Canada is a developed country. A country with chilly weather and beautiful landscapes is rapidly progressing in the business sector. According to Statistics Canada, the business sector made about 70% of Canada’s total money, which was $2.4 trillion in 2022. It also gave jobs to about 15.5 million people in 2022, which was 82% of all the people who worked in Canada. This is clear evidence of Canada’s keen interest in businesses and the financial independence of its people.
In this blog, we briefly discuss essential business services in Canada, their trends and contribution to the sector, and how they help increase the productivity and efficiency of businesses that require their services.
Business Services in Canada
New businesses, like a newborn child, need care and a proper check and balance for growth and prosperity. For such purposes, multiple business services in Canada help businesses grow freely. Following are some common services and their modes of action:
Accounting and Bookkeeping
Accounting and Bookkeeping services help businesses with finances and taxation. They use software to keep records, send invoices, pay taxes, and the list goes on. They help businesses stand out by making their financial information more precise and reliable. They provide real-time data and market insights, which help such businesses step ahead in the long run with efficiency and freedom.
According to Glassdoor, people associated with accounting and bookkeeping in Canada make an average of about $61,015 a year. They also get extra money, about $3,691 a year on average. But only some make the same amount. Some people make as little as $49,000 a year, and others make as much as $78,000 a year.
Legal and Consulting
When starting a business, law, and order are the main aspects to consider. A legitimate business could be declared guilty of multiple crimes because of the need for greater awareness of legal terms and concepts. This is where Legal and Consulting firms come in handy. They help businesses with legal and strategic issues by providing detailed plans to reduce costs and errors, improve accuracy, increase accessibility, and assist businesses in following corporate, tax, labour, and privacy laws. It prevents them from facing penalties, audits, and legal issues.
Some reputable legal and consulting firms in Canada are as follows:
Marketing and Advertising
The marketing and Advertising sector is making rapid progress in Canada. As new startups launch, they require services to advertise their startups. It is where Marketing agencies play their roles in the upbringing of these new businesses. They help businesses inform, persuade, and remind customers about the benefits and advantages of their startup to society. Moreover, they assist businesses in automating manual tasks like data entry, invoicing, payroll, and tax filing. Further, they enhance the business’s reputation, trustworthiness, and customer loyalty.
As this sector is flourishing, it requires a lot of funds to keep pace, according to Statista. In 2021, Marketing and Advertising firms made about $11.3 billion from their work, more than in 2020 by 12.6%. They are expected to make even more money in 2023, about $12.6 billion. Canada is one of the world’s biggest markets for marketing and advertising and is expected to spend $16.63 billion on it by 2024.
IT Support Companies and Software
Information Technology (IT) uses computers, software, networks, and other devices to create, store, process, and communicate data and information.
Roughly speaking, IT is the magic that makes data and information flow through computers, networks, software, and devices.
IT support companies hold their importance in today’s digital world because of the following factors.
- Boost In Productivity: IT support companies help businesses improve their productivity by creating multiple pieces of software that help humans calculate statistics and analytics. It boosts productivity and helps business owners make more of their time, which helps a business step ahead in the long run.
- Network Services: Forming a network for a business to interact and communicate with employees and other businesses requires a strong network owned by the business. A good IT support team designs strong networks that are invulnerable and never compromises on the security of their clients.
Canada’s IT sector is growing rapidly and contributing to the country’s economic well-being. Statista reports that Canada is projected to spend USD 5.8 trillion on IT and generate around CAD 260 billion in revenue. This shows that Canada’s IT sector has much potential to achieve more quickly.
Logistics and Transportation
If you were a Canadian businessman who wanted to sell his products in Canada as well as all across the globe, How would you ship your products? This is where Logistics and Transportation services come in. They are the pillars of all businesses. Without them, no business could survive.
The Third-Party Logistics (3PL) market is a booming industry and is expected to grow significantly in the next few years, reaching a revenue of US$25.8 billion in 2023. This revenue will continue to increase at an annual rate of 1.79% from 2023 to 2027, resulting in a market volume of US$27.7 billion by 2027. The logistics costs of the 3PL market will also rise, reaching US$261.2 billion in 2027. These figures show how much potential the 3PL market has to help businesses improve their efficiency, flexibility, and competitiveness.
Examples of Businesses:
Everything that we discussed above can be proven with the following real businesses:
Bombardier:
Bombardier is a Canadian multinational aerospace company established in 1942. They are best known for their business aircraft and jets. Bombardier has recently announced that they have collaborated with Sterling Global Aviation Logistics, helping aviation clients since 1981. Through this partnership, Bombardier can access a network of aircraft across five continents to deliver various parts to customers in a timely and efficient manner in the event of an aircraft-on-ground (AOG) situation.
Lululemon
Lululemon is a clothing company founded in 1998 by Chip Wilson. It sells sports apparel and accessories for yoga, running, cycling, etc. It also offers self-care products like deodorants, sunscreens, and shampoos.
Currently, Lululemon is taking marketing and ad services from Droga5, established in 2006 with Headquarters in London, UK; its clients include Amazon, Biofreeze, and JPMorgan Chase.
Conclusion:
Canada has a strong business sector that makes up most of its economy. Businesses need important services for accounting, legal advice, marketing, IT support, and logistics to work better and faster. Businesses earn a lot of money from marketing and advertising, which is expected to grow by 15% in the next two years. The IT sector is also booming, spending more than any other country and earning more than 10% of the global market share. Logistics helps businesses move their goods and services efficiently and flexibly, and it is set to grow by 20% in the next two years. It shows that Canada has the potential to rise as a successful nation.