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Growth in machinery and equipment repair and maintenance services driven by Alberta

Ottawa, ON -- Businesses in Canada that repair and maintain electronic, commercial and industrial machinery and equ...


Ottawa, ON — Businesses in Canada that repair and maintain electronic, commercial and industrial machinery and equipment earned operating revenues of $5.9 billion in 2004, an increase of 8.0% from 2003, according to the latest figures from Statistics Canada.

About 85% of the growth in operating revenues occurred in Alberta, in large part due to increased oil producing activity in the province.

Total operating expenses for the industry grew by 7.3% in 2004. In Ontario, a 13% increase in operating expenses dampened the industry’s profit margin from 8.5% in 2003 to 6.7% in 2004. Meanwhile, the sharp increase in operating revenues in Alberta boosted the industry’s operating profit margin in that province from 6.5% in 2003 to 10.2% in 2004.

At the national level, the operating profit margin showed a modest increase, rising to 8.2% in 2004 from 7.6% in 2003. The profit margins of large firms did not markedly differ from those of their smaller counterparts.

Over 80% of the industry’s 2004 operating revenues were generated by firms located in three provinces — Alberta (31%), Ontario (29%) and Quebec (21%). The industry’s operating revenues grew most rapidly in Alberta (+26%) and Ontario (+11%) but decreased in Quebec (-8%).

Four-fifths of the industry’s total revenues came from establishments that repaired and maintained commercial and industrial machinery and equipment. Of these establishments, the larger ones tended to be based in the western provinces.

The remaining one-fifth of industry revenues were earned by establishments primarily engaged in the repair and maintenance of electronic and precision equipment. Larger establishments classified to this industry tended to be based in the eastern provinces and were involved in the repair and maintenance of computer equipment. Clients of these establishments tended to be businesses, governments and financial institutions, of which 11% were foreign clients.

Estimates for the reference year 2004 for the Annual Survey of Service Industries: Electronic, Commercial and Industrial Machinery Repair and Maintenance Services are now available.