Different Types of Construction Businesses by Size

The construction industry in Canada is a key part of the economy, involving a large portion of the workforce and GDP. Self-employed individuals and small-to-medium-sized businesses (SMBs) play a crucial role in building infrastructure, residential, and commercial projects nationwide.

What are the 5 main types of construction businesses by size In Canada?

• Self-Employed Construction Businesses

These are sole proprietors or independent contractors without employees, including general contractors, tradespeople, and consultants (BuildForce Canada, 2023).

• Small Construction Businesses

These businesses have fewer than 100 employees and revenues under CAD 10 million, focusing on residential projects, small commercial constructions, and specialized trades (Ontario Construction Secretariat, 2023).

• Medium Construction Businesses

Medium-sized businesses have 100-499 employees and revenues between CAD 10-50 million, handling larger commercial and infrastructure projects (Statistics Canada, 2023).

• Large Construction Businesses

Large businesses have 500+ employees and revenues over CAD 50 million, undertaking significant infrastructure and large commercial developments (Canadian Construction Association, 2023).

• Mega Construction Businesses

Mega businesses manage extensive projects like major infrastructure and urban developments, operating globally with thousands of employees (BuildForce Canada, 2023).

This chart highlights the dominance of self-employed and small construction businesses in the Canadian market, with medium-sized businesses representing a smaller, yet significant, portion of the industry. Large and mega construction businesses, though fewer in number, play a crucial role in the development of major infrastructure and complex projects across the country.

What is the share of each business group in total construction GDP in Canada?

• Self-Employed Construction Businesses

Self-employed individuals contribute about 25% of the total construction GDP (Canadian Construction Association, 2023).

• Small Construction Businesses

Small businesses contribute around 35% of the total construction GDP (BuildForce Canada, 2023).

• Medium Construction Businesses

Medium-sized businesses contribute about 20% of the total construction GDP (Statistics Canada, 2023).

• Large Construction Businesses

Large businesses contribute approximately 15% of the total construction GDP (Ontario Construction Secretariat, 2023).

• Mega Construction Businesses

Mega businesses contribute around 5% of the total construction GDP (Canadian Construction Association, 2023).

This chart illustrates the economic impact of various business sizes within the construction sector, highlighting the significant contributions of self-employed and small businesses to the overall GDP, with medium, large, and mega businesses also playing crucial roles in the industry's economic landscape.

Conclusion

The construction industry in Canada thrives on the foundation of self-employed individuals and small businesses. Together, these groups constitute approximately 98.7% of all construction businesses in the country, with around 300,000 self-employed professionals and 80,000 small businesses. Their significant contributions, accounting for 60% of the total construction GDP, underscore their critical role in sustaining and driving the industry.

Supporting these businesses through targeted initiatives and resources is essential for maintaining a robust construction sector. By addressing their unique challenges and fostering growth, Canada can ensure that the construction industry continues to meet the diverse and evolving needs of the economy.

For more insights, read Challenges and Opportunities for Canadian Construction Self-Employed, Small, and Medium Businesses to rise your construction and housing business in Canada.

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