Engineering services industry, 2023
Released: 2025-02-13
$43.3 billion
2023
9.0% 
(annual change)
Engineering services industry sees strong but decelerated growth in 2023
Following double-digit gains in 2022, the engineering services industry saw a more moderate 9.0% growth in operating revenue in 2023, reaching $43.3 billion. Compared with 2022, the share of operating revenue decreased in both petroleum and petrochemical plant and process engineering projects (from 16.5% to 14.4%) and commercial, public and institutional building engineering projects (from 14.3% to 14.0%), because of a slowdown in investments in these areas.
Operating expenses increased by 8.4% to $39.1 billion in 2023, resulting in an operating profit margin of 9.8%, the highest it has been since the COVID-19 pandemic began. Salaries, wages, commissions and benefits, which remain the highest operating expense, accounted for almost half (46.8%) of the industry's total operating expenses, rising 9.7% to $18.3 billion in 2023. The cost of goods sold remained the second-highest operating expense, representing 16.9% of total operating expenses in 2023.
Provincially, the share of operating revenue in both Ontario (35.4%) and Alberta (22.8%) increased in 2023, while declining slightly in Quebec (18.2%) and British Columbia (16.4%).
Clients in the business sector accounted for just under two-thirds (64.4%) of sales in the engineering services industry in 2023, while governments and public institutions accounted for 22.1%. Customers outside Canada accounted for 9.7% of sales in 2023. The proportion of foreign sales to the United States declined from 50.4% to 49.1% in 2023, while the proportion of foreign sales to both Mexico (up from 5.9% to 6.0%) and other geographical regions (up from 43.7% to 45.0%) increased.
Looking ahead to 2024
Preliminary results suggest that capital formation in both private and public construction projects has declined over the first three quarters of 2024, compared with the same period a year earlier. The impact of this trend on engineering services will be confirmed when financial estimates for the 2024 reference year are published.
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Note to readers
Data for 2021 and 2022 have been revised.
Information on investment on non-residential construction was taken from table 34-10-0286-01.
Information on capital expenditures for oil and gas extraction was taken from table 25-10-0054-01.
Information on the engineering price index was taken from table 18-10-0164-01.
Information on capital formation was taken from table 36-10-0108-01.
These and other data related to business and consumer services can be found at the Business and consumer services and culture statistics portal.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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