OTTAWA – A new report from the Mechanical Contractors Association of Canada (MCAC) illustrates how contractors in the sector contribute more than $30 billion to Canada’s GDP, while employing more than 205,000 workers.
The report, entitled Building Canada Now: The Economic Impact of Mechanical Contracting in Canada, was commissioned by the association and developed by BuildForce Canada and Prism Economics. It features a national overview but also detailed breakdowns by province of the sector’s economic output, employment, size of businesses and average income.
“We have known for some time just how critical the mechanical contracting sector is to the Canadian construction industry, given the significant work involved and capital expense of mechanical systems,” said Tania Johnston, MCAC Chief Executive Officer, in a statement. “This report puts tangible data to that understanding, while demonstrating the additional indirect impacts of our sector’s work.”
According to the report, approximately 20 per cent of Canada’s total construction output is performed by mechanical contractors. More specifically, mechanical contractors are responsible for 35 per cent of total engineering construction, 21 per cent of non-residential building construction, seven per cent of repair construction and 12 per cent of residential building construction.
The report also notes the sector provides more than $14 billion in wages paid, with it making up 16 per cent of construction establishments. Seventy-six per cent of contractors have fewer than 10 employees.
Mechanical trades, specifically millwrights, plumbers, pipefitters and steamfitters; refrigeration and air conditioning mechanics; and sheet metal workers are also helping to bolster Canadian apprenticeship numbers.
According to Statistics Canada data, these trades accounted for approximately 26 per cent of total registrations and 27 per cent of certifications across key construction trades in 2023.
“The work of mechanical contractors is integral not only to the delivery of complex construction projects but also to the ongoing operation and sustainability of Canada’s built environment,” the report states. “Their contributions span all major construction subsectors, including new construction and sustaining maintenance activities across engineering construction, non-residential buildings, repair construction, and residential buildings.”
The report acknowledges its limitations as it relates to industrial activity performed by the sector.
“In maintenance, shutdown and turnaround industrial activity, mechanical contractors take on a disproportionate amount of work compared to other contractors,” a statement reads.
As a result of the report and its findings, the association is hoping to continue discussions with all levels of government about the critical role the sector plays.
“Fundamentally, every building, business, institution or industrial facility in Canada requires mechanical systems to operate,” Johnston added. “As the government continues to unveil its ambitious building strategies, it will be as important as ever to support the mechanical contracting sector. MCAC members are critical not only to our livelihoods, but to a robust, healthy, and resilient Canadian economy.”
