expenditures, encouraging further development and innovation in the sector.
Key Highlights:
- Advanced Facilities: Home to cutting-edge laboratories and research centers.
- Economic Impact: Over $13.6 billion in economic contributions since 2003.
- Research Focus: Strong emphasis on crop plants and animal research.
- Incentives: 10% tax credit for research and development spending.
Additionally, Saskatoon, a city within Saskatchewan, has emerged as a world leader in biotechnology and life sciences. The city is home to a considerable number of companies involved in this industry, contributing to both job creation and economic growth.
Saskatchewan’s commitment to life sciences makes it an attractive location for scientists, researchers, and entrepreneurs. The combination of advanced facilities, economic incentives, and robust support structures positions the region as a leader in this vital industry.
Government Support Programs
The Saskatchewan government offers various programs to support businesses and promote sustainable initiatives. These programs provide financial assistance, training, and infrastructure development to help industries thrive in the province.
Incentives for Businesses
The provincial and federal governments offer diverse incentives to propel business growth in Saskatchewan. Through the Business Scale-up and Productivity program, PrairiesCan is investing nearly $26 million to scale up 11 innovative businesses. This funding helps advance new technologies, create jobs, and boost productivity.
In addition, the federal government supports economic development with various programs, including networking, coaching, and training services. These services are designed to assist businesses in navigating the complexities of growth and development. Entrepreneurs can access crucial resources to enhance their business capabilities and ensure competitiveness in the market.
Sustainability Initiatives
Saskatchewan is committed to fostering sustainability through various programs. A notable initiative is the $100 million loan guarantee by the Saskatchewan Indigenous Investment Finance Corporation to support an Indigenous-led wind energy project southeast of Weyburn. This project underscores the province’s dedication to renewable energy and Indigenous partnerships.
Furthermore, significant investments are being made in infrastructure projects to support community growth and sustainability. For example, a combined investment of more than $13.5 million from federal and provincial governments is funding nine infrastructure projects. These projects aim to bolster community resilience and facilitate sustainable development.
Industry Challenges
Businesses in Saskatchewan may face various challenges. Some of the common challenges include:
Economic Fluctuations
Saskatchewan’s economy has faced periods of low growth and even stagnation in recent years. For instance, the province’s Real Gross Domestic Product GDP in 2022 was slightly lower than it was in 2018, indicating minimal economic progress over a four-year span. This can pose significant challenges for businesses and investors.
Workforce Availability
The mining, oil, and gas sectors employed 18,800 people in 2021. However, finding skilled labor can be challenging. With 27% employed in oil and gas, 37% in mining, and 36% in support activities, competition for qualified workers is fierce, often leading to hiring difficulties and increased labor costs.
Global Market Dependence
Saskatchewan’s economy is highly dependent on global market trends. Fluctuations in international demand can impact local economic stability, making planning and investment more complex.
Infrastructure Limitations
Saskatchewan’s infrastructure development hasn’t always kept pace with its economic ambitions. Rural areas, in particular, struggle with insufficient transportation and logistics networks. This limitation affects the timely movement of goods and resources, especially for industries like agriculture and manufacturing.
Environmental Concerns
Environmental regulations and concerns are becoming increasingly significant. Industries such as mining and oil and gas face stricter environmental standards. Compliance can be costly and time-consuming, potentially slowing down project timelines and affecting profitability.
Competition
Manufacturing has seen substantial growth, with shipments increasing to $25.6 billion in 2022 from $14.3 billion in 2012. However, the industry faces stiff competition from other provinces and countries. Keeping up with innovations and maintaining cost-effectiveness are continual challenges.
Policy Changes
Frequent changes in government policies and regulations can create an uncertain business environment. This uncertainty can hinder long-term planning and investment, making it challenging for industries to adapt quickly.
Saskatchewan’s industries, while robust, must navigate these challenges to sustain growth.
Frequently Asked Questions
This section aims to answer some of the most common questions about these key industries.
Resources Related to Major Industries in Saskatchewan
Government Resources
Industry Resources
About the author
Maurice