2004 Geomatics Industry Census Survey Results

1
2004 Geomatics Industry Census Survey Results
Earth Sciences Sector
Policy, Economic Analysis and Planning Division /
Earth Sciences Sector September 2006
2
Outline

• Background
• 2004 Geomatics Industry Survey Results
• Summary
• Conclusion

3
Background

• There is a significant demand for socio-economic
  information on the Geomatics Industry and
  geomatics activities in Canada
• However, data gathering for this industry is
  difficult since many companies that produce
  geomatics activity related services or products
  cross several industries as defined under the
  North American Industry Classification System
  (NAICS)

4
Background

• In view of this, ESS contracted Statistics Canada
  to carry out a Census Survey of all known
  geomatics establishments in Canada that produce
  geomatics products or services
• The economic team of ESS along with Statistics
  Canadas Special Surveys Division developed a
  Census Survey to gather data and information on
  key economic variables

5
Background

• The geomatics activities in the survey include
• Surveying (cadastral, land, hydrographic,
  geophysical, topographic, engineering, mining,
  marine, etc.)
• Mapping and cartography (photogrammetry,
  charting, geophysical, etc.)
• Geodesy, Navigation and Positioning (including
  Global Positioning System (GPS))
• Remote sensing (airborne, satellite, radar,
  lidar, etc.)
• Geospatial data management (including
  Geographical Information System (GIS))
• Geomatics consulting services
• Development of customized geospatial software
• Others

6
Survey Results
7
Geomatics Establishments
Territories and PEI 23
Stats Canada merged PEI and Territories for
confidentiality purposes
Ontario 465
BC 405
Quebec 442
Atlantic Canada (except PEI) 214
Alberta 594
Manitoba 28
Sask 50

• There are about 2,221 geomatics establishments
  across Canada that produce geomatics products or
  services. These establishments are mainly
  concentrated in Alberta, ON, Quebec and BC

8
Number of Establishments by Industry NAICS
Total number of Establishments 2,221
of Establishments

• Most of geomatics establishments fall under the
  industry classification of Surveying and
  Mapping (NAICS 541360), and Geophysical
  Surveying and Mapping (NAICS 541370)
• These two NAICS codes account for 79 of
  establishments

9
Number of Establishments by Number of Employees
of Establishments
Total number of Establishments 2,221

• The Geomatics Industry is composed mainly of
  small establishments
• 2,146 or 97 of geomatics establishments have
  less than 100 employees
• 1,550 or 70 of geomatics establishments have
  less than 10 employees

10
Employment
11
Geomatics Employees by Province
Canada Total 23,199
of Employees

• There are about 23,199 geomatics employees across
  Canada
• Alberta has the greatest number of geomatics
  employees, representing 32 of the total,
  followed by Ontario with 24, Quebec with 21,
  and BC with 14

12
Number of Employees by Industry NAICS
Total Number of Employees 23,199
of Employees

• Surveying and Mapping (NAICS 541360) has the
  greatest number of geomatics employees with
  11,595, followed by Geophysical Surveying and
  Mapping (NAICS 541370) with 4,767
• These two NAICS codes account for 71 of total
  employees in the Geomatics Industry

13
Employees by Geomatics Activity
Canada Total 23,199
of Employees

• About 12,761 geomatics employees are involved in
  Surveying activities, followed by Mapping and
  Cartography with about 2,817 employees

14
Employees and Level of Education

• Most of the employees in the Geomatics Industry
  are highly educated. Almost 70 of geomatics
  employees have attained a college diploma or a
  university degree
• However, about 46 of firms express concerns that
  Canada is experiencing a shortage of geomatics
  employees, and about 38 of firms express that
  they have difficulties hiring employees with
  appropriate geomatics skills

15
Revenue
16
Industry Revenue
2.8 billion (16 growth rate)
Million
2.4 billion (13 growth rate)
2.1 billion
2 billion Value Added - GDP

• Overall, the industry is experiencing healthy
  double digit growth rates in revenue
• Part of the growth in 2004 is attributed to the
  Oil and Gas sector, an important client to the
  Geomatics Industry, which accounted for 36 of
  revenue to the Geomatics Industry
• In 2004 value added (GDP) of the industry reached
  2 billion

17
2004 Geomatics Revenue by Province
Total Revenue 2.8 billion
Million

• Total revenue for the industry reached 2.8
  billion in 2004
• Alberta, Ontario, BC and Quebec represent about
  95 of industry revenue. Alberta accounted for
  38 of revenues with about 1 billion, followed
  by ON (32), BC (14) and Quebec (11)

18
Geomatics Revenue by Industrial Sector Clientele
Industry Revenue 2.8 Billion
Due to rounding up, the sum may not add up to
2.8 billion
Million

• The Oil and Gas Sector is an important client to
  the Geomatics Industry. About 1 billion of
  geomatics revenue comes from this sector,
  accounting for 36 of revenue to the geomatics
  industry
• The Oil and Gas Sector is the main client in
  Alberta

19
Geomatics Revenue by Client
Million

• The Business Sector (private sector) is the main
  client of geomatics products or services,
  accounting for 68 of sales revenue to the
  geomatics industry (1.9 billion), followed by
  all levels of governments and public institutions
  representing 23 (634 million)
• The importance of the Business Sector to
  geomatics firms is highlighted in Alberta where
  it accounts for 92 of total geomatics revenue in
  that province (976 M)

20
Exports
21
Export Revenue
Total Geomatics Exports 442M
Almost 400 firms exported in 2004
Million

• Total geomatics export revenue generated 442M in
  2004
• Ontario accounts for 55 of export revenue with
  244M, followed by Alberta with 65M (15), B.C.
  with 63M (14) and Quebec with 33M (7)

22
Exports by Region of Destination
Total Geomatics Exports 442M
Million

• The US is the main destination of geomatics
  exports with 169 million or 38 of export
  revenue, followed by South America with 87
  million or 20 of export revenue
• Together, South America, Mexico, and Central
  America account for 25 of export revenue

23
RD and Innovation
24
Geomatics RD Expenditure

• Total RD expenditure on geomatics activities
  reached 97 million in 2004
• Most of the funding for RD came from parent,
  affiliated or subsidiary firms
• On a per firm basis, large establishments (hiring
  100 or more workers) spend the most on RD
  activities with about 300K per firm
• Smaller firms spend less (on a per firm basis) on
  geomatics RD and therefore are less inclined to
  be innovative

25
Innovation

• About 31 of geomatics establishments are
  innovators
• The main type of innovation for the overall
  industry is process innovation as opposed to
  product innovation, although this varies by
  firms size
• The majority of firms hiring less than 50 workers
  are not innovators
• 78 of large firms (hiring 100 or more workers)
  are innovators, primarily introducing new
  products to the market
• The majority of geomatics firms that export (63)
  are innovators

26
Percentage of Innovators Exporter Firms
Percentage of Establishments
Total Exporter Firms 386

• The majority of geomatics establishments that
  export are innovators
• About 63 of establishments that export are
  innovators, this is consistent with other
  economic findings that state that companies that
  export tend to be innovative and more productive
  than non-exporting establishments

27
Geomatics Activities
28
Geomatics Activities by Establishments
Firms may provide more than one geomatics
activity, therefore totals do not add up to 2,221
establishments
of Establishments

• The most common geomatics activity is Surveying
  with 1,523 establishments (69 of the industry)
  providing this activity
• The second most common activity is Mapping and
  Cartography provided by 777 establishments (35
  of the industry)

29
Obstacles to Growth
30
Obstacles to Growth-All Firms-
of Establishments

• The main obstacles to growth as reported by
  establishments include cost of technology lack
  of skilled personnel lack of market demand and,
  government regulation policies

31
Obstacles to Growth Exporter Firms-
of Establishments

• The main obstacle to growth as reported by the
  majority of establishments in this sub-group is
  the cost of technology
• Lack of marketing capabilities, cost of doing
  business internationally, and lack of market
  demand are also significant inhibitors to growth

32
Obstacles to RD and Innovation
33
Obstacles to RD or Innovation-All Firms-
of Establishments

• The main obstacles to RD or Innovation reported
  by establishments include cost of technology
  lack of skilled personnel access to
  capital/financing lack of market demand and
  lack of marketing capabilities

34
Obstacles to RD or Innovation-Exporter Firms-
of Establishments

• The main obstacles to RD or Innovation reported
  by the majority of exporter firms include cost
  of technology and access to capital/financing

35
Obstacles to Exports
36
Obstacles to Exports-All Firms-
of Establishments

• The main obstacles to export as reported by
  establishments include cost of doing business
  internationally lack of marketing capabilities
  cost of technology and lack of skilled personnel

37
Obstacles to Exports Exporter Firms-
of Establishments

• The main obstacle to export as reported by
  exporter firms include the cost of doing
  business internationally lack of marketing
  capabilities the cost of technology and access
  to capital/financing

38
Growth Prospects
39
Growth Prospects for Geomatics Activities-All
Firms-
of Establishments

• About 66 of establishments feel that the
  geomatics activity of Surveying will experience
  growth within the next five years, followed by
  Geodesy-Navigation and Positioning, and
  Mapping and Cartography

40
Growth Prospects for Geomatics Activities-Exporte
r Firms-
of Establishments

• Geospatial Data Management (GIS) is expected to
  experience growth within the next five years by a
  majority of exporter firms, followed by Remote
  Sensing, Geomatics Consulting Services and
  Dev. of Customized Geospatial Software

41
Regional Growth Expectations-All Firms-
of Establishments

• About 75 of establishments identified Canada as
  a growth prospect region for geomatics products
  or services over the next 5 years, followed by
  the US with 42 of establishments

42
Regional Growth Expectations-Exporter Firms-
of Establishments

• For the majority of geomatics exporting firms,
  Canada and the US represent future growth
  opportunities, followed by China, South America,
  and others

43
Summary

• Establishments
• There are about 2,221 geomatics establishments in
  Canada mainly located in Alberta, Ontario,
  Quebec, and BC
• Most geomatics firms are classified under
  Surveying and Mapping Industry NAICS 54136
  and Geophysical Surveying and Mapping NAICS
  54137, accounting for 79 of firms
• The geomatics industry is composed mainly of
  small firms with 70 of firms having less than 10
  employees 94 of firms having less than 50
  employees, and 97 of firms having less than 100
  employees

44
Summary

• Employment
• There are about 23,199 geomatics employees across
  Canada
• Alberta has the greatest number of geomatics
  employees with 7,329 representing 32 of the
  total. Ontario has 5,611 representing 24 of the
  total. Quebec has 4,916 representing 22 of the
  total. BC has 3,144 representing 14 of the
  total
• Most geomatics employees are under the industry
  NAICS classification of Surveying and Mapping
  NAICS 54136 and Geophysical Surveying and
  Mapping NAICS 54137, accounting for 71 of total
  employees
• A large number of geomatics employees are
  involved in the geomatics activity of Surveying
  with 12,761 employees performing this activity,
  followed by Mapping and Cartography with 2,817
  employees involved in this geomatics activity.
  These two activities account for 67 of total
  geomatics employees
• Geomatics employees are highly educated with
  almost 70 of them having a University degree or
  a College diploma

45
Summary

• Revenue
• The industry is experiencing healthy double digit
  growth rates. In 2004, revenue reached 2.8
  billion, an increase of 16 from the previous
  year
• Most of the revenue to the industry is attributed
  to geomatics firms in Alberta with 1 billion,
  representing 38 of total revenue, followed by
  Ontario with 901 million (32), BC with 402
  million (14), and Quebec with 303 million (11)
• These four provinces account for 95 of industry
  revenue

46
Summary

• Revenue
• In terms of clientele by industrial sector, about
  1 billion came from clients in the Oil and Gas
  sector, followed by Property (including housing)
  with 448 million Engineering and Construction
  with 267 million Geology and Mining with 258
  million, among others
• In terms of clients, the Business Sector accounts
  for 68 of revenues to the industry followed by
  Government and Public Institutions accounting for
  23 of revenue Individuals and Households
  accounting for 8
• The Business Sector is the main client of
  geomatics products or services in Ontario,
  Alberta and BC. While in Quebec, Government and
  Public Institutions is the main client

47
Summary

• Exports
• There are almost 400 geomatics firms that export
• Exports in 2004 reached 442 million
• Ontario accounts for 55 of export revenue with
  244 million followed by Alberta with 65
  million (15) BC with 63 million (14) and
  Quebec with 33 million (7)
• The US was the main destination of geomatics
  exports with 169 million (38 of total)
  followed by South America with 87 million (20
  of total) and Europe with 56 million (13 of
  total)

48
Summary

• GDP
• The direct contribution to the economy by the
  Geomatics Industry was about 2 billion in 2004

49
Summary

• RD
• Total RD expenditure on geomatics activities
  reached 97 million in 2004
• Companies in Ontario devoted the most to RD
  activities followed by BC Quebec and Alberta
• Most of the funding for RD came from parent,
  affiliated or subsidiary firms
• Most RD was carried out in house
• Obstacles to RD or Innovation
• The main obstacles to RD and innovation, as
  reported by all firms, include cost of
  technology lack of skilled personnel access to
  capital/financing lack of market demand and
  lack of marketing capabilities, among others.

50
Conclusion

• Most of the geomatics firms are concentrated in
  two main NAICS codes
• Surveying and Mapping (NAICS 54137)
• Geophysical Surveying and Mapping (NAICS 54136)
• The Industry is mainly concentrated in Alberta,
  Ontario, Quebec, and BC, in terms of revenue,
  employees and number of establishments
• All geomatics activities are expected to
  experience high or medium growth prospects in the
  near future by large firms and exporter firms

51
Conclusion

• The 2004 Geomatics Industry Census Survey results
  are providing valuable information on the
  industry
• The Survey results are the most accurate
  quantitative source of information on the
  industry to date, complementing previous studies
• The Survey results provide an important tool for
  analysis and development of policy related to the
  industry

52
ESS Contact Information

• If you would like to provide comments or if you
  have any questions please do not hesitate to
  contact one of the following individuals
• Rodrigo Arancibia 613-944-6117 rarancib_at_nrcan.gc.c
  a
• Tammy Nguyen 613-944-4709 tanguyen_at_nrcan.gc.ca

Thank you