MRO Magazine

Engineering services firms see profit margin of almost 13%


October 26, 2015
By Bill Roebuck

Ottawa – The engineering services industry reported $29.8 billion in operating revenue and $26.0 billion in operating expenses in 2013, resulting in an operating profit margin of 12.9%. Alberta accounted for 35.9% of operating revenue, followed by Ontario (24.8%) and Quebec (17.0%).

Salaries, wages, commissions and benefits totalled $11.9 billion in 2013, accounting for 45.7% of total operating expenses. Subcontracts were the next largest expense item at 13.6%.

The business sector was the primary client of the engineering services industry, accounting for 68.1% of sales in 2013. Sales to governments, not-for-profit organizations and public institutions accounted for 18.7%, while 11.6% were generated from clients outside Canada. The individuals and households sector accounted for the remaining 1.6% of sales.