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Consulting services

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The Daily

Thursday, June 12, 2008

Operating revenues for the consulting services industry increased to $10.9 billion in 2006, a 14.8% increase from 2005.

The largest operating revenue increases were in the other scientific and technical consulting services industry (+29%) followed by the environmental consulting services industry (+28%) and management consulting services industry (+10%). The continuing interest in environmental issues and the natural resource boom in the western provinces certainly contributed to the large increases in the environmental and scientific and technical consulting services sectors.

Operating expenses for consulting services firms rose to $8.8 billion in 2006, a 15.9% increase over 2005. Businesses in the industry rely heavily on the knowledge of employees to provide services and as a result, salaries, wages and benefits paid to employees are the single largest expense, accounting for 42 cents out of every dollar spent in 2006.

The operating profit margin for the entire industry was 19.6%, which was lower than the 2005 rate of 20.4%

Close to half of industry's operating revenues were generated in Ontario (45%), followed by Alberta (19%), Quebec (16%), and British Columbia (14%).

The four western provinces showed strong growth in operating revenue: Saskatchewan (+29.2%), British Columbia (+25.2%), Manitoba (+20.1%) and Alberta (+16.1%). Firms located in Ontario and Quebec grew by 10.3% and 15.8% respectively.

The consulting services industry consists of firms that provide expert advice and assistance to other organizations on a variety of topics including management, human resources, environmental issues, international development, and scientific and technical issues. The common trait of businesses classified to the consulting sector is that they help other organizations grow and develop by providing expert advice.

Data for the consulting services industry are now available.

Available on CANSIM: table 360-0001.

Definitions, data sources and methods: survey number 4717.

For more information about the survey, or to enquire about the concepts, methods or data quality of this release, contact Luc Provençal (613-951-1960; fax: 613-951-6696;, or Peter Rosborough (613-951-0348;, Service Industries Division.