Housing Markets—Amid higher interest rates and government policy initiatives designed to cool housing markets, residential construction activity has slowed. This has weighed on the non-metallic mineral product industry, which relies heavily on construction activity to support demand.
Infrastructure Spending—The government’s spending on infrastructure will continue to be an important driver of the non-metallic mineral products industry. However, these gains are expected to decelerate, which will hurt the industry’s potential growth in the next five years.
Wages—Industry wages have risen by 4.1 per cent annually over the past five years, more than twice the pace of the entire manufacturing sector. The gains have hurt profitability, which has been weakening over the past three years.