Equipment rental and leasing industry generated $13.3 billion last year: Statistics Canada 

0
622

Ontario Construction News staff writer

The commercial and industrial machinery and equipment rental and leasing industry generated $13.3 billion in operating revenue in 2021, up 14.2% from 2020, representing a full recovery from the impacts of the COVID-19 pandemic, according to a report from Statistics Canada.

Growth in the industry was attributed to stronger energy prices, higher capital expenditures in the oil and gas extraction industry, and robust growth in residential and government investment in 2021.

“Increases in operating revenue were seen across every province in 2021. In Alberta, operating revenue grew by 12.1% to $4.7 billion,” Stats Can reported. “The province accounted for 35.1% of the national total. The second-largest contributor to the industry, Ontario (30.4%), also recorded sizable growth, with operating revenue increasing 14.9% to $4.0 billion.”

Operating expenses in the commercial and industrial machinery and equipment rental and leasing industry increased (+10.5%) at a slower pace than operating revenues, resulting in a small increase in the profit margin in 2021 to 13.8%. Salaries, wages, commissions and benefits, which grew 11.1% in 2021, continued to represent the largest share of total operating expenses (22.7%).

Rising business investment in the first half of 2022 “bodes well for the commercial and industrial machinery and equipment rental and leasing industry,” the report concludes. “The less accommodative monetary policy and higher financing rates may, however, ease the momentum for future investment plans.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

I accept the Privacy Policy

This site uses Akismet to reduce spam. Learn how your comment data is processed.