Canada Infrastructure Report Q2 2016 - New Report Available

The Canadian construction industry will recover in 2016 as the Liberal government spends big on infrastructure projects in a bid to stimulate the economy. The infrastructure and non-residential sectors will be the main drivers in growth over the next four years, offsetting declines in capital expenditure in the extractive sector and a slowdown in homebuilding.

Latest Updates And Structural Trends

We expect a recovery in the Canada construction industry in 2016, driven primarily by heightened public investment in infrastructure. The Liberal government of Prime Minister Justin Trudeau plans to double public spending on infrastructure over the next 10 years.

Following an estimated contraction of 1.8% for 2015, the construction industry will bounce back and post 2.7% real growth in 2016 and average a heightened 3.0% annually over the four year term of the Liberal government from 2016 to 2019.

Transport infrastructure - especially rail - and renewable energy will outperform over the next four years, as the liberals aim to stimulate the economy and incentivize ""green infrastructure"".

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We also expect non-residential construction to benefit from increasing investment into a recovering manufacturing sector, which will now benefit from a weakened Canadian dollar.

Infrastructure and non-residential will now be the major growth drivers for the construction industry over the next four years, offsetting a continued decline in capital expenditure in the extractive sector and a slowdown in homebuilding.

Risk/Reward Index

Canada's RRI score has increased this quarter from 64.9 to 67.3, in line with a stronger outlook for growth in the construction industry.

The Industry Rewards score jumped up to 50.0 out of 100 as the Liberal government's stimulus plans bring up growth forecasts.

Canada continues to receive high scores for Country Risks and Industry Risks indices at 76.3 and 85.0, respectively.

The Canada Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's Canada Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Canadian infrastructure and construction industry.

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