Construction activity remains strong despite challenges faced by the industry
While inflation and workforce shortages remain headlining issues across all sectors, the industrial, commercial, institutional, and civil (ICIC) construction industry was a positive force for Canada’s economy in 2022, and is showing signs this trend will continue in 2023.
CCA’s most recent edition of ICIC Construction Quarterly Insights, Q1 2023 reports that Canada’s GDP rose by 3.6 per cent in 2022, with the construction sector following suit by increasing 1.2 per cent during the same period. Though most of this growth was hampered by a sizeable decline experienced by the residential sector, the ICIC industry was able to more than offset this decrease through a 10 per cent rise in engineering and heavy construction activity.
Despite concerns over job vacancies in construction in Q1 2023 and the interest rate hikes set by the Bank of Canada to control inflation, the ICIC sector’s sentiment for activity in Q2 2023 remains positive as it heads into the busy summer months. Capital investments in non-residential construction from both the public and private sectors are expected to increase by four per cent to $208 billion in 2023 (Figure 1).
CCA continues to work on initiatives that help support our members and the industry, including advocating for long-term, strategic investment in infrastructure, improving procurement, and boosting workforce capacity by helping the industry recruit, train and retain tomorrow’s workforce.
For more information on this report or the work CCA is currently focused on to address the issues covered, please email Louis-Philippe Champagne, Director of Government Relations and Policy, or Mario Baker, Assistant Manager of Economics and Policy Development.