Market Research Report
Construction in Canada - Key Trends and Opportunities to 2023
|Published by||GlobalData||Product code||841577|
|Published||Content info||51 Pages
Delivery time: 1-2 business days
|Construction in Canada - Key Trends and Opportunities to 2023|
|Published: May 10, 2019||Content info: 51 Pages||
The Canadian construction industry registered minimal growth in 2018, with output expanding by 0.6% in real terms - down from 4.3% in 2017. The industry's output value, measured at constant 2017 US dollar exchange rates, increased from US$289.5 billion in 2017 to US$291.2 billion in 2018. The sharp deceleration in activity was mainly driven by significant declines in residential construction, as well as repair, engineering and other construction activities. Overall, the industry posted negative growth during the review period (2014-2018), registering a compound annual growth rate (CAGR) of -0.29% in real terms.
In real terms, the industry's output value is expected to post a forecast-period CAGR of 0.90%, to value US$304.6 billion in 2023, measured at constant 2017 US dollar exchange rates. Over the forecast period (2019-2023), Canadian construction activity is expected to be supported by the government's planned investments in infrastructure. Under the Investing in Canada Plan, the government plans to invest a total of CAD180 billion (US$139 billion) in key infrastructure sectors through 2028. The industry's output is also expected to be supported by improvements in business confidence over the forecast period, which will drive investment in overall infrastructure.
The largest market in the industry during the review period was residential construction, accounting for 43.7% of its total value in 2018. Forecast-period market output is expected to be supported by the government's efforts to build affordable houses. In the 2019 budget, the Canada Mortgage and Housing Corporation (CMHC) announced plans to spend CAD1.3 billion (US$943.0 million) to provide financial help to first-time home buyers during 2019-2022.
Energy and utilities construction was the second-largest market in the industry, accounting for 27.4% of the industry's total value in 2018. The market is expected to retain its position over the forecast period, to account for 27.2% of the total industry's total value in 2023. Market output over the forecast period is expected to be supported by government efforts to increase energy production and focus on renewable energy infrastructure.
The total construction project pipeline in including all mega projects with a value above US$25 million - stands at 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.
The report "Construction in Canada - Key Trends and Opportunities to 2023", provides detailed market analysis, information and insights into the Canadian construction industry, including -