Commercial and industrial machinery and equipment rental and leasing, 2022
Released: 2023-10-31
$16.1 billion
2022
20.6% 
(annual change)
The commercial and industrial machinery and equipment rental and leasing industry reached a new high in 2022
Operating revenues in the commercial and industrial machinery and equipment rental and leasing industry rose 20.6% from 2021 to $16.1 billion in 2022, representing a new high for the industry.
Stronger demand for equipment rental and leasing was supported by higher levels of capital expenditures in 2022, especially in the mining, quarrying, and oil and gas extraction sector. As well, strong growth in investment in non-residential building construction and public infrastructure developments encouraged demand for heavy machinery and equipment from 2021 to 2022. The industry benefited from the trend of clients choosing to rent rather than purchase equipment, as growing inflationary pressures and financing costs may have led more businesses to conserve their financial resources.
Alberta remained the largest contributor to the commercial and industrial machinery and equipment rental and leasing industry, accounting for 35.7% of national operating revenue in 2022. The province's operating revenue grew 24.4% from 2021, to $5.7 billion. Ontario (29.7%) was the second-largest contributor to the industry and also recorded significant growth in operating revenue, rising 17.6% to $4.8 billion during this period. The increases in these two provinces drove national operating revenues up significantly. On the other hand, not all provinces experienced the same magnitude of growth. Notably, Newfoundland and Labrador recorded a modest increase of 2.7% in operating revenue, reaching $139 million in 2022 as the province faced declines in oil production.
Operating expenses in the commercial and industrial machinery and equipment rental and leasing industry increased 17.9% in 2022. With operating expenses growing at a slower pace than operating revenues, the industry recorded a higher profit margin in 2022 (15.5%).
Looking ahead to 2023
Several indicators are positive for the commercial and industrial machinery and equipment rental and leasing industry in 2023. The mining, quarrying, and oil and gas extraction sector is expected to lead capital expenditure growth in 2023, fueling demand in the commercial and industrial machinery and equipment rental and leasing industry. However, following two years of double-digit annual growth, overall non-residential capital expenditures are expected to increase at a slower pace in 2023. A complete financial picture for the 2023 reference year for the industry will be provided when survey data are published in 2024.
Note to readers
Data for 2020 and 2021 have been revised.
The reference to elevated levels of capital expenditures in 2022 was taken from Table 34-10-0035-01.
The reference to increased investment in building construction was taken from Table 34-10-0175-01.
The reference to the decline in oil production in Newfoundland and Labrador was taken from Table 25-10-0063-01.
The references to capital expenditure intentions in 2023 were taken from Table 34-10-0035-01.
These and other data related to business and consumer services can be found on 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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