"Canada Infrastructure Report Q3 2016" Published

From: Fast Market Research, Inc.
Published: Tue May 10 2016

The Canadian construction industry will recover in 2016 as the Liberal government spends big on infrastructure projects in a bid to stimulate the economy. However, we note downside risk to this forecast as the 2016 budget announced in March fell short of campaign promises.

Latest Updates And Structural Trends

We expect a recovery in the Canada construction industry in 2016, driven primarily by heightened public investment in infrastructure.

However, on the back of the release of the 2016 Budget, which falls short of campaign promises on tangible new infrastructure spending, we reduced our 2016 growth forecast. We also highlight the likelihood of further reductions to lofty goals, which will place downside risk to our strong outlook for the sector.

Full Report Details at
- http://www.fastmr.com/prod/1170496_canada_infrastructure_report.aspx?afid=301

Following an estimated contraction of 3.2% for 2015, the construction industry will bounce back and post 2.5% real growth in 2016 and average 2.1% annually over the four-year term of the Liberal government from 2016 to 2019. However, this is a reduction of our previous levels of 2.7% and 3.0% respectively.

Transport infrastructure - primarily rail - renewable energy and especially water infrastructure will outperform over the next four years as the liberals aim to stimulate the economy and incentivise 'green infrastructure'.

We also expect non-residential construction to benefit from increasing investment in 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 in recent quarters, 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.

About Fast Market Research

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For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156 (1.413.485.7001 Int'l)

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Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001

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