New Business Offerings to Construction Companies Market Research Report in Canada and USA

The report demonstrates opportunities for establishing a niche service providing business in the construction industry. It reviews the market for providing outsourcing services of accounting, human resources, and IT administration functions in Canada and the US.

The growth in the construction industry in Canada and the United States slowed down in 2020 due to the COVID-19 pandemic; however, it is projected to recover in 2021 and continue increasing. It will result in an increased demand for specialized professional services in both countries in general, as well as in the Greater Toronto Area and Vancouver, which are considered to be the drivers of the construction industry in Canada.

The estimated market size for professional services to construction companies in British Columbia and Ontario in Canada, as well as in the united states, is presented below in a million dollars.

Canada’s construction market has entered a new period of slower growth, following about two decades of almost uninterrupted expansion during which the workforce doubled. Although employment demands have softened, the industry continues to grapple with the challenges of renewing an aging workforce just as slower population growth leaves fewer youth available to enter the workforce, and competition from all industries that are facing similar increases in age demographic challenges.

In real terms, the industry’s output value is expected to post a forecast-period CAGR of 0.90%, to value $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.

The Construction sector in USA has grown slightly (1.1%) over the five years to 2020 amid a steep decline in demand in 2020. Sector operators construct buildings and engineer projects, which often leads sector revenue to correlate with fluctuations in macroeconomic conditions. The sector has benefited from relatively low interest rates over the past five years, which has provided an accommodative borrowing environment for both residential consumers and nonresidential clients. Additionally, a rise in per capita disposable income and consumer spending during most of the period enabled consumers to feel more confident regarding their financial situations, as well as increase overall business activity. The construction industry has around 3.4 million businesses and employs about 9.4 million people all over the United States.

The building construction industry in the United States is expected to record a CAGR of 5% to reach USD 1,428.5 billion by 2024.

In 2019, the value added by the construction industry contributed to 4.1% the gross domestic product in the United States. The construction market in the United States is one of the largest in the world, with private spending reaching 977 billion U.S. dollars in 2019 and with about 11.2 million people employed in the industry.

Outsourcing of accounting, human resources, and IT administration functions is especially beneficial for micro, and small companies for whom keeping a full-time specialist is too expensive. Over 98% of all Canadian businesses have fewer than 100 employees. The situation is the same in the US, where about 99.9% of all businesses are SMEs. It is no wonder that only half of new businesses in Canada (51%) survive their fifth year of operation. However, when businesses work with an accounting advisor, that number jumps to 85%.