The construction industry in Canada is forecast to expand at a compound annual growth rate (CAGR) of 2.13% in real terms by 2020, despite shrinking by 1.7% in 2015, says a report by Timetric.
Titled ‘Construction in Canada – Key Trends and Opportunities to 2020′, the report provides a detailed analysis of how the industry is expected to recover through public infrastructure development, including investments in railway projects, and the energy and housing sector. It further highlights how consumer and investor confidence will help to offset the effect of poor economic conditions, low prices, insufficient investments, decreased public spending, and high rate of unemployment.
New rail projects are being implemented to ease congestion and provide faster transit facilities. Authorities in Ontario are already executing the GO Regional Express Rail (RER) in the Greater Toronto and Hamilton area as per the Moving Ontario Forward plan.
Providing greater frequency, the express rail is expected to make more than 6,000 weekly trips with a 15-minute interval between each service. An estimated C$13.5bn ($10.4bn) is expected to be invested in the project from 2016 to 2019.
With the aim of improving public and goods mobility, a new public transit fund has been established by the government to oversee the progress and development of public transit projects. The government has announced plans to allocate C$750m ($582.7m) during 2017-2018 to PPP Canada in new public transit funds under the economic action plan 2015. The amount will be increased to C$1bn ($784.7m) from 2018 onwards.
The Timetric report further mentions that multiple programmes including Affordable Housing Initiative (AHI), New Building Canada Plan (NBCP), and Made in Canada will also contribute to the construction industry. Its recovery will be backed by growing population, urbanisation, and the impetus given by the authorities to the different sectors.
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By GlobalData