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The Daily

The Daily. Wednesday, December 12, 2001

Survey of the Construction Industry

1998 and 1999

Data on Canada's multi-billion-dollar construction industry are now available with the return of the Survey of the Construction Industry, which had not been conducted since 1989, when the program was discontinued.

The construction industry accounted for roughly 5.2% of Canada's gross domestic product in 1999, and 5.3% of total employment. From 1989 to 1999, data on the industry came mainly from the demand side-building permits, capital expenditures, census data and household spending on home renovation and repair.

In this industry, most enterprises are small to medium in size. More than 95% of enterprises had revenues of less than $2 million in 1999, and revenues of all firms averaged $500,000. Most of the enterprises operate in only one province and have only one establishment, or location.

In 1999, more than 215,000 enterprises were involved in construction; they reported revenues of $107.3 billion, up 10.7% from 1998. Gains were widespread across industries, in both prime and special trades contracting, and in every region of the country.

Prime contracting accounted for $60.0 billion or roughly 56% of total revenue; special trade contracting accounted for $47.3 billion, the remaining 44%.

Companies in just four provinces-Quebec, Ontario, Alberta and British Columbia-accounted for almost 90% of total revenues from the construction sector in 1999. Revenues in Ontario reached $42.1 billion, and revenues in Quebec hit $20.2 billion.

Total expenses for the construction industries in 1999 reached $100.1 billion, up 9.7%, slightly less than the gain in revenue. Total profit for the industry rose 27.8%, as total profit margins went from 5.8% to 6.7%.

Within the prime contracting group, the largest expense item in 1999 was for work subcontracted to others, which accounted for about 38% of operating expenses. It was followed by construction materials and supplies, which made up 25% of operating expenses, and salaries, wages and benefits (18%). The non-residential building industry showed the highest proportion of work subcontracted to others, accounting for nearly 59% of operating expenses.

In contrast, within the trade contracting group the largest expense category was construction materials and supplies, accounting for 35% of operating expenses. It was followed by salaries, wages and benefits (33%), and work subcontracted to others (12%). The building exterior finishing work industry registered the highest proportion of operating expenses going to construction materials and supplies (nearly 42%).

Total revenue in the construction industry


  Total revenue 1998 Total revenue 1999 1998 to 1999
  $ millions % change
Construction 96,884 107,260 10.7
Prime contracting 54,179 59,965 10.7
  Land subdivision and land development
4,794 4,567 -4.7
  Building construction
33,945 37,859 11.5
    Residential building construction
19,673 21,183 7.7
    Non-residential building construction
14,273 16,676 16.8
  Engineering construction
13,623 15,306 12.4
  Construction management
1,817 2,233 22.9
Trade contracting 42,705 47,295 10.7
  Site preparation work
5,919 6,104 3.1
  Building structure work
4,017 4,844 20.6
  Building exterior finishing work
5,294 6,135 15.9
  Building interior finishing work
7,572 8,006 5.7
  Building equipment installation
18,205 20,218 11.1
  Other special trade contracting
1,697 1,988 17.1
Note:Figures may not add up to totals due to rounding.

Available on CANSIM: table 340001.

For more information, contact the dissemination officer (1-866-873-8789; 613-951-9497, construction@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Pierre Després (613-951-3579; desppie@statcan.gc.ca), Manufacturing, Construction and Energy Division.



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Date Modified: 2001-12-12 Important Notices