Operating revenues for the commercial and industrial machinery and equipment rental and leasing industry grew 9.1% to $9.2 billion in 2012. During the same period, operating expenses increased 8.4%, causing the operating profit margin to rise from 15.4% in 2011 to 16.0% in 2012.
The growth in equipment rental and leasing services was partly the result of strong economic conditions in key client industries, such as the Canadian construction industry, which is a major user of heavy equipment rental services.
The cost of goods sold, which includes the procurement of equipment to rent and lease, accounted for 23.3% of all operating expenses. Salaries, wages and benefits (21.8%) and amortization and depreciation (18.8%) followed closely in terms of relative importance. Shares of the top three expenses have remained fairly stable over the years.
Sales to other businesses comprised 89.5% of total sales in 2012, while sales to individuals, government, non-profit organizations, public institutions and clients outside the country made up the remainder.
Note to readers
Data from 2007 to 2011 have been revised.