Statistics Canada’s recent analysis in brief, entitled Shifting Economic Conditions Impact Service Industries in 2023, says service industries lost momentum in 2023, thanks to changing economic conditions (inflationary cost pressures, interest rates and tighter credit conditions among them), but most still saw significant revenue growth during the year.
“While the growth rates were less robust compared with 2022, they were notably stronger than in pre-pandemic years,” the report states.
Accounting, tax preparation, bookkeeping and payroll services, perhaps most like financial services in that the industry was allowed to continue operating and growing despite pandemic challenges, enjoyed revenue growth of 10.1 per cent in 2023, up from 8.4 per cent in 2022 but down from 11.5 per cent reported in 2021. (The report’s researchers made use of goods and services tax revenue figures to indicate operating revenues.)
Commercial insurance
For those dealing in commercial insurance, revenue growth among commercial and industrial machinery and equipment rental and leasing service providers was up eight per cent in 2023, down from 18 per cent growth in 2022 and 22.3 per cent revenue growth in 2021.
“Most service industries saw slower revenue growth in 2023,” they state. “Nonetheless, compared with pre-pandemic years, revenue in these industries still showed significant expansion.”
They conclude saying the use of artificial intelligence (AI) in professional services remains limited, but its potential to enhance operational efficiency and transform operations is increasing. “The evolving landscape of these technological trends will justify closer analysis in the near future,” they write.
