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Economic growth drives up rentals of industrial machinery and equipment

Ottawa, ON -- Canada's economic growth in 2004 was increasingly driven by its capital-intensive resource base, espe...


Ottawa, ON — Canada’s economic growth in 2004 was increasingly driven by its capital-intensive resource base, especially energy exports. And a healthy increase in corporate profits led to more investment, boosting demand for machinery and equipment, according to the latest Annual Survey of Commercial and Industrial Machinery and Equipment Rental and Leasing from Statistics Canada.

This boost helped to bolster the commercial and industrial equipment rental and leasing industry group, which consists of businesses that rent and lease out capital and investment-type equipment such as mining machinery and oil field equipment.

For 2004, the commercial and industrial equipment rental and leasing industries reported $6.2 billion in operating revenue, an increase of 9% from 2003. Despite this expansion, the industry’s operating profit margin declined slightly to 12.2% as a sharp increase in the industry’s salaries, wages and benefits caused operating expenses to grow more rapidly than operating revenues.

A shortage of skilled labour continueds to affect the industry into 2005, particularly resource development in the West.

Results from the 2004 Annual Survey of Commercial and Industrial Machinery and Equipment Rental and Leasing (and revised 2000, 2001, 2002, and 2003 data) became available March 15, 2006. These data provide information on the industry group’s revenue, expenditures, salaries and wages, and operating profit margin. The financing arm of the commercial and industrial machinery and equipment rental and leasing industry is excluded from this survey.

For more details, or to enquire about the concepts, methods or data quality of this release, contact Candace Brookbank (613-951-5239; fax: 613-951-6696; candace.brookbank@statcan.ca), Service Industries Division, Statistics Canada.