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

  • IBM helping to transform Zhenjiang's transport system
    March 22, 2012
    IBM and the City of Zhenjiang, China, have announced that IBM is helping to transform the city's public transportation system. Zhenjiang will use hardware, software, services and technologies from the company’s research labs, all brought together through the IBM intelligent operations centre (IOC) for smarter cities, a solution that will serve as the central point of command for the city.
    Read More
  • Crises demand digital ITS response
    February 1, 2021
    Digital transformation of transport hubs will be crucial in tackling present and future challenges, and Huawei’s current Shenzhen project highlights what can be achieved
    Read More
  • New era of MAX transport for Perth
    August 19, 2013
    A joint venture of Parsons Brinckerhoff and Aecom has been selected by Western Australia’s Department of Transport (DoT) to form an integrated services team for the next phase of the 22 km Metro Area Express (MAX) light rail network. The JV is working with the DoT to develop a robust business case for the US$1.8 billion project that will change the face of Perth’s transport network. MAX project director for the DoT, David Thomas, said the project will introduce a new era of public transport to Perth. “MAX w
    Read More
  • World Economic Forum report: how to accelerate infrastructure delivery
    May 20, 2014
    A new report from the World Economic Forum, Accelerating Infrastructure Delivery: New Evidence from International Financial Institutions, examines how the experience of international financial institutions (IFIs) can help bridge the growing infrastructure deficit. To accelerate economic growth, global levels of installed infrastructure, which currently stand at around US$45 trillion, need to grow to nearly US$100 trillion by 2030. To achieve this, governments need to increase public sector spending as a
    Read More

Highlighted Content