Economy: Industry Composition

Prince Edward County, Ontario, Canada.

Updated March 28, 2024

Page Contents:

Businesses by size |
Business sectors

The economy of PEC is deeply rooted in agriculture, viticulture and tourism. Yet as a new, more knowledge-intensive economy continues to grow globally, so too does PEC’s base of knowledge workers and companies.

Businesses by size

(Source: Statistics Canada, Business Counts June 2023, Census subdivision. Custom calculation)

Across PEC as of June 2023, there were approximately 1,079 business establishments with employees. Like most regions in Canada, the majority of businesses in PEC are small. Of those businesses with employees, 60.4% have fewer than five employees (micro businesses) and 99.1% have fewer than 100 employees (small businesses). There are only 10 establishments with 100 or more employees.

Business sectors

Top industry sectors by number of businesses (with employees)

In Prince Edward County, a higher percentage of total businesses operate within the Agriculture, Construction, Manufacturing, Arts, Sports, Entertainment, Recreation, and Accommodation and Food Services sectors when compared to the province of Ontario.

Despite pandemic restrictions, the number of businesses with employees increased from 875 (June 2019) to 1,079 (June 2023). The hospitality sector was hard hit, with the accommodation & food services recovering more quickly than retail. Labour shortages and supply chain issues are slowing growth.

Although the number of business decreased in professional, scientific and technical services and real estate, there were increases in the number of self-employed people working in these sectors (see details below).

Agriculture sector

Agriculture sector	PEC 2006	PEC 2011	PEC 2016	PEC 2021
Land in crops (acres)	92,451	86,317	86,027	79,212
Number of farms	520	477	432	375
Average age of farm operators	51.7	54.8	56.4	58.4
Farms reporting a written succession plan	--	--	34	44
Direct sales of agricultural products to consumers	--	--	105	94
Organic products for sale	--	5	14	11

The COVID-19 pandemic added to farming challenges in the form of labour shortages, disruptions in the food supply chain, and rising input prices. Trends identified in previous census cycles, such as industry consolidation and aging of farm operators, have continued in 2021. Farmland continues to be lost to non-agricultural land uses like urban development and aggregate extraction (see details).

Employment

In addition to 1,079 businesses with employees, there are 2,254 locations with self-employment. 29.8% of the PEC workforce is self-employed, compared to Ontario at 13.6% (The Daily, Stats Canada October 2021)

High growth self-employment areas during the pandemic include real estate leasing services; professional, scientific & technical services; and specialty trade contractors.

In the table below, locations without employees include the self-employed, i.e. those who do not maintain an employee payroll, but may have a workforce which consists of contracted workers, family members or business owners. (Source: Statistics Canada, Business Counts June 2023, Census subdivision. Custom calculation)

Sectors in 2023	No. of businesses with employees	No. of locations without employees	Details
Construction (NAICS 23)	165	216	Construction of new housing stock and renovations is active through the influx of new residents. Specialty trades are a high growth area.
Health care and social assistance (62)	116	125	Health care services are influenced by the large senior population.
Retail trade (44-45)	100	109	The retail sector is recovering from pandemic restrictions.
Accommodation and food services (72)	98	124	Strong tourism bolsters the Accommodation & Food Services and Retail Trade sectors.
Agriculture, forestry, fishing and hunting (11)	90	236	Agriculture is a mainstay industry, with spin-off benefits in many other industries such as beverage manufacturing, food services, and retail trade. A farm-to-table industry offers agri-food experiences, while also delivering on a viable industry/sector from production to processing to wholesale to retail.
Professional, scientific and technical services (54)	80	271	This has been a high growth area for independent workers during the pandemic.
Other services except public administration (81)	77	105	This category encompasses a wide range including repairs & maintenance, laundry services, religious & service organizations.
Manufacturing (31-33)	63	65	Manufacturing includes cement and concrete product manufacturing, beverage manufacturing (wine, beer, cider, spirits), and dairy product manufacturing.
Real estate and rental and leasing (53)	50	680	Real estate has been another growth area for independent workers during the pandemic.

Health Care & Social Assistance employs the most people, followed by Accommodation & Food Service that is bolstered by the strong tourism economy. Professional, scientific and technical services have increased employment, especially with remote work since the pandemic. Retail Trade has not fully recovered from pandemic restrictions. The construction industry remains strong with new home construction and renovations. Arts, entertainment and recreation comprises 2.8% of the workforce, which is high compared to Ontario 1.7%.

Only about half of small businesses are back to pre-pandemic sales levels. In addition, businesses are grappling with rising input costs, labour shortages, supply chain issues and lingering pandemic debt. (Canadian Federation of Independent Business (CFIB)