Despite the adverse effects of the COVID-19 (coronavirus) pandemic, certain industries have still been able to prosper in 2021. Although the Canadian economy has experienced a steady recovery compared with the slump experienced in 2020, many industries have still endured similar challenges they encountered in 2020; however, certain industries have been able to prosper for several reasons.
Pillars for success:
- Natural recovery from greater economic stability
- Adapting to current market conditions and trends
- Providing essential products
Due to the implementation of these success tactics, certain industries have been able to achieve a higher profit margin and even outperform the Canadian economy, which will likely grow an annualized 1.4% over the five years to 2021.
Of the reasons for success mentioned above, natural recovery and adapting to current conditions and trends apply to many of the most prosperous industries in 2021. Although many industries experienced a slight recovery in 2021, the Canadian Scheduled Air Transportation industry has experienced revenue rise 97.8% in 2021 alone. The industry's robust growth can be mainly attributed to steady economic recovery following the peak of the pandemic, which forced Canadian borders to shut down to mitigate the spread of coronavirus. As the border reopened and travel restrictions eased in mid 2021, pent-up demand from consumers seeking to travel propelled this industry’s revenue growth in 2021.
Adapt or atrophy
In addition, industries able to adapt to evolving trends and cater to consumers' needs have also flourished in 2021. For example, certain recreational activity industries have thrived during the current operating environment by altering their services to cater to evolving consumer demand. The Canadian Campgrounds and Recreational Vehicle Parks industry has experienced one of the largest increases in revenue in 2021, rising 123.2% in 2021 alone. Since most plans have been cancelled due to the pandemic, consumers opted for domestic getaways while avoiding large crowds.
Additionally, the Canadian Ski and Snowboard Resorts industry has experienced a large growth in industry value add (IVA), which measures an industry’s contribution to the overall economy. Skiing and snowboarding establishments are considered socially-distanced activities and are open during most months. In addition, while operators were forced to shut down during the peak of the pandemic, they upgraded their resorts to ensure consumers feel safe and clean during their stay. Despite being hit the hardest by the pandemic, certain arts, entertainment and recreation industries experienced some of the largest gains in 2021 as a result.
Essential production
Subsequently, industries that manufacture essential or high-demand products have also sustained proliferated growth in 2021. For example, the Canadian SUV and Light Truck Manufacturing industry experienced high demand from several downstream markets; operators endured demand from consumers that wanted to purchase a larger vehicle for vacations at campgrounds and recreational vehicle parks. In addition, since housing starts have grown 29.9% in 2021 alone, demand from contractors has also expanded since they need large vehicles to transport equipment from different projects.
Overall, despite many industries experiencing a recovery in 2021, those that were able to follow some of the pillars of success experienced the largest growth rates in revenue and IVA. As a result, certain industries most affected by the pandemic in 2020 rebounded with some of the highest growth rates in 2021.
