Linesight has released its Q2 Canada Country Commodity Report.
A new report projects a positive outlook for the industrial construction industry in Canada, but notes that risks remain with ongoing inflation, high interest rates, and labour shortages.
The Q2 Canadian Country Commodity Report, from global construction consultant Linesight, describes “encouraging growth” as Canada’s Real GDP exceeded expectations and job growth continued in Q1 2023. “While a decline in the residential sector contributed to a contraction in the construction industry, the industrial sector is poised for growth,” the report said. “The Canadian government’s commitment to establish Canada as an industrial hub and investment in EVs, green hydrogen, metals and materials processing will help drive growth in the energy and high-tech industrial sectors.”
“The signs are promising for the Canadian economy overall, but the construction industry faces lingering challenges,” added Patrick Ryan, executive vice president for the Americas at Linesight. “Labour shortages – due to growing demand for healthcare, infrastructure, data centers, and life sciences – are still impacting project delivery and budget. Multiple sectors are expanding in Canada, all of which will put increasing demand on materials. For example, we’re seeing two major gigafactories going up in Southern Ontario soon, and the government’s investments in healthcare, life sciences, and infrastructure will all be materials intensive.”
The data in the report suggests:
Looking to the report’s outline of sector-specific trends, the data centre sector in Canada has experienced what the report calls “remarkable growth,” driven by increasing demand for cloud computing, IoT favorable climatic conditions, and a low risk profile. Currently, there are numerous data centre projects in the pipeline, totaling a value of over US$7.4 billion, with a significant concentration in the Ontario and Quebec regions.
Despite economic challenges, the industrial construction sector has shown positive trends in investments and building permits since the start of 2023, the report says, and is projected to achieve a growth rate of 15.5% in 2023. The sector’s output will be bolstered by investments in Electric Vehicle (EV) markets and the government’s ambition to establish the country as an industrial hub.
To request the full report, please click here.