Canada’s infrastructure sector set to be one of the best performing

In their latest findings on Canada’s infrastructure sector, Business Monitor has revised down their outlook for the overall construction industry in Canada for 2013 to 2.2 per cent. This is being driven by a sharper than expected contraction in industry value creation from the residential and non-residential building segment. Despite this, they anticipate a slight pick-up in the second half of the year will ensure that subsector maintains positive growth. On the other hand, infrastructure will post another
November 20, 2013 Read time: 2 mins

In their latest findings on Canada’s infrastructure sector, Business Monitor has revised down their outlook for the overall construction industry in Canada for 2013 to 2.2 per cent. This is being driven by a sharper than expected contraction in industry value creation from the residential and non-residential building segment. Despite this, they anticipate a slight pick-up in the second half of the year will ensure that subsector maintains positive growth. On the other hand, infrastructure will post another year of solid performance, with Business Monitor’s outlook for robust growth in the subsector unchanged.

Although below trend construction industry data has prompted Business Monitor to downgrade their 2013 forecast for industry growth, they are maintaining their view that Canada will be one of the best performing developed markets over the near term. Growth will be supported by high-value infrastructure projects across the transport and energy sectors, as well as social infrastructure, industrial projects, and a housing market that whilst slowing, should remain positive.

One of the strongest sub-sectors over Business Monitor’s 10-year forecast period to 2022 will be railways, where a project pipeline worth US$36 billion will drive annual average industry value real growth of 4.4 per cent between 2013 and 2022. This growth will be driven primarily by urban rail projects, including the CAD8.2bn Eglinton Crosstown Light Rail Transit project, the US$2.6 billion Toronto Subway Spadina line expansion, the US$2.1 billion Ottawa Light Rail project and the US$1.8 billion Edmonton Light Rail project.

There is further upside potential to Business Monitor’s forecast from freight rail projects, however, with the Cóte Nord rail project in Quebec temporarily suspended in February 2013 due to weak demand, they have seen verification for their decision to withhold these projects from their forecast. In November 2012, a railway project to transport crude from Alberta's oil sands to Alaska moved forward. The project has support from first Nations groups and is seeking financing to produce a feasibility study.

Related Content

  • December 18, 2013
    Fleet management market worth US$30.45 billion by 2018
    MarketsandMarkets recently conducted a study on the "Fleet Management Market (Fleet Analytics; Vehicle Tracking & Fleet Monitoring; Telematics; Vendor Services) By Vehicles (Trucks; Light Goods; Buses; Corporate Fleets; Container Ships; Aircrafts) Worldwide Market Forecasts and Analysis (2013 - 2018)", which analysed and studied the major market drivers, restraints and opportunities in North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa. The study indicates that the fleet manageme
    Read More
  • August 9, 2013
    Basler confirms growth strategy, increases annual forecast
    Industrial camera manufacturer Basler has presented its figures for the first half of 2013, showing an increase in orders of 16 per cent to US$45.5 million from US$38.4 million for the same period in 2012. The group's sales of US$43 million were 28 per cent above the previous year of US$33.7 million. Earnings before tax (EBT) rose by 77 per cent to US$5.2 million over 2012’s figure of US$ 2.9 million. "The robust incoming orders, the smooth introduction into the market of important new products, and the p
    Read More
  • June 9, 2014
    Michelin to acquire Sascar
    In a deal valued at a total of US$709 million, Michelin has announced its intention to acquire all outstanding shares of Sascar, the leading Brazilian digital fleet management and freight security company. The acquisition will enable Michelin to expand its service offering for truckers and to speed the growth of its truck tyre business in Brazil, while Sascar will gain access to Michelin’s major customers in South America. of this company, whose business model has proved its worth in Brazil (33,000 f
    Read More
  • December 2, 2016
    Moody’s projects positive 2017 outlook for US toll roads industry
    The outlook for the US toll road industry remains positive, reflecting the expectation of continued strong traffic and revenue growth in the next 12 to 18 months, according to Moody’s Investors Service in its yearly outlook, Tolls Roads – US: 2017 Outlook – Strong Traffic and Revenue Growth Support Positive Outlook. Moody’s estimates that median traffic growth among 48 rated toll roads will range from three per cent to four per cent in the remainder of 2016 and into 2017, and that median toll revenue wil
    Read More

Highlighted Content