Ottawa – Operating revenues for the commercial and industrial machinery and equipment rental and leasing industry grew 9.1% to $9.2 billion in 2012. During the same period, operating expenses increased 8.4%, causing the operating profit margin to rise from 15.4% in 2011 to 16.0% in 2012, according to Statistics Canada.
The growth in equipment rental and leasing services was partly the result of strong economic conditions in key client industries, such as the Canadian construction industry, which is a major user of heavy equipment rental services.
The cost of goods sold, which includes the procurement of equipment to rent and lease, accounted for 23.3% of all operating expenses. Salaries, wages and benefits (21.8%) and amortization and depreciation (18.8%) followed closely in terms of relative importance. Shares of the top three expenses have remained fairly stable over the years.
Sales to other businesses comprised 89.5% of total sales in 2012, while sales to individuals, government, non-profit organizations, public institutions and clients outside the country made up the remainder.