Engineering services industry

The engineering services industry went through a slow period in 2003, amid dampened capital expenditure resulting from investment uncertainties.

Operating revenues in 2003 were up a mere 1.6% to $11.0 billion from $10.9 billion in 2002. This growth can be attributed to the continuing gains in exports. Exports accounted for 13.2% of total operating revenues in 2003, compared with 12.0% in 2002 and just 10.3% in 2001.

Engineering services accounted for 84% of industry operating revenues in 2003, with the remainder mostly generated in related fields such as project management services and environmental consulting services.

Market share of the 20 largest firms amounted to one-third of industry revenues, a small decline compared with 2002.

Two-thirds of revenues were generated from sales to clients in the business sector and foreign based clients, while less than one-third came from clients in the public sector.

The industry's operating profit margin was squeezed to 10.0% in 2003 from 10.9% in 2002.

The slowdown took its toll on Ontario. Revenues of establishments operating in Ontario sagged by 2.3% in 2003, following the near flat result recorded a year earlier. Newfoundland and Labrador also showed a decline, whereas all other provinces and territories recorded small to moderate increases.

Engineering service firms operating in Ontario had a market share of 33%, followed by those in Alberta (24%), Quebec (21%) and British Columbia (14%).

Of the 77,000 people employed by firms in the engineering industry in 2003, three out of four belonged to the professional category (for example, engineers, technicians and technologists) and other professionals.

Engineering services accounted for 0.5% of the Canadian economy in 2003, contributing $6.0 billion to gross domestic product. This industry is comprised of establishments primarily engaged in applying principles of engineering in the design, development and utilization of machines, materials, instruments, structures, processes and systems.

Available on CANSIM: table 360-0005.

Definitions, data sources and methods: survey number 2439.

Results from the 2003 Annual Survey of Engineering Services are now available.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Kyoomars Haghandish (613-951-6304; fax: 613-951-6696; kyoomars.haghandish@statcan.gc.ca), or Denyse Brazeau (613-951-5634; fax: 613-951-6696; denyse.brazeau@statcan.gc.ca), Service Industries Division.