Thursday, January 28

11 Types of Business Industries and Their Importance

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Canada is fortunate to have a number of highly successful business industries. Prosperous investment opportunities exist to this day, even in the face of tough-to-hear economic news relating to COVID-19. Even though Canada might not have a market as large as other countries, a combination of stability and growth rate is why we continue to attract investors and interest worldwide.

Here are eleven types of business industries with lots of investment potential:

1. Energy Industry

Canada has an abundance of oil and natural gas at its disposal, including the third largest oil reserve in the world. This has put us in an advantageous position for past and present, and investment in hydroelectric power in Quebec, Ontario, and elsewhere has meant the likelihood of further industry growth for the future.

The industry continues to reinvest in solar and wind energies, preparing them for a predicted shift in the energy sector.

2. Forestry Industry

Forestry and logging is a type of business industries with many occupational hazards and involves some very grueling conditions workers must make the most with. For Canada as a whole, forestry is a very lucrative industry generating roughly 1-2% of the country’s GDP or $19-$20 billion annually.

The forestry industry is particularly strong in provincial economies like New Brunswick and British Columbia who heavily rely on it for regional wealth.

3. Mining Industry

One of the more well-paying industries in Canada for the workers is mining and mineral production. Canada is a leader in potash and ranks production, and mines high amounts of cadmium, cobalt, diamonds, gemstones, gold, graphite, nickel, platinum group metals, salt, and uranium.

Though natural resource development has been ongoing for decades, the land continues to be very underdeveloped in various regions across Canada.

4. Agriculture Industry

Canada is one of the world’s largest suppliers of agricultural products like wheat and grain. Canada’s primary exporter is the United States which aids in minimizing transportation costs. In agreement with the World Trade Organization, Canada also practise fair-trading. The agriculture industry grows every year and now accounts for 8-9% of Canada’s annual Gross Domestic Product.

5. Utilities Industry

Some things in life you can’t life without and utilities is one of them. From power grid management to communications technology, our whole society relies on utility companies and branching businesses to do their part at keeping the machine going.

Brands like Hydro-Quebec, Ontario Power Generation, and BC Hydro dominate this space. Barriers to entry are high, however, rewards are significant for the businesses that do carve out a place in the sector.

6. Technology Industry

While undervalued internationally, Canada’s tech sector is one of the strongest in the world. Through initiatives like the government-run Canadian Startup Visa program, tech influencers, entrepreneurs, and brands are flocking to Canada from all over the world. In the future, the Toronto tech sector will continue to grow, potentially rivaling Silicon Valley and India among other tech-friendly business centers.

7. Services Industry

Canada’s service sector accounts for 80% of our GDP and employs nearly 75% of our total population. Subcategories in the service sector include retail, business, and health. Service accounts for a lot admittedly which is why it has such a high amount of power as an industry.

Service relies on external factors such as tourism which has meant its profitability reduced throughout the COVID-19 pandemic. Despite this drawback, investment opportunities are still prevalent and promising.

8. Finance Industry

Finance is a key player in Canada’s business industries. Finance accounts for approximately half of Canada’s total foreign direct investment, valued at roughly $540 billion. That number continues to increase with every year that passes.

Financial services are one of our fastest-growing exports when it comes to services. A lot of the financial sector is built around Toronto as a hub though major players exist out West as well in cities such as Calgary and Vancouver.

9. Cultural Industry

Cultural industries such as general information, tourism, cultural objects, and cultural centers provide opportunity to contribute to some of Canada’s many communities and suggests investment opportunities down the line as this collection of industries continues to grow.

If one were to combine the amount of money cultural industries make up in Canada’s GDP, the amount’s oftentimes larger than or comparable that of oil and gas extraction.

10. Manufacturing Industry

Manufacturing comprises of 14-15% of Canada’s total GDP. As a nation, we benefit from an educated workforce, low labor costs, and strong investment returns which has made it a worthwhile investment for companies overseas as well as coming in from the United States.

An abundance of government-led programs also support a strong manufacturing sector – something which is only expected to continue developing and improving in the post-pandemic period.

11. Construction Industry

Construction employs over 1.2 million Canadians, comprising of free subcategories in repairs, engineering, and ‘other’ construction services. Unlike countries such as the UK which are very developed, Canada’s still a nation building itself and developing the large amount of area it has.

For better or for worse – and a lot of people bemoan the noise and many inconveniences of construction – it’s an industry that we all rely on to make the rest of the industries on this list work.

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About Author

Fiona Thompson

Staff writer / Avid internet junkie / Devoted music aficionado