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Repair and maintenance services industry earned $25.5 billion in 2013


Ottawa – The repair and maintenance services industry earned $25.5 billion in operating revenue in 2013, generating an operating profit margin of 9.3%, according to a new report from Statistics Canada.

This industry is composed of two main industry groups, says the research organization. The first industry group, automotive repair and maintenance services, accounted for 59.1% of the combined operating revenue. The second group, which includes the electronic and precision equipment, and commercial and industrial machinery and equipment repair and maintenance services, made up the remaining 40.9%.

Automotive repair and maintenance services

The automotive repair and maintenance services industry generated $15.0 billion in operating revenue in 2013 and had operating expenses of $13.9 billion, resulting in an operating profit margin of 7.6%. Operating revenue of the automotive repair and maintenance services sector was largely concentrated in Ontario (34.8%), Quebec (20.4%), Alberta (17.7%) and British Columbia (13.6%).

The largest expense item for this industry group was the cost of goods sold, which represented 42.3% of operating expenses, followed by salaries, wages, commissions and benefits at 29.1%.

Electronic and precision equipment, and commercial and industrial machinery and equipment repair and maintenance services

This industry group earned $10.4 billion in operating revenue and had $9.2 billion in operating expenses, which resulted in an operating profit margin of 11.8%. Cost of goods sold represented 34.8% of operating expenses, followed by salaries, wages, commissions and benefits at 32.4%.

Among the provinces, Alberta (40.3%) had the largest share of operating revenue in the electronic and precision equipment, and commercial and industrial machinery and equipment repair and maintenance services industry, mainly as a result of services provided to the oil and gas sector. Firms in Ontario earned 22.2% of operating revenue of this industry group, followed by Quebec (13.8%) and British Columbia (12.4%).

Note: Changes in methodology were made by Statistics Canada to the Annual Survey of Service Industries: Repair and maintenance services. Readers should, therefore, exercise caution when comparing 2013 data with historical datasets. Also, beginning with this release, the estimates are based on the 2012 North American Industrial Classification System (NAICS). The repair and maintenance services industry considered here excludes NAICS category 8114 (personal and household goods repair and maintenance).


Bill Roebuck

Bill Roebuck

Bill Roebuck is the Editor and Associate Publisher of Machinery & Equipment MRO magazine and mromagazine.com.


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