Canada is one of the worlds’ wealthiest nations. Canada’s economy is largely driven by the service industry, which employs around three-quarters of Canadians. Canada has considerable manufacturing, energy and agricultural sectors. The United States remains by far Canada’s biggest trading partner providing a steady market for Canada’s exports. Canada also has very large natural reserves of gold, oil and gas. This means that the economy is very resilient, not depending too much on one sector. The government has created an enabling environment for businesses to thrive. Enabling regulations have been created to bring down the ease of doing business. So what are the top Ten most profitable businesses in Canada?
Top Ten Most Profitable Business in Canada
Canada has 87 banks with over 275,000 employees spread across all of Canada provinces. These banks contribute 3.4% of the countries GDP. Women constitute 61% of the workforce. One of the largest bank in Canada, Royal Bank of Canada employs more than 80,000 employees worldwide. In 2016 Canada’s six largest banks paid over $15.9 billion in taxes alone. This makes the banking industry one of the most profitable business in Canada
- Railway Companies
The railway network in Canada employees more than 93,000 people and moves more than 75 million people every year. Besides this $282 billion worth of goods are transported every year. With over 20,000 miles of rail, railway companies offer transcontinental services to North America. For example, the Canadian National railway which is the largest in Canada employees over 22,000 employees and serves over 75% of the United States population. It also serves all major Canadian cities, transporting over $250 billion of goods annually.
Canada is also a global leader in transit technology with major international train and bus suppliers operating research and development center in Ontario, Quebec, and Manitoba. Other companies are involved in software, safety, and video surveillance systems. This industries usually show tremendous profit potential.
- Investment and Asset Management Firms
Canada’s robust economy offers good ground for asset management funds. These companies are involved in raising debts and capital for Canada businesses. They are also involved in providing investment advisory to Canada’s large population. The large Asset firms do not only operate in Canada alone but you will find them with regional offices spread across the globe. The firms engage in a wide range of Assets Including Derivatives, private equity and the sale of mortgages.Most firms are coming out of a worldwide recession that had affected most of the developed economies.
- Insurance Business
Increased capital inflows have created more customer choice and increased competition in the insurance industry. With an increase in lifestyle diseases and catastrophic events, Canadians are getting more insurance. The industry keeps improving with recent developments in Information technologies. This leads to faster processing of claims. The industry has lots of potential for growth, especially in insurance brokerage.
- Automotive Industry Business
Canada is currently the 9th auto producer in the world. The industry consists of assembly plants for foreign automakers with most having headquarters in United States or Japan. Foreign automakers with plants in Canada include Chrysler, Ford, General Motors, Hino, Honda, and Toyota. The industry employees over 140,000 Canadians and has produced over 2.4 million cars over the last five years. A lot of business opportunities exist in sell of auto parts and repair.
- Pharmaceutical Business
Canada pharmaceutical industry is the 8th largest in the world and accounted for 2.6% of global purchases. As the era of the large primary care blockbuster drugs come to an end cliff, pharmaceutical companies in Canada are re-organizing and adopting strategies to reduce risk. The trend is towards a business model that relies on outsourcing of certain business functions like manufacturing to contract service providers. In Canada is this is proving a lot of opportunities to businesses.
- Timber Business
Forests are a major source of wealth for many Canadians. The forest sector contributes around 1.25% to Canada’s real Gross Domestic Product (GDP). The forest industry also accounts for almost 7% of all Canadian exports. Canada is also the world’s largest producer of newsprint and northern bleached softwood Kraft pulp and the second largest producer of softwood lumber. In a global context Canada has the world’s largest forest trade balance. The three main forest industry subsectors are: solid wood product manufacturing, pulp and paper product manufacturing and forestry and logging.
- Mining Business
The mining industry in Canada employees over 373,000 workers across the country. They are involved in mineral extraction, smelting, fabrication and manufacturing. Canada has one of the largest mining supply sectors globally with more than 3,700 companies providing engineering, geotechnical, environmental and financial services to the mining sector. The industry also accounts for 19% of Canadian goods export. Canada produces over 60 minerals and metals, this include: potash, uranium, nickel, niobium, cobalt, aluminum, platinum, salt, diamonds and gold.
- Internet and Telecommunication industry
Canada telecom industry consists of six sectors: long distance, the internet, wireless, data and private line. The two largest being internet and wireless which over 70% of the industry revenues. Most of the revenues are retail with connection to over 12 million households.
Internet connections have led to the bloom of other related industries like software development and Cloud computing. Canada is one of the most connected countries in the world, but connectivity within Canada is not equally dispersed. The government has in embarked on a program to implement a national broadband strategy the will prioritize underserviced parts of the county.
Many companies in an effort to cut costs have outsourced some of their non-core functions to various online internet firms hence creating lots of jobs across the globe.
- Petroleum industry
Canada has the third largest oil reserves in the world and is the world’s fifth largest oil producer and fourth largest oil exporter. Most of Canada’s petroleum products are exported with most going to the United States. Canada accounts for 43% of United States crude oil imports. The oil industry has created other smaller players in refining, distribution, and manufacture of petroleum products. With the United States being the accounting for a significant portion of imports this industry is by far very profitable. Canada’s oil and gas industry is active in 12 of the 13 provinces. Albert is Canada’s largest oil and natural gas producer and is home to vast deposits of oil sands.