Construction in Canada - Key Trends and Opportunities to 2024

Construction in Canada - Key Trends and Opportunities to 2024

Summary
Despite the resurgence of new Coronavirus (COVID-19) cases across the country, The analyst has upwardly revised its Canada construction output forecasts for 2020 (-4.2% vs -5.4% previously) and 2021 (-2.0% vs. -2.2% previously), as the performance of the residential construction market has been better than expected, while the recent news of successful vaccine developments presents optimism for the short-term outlook. Prior to the COVID-19 outbreak, The analyst was expecting the construction industry in Canada to rise by 0.9% in 2020 and 1.2% in 2021, thanks to a rebound in the residential construction market that started at the end of 2019, as well as progress made in major infrastructure projects under the government’s long-term infrastructure scheme, the ’Investing in Canada Plan’.

The latest data from Statistics Canada shows that the country’s construction industry continued to fall in Q3 2020, although at a slower rate compared to the previous quarter, with the industry posting a year-on-year (Y-o-Y) decline of 3.8% compared to 10.3% in Q2 2020. Canada’s construction industry has been recovering faster than expected in recent months, bolstered by increasing investment in residential building construction and the easing of the government’s restrictions to slow the spread of the virus (which started to take place since May). The country’s residential market has been benefiting from lower interest rates, pent-up demand for new homes and a shift in remote work. In August 2020, residential building construction was already 1.8% above February’s levels, according to data from Statistics Canada, even though the country’s economy is still emerging from the steepest economic downturn since the Great Depression.

Although a COVID-19 vaccine is on the horizon, and Canada’s economy is expected to recover to a robust pace in 2021, the number of COVID-19 cases in Canada continues to accelerate rapidly throughout the country, while the colder weather - coupled with the risks of renewed or extended lockdowns and travel restrictions, and future developments in commodity prices - represent major challenges to the short-term outlook.The analyst expects investment in building construction to continue to fall in the coming months, which will limit the rebound of the sector in the first half of 2021.

Nonetheless, the government’s plans to develop the country’s infrastructure and increase investment in the renewable energy sector should support the construction industry going forward, while its recent decision to extend the ’Canada Emergency Wage Subsidy Program’ until June 2021 should prevent major job losses ahead. Until the COVID-19 vaccine arrives in 2021, however, the recovery of the industry is expected to remain slow and uneven.

This report provides detailed market analysis, information, and insights into Canada’s construction industry, including -
- Canada’s 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 Canada’s 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.

It provides -
- Historical (2015-2019) and forecast (2020-2024) 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 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 critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.