Building peak

Profits in Canada's non-residential construction industry are expected to peak this year before tailing off until at least 2011, according to the latest report by the Conference Board of Canada (CBC).

“Construction of office buildings, especially in Alberta and Ontario, is the main reason for the record financial performance in recent years. However, rising material and labour costs are starting to trim builders’ profit margins. Since labour accounts for a third of all costs, the tight labour market is of particular concern for the industry.” said Valerie Poulin, an economist at the CBC.