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

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Buoyed by continued strong mining and construction activity in Alberta, businesses that repair and maintain electronic, commercial and industrial machinery and equipment earned operating revenues of $6.5 billion in 2005, an increase of 10.0% from 2004. This was the third consecutive year of rapid expansion for the industry.

The industry's operating revenues grew most rapidly in British Columbia (+21%), followed by Alberta (+18%). Operating revenues in Ontario remained flat.

Over 80% of the industry's 2005 operating revenues were generated by businesses located in three provinces — Alberta (33%), Ontario (27%) and Quebec (21%).

Total operating expenses for the industry grew by 9.1% in 2005. Much of the growth can be attributed to salaries and wages which grew by 14.7%, as shortages of skilled welders and trades-people made them harder to attract.

The overall industry's operating profit margin, at the national level, showed a modest increase, rising to 9.1% in 2005 from 8.4% in 2004. The profit margins of large firms did not markedly differ from those of their smaller counterparts. Nor did large firms' operating revenues expand more rapidly than those in the rest of the industry. This industry is not highly concentrated as the 20 largest firms only accounted for 11% of the industry's total operating revenues in 2005.

Of the 20 largest companies in the industry, based on operating revenue, 13 are located in Western Canada.

Four-fifths of the industry's total operating revenue comes from industrial and construction machinery and equipment repair, and other repair services such as welding and repair of non-domestic cooling and refrigeration equipment. Operating revenues for these firms rose by 12.7% in 2005, and they recorded an operating profit margin of 9.4%.

The remaining one-fifth of industry revenues are earned by businesses primarily engaged in the repair and maintenance of electronic and precision equipment. As prices for new electronics fell, consumers increasingly opted to purchase new electronics products rather than repair their old ones. As a result, these firms' operating revenues fell by 1.6% in 2005, and their operating profit margin declined from 7.9% to 7.6%.

Estimates for the reference year 2005 for the Annual Survey of Service Industries: Electronic, commercial and industrial machinery repair and maintenance services are now available.

Available on CANSIM: table 361-0006.

Definitions, data sources and methods: survey number 4720.

For more information, or to enquire about the concepts, methods and data quality of this release, contact Marg Côté (613-951-0406; marg.cote@statcan.gc.ca) or Daphne Bennett (613-951-3429; daphne.bennett@statcan.gc.ca), Service Industries Division.