GlobalData: Canada's construction industry inspected to grow

Canada’s construction industry output value was estimated to be US$291.2bn in 2018. This is expected to grow to US$304.6bn in 2023 (measured at constant 2017 US dollar exchange rates), at a compound annual growth rate (CAGR) of 0.90%, according to GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Construction in Canada - Key Trends and Opportunities to 2023’ reveals that Canada’s construction industry growth decelerated to 0.6% in 2018, after growing at a 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$139bn in key infrastructure sectors through 2028.

Danny Richards, Lead Economist at GlobalData, comments: “In addition, 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. Forecast-period market growth will 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 US$943.0m to provide financial help to first-time homebuyers during 2019–2022.

The total construction project pipeline in Canada – as tracked by GlobalData, and including all mega projects with a value above US$25m – 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.

 

CONTACT

Global Data Media Centre

EMEA & Americas: +44 (0)207 832 4399

Asia-Pacific: +91 40 6616 6809

Related articles:

Construction in ASEAN region to grow by over 6% annually over next five years

In a recent White Paper prepared by leading data and analytics company GlobalData for Intermat Asean 2018 and Concrete Asia 2018, the region’s trade shows for construction, infrastructure and...

more

Morgan Stanley tops GlobalData’s M&A financial adviser league table in the construction sector for FY2018

Morgan Stanley has topped the latest M&A league table of the top 10 financial advisers in the construction sector for FY2018, compiled by GlobalData, a leading data analytics company. Morgan Stanley...

more

What will the job site of the future look like?

Construction is poised to be one of the fastest-growing global industries, with PwC forecasting that the worldwide volume of construction output will grow 85% by 2030. How will the industry, which is...

more
09/2013

Off to Africa

Sub-Saharan Africa is becoming increasingly important for companies in the international cement and concrete industry and its supplier companies. The demand for construction services in the 49...

more

Dywidag-Systems International acquires Datum Group

Global engineering giant Dywidag-Systems International has announced its acquisition of UK-based leading global monitoring company, Datum Group. Datum was founded in 1999 by its current owner and CEO...

more