Construction performs at elevated level

Canada’s construction sector continues to perform at an elevated level following the COVID-19 pandemic. Strong levels of investments by governments across the country have helped to stimulate the economy, demand for housing remains high, and private-sector entities continue to invest in construction, says BuildForce Canada’s ‘2023-2032 Construction and Maintenance Looking Forward’ national forecast. These factors combined in 2022 to increase total construction investment levels by 3% over 2021. The report says construction activity will step down from its 2022 peak, with contractions projected for 2023 and 2024. The contraction is brief, however. Growth is poised to resume by 2025 and total investment should increase by 1% by 2032 over 2022 levels. These numbers are based on existing known demands and do not take into account the federal government’s goal to double the number of new homes built across Canada over the next 10 years, nor the anticipated increase in demand for construction services related to the retrofit of existing residential, industrial, commercial, and institutional buildings to accommodate the electrification of the economy. Across the forecast period, activity in the residential sector will be driven by a combination of factors. Demand for new housing is expected to contract in response to rising interest rates in the short term and return to growth between 2024 and 2029. Meanwhile, activity in the renovation and maintenance sector increases continuously.