Couriers and local messengers industry

The couriers and local messengers industry enjoyed another strong year of growth in 2001. Operating revenues of businesses in the industry totalled $5.3 billion, up 7% from 2000. However, the impact of this gain was undermined by an even larger increase in operating expenses (+8%). The operating margin - the difference between revenues and expenses - edged down 3% from 2000. This marked the end of two straight years of significant improvement in the industry's profitability.

The industry has two main segments: courier companies, which provide mostly next-day or overnight delivery services to national and international destinations, and local messenger businesses, which traditionally provide same-day local delivery service. While couriers accounted for only about 10% of the 18,829 firms in the industry in 2001, they generated roughly 80% of the total operating revenues. Local messengers accounted for 90% of the businesses but only 20% of the operating revenues.

The average operating margin was substantially higher for couriers (over $116,000) than for local messengers (just under $10,000) in 2001. In comparison with 2000, however, operating margins declined 5% for couriers but remained steady for local messengers.

Firms are also classified by annual revenue: large companies with revenues of $25 million or more, medium-sized firms with revenues from $1 million to $24,999,999, and small companies with less than $1 million in revenues. In 2001, large firms made up about 1% of the total number of businesses in the industry, but earned three quarters of the operating revenues. In contrast, small firms accounted for 98% of the businesses in the industry, but took in only 15% of the operating revenues. Medium-sized companies accounted for 1% of all businesses and 10% of operating revenues.

Large firms had the highest operating margins and medium-sized companies had the lowest. In comparison with 2000, small firms reported an 11% increase in their operating margin, while large and medium-sized companies posted declines of 10% and 30%, respectively.

Large and medium-size firms delivered nearly 485 million pieces, generating just over $4 billion in delivery revenues in 2001. Both figures represent an increase of about 4% from 2000. Couriers moved 88% of all items and earned 89% of total delivery revenues. Their delivery revenues rose 5%, while local messengers' delivery revenues were virtually unchanged from 2000 to 2001. Next-day and overnight services accounted for more than half of total delivery revenues but just one-third of the total pieces delivered. In contrast, second-day and other services earned only 38% of total delivery revenues, even though they accounted for 56% of all pieces delivered.

Ontario remained the dominant province in the industry, as it was the origin of shipment for over half of delivery revenues. Canadian destinations accounted for 80% of delivery revenues; shipments to the United States made up about 16%, up 17% from 2000.

Available on CANSIM: tables 402-0001 to 402-0003.

A special article, including an analytical text, data tables and graphs, will be available in a few weeks in the Service bulletin - Surface and marine transport (50-002-XIB, $10).

To order data, contact Jean-Robert Larocque (613-951-2486, laroque@statcan.gc.ca), Transportation Division.

For general information, or to enquire about the concepts, methods or data quality of this release, contact Denis Pilon (613-951-2707, denis.pilon@statcan.gc.ca), Transportation Division.