Industries with the Biggest Increase in Profit Margin in Canada in 2024

1. Uranium & Metal Ore Mining in Canada

Percentage Point Increase for 2024: 10.0pp

Companies in the Uranium and Metal Ore Mining industry in Canada mine molybdenum, platinum, palladium, uranium, cobalt and a variety of metal bearing ores sold to various markets. Industry revenue is closely linked to the underlying prices of the commodities, which themselves are a function of global supply and demand conditions. The prices of these major commodities experience significant volatility. Overall, industry revenue has been climbing at a CAGR of 5.4% over the past five years and is expected to reach $4.0 billion in 2023, with growth in industry profit as well. Revenue is expected to hike 3.5% in 2023... Learn More

2. Tour Operators in Canada

Percentage Point Increase for 2024: 4.3pp

Canadian tour operators have been extremely volatile in recent years. With the domestic economy's expansions prior to the COVID-19 pandemic, international trips taken by Canadians increased. Greater international exposure for the Canadian tourism industry, coupled with overall global economic growth, motivated more foreigners to visit and book tours in Canada, leading to increased inbound international travel. The COVID-19 pandemic shocked the global tourism sector, with countries closing borders, government authorities keeping only essential businesses open and strict travel restrictions being put in place. Many travellers cancelled their trips while people that were planning trips ended up delaying them indefinitely, decimating... Learn More

3. Amusement Parks & Arcades in Canada

Percentage Point Increase for 2024: 4.1pp

Amusement parks and arcades are highly susceptible to consumer spending patterns and macroeconomic conditions, as the services they offer are entirely discretionary. Entertainment and leisure options abound, so even when conditions are positive, competition is stiff. At the pandemic's height, most locations were forced to shutter their doors, at least temporarily, due to health and safety concerns. Revenue tanked, alongside profit, as businesses were unable to generate any sales during that time. Yet, as conditions improved, and consumers found themselves with more cash on hand, many flocked back to amusement parks and arcades, resulting in astronomical sales. Over the past... Learn More

4. Natural Gas Distribution in Canada

Percentage Point Increase for 2024: 4.0pp

Natural gas distributors in Canada, including gas distribution utilities, gas marketers and brokers are expected to suffer over the five years to 2023 as a result of highly volatile world and domestic prices of natural gas. Revenue has fluctuated in line with changes in natural gas prices, although the rates paid for natural gas by downstream consumers haven't been as volatile. The world price of natural gas has exploded in recent years as a complicated operating environment in the wake of the COVID-19 pandemic pushed prices to record highs, which has aided profit. Revenue is forecast to decline at a... Learn More

5. Spectator Sports in Canada

Percentage Point Increase for 2024: 3.8pp

Sports franchises in Canada entertain millions of Canadian consumers on an annual basis and the diversity of service offerings typically helps to stabilize their collective performance. There are few industry-specific organizations that can generate significant revenue, including the Canadian Football League and the National Hockey League (NHL), with most teams instead consisting of small operations that provide sport entertainment on local or regional levels. Revenue was poised to grow strongly prior to the COVID-19 pandemic, but seasons were halted and fans weren't permitted to fill stadiums and arenas until 2022, lengthening the decline and prolonging the recovery. Revenue is expected... Learn More

6. Train, Subway & Transit Car Manufacturing in Canada

Percentage Point Increase for 2024: 3.0pp

Over the past five years, train, subway and transit car manufacturers have faced a harsh economic climate that hasn't been easy for the industry. In the early period, new federal funding for infrastructure projects combined with tightening safety regulations to promote the sale of new, expensive railcars. Imports rose in response to the spike in demand as globalized manufacturers looked to leverage cheaper labour in developing nations to offer lower prices, but domestic manufacturers were still able to earn a hefty jump in revenue. Despite early wins, revenue tanked as the COVID-19 pandemic brought a myriad of challenges that have... Learn More

7. Iron & Steel Manufacturing in Canada

Percentage Point Increase for 2024: 2.8pp

Iron and steel manufacturers melt and refine iron ore into pig iron, which is processed into steel and shaped in various shapes for downstream construction- and manufacturing-related industries. Manufacturers are directly affected by changing prices for steel. Volatility in steel prices has increased since the COVID-19 pandemic. A limited global supply of steel has caused a sharp uptick in the price of steel alongside growing demand. Revenue is expected to grow at a CAGR of 3.0% to $18.9 billion through the end of 2023, despite a decline of 6.9% in 2023 alone.

Revenue for manufacturers follows a variety of factors, including... Learn More

8. Cannabis Production in Canada

Percentage Point Increase for 2024: 2.4pp

Cannabis producers in Canada have blossomed in recent years as recreational products were legalized in 2018, opening up massive growth. Since Health Canada opened up medicinal cannabis production to more players in 2013, producers have grown continuously as they invest in production capabilities to produce quality products. As consumers shifted from illegal cannabis purchases to the licensed recreational market, cannabis growers have grown significantly, but revenue is expected to expand 17.5% in 2023 alone as the novelty of legal cannabis has worn off and most the black market has shifted to licensed purchases, which has decreased growth. Revenue has ballooned... Learn More

9. Life Insurance & Annuities in Canada

Percentage Point Increase for 2024: 2.1pp

Insurers in Canada have experienced steady growth amid the COVID-19 pandemic. Industry operators accept liability for annuities and life insurance policies, disability income and accidental death and dismemberment insurance policies, while also investing the premiums received by clients into a variety of financial securities. The industry has mainly suffered from the negative economic effects caused by the coronavirus pandemic, such as volatile interest rates and an increase in the morbidity rate. Despite this, revenue still grew at a CAGR of 2.5% to $114.3 billion, including a 1.9% rise in 2023 alone, when profit reached 0.9%. However, growth was limited due... Learn More

10. Movie Theatres in Canada

Percentage Point Increase for 2024: 1.8pp

The performance of the movie theatre industry largely depends on the success or failure of major film releases. Although per capita disposable income directly influences households' ability to spend on discretionary services, such as movies, the marketing efforts and popularity of blockbuster films strongly determine revenue, as movie-going is a relatively low-cost entertainment option. Cineplex, the industry's dominant player, also drives industry performance, as it typically accounts for more than 60.0% of the domestic market. The COVID-19 pandemic created significant disruptions for the industry as theatres temporarily closed and audiences stayed home, which resulted in industry revenue dropping 71.7% in... Learn More