Canada’s construction industry output value has been predicated to increase from 2018’s figure of US$291 billion to US$304 billion in 2023, according to a report by GlobalData.
The report revealed that Canada’s construction industry growth decelerated to 0.6% in 2018, after growing at a compound annual growth rate (CAGR) of 4.3% in 2017.
The sharp deceleration in activity was mainly driven by significant declines in residential construction, as well as repair, engineering and other construction activities.
The government’s planned investments in infrastructure are expected to support the growth of Canada’s construction industry. Under the ‘Investing in Canada Plan’, the government plans to invest a total of US$139 billion in key infrastructure sectors from now until the year 2028.
Danny Richards, lead economist, GlobalData, said, “The government’s aim to improve local energy resources is expected to support investment in energy infrastructure projects, which will in turn fuel growth in the industry.”
Residential construction was the largest market in the Canadian construction industry in 2018, accounting for 43.7% of its total value. This forecast market growth will be supported by the government’s efforts to build affordable houses. In the 2019 budget, the Canada Mortgage and Housing Corporation announced plans to spend US$943 million to provide financial help to first-time home buyers during 2019–2022.
The total construction project pipeline in Canada – including all mega projects with a value above US$25 million – stands at approximately CAD1.4 trillion (US$1.1 trillion). The pipeline, which includes all projects from pre-planning to execution, is relatively skewed towards late-stage projects, with 54.5% of the pipeline value being in projects in the pre-execution and execution stages as of May 2019.
To view the report, click here.