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The construction industry in Canada registered an annual growth of 6.1% in real terms in 2021, compared to a decline of 2% in 2020. Last year, the industry’s output was supported by an improvement in residential building construction and civil engineering activities, which registered annual growth of 13% and 1.8%, respectively. Additionally, progress in the country’s vaccination drive, an increase in household incomes and a recovery in the global economy also supported the industry’s growth in 2021.
The publisher expects the Canadian construction industry to expand by 4% in real terms this year, as strong building permit data has underpinned strong growth in 2022. According to Statistics Canada, the value of building permits rose by 8.3% in 2021, with the value of residential buildings rising by 9.1% and that of non-residential buildings rising by 6.8% last year. The industry’s output will be supported by investments in residential, transport, housing and oil and gas projects. In January 2022, the Canadian Association of Petroleum Producers (CAPP) reported that capital spending in the country’s oil and gas sector is expected to rise by 22% and reach CAD32.8 billion ($26.1 billion) in 2022. However, the rise in construction material prices, labour shortages and the recent hike in interest rates could pose a downside risk to the industry’s outlook in the initial part of the forecast period. According to Statistics Canada, the residential building construction price index rose by 18.1% in 2021, while that of non-residential buildings rose by 6.9% in the same year.
The industry is expected to register an annual average growth of 2.2% from 2023 to 2026, supported by public project growth as longer-term investment plans come to fruition such as the government’s three-year ‘Growth Plan’, which was announced in October 2020. It includes an investment of CAD10 billion ($7.5 billion) on clean energy projects, broadband projects, building retrofitting, agriculture irrigation projects and electric buses and charging infrastructure. This plan is a part of the government’s wider long-term infrastructure plan known as the ‘Investing in Canada Plan’; it was launched in 2016 and involves an investment of CAD188 billion ($141.8 billion) over a period of 12 years. As of February 2022, over 78,000 projects worth CAD118.5 billion ($95.7 billion) had been approved, with 98% of them completed or underway.
The publisher expects the Canadian construction industry to expand by 4% in real terms this year, as strong building permit data has underpinned strong growth in 2022. According to Statistics Canada, the value of building permits rose by 8.3% in 2021, with the value of residential buildings rising by 9.1% and that of non-residential buildings rising by 6.8% last year. The industry’s output will be supported by investments in residential, transport, housing and oil and gas projects. In January 2022, the Canadian Association of Petroleum Producers (CAPP) reported that capital spending in the country’s oil and gas sector is expected to rise by 22% and reach CAD32.8 billion ($26.1 billion) in 2022. However, the rise in construction material prices, labour shortages and the recent hike in interest rates could pose a downside risk to the industry’s outlook in the initial part of the forecast period. According to Statistics Canada, the residential building construction price index rose by 18.1% in 2021, while that of non-residential buildings rose by 6.9% in the same year.
The industry is expected to register an annual average growth of 2.2% from 2023 to 2026, supported by public project growth as longer-term investment plans come to fruition such as the government’s three-year ‘Growth Plan’, which was announced in October 2020. It includes an investment of CAD10 billion ($7.5 billion) on clean energy projects, broadband projects, building retrofitting, agriculture irrigation projects and electric buses and charging infrastructure. This plan is a part of the government’s wider long-term infrastructure plan known as the ‘Investing in Canada Plan’; it was launched in 2016 and involves an investment of CAD188 billion ($141.8 billion) over a period of 12 years. As of February 2022, over 78,000 projects worth CAD118.5 billion ($95.7 billion) had been approved, with 98% of them completed or underway.
The report 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. It provides:
- Historical (2017-2021) and forecast (2022-2026) 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 the publisher'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 the publisher's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
