Dublin, Sept. 10, 2024 (GLOBE NEWSWIRE) -- The "Canada Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q2 2024)" report has been added to ResearchAndMarkets.com's offering.
Following an annual decline of 1.3% in 2023, the construction industry in Canada is expected to continue to decline, falling a further 3.1% in real terms in 2024.
The decline will be driven by a significant fall in the residential construction sector, amid continued elevated interest rates. Other factors such as the impact of high construction prices and a shortage of skilled labour further add to the problem. According to Statistics Canada, the total value of building permits issued in the country declined by 8.8% year on year (YoY) in 2023, with the number for residential buildings falling by 15.4% during that period.
Despite high construction prices, the new average housing price index fell marginally by 0.3% in the first five months of 2024, this was preceded by annual marginal decline of 0.5% in 2023, suggesting weakness in housing demand. The negative growth can also be attributed to the cessation and delays of construction activity of various projects. For instance, in February 2024, the Windsor-Detroit Bridge Authority reported that the construction works of the CAD8.5 billion ($6.4 billion) Gordie Howe Bridge, which was originally scheduled for completion in 2024, has been delayed due to cost overrun, and government restrictions.
The analyst expects the Canadian construction industry to rebound at an annual average rate of 2.4% during 2025-28, supported by developments in the renewable energy, transport, and industrial sectors, coupled with the government's focus on curbing housing deficit by the construction of 5.8 million new affordable houses by 2030. In April 2024, the Prime Minister launched a CAD6 billion ($4.4 billion) Canada Housing Infrastructure Fund as part of its target of building 750,000 new homes by 2033, as part of the Housing Accelerator Fund.
In addition, growth over the forecast period will also be supported by the government's plan to achieve carbon neutrality by 2050. In March 2024, Scottish offshore wind services company, Venterra Group, won a contract from the Government of Nova Scotia to conduct the feasibility study for the development of a 5GW offshore wind farm by 2030 in the province, which involves an estimated investment of CAD13.3 billion ($10 billion).
Scope
- Historical (2019-2023) and forecast (2024-2028) 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 analyst'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 analyst's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/98fi0q
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