Report: Canadian construction industry projected to grow faster
By Rob BlackstienConstruction
Industry forecast has risen to 6.5 per cent growth this year.
According to the Q3 2021 update to GlobalData’s report, Construction in Canada – Key Trends and Opportunities to 2025, the nation’s industry is expected to grow at a rate of 6.5 per cent this year.
GlobalData’s previous forecast only pegged the industry to grow 2.5 per cent this year, so things are clearly ramping up for the Canadian construction sector.
The report attributes the improved forecast to stronger than anticipated growth in the first half of 2021, mostly spurred by the residential construction boom. The projection assumes continued strong growth in the second half, driven by the residential sector, vaccination progress and higher public spending in the areas of infrastructure and clean energy projects.
Other contributing factors for 2021 growth include upgrading healthcare buildings based on rising demand from the pandemic.
Over the remainder of the forecast period (to 2025), the Canadian construction industry is projected to grow an average of 2.5 per cent annually. This will mostly come on the back of investments in transport, renewable energy, housing, water and telecommunication infrastructure projects. For instance, an October 2020 government initiative called the “Growth Plan,” earmarked $10 billion in funding for clean energy, irrigation and broadband projects. This is expected to create 60,000 jobs.
Further, the report stated, the feds — as per election promises — are expected to boost investments in housing and renewable energy. The Liberals’ plan called for an investment of $2.7 billion to build 1.4 million affordable housing units over the next four years, while reducing greenhouse gas emissions to between 40-45 per cent of 2005 levels before the of the 2020s.
Affordable housing construction will further be boosted by BMO’s commitment of $12 billion until 2030.
Finally, government plans announced in February to invest $14.9 billion into public transportation projects over the next eight years will also drive construction growth.