Repair and maintenance services subsector, 2023

Released: 2024-11-06

In 2023, businesses in the repair and maintenance services subsector generated $40.9 billion in operating revenues, up 7.5% from 2022. Operating expenses rose 6.7% to $37.1 billion in 2023. The operating profit margin increased slightly, from 8.7% in 2022 to 9.4% in 2023.

The repair and maintenance services subsector includes three industry groups. The automotive repair and maintenance industry group generated 64.5% of the subsector's operating revenue in 2023. Combined, the electronic and precision equipment repair and maintenance group and the commercial and industrial machinery and equipment repair and maintenance group generated the remaining 35.5% of revenue.

The automotive repair and maintenance industry group continues to show strong growth

Businesses in the automotive repair and maintenance industry group earned $26.4 billion in operating revenue in 2023, up 11.3% from 2022, supported by increasing passenger vehicle parts prices for maintenance and repairs. Operating expenses grew by 10.5%, from $21.7 billion in 2022 to $24.0 billion in 2023. Salaries, wages, commissions and benefits (29.1%) continued to make up the second-largest portion of total operating expenses, rising 9.1% from 2022 to 2023, while the cost of goods sold (44.9%) represented the largest share of total operating expenses in 2023. The operating profit margin increased slightly, from 8.4% in 2022 to 9.1% in 2023.

Among the provinces, Ontario continued to represent the largest share of the industry group's operating revenue (35.1%) in 2023, followed by Quebec (21.4%), Alberta (15.4%) and British Columbia (14.9%). Ontario's operating revenue rose 8.6% from 2022 to 2023, supported by an increase in the number of people travelling to work mainly by car during this period.

The electronic and precision equipment repair and maintenance industry group and the commercial and industrial machinery and equipment repair and maintenance industry group generate a combined $14.5 billion in operating revenue

The electronic and precision equipment repair and maintenance industry group and the commercial and industrial machinery and equipment repair and maintenance industry group earned a combined $14.5 billion in 2023, up 1.2% from the previous year. Operating expenses rose to $13.1 billion, leading to an operating profit margin of 10.0%.

The four provinces with the greatest share of the industry groups' operating revenue in 2023 were Alberta (32.1%), Ontario (28.0%), Quebec (18.0%) and British Columbia (11.7%).

The cost of goods sold made up 41.6% of total operating expenses of these two industry groups in 2023, followed by salaries, wages, commissions and benefits (32.1%).

Looking ahead to 2024

The automotive repair and maintenance industry group is expected to continue experiencing increased demand in 2024. Vehicle owners may continue to hold on to their aging vehicles longer because of inflationary pressures, which could fuel higher demand in this industry group.

Contact information

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