The Canadian Construction Industry expects that 2007 will witness the start of a gradual cooling trend in the overall industry, led by a small decline in activity in the residential construction sector. After recording growth in construction investment of 3.2% in 2005 and 3.4% in 2006, the overall Canadian construction industry is expected to witness growth of 1.7% in the years 2007, 2008 and 2009.
Aruvian Research analyzes the Canadian Construction Industry in the Michael Porter’s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macroenvironment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.
