"What's New" in services data and analysis

Studies and statistical information released from January 2006 to June 2006 pertaining to the service industries.

Recently released Industry Reports
Recently released analytical studies
New initiatives

Recently released Industry Reports

Software Development and Computer Services - 2004

Three computer services industries, representing almost one-third of the information and communications technology (ICT) services sector, reported a sharp increase in revenues for 2004 following modest growth through 2002 and 2003. Unlike the ICT manufacturing sector, ICT services have continued to grow from levels recorded before the "technology meltdown" in 2000/01.  In 2004, computer systems design and related services, software publishing, and data processing, hosting and related services together saw operating revenues grow by 9% to $29.7 billion.  See related article from The Daily

Real estate agents, brokers, appraisers and other real estate activities industries - 2004

Total revenues reported by real estate agents, brokers, appraisers and other real estate industries increased sharply in 2004, reflecting the continued upward trend in residential real estate markets. Historically low mortgage rates, along with steady growth in the Canadian economy, continued to fuel real estate markets during 2004.  Total revenue for these industries surged 11.4% to $8.9 billion in 2004. This growth reflects an increase in sales and higher real estate prices. For example, Statistics Canada's national New Housing Price Index jumped almost 6% during 2004, nearly four times the rate of inflation.  See related article from The Daily

Travel arrangement services – 2004

Travel arrangement services rebounded in 2004 after facing difficulties such as the threat of SARS and the war in Iraq in 2003.  The travel arrangement services industry, which is composed primarily of two industries (tour operating and travel agency industries), recorded a before-tax operating profit margin of 2.5% in 2004 after earning zero profits the previous year.  See related article from The Daily

Food services and drinking places – 2004

The food services and drinking places industries experienced an upturn in 2004. Total operating revenue increased by 7% in 2004 to $37.7 billion from $35.3 billion in 2003.  In 2003, the food services and drinking places industries were hampered by SARS, the August power outage and mad cow disease. In 2004, an increase in consumer spending and personal disposable income as well as strong economic growth, especially in the western-most provinces, fuelled the recovery. See related article from The Daily

Specialized design services – 2004

Specialized design firms generated $2.4 billion in operating revenues in 2004, up 11% from the previous year. The double-digit growth rate, not seen since 2000, exceeded the cumulative growth of the preceding three-year period (from 2001 to 2003). The increase in 2004 was fuelled by firms in Ontario.

Growth was particularly strong in Ontario, while Quebec experienced a minor setback and British Columbia and Alberta recorded moderate increases. Ontario had the largest market share of revenues at 57%, followed by Quebec (20%), British Columbia (11%) and Alberta (8%). See related article from The Daily

Automotive equipment rental and leasing – 2004

The automotive equipment rental and leasing industry became more profitable in 2004. Canada posted steady economic growth in 2004 and a recovery in international trade saw exports to the United States jump by over 6%. More than half of these exports were carried by truck and, for general freight carriers, over 20% of in-service equipment was leased. On the consumer side, there has been a slight shift toward the rental and leasing of motor vehicles in recent years.

 In 2004, one in five Canadian households rented or leased an automobile, truck or van with total expenditures growing by 24% since 2000. These trends in business and consumer spending have helped to bolster the automotive equipment rental and leasing industry, which earned revenues of just over $5 billion in 2004. The profit margin remained strong in 2004 at 12.9%, up slightly from 12.4% in 2003.  See related article from The Daily

Commercial and Industrial Machinery and Equipment Rental and Leasing – 2004

Canada's economic growth in 2004 was increasingly driven by its capital-intensive resource base, especially energy exports. And a healthy increase in corporate profits led to more investment, boosting demand for machinery and equipment. This helped to bolster the commercial and industrial equipment rental and leasing industry group, which consists of businesses that rent and lease out capital and investment-type equipment such as bulldozers, earth moving equipment, mining machinery and oil field equipment.  For 2004, the commercial and industrial equipment rental and leasing industries reported $6.2 billion in operating revenue, an increase of 9% from 2003.  See related article from The Daily

Real estate rental and leasing and property management industries – 2004

The continued buoyancy of the real estate market, along with steady economic conditions, contributed to the growth of the real estate rental and leasing and property management industries.  Total combined operating revenues of the real estate rental and leasing and property management industries increased 9.5% from 2003 to $50.6 billion.  Total operating expenses for the combined industries increased by 8.9% in 2004 to $40.2 billion. Of the total operating expenses, mortgage interest accounted for 19.3% and property taxes for 17.4%. Profit margin (before tax) of these industries stood at 20.6%.  See related article from The Daily

Employment services industry – 2004

The employment services industry's total operating revenue reached $6.1 billion in 2004, up 6.5% from 2003.  This industry's operating profit margin reached 4.0% in 2004, following levels of 3.7% in 2001, 3.6% in 2002 and 3.5% in 2003.  See related article from The Daily

Automotive repair and maintenance services – 2004

As Canadians purchased fewer new motor vehicles in 2004, they invested more in the repair and maintenance of their existing ones. For the second consecutive year, Canadian households saw a greater slice of their disposable income going towards the repair and maintenance of their automobiles. Approximately 73% of households reported spending an average of $556 in 2004 on automotive repair and maintenance. As a result, automotive repair and maintenance firms continued to report steady growth in 2004.

Businesses classified to the automotive repair and maintenance services industry earned operating revenues of $11.4 billion in 2004, up 2.3% from 2003. Mechanical and electrical repairs generated 61% of these operating revenues while auto-body, paint and glass repairs generated another 31%.  See related article from The Daily

Management, scientific and technical consulting services – 2004

The management, scientific and technical consulting services industry consists of firms that provide expert advice and assistance to other organizations on management, environmental, scientific and technical issues. Growth in these consulting services mirrored that of many other service activities in 2004, with a strong increase in business and technical consulting stemming from resource development, particularly in Alberta.  The consulting services industry generated $8.8 billion in operating revenues in 2004, up slightly from 2003. While operating expenses remained relatively stable at $7.0 billion, the industry's operating profit margin rose to 20% in 2004, up from just over 17% in 2003.   See related article from The Daily

Advertising and Related Services – 2004

Despite higher revenues along with an improved profit margin in 2004, the advertising and related services industry in Canada continues to face challenges that have kept a lid on growth.  The trend of multinational advertisers to use global advertising campaigns has resulted in decreased demand for Canadian creative content. At the same time, the rise of the Canadian dollar has reduced the industry's price-competitiveness internationally.  See related article from The Daily

Arts, entertainment and recreation services – 2004

Operating revenues for golf courses and fitness and recreation centres soared in 2004, reflecting the huge increase in golfers and the fitness rage among Canadians, according to new data for the arts, entertainment and recreation sector.  Fitness and recreation centres accounted for the biggest gain. These centres reported revenue of more than $1.5 billion in 2004, up 20.8% from the year before.  See related article from The Daily

Personal services industry – 2004

Business is growing steadily in the personal services industry, according to the latest survey of establishments that provide services ranging from haircuts and facials to laundry and funeral services.  According to the Annual Survey of Personal Services, firms providing personal services in Canada in 2004 experienced rising revenues in the main components of the industry. Together, those firms earned an estimated $8.6 billion in that year, up from $8.0 billion in 2003 and $7.6 billion in 2002.  See related article from The Daily

Business Conditions Survey: Traveller accommodation industries - Second quarter 2006

Despite labour shortage concerns, Canada's hotel operators continue to have a positive outlook for the second quarter, according to results from the Business Conditions Survey for the Travel Accommodation Industries.  Almost one in three hoteliers indicated they are experiencing a shortage of unskilled labour (32%). In contrast, only 15% of hotel managers recorded a shortage of unskilled labour a year ago.   See related article from The Daily

Restaurants, caterers and taverns - March 2006  (preliminary)

Total estimated sales of the restaurants, caterers and taverns industry reached $3.3 billion in March, an 8.0% increase over March 2005. (Data are neither seasonally adjusted, nor adjusted for inflation). Favourable economic conditions and particularly mild weather in March are amongst the factors that have contributed to this result.  See related article from The Daily

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Recently released analytical studies

Study: On the road again, a profile of truckers - 2004

Trucking plays a major role in Canada's economy. More than 53% of exports to the United States and 78% of all imports were shipped by truck in 2004.  However, because of the sector's steady growth, an aging work force, and the declining popularity of the occupation, the industry may soon face a shortage of qualified truckers.  See related article from The Daily

Study: Emerging patterns in the labour market: A reversal from the 1990s

Many labour market trends established in the 1990s have been reversed since 2000. Most of these recent trends intensified in the past year. In particular, it was another banner year for the resource sector. These gains were reflected in stronger employment growth in rural areas and in large firms. In terms of supply, older workers continued to fill the bulk of new jobs. A new trend was full-time positions, which accounted for most job growth.  See related article from The Daily

Survey on Financing of Small- and Medium-sized Enterprises - 2004

Debt financing requests have declined since the turn of the millennium, but medium-sized enterprises are still more likely to request financing than their smaller counterparts.  Only one-fifth (19%) of all firms in Canada sought some form of external debt financing in 2004, according to results of the Survey on Financing of Small and Medium Enterprises. This was down from 24% four years earlier.  See related article from The Daily

Commercial and Institutional Consumption of Energy Survey - 2004

Hotels and restaurants consumed energy at a higher rate than other commercial businesses, institutions and organizations in 2004, according to a new survey on energy use.  Data from the Commercial and Institutional Consumption of Energy Survey provide aggregate information on the energy consumption of commercial and institutional establishments in Canada.  Nationally, the survey found that the accommodations and food services sector had the highest gross energy intensity at 2.21 gigajoules per square metre in 2004.  See related article from The Daily

Profile of Selected Culture Industries in Ontario - 1996 to 2004 

Ontario is a major force in Canadian culture industries. Firms within each culture industry in the province form clusters and cross-pollinate, generating employment and industrial growth in other culture and non-culture industries.  Keeping these industries humming are the many consumers in Canada's most populous province who buy or use culture goods and services.  The new report, Profile of Selected Culture Industries in Ontario, produced for the Ontario Media Development Corporation, examines three culture industries in the province — publishing, sound recording, and film, video and audio-visual.  See related article from The Daily

Business Dynamics in Canada - 1991 to 2003 

The publication Business Dynamics in Canada, 2003, now available, was created using data from the Longitudinal Employment Analysis Program (LEAP) file.  It contains summary tables with information on various aspects of business. These include business creation (births or entry); business destruction (deaths or exits); distribution of firm and employment by size knowledge-based industry and geography; survival rates of firms by knowledge-based industry; and average size of business by knowledge-based industry and by size of firm.  See related article from The Daily

Survey of Suppliers of Business Financing – 2004

Canadian businesses increased the total debt they owed to the major commercial suppliers of financing for the first time in four years in 2004, and larger borrowers were mostly responsible for the gain.  As of December 31, 2004, these suppliers, including banks, finance companies and insurance companies, reported that their business clients owed them $371.4 billion, up 3.3% from 2003. This debt was mainly in the form of loans, mortgages and lines of credit.  See related article from The Daily

Annual retail trade – 2004

Retail sales strengthened in 2004, as consumers took advantage of easier credit, growing employment and rising personal disposable income to fix up their homes and buy some new furniture.  Store retailers reported operating revenues of $370.7 billion, a 4.2% increase from 2003. This was a faster pace than the gain of 3.5% in 2003. Retailers were buffeted during 2003 by events such as the SARS outbreak and the power blackout in Ontario.  In 2004, revenues, profit margins and operating profits all rose. There was also a strong housing and renovation market coupled with rising personal disposable income and lower interest rates, both of which drove consumer spending on retail goods.  See related article from The Daily

International trade in culture services - 2003

Canada's exports in culture services fell for the first time in seven years in 2003, as foreign demand weakened for our services in film and video, and advertising.  At the same time, imports of culture services declined at a slightly slower pace. The resulting trade deficit surged from $476.9 million to $545.4 million, the largest since Statistics Canada first compiled culture services data in 1996.  See related article from The Daily

National tourism indicators - Fourth quarter and annual 2005

Tourism spending advanced 1.0% in the fourth quarter of 2005, as both domestic and international travellers increased their spending in Canada. After three consecutive quarterly declines, international visitor spending increased 0.9% in the fourth quarter, matching the increase in the number of international visitors.  The year 2005 was another good one for tourism in Canada. Overall spending advanced 3.8% following a 5.1% gain in 2004. In contrast to the fourth quarter results, domestic tourists were the sole reason for the increase for the year as international visitors decreased their spending by 1.3%.  See related article from The Daily

Quarterly Retail Commodity Survey - Fourth quarter 2005 and annual 2005

Led by strong increases in sales of automotive fuels, oils and additives as well as hardware, lawn and garden products, retailers in 2005 registered their highest year-over-year increase in retail sales since 2002.  In total, consumers spent $369.2 billion in retail stores last year, up 6.2% from 2004. This was the highest growth rate since 2002 when it was 6.4%. Sales for the fourth quarter increased 5.4% over the same quarter in 2004.  See related article from The Daily

Study: The year in review: The revenge of the old economy - 2005

Economic developments in Canada last year were again largely shaped by the global economy. This reflects the historic changes taking place as a result of globalization, notably the integration of Asia into the world economy.  Canada's economy is undergoing rapid and profound changes, and not just between booming resources and construction and declines in some manufacturing industries. The energy sector is developing new sources, while manufacturing itself was being buoyed by the strength in resources and investment demand. And all sectors have to deal with a shift in trade flows to Asia.  See related article from The Daily

Provincial and territorial gross domestic product – 2005

Economic activity in the western-most provinces outpaced the national average of 2.9% for the second year running in 2005, with oil-rich Alberta leading the pack.  Meanwhile, Eastern and Central Canada struggled with rising fuel costs and increased foreign competition, as energy prices set the tone for growth in provincial and territorial gross domestic product (GDP).  See related article from The Daily

Study: A review of wholesale trade - 2005

In 2005, Canada's wholesale trade industry recorded its best performance of the past six years in constant dollars, with much of the impetus coming from the four westernmost provinces, according to a new study reviewing last year's wholesale performance.  Wholesalers, who are a key link between manufacturers and the marketplace, sold merchandise worth more than $470 billion last year, up 5.4% from 2004. However, when adjusted for inflation, the gain was 7.8%, indicating that last year's increase in value was mainly the result of higher volumes.  See related article from The Daily

Study: Foreign banks in Canada - 1997 to 2004

From 1997 to 2004, foreign banks increased their market share of the deposit-taking sector in Canada, according to a new study. However, domestic banks continued to dominate the Canadian market.  The deposit-taking sector includes financial institutions that accept deposits such as domestic banks, foreign bank subsidiaries and full-service branches, local and central credit unions (including caisse populaires) and trust companies.  See related article from The Daily

International merchandise trade: Annual review – 2005

In spite of the continued strength of the Canadian dollar, Canada's merchandise export values and volumes both hit record highs in 2005, according to a new publication which identifies and explains major trends in Canada's international merchandise trade for 2005.  See related article from The Daily

Hours worked and labour productivity in the provinces and territories - 2005

The increase in the number of hours worked in Canada slowed to 0.8% in 2005, down from 2.9% in 2004 and 1.5% in 2003. Accompanied by a sizable increase in gross domestic product (GDP), this slowdown in the number of hours worked generated a robust 2.2% gain in labour productivity for the total economy.  See related article from The Daily

Telecommunications statistics - Fourth quarter 2005 and annual 2005

Two events stood out in the telecommunications services industry in 2005 — the number of wireless subscribers passed the 16 million mark and the number of conventional residential telephone lines dipped below 12 million.  See related article from The Daily

Study: The West Coast boom - 2005

British Columbia's economy has rebounded sharply from the doldrums of the 1990s, according to a new study published today in Canadian Economic Observer.  While several factors have fuelled widespread growth in the province since 2001, the boom is quickly creating shortages, notably for labour. The stronger economy has already driven the unemployment rate in British Columbia to a record low.  See related article from The Daily

Study: Science and engineering employment in Canadian and US metropolitan centres - 1981 to 2001

Based on the strength of their science and engineering (S&E) work forces, Canadian cities have the same innovative capacity as US cities, with Ottawa, Calgary and Toronto leading the way.  In 2001, scientists and engineers represented 5.6% of all paid employment in Canada's metropolitan areas. This compares favourably to the proportion of 5.1% in the United States.  See related article from The Daily

Study: An analysis of consumer prices - 2005

Consumers battled record high energy prices throughout 2005, whether it was filling up at the pump or paying home heating bills. Even so, the rate of inflation for the year, as measured by the Consumer Price Index (CPI), remained relatively stable, according to a new study.  See related article from The Daily

Quarterly financial statistics for enterprises - First quarter 2006 (preliminary)

Canadian corporate operating profits declined 2.6% to $56.1 billion in the first quarter of 2006, following five straight quarters of growth. Nevertheless, first quarter profits were the second strongest ever, surpassed only by the record high of $57.6 billion earned in the fourth quarter of 2005. Oil and natural gas export prices weakened in the first quarter, reducing profits in the oil and gas sector. A string of price increases had fueled a run-up in oil and gas profits over the past several quarters, a major factor in the recent overall profit growth.  See related article from The Daily

International travel account - First quarter 2006  (preliminary)

Record spending by Canadians in both the United States and in overseas nations pushed Canada's international travel deficit to a 14-year high during the first three months of 2006.  The deficit (the difference between spending by Canadian residents abroad and spending by foreigners in the country) climbed to an estimated $1.8 billion, $158 million higher than in the fourth quarter  of 2005 and the largest since the end of 1991.  See related article from The Daily

Canada's balance of international payments - First quarter 2006

Canada's current account surplus with the rest of the world, on a seasonally adjusted basis, dropped $2.4 billion in the first quarter of 2006 to $10.7 billion. The decline was mostly the result of a sharp drop in the value of energy exports, which was very high in the fourth quarter of 2005.  See related article from The Daily

Canadian economic accounts - First quarter 2006 and March 2006

Economic activity picked up in the first quarter as real gross domestic product (GDP) advanced 0.9% on the heels of continued strength in investment and personal expenditure. In March, monthly output edged up 0.1% from February.   Service-producing industries surged ahead as retail and wholesale trade, finance, insurance and real estate all advanced. Output of goods-producing industries inched ahead as manufacturers continued to battle the effects of the rapidly increasing Canadian dollar, and growing international competition. Exports declined slightly, mainly automotive, forestry and industrial goods.  See related article from The Daily

Study: How are Canadian regions adjusting to a larger, more integrated North American market? - 1980 to 1999

All regions in Canada have benefited from North American economic integration, a new study shows.  The Canada-US Free Trade Agreement (FTA) and North American Free Trade Agreement (NAFTA) provided Canada and all of its regions with better access to the large North American market.  The study found that all regions have benefited through improved productivity performance, higher wages and higher output growth. However, Ontario has been the principal beneficiary.  See related article from The Daily

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New initiatives

Some important new initiatives involving Statistics Canada's Service Industries Division:

Quarterly Services Indicators: Most of the service industries data presented in this publication come from annual surveys. Since these data must be collected, processed, and then put through several quality control procedures, the annual results can only be released about 12 to15 months after the end of the reference year. A new project is underway to create more timely sub-annual industry indicators based on administrative tax data. This will lead to the release later in 2006 of quarterly revenue growth rates for some service industries to supplement the annual data. Moreover, timeliness will be vastly improved because the quarterly indicators will be available three months following the relevant quarter. This section will update readers regarding future progress for this initiative.

Integration of Culture Statistics Program: Another important initiative is the integration of Statistics Canada's culture industry surveys. At present, data for many cultural industries are released every 2 to 3 years rather than annually. Moreover, these data are not fully comparable to other data sources. By 2007 the integration of these surveys into the Service Industries Division program will lead to higher quality annual statistics for an expanded number of cultural industries — even at the provincial level. For example, the performing arts, heritage institutions, archives, film, sound recording and periodicals industries will have improved coverage. The data will also be released in a timely manner. This initiative will reduce costs and response burden by eliminating duplication in data collection and processing. As well, the new survey results are expected to not only be consistently measured across the culture sector, they will also be more comparable to those recorded in the United States and Mexico. It is expected that 2004 results for the Book Publishers, Performing Arts and Heritage Institutions industries will be released in the summer of 2006.

Business Conditions Survey, Traveller Accommodations: The traveller accommodation industry is an ideal candidate for a Business Conditions Survey because leisure and business travel are often affected when household and corporate budgets are adjusted in response to changing economic conditions. This new initiative springs from a partnership between Statistics Canada, The Canadian Tourism Commission and the Ontario Ministry of Recreation and Culture. The latest results from this Business Conditions Survey appeared in Statistics Canada's Daily of May 16, 2006. The survey of nearly 1,400 businesses, most of which are hotels, is conducted to assess their outlook about key indicators such as bookings, occupancy rates, room rates, and hours worked by employees. A pilot project was recently launched to assess the feasibility of conducting a similar Business Conditions Survey for the Tour Operators industry.

Service Industries Newsletter: This is the third edition of a Newsletter that covers a wide variety of service industries for which statistics and industry reports are made available. Each issue also has a new Feature Article pertaining to one or more service industries or, occasionally, the service sector as a whole. Also provided is a link to an Analytical Paper Series, also available for free. The Series currently comprises about 50 papers. Through this Newsletter, one can also learn about the methodologies used for business surveys and easily locate information that is helpful to survey respondents. It is envisioned that once our quarterly sub-annual program is implemented, this Newsletter will be published on a quarterly basis to coincide with the Quarterly Services Indicators releases and serve as the primary release vehicle for these indicators.