This is why Contractors don’t buy Electric Vehicle in Canada

March 25, 2023March 25, 2023 Top Quality Canada canada, Combustion engine, Contractors, electric vehicle, EV, Expansive choice for contractors, Light trucks, Number one vehicle choice for contractors, Pick up trucks, Small businesses

The contracting and small business sector in Canada plays a vital role in the country’s economy. As Canada starts to mandate EV for 2025 and 2030, Canadian small businesses just don’t seem to be interested in this transition.Small business sector provides employment opportunities, contributes to innovation and competition, and supports economic growth. In this article, we will explore the size and significance of the contracting and small business sector in Canada and why electric vehicles just don’t make sense for the majority.

Definition of small business

Typically, companies classified as small businesses have fewer than 100 employees. 98% of all firms in Canada are small businesses, and 8.3 million Canadians—or 69.7% of the private sector’s workforce—are employed by them. In addition, small firms in Canada contributed 41.3% of the GDP in the private sector in 2019. In Canada, small enterprises are mostly centred in the service industry, with the biggest concentrations in professional, construction, and retail sectors.

Businesses that offer a variety of services, such as consulting, construction, and engineering, are a part of the Canadian contracting sector. With an expected value of more than $250 billion in 2019, the contracting sector is a substantial contribution to the Canadian economy. 7.5% of the workforce in Canada, or 1.4 million people, are employed in this area. The largest portion of this employment is in the contracting sector, which includes the construction industry, which employs about 1.2 million people in Canada.

EV still not economical for small businesses

While vital to the Canadian economy, the small company and contracting sector nonetheless faces a number of difficulties. Access to money is one of the biggest obstacles. Even though the CSBFP is a program run by the Canadian government to assist small businesses, many of them still have trouble getting finance. This may restrict their ability to develop and broaden their business.

Labor shortages are a serious issue for the contracting industry. A lack of skilled personnel, particularly in the construction sector, can cause projects to be delayed and cost more money.

One of many real struggles of all small businesses are the growing expanses! Labour shortages, government decision to increase minimum wage and inflation did not make it easier for such an important Canadian business sector. Cost of material went up in price, fuel prices rose, machinery needed for performing many jobs got more expansive and so the vehicles needed to transport personnel and material.

Despite the gasoline price increase, very few small business owners think about buying an EV in the near future. But why?

When it comes to contractors vehicle choice, there are two major choices; Pick up trucks and Cargo Vans. Depending on what type of small business, almost all contractors use one or the other vehicle for daily commute, material and machinery transportation.

Contractors continue to rely on gasoline and diesel vehicles rather than electric vehicles for their operations. While electric vehicles (EVs) have become increasingly popular in recent years, especially in the passenger vehicle market, the adoption of EVs in the commercial sector, including contractors, has been slow to none.

Major factors for sticking with internal combustion engines

Cost is one of the main factors keeping Canadian contractors from switching to electric cars. An EV often costs more up front than an equivalent gasoline or diesel vehicle. Even while EVs often have lower operating expenses, the upfront cost might be a major deterrent for contractors, especially those with tighter budgets.

Cost of EV light trucks compared to diesel or gasoline vehicles

Entry level 1.5 tone ICE pick up truck: $35.000

Entry level 1.5 tone EV pick up truck: $79.000

Range of Vehicles

Range concern is another deterrent for Canadian contractors from adopting EVs. Many contractors work in rural or distant locations with little access to the infrastructure needed for charging. They can find it challenging to finish their work because they’ll be concerned that their batteries would die. Diesel and gasoline vehicles are more practical and have longer ranges in these circumstances.

Range of entry level 6 cylinder gasoline 1.5 tone regular gasoline pick up truck without heavy load or towing: about 700 km
Range of entry level 6 cylinder gasoline 1.5 tone regular gasoline pick up truck with heavy load or towing: between 500 km and 650 km
Range of entry level EV 1.5 tone pick up truck without heavy load or towing: about 370 km
Range of entry level EV 1.5 tone pick up truck with heavy load or towing: unknown

Payload

Contractors also need to consider the load capacity of their vehicles. Many electric trucks currently on the market have limited load capacities, which can be a disadvantage for contractors who need to transport heavy equipment or materials. While electric trucks are slowly increasing their load capacities, it will take time before they can compete with their gasoline and diesel counterparts in terms of load capacity.

Currently only 1.5 tone pick up trucks with EV technology are on the market, no information on when 2.5 or 3.5 tone pick up trucks might be on the market.

Current EV possibilities for contractors

Choices for contractors are out there, still contractors seem to be uninterested at choices presented at the moment.

2023 Rivian R1T Price: from $98.500

500 km. and 640 km. range depending on the model
835 hp, 908 lb-ft torque
Payload: 1,760 pounds
Towing: 11,000 pounds

2023 GMC Hummer EV Price: from $88.900

560 km range
Up to 1,000-hp with tri-motor, 7,400 lb-ft torque
Payload: Not released as of November 10, 2021
Towing: Not released as of November 10, 2021

2023 Tesla Cybertruck Price: estimated $64.000

400 km. range with single motor, 480 km. range with dual, 800 km. range with tri
1,020 hp, 1,050 lb-ft torque
Payload: 3,500 pounds
Towing: 7,500 pounds, 10,000 pounds, or 14,000 pounds depending on motor

2023 Bollinger B2 Price: US $125.000