Construction Opportunities

An Expert's View about Building Products and Construction in Canada

Last updated: 21 Mar 2011

Canada’s construction industry continues to experience growth in both residential and non-residential, with an increase in public sector investment continuing into 2010.

Sector briefing Construction Opportunities in Canada Why Canada? Canada?s construction industry continues to experience growth in both residential and non- residential, with an increase in public sector investment continuing into 2010. It represents 12% of Canada?s gross domestic product (GDP) when considering its impacts on all sectors of the economy, and it maintains and repairs over $5 trillion in assets. The Canadian building products sector is directly affected by the level of activity in residential, commercial, industrial and institutional construction/renovation sectors. About two- thirds of the building products consumed in residential construction and 150,000 in Canada are used in the trade contracting. industrial/commercial/institutional construction. The remaining one third is consumed in residential construction. ?Construction is a pivotal industry across Canada, leading Characteristics: the economy at each turn in the ? One out of 16 workers ? about one million - employed in Canada earns a living in this cycle from 2008 to 2012? industry. ? Workers are involved in the installation, repair or renovation of $150+ billion of work every year. ? There are over 260,000 firms in the construction industry; 65,000 in UK Trade & Investment Sector briefing: Construction opportunities in Canada Housing Starts Opportunities Housing Starts are forecasted to be 185,000 units for 2010, in comparison with 149,000- In 2010, investment in the non-residential unit level in 2009. For the seven years, 2002 sector is expected to be $239.9 billion, an to 2008 inclusive, annual starts averaged increase of 5.3% from 2009. Due to the 222,000 units per year. sizeable decline in 2009, it will be below the 2008 level. Largest increases are expected Top Contractors from Ontario, Quebec and British Columbia. The top six Canadian contractors (based on 2009 revenues) are: Capital spending by the public sector will 1. PCL Family of Companies, Edmonton, account for nearly two-thirds of the increase. Alberta ($6.3 billion) Higher public sector investment is expected to 2. Ellis Don, Mississauga, Ontario ($2.4 billion) continue in 2010. Capital spending is 3. Aecon Group Inc., Toronto, Ontario ($2.26 anticipated to increase 9.9% to nearly $87.8 billion) billion. 4. Graham Group Ltd., Calgary, Alberta ($2 billion) Private sector investment is expected to rise 5. Bird Construction, Toronto, Ontario ($882.9 2.8% to $152.2 billion. Significant capital million) spending increases from the mining and oil/gas 6. Carillion Canada Inc. ($864.5 million) extraction sector, as well as the manufacturing sector, are behind that increase. Green Buildings Canada is interested in innovative green By investment component, non-residential building technology. In 2004, the Canada construction is expected to increase 7.2% to Green Building Council adapted the USGBC $139.2 billion and account for over three- LEED rating system to the specific concerns and quarters of total capital spending. More than requirements of buildings in Canada. Over $2 billion of this increase will come from urban 2,000 Canadian projects have registered for transit projects. Spending on machinery and LEED certification, from office towers to single equipment is expected to increase by 2.8% to family homes. Canadian government requires $100.7 billion. all of its future buildings to meet LEED's Gold benchmarks. The LEED Canada Green Building Government Stimulus Rating System addresses existing as well as Canada?s construction industry will continue to new buildings. outperform much of the Canadian economy through the recession period from 2009 to Renovations to residences are focusing on 2012. In the near term, construction enjoys a luxurious features, and energy efficiency and soft landing in comparison to the more serious more environmentally friendly products (such as damage inflicted on other industries. energy efficient windows, higher efficiency Gov furnaces, higher efficiency water heaters, lower ernments? fiscal stimulus is the key driver water consumption toilets, and increased air in 2009 and 2010. tightness). Per capita, Canadians are the second higher consumers of water in the world. In the 2009 and 2010 construction seasons, close to $5.5 billion has been committed to If you have any questions on the opportunities stimulus funding in support of close to 7,000 above, contact the UKTI contacts named in this projects. briefing. Business opportunities aimed specifically at UK companies are added daily to All of the funding under the Infrastructure UKTI?s website. These leads are sourced by our Stimulus Fund has been committed. Close to staff overseas in British Embassies, High 4,000 projects has been approved for Commissions and Consulates, across all sectors construction, accounting for a total investment and in over 100 markets. of almost $10 billion. Work has started on more than 1,700 projects with close to 300 You can be alerted to business opportunities on projects completed. a regular basis by registering on the UKTI website. Find out more on UKTI?s business Opportunities exist for any innovative opportunities service on the UKTI website construction/building product or green building technology. UK Trade & Investment Sector briefing: Construction opportunities in Canada UKTI contacts Major events and activities Helen Hemmingsen US Green Buildings Festival Trade Officer October 2011 British Consulate General, Toronto Toronto ON Tel: (001) 416 593 1290 x2242 www.greenbuildexpo.org/Home.aspx Email: helen.hemmingsen@fco.gov.uk www.ukti.gov.uk Canadian Brownfields Fall 2010 (TBC) Location (TBC) www.canadianbrownfields.ca Construct Canada December 2011 Toronto ON www.constructcanada.com Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis. UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Construction opportunities in Canada ? Arranging appointments Next steps - ? Organise seminars or other events for How UKTI can help you to meet contacts and promote your company in the Canadian market British companies wishing to develop their business in the Canadian market are advised to This work is available via our Overseas Market undertake as much market research and Introduction Service (OMIS) a chargeable planning as possible in the UK. UKTI?s team in service which assists British-based companies Canada, with its wide local knowledge and wishing to enter or expand their business in experience, can provide a range of services to overseas markets. British-based companies wishing to grow their business in global markets. To find out more about commissioning this work, or accessing other UKTI services and This can include: specialist advice, please visit the UKTI website ? Provision of market information to find contact details for your local UKTI ? Validated lists of agents/distributors office. ? Key market players or potential customers in the Canadian market ? Establishment of interest of such contacts in working with you W hereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government- licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Construction opportunities in Canada
Posted: 21 March 2011, last updated 21 March 2011

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