Construction in Canada - Key Trends and Opportunities to 2023

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 -

• The Canadian construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Canadian construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

• This report provides a comprehensive analysis of the construction industry in Canada.
• Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Canada, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants.

Reasons to buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.

Table of Contents

1. EXECUTIVE SUMMARY

2. CONSTRUCTION OUTLOOK: AT-A-GLANCE

3. LATEST NEWS AND INDICATORS

4. KEY DRIVERS AND RISKS

• 4.1. Economic Performance
• 4.2. Political Environment
• 4.3. Demographics
• 4.4. Risk Profile

5. CONSTRUCTION OUTLOOK

• 5.1. All Construction
• 5.1.1. Outlook
• 5.1.2. Project analytics
• 5.2. Commercial Construction
• 5.2.1. Outlook
• 5.2.2. Project analytics
• 5.3. Industrial Construction
• 5.3.1. Outlook
• 5.3.2. Project analytics
• 5.4. Infrastructure Construction
• 5.4.1. Outlook
• 5.4.2. Project analytics
• 5.5. Energy and Utilities Construction
• 5.5.1. Outlook
• 5.5.2. Project analytics
• 5.6. Institutional Construction
• 5.6.1. Outlook
• 5.6.2. Project analytics
• 5.7. Residential Construction
• 5.7.1. Outlook
• 5.7.2. Project analytics

6. KEY INDUSTRY PARTICIPANTS

• 6.1. Contractors
• 6.2. Consultants

7. APPENDIX

• 7.1. What is this Report About?
• 7.2. Definitions

8. ABOUT GLOBALDATA

• 8.1. GlobalData at a Glance
• 8.2. GlobalData Construction
• 8.3. Disclaimer
• 8.4. Contact Us

List of Tables

• Table 1: Construction Outlook
• Table 2: Canada, Key Economic Indicators
• Table 3: Canada, Construction Output Value (nominal, CAD Million)
• Table 4: Canada, Construction Output Value (nominal, US$ Million)
• Table 5: Canada, Top Commercial Construction Projects by Value
• Table 6: Canada, Top Industrial Construction Projects by Value
• Table 7: Canada, Top Infrastructure Construction Projects by Value
• Table 8: Canada, Top Energy and Utilities Construction Projects by Value
• Table 9: Canada, Top Institutional Construction Projects by Value
• Table 10: Canada, Top Residential and Mixed-Use Construction Projects by Value
• Table 11: Canada, Key Contractors
• Table 12: Canada, Key Consultants
• Table 13: GlobalData Construction Market Definitions
• Table 14: Construction Risk Index Ratings and Scores

List of Figures

• Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix
• Figure 2: Canada, Construction Projects Pipeline by Sector (CAD Billion)
• Figure 3: Canada, Construction Permits Value (CAD, Million)
• Figure 4: Canada, Industrial Building Investment (CAD, Million)
• Figure 5: Canada, Risk Profile
• Figure 6: Canada, Risk Comparison
• Figure 7: Canada, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)
• Figure 8: Canada, Construction Output Value, Growth Matrix
• Figure 9: Canada, Construction Output Value, by Sector (CAD Million), 2014-2023
• Figure 10: Canada, Construction Projects Pipeline, Projected Annual Spending by Stage (CAD Million), 2018-2023
• Figure 11: Canada, Construction Projects Pipeline, Value by Stage (CAD Million)
• Figure 12: Canada, Commercial Construction Output by Project Type (CAD Million), 2014-2023
• Figure 13: Canada, Commercial Construction Projects Pipeline, Value by Stage (CAD Million)
• Figure 14: Canada, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (CAD Million), 2018-2023
• Figure 15: Canada, Industrial Construction Output by Project Type (CAD Million), 2014-2023
• Figure 16: Canada, Industrial Construction Projects Pipeline, Value by Stage (CAD Million)
• Figure 17: Canada, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (CAD Million), 2018-2023
• Figure 18: Canada, Infrastructure Construction Output by Project Type (CAD Million), 2014-2023
• Figure 19: Canada, Infrastructure Construction Projects Pipeline, Value by Stage (CAD Million)
• Figure 20: Canada, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (CAD Million), 2018-2023
• Figure 21: Canada, Energy and Utilities Construction Output by Project Type (CAD Million), 2014-2023
• Figure 22: Canada, Energy and Utilities Construction Projects Pipeline, Value by Stage (CAD Million)
• Figure 23: Canada, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (CAD Million), 2018-2023
• Figure 24: Canada, Institutional Construction Output by Project Type (CAD Million), 2014-2023
• Figure 25: Canada, Institutional Construction Projects Pipeline, Value by Stage (CAD Million)
• Figure 26: Canada, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (CAD Million), 2018-2023
• Figure 27: Canada, Residential Construction Output by Project Type (CAD Million), 2014-2023
• Figure 28: Canada, Residential Construction Projects Pipeline, Value by Stage (CAD Million)
• Figure 29: Canada, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (CAD Million), 2018-2023
• Figure 30: Canada, Headquarters of Key Contractors (% of Total Project Pipeline)
• Figure 31: Canada, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)
• Figure 32: Canada, Headquarters of Key Consultants (% of Total Project Pipeline)
• Figure 33: Canada, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)