Canada Construction Industry Report 2024: Output Contracted by 1.8% Due to Continued Slowdown in the Residential Sector - Forecasts to 2028 - ResearchAndMarkets.com

The "Canada Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q4 2024)" report has been added to ResearchAndMarkets.com's offering.

Canadian construction industry contracted by 1.8% in real terms in 2024, owing in part to a continued slowdown in the residential construction sector.

The sector has been impacted by high construction prices, exaggerated by construction labor shortages, as well as rising household debt, lowering housing demand and regulatory delays. According to Statistics Canada, the total value of investment in single dwelling construction fell by 4.4% year-on-year (YoY) in January-September 2024, this comes after an annual decline of 17.3% in 2023.

While construction employment in the country has also faced decline, falling by 0.3% in the first 11 months of 2024. This undid a previous increase in the construction labor market in 2023 caused by elevated immigration causing a 1.9% annual rise in construction employment, as per Statistics Canada reports. The slowdown in the construction industry can also be evidenced declining building permits issued. The total value of building permits issued declined marginally by 0.7% during January-September 2024, following an annual decline of 7% in 2023.

The problems in the Canadian construction market have been endemic of the Canadian economy, with elevated interest rates and low demand and low business confidence weighing on growth. Following multiple interest rate cuts by the Bank of Canada across 2024, the last of which was a 50 BPS cut in early December, bringing rate down to 3.25%, this should encourage demand to increase throughout the economy leading to a more positivity in 2025.

The analyst then expects the construction industry in Canada to recover at an annual average rate of 2.8% from 2025 to 2028, supported by investments in transport, renewable energy, as well water and sewage infrastructure projects. For example, the government of Ontario has announced that it plans to invest CAD28 billion ($21 billion) to repair, build and expand roads and highways in the province by 2033

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 our 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 business strategies 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/pnbulv

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