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

  • Ukraine’s ITS in a time of war
    May 12, 2023
    Following invasion by Russia, work on ITS projects has stopped in Ukraine – but the state road agency and private contractors have pivoted to providing essential services instead
    Read More
  • Hybrid and EVs growth impact on traction motors predicted by Frost & Sullivan
    May 17, 2012
    Electrification in vehicles is a key trend in the automotive industry. The increase in electric components within vehicles is boosting the market for traction motors and Frost & Sullivan says it anticipates the European traction motor market to grow at a compound annual growth rate (CAGR) of 50 per cent for hybrid electric vehicles (HEVs) and electric vehicles (EVs). Permanent magnet motors are expected to dominate the market by virtue of their performance and efficiency. However, the growing concern over t
    Read More
  • Gulf Traffic 2015 sent to be ‘one of the largest ever’
    October 19, 2015
    Gulf Traffic 2015 is shaping up to be one of the largest ever, say the organisers, with floor space nearly sold out four months away from the opening date. Significant investment over the past year in the Middle East within the traffic management, intelligent transport systems (ITS), road safety, parking, road maintenance and transport infrastructure industries has been reflected in the growth of the exhibition, conferences and awards. The GCC is set to invest approximately US$121.3 billion to improve
    Read More
  • Intelligent transportation system (ITS) market worth US$63.66 Billion by 2022
    July 15, 2016
    According to a new market research report, Intelligent Transportation System Market by Roadway (Hardware, Software, & Services), Aviation Tool (Kiosk, Multi-User Flight Information Display, and Smart Gate System), Railway, Maritime, Protocol, Application, and Geography - Global Forecast to 2022", published by MarketsandMarkets, the ITS market size, in terms of value, is expected to grow from US436.10 billion in 2015 to US$63.66 billion by 2022, at a CAGR of 8.3 per cent between 2016 and 2022. The major g
    Read More

Highlighted Content