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

  • March 16, 2012
    American Traffic Solutions
    The City of Edmonton in the Alberta province of western Canada has a system in place which American Traffic Solutions (ATS) believes exemplifies how a road safety camera programme should be operated. Edmonton’s programme began in September 1999 with six cameras rotating through 12 locations. Nearly 10 years later, at the beginning of 2009, provincial legislation was passed allowing police agencies in Alberta to use road safety cameras to enforce both red light and speed infractions.
    Read More
  • June 6, 2024
    Toronto agrees urban mobility trials with Ovin
    Firms will deploy new traffic camera and sensor technologies which use AI and 5G
    Read More
  • March 21, 2014
    Strong 2013 results for u-blox
    Wireless communications provider u-blox has announced strong top and bottom line growth in its financial report for 2013. Consolidated revenue US$249 million, a growth of 27.0 per cent compared to 2012; gross profit improved from US$92 million to US$1.2 million, with a continued good profit margin of 36 per cent; operating profit (EBIT) increased from US$25.99 million to US$34.1 million, a growth of 30.9 per cent compared to 2012; net profit increased by 44.3 per cent from US$19.3 million to US$27.8 mill
    Read More
  • February 8, 2016
    Obama to propose oil tax to fund transportation projects
    President Obama is to propose a US$10 a barrel tax on crude oil to fund the overhaul of the US transportation infrastructure. White House officials say the president’s 21st Century Clean Transportation System, funded by a new fee paid by oil companies would increase American investments in clean transportation infrastructure by roughly 50 per cent while reforming the investments already made to help reduce carbon pollution, cut oil consumption and create new jobs. They say the new fee on oil will also en
    Read More

Highlighted Content