Published twice a year, the Canadian Industrial Outlook Service includes detailed, five-year forecasts in 10 key Canadian industry sectors. Outlooks for several financial and economic variables—prices, production, revenues and expenditures, profits, gross domestic product, and employment—are generated, based on forecasts of key domestic and international factors such as interest rates, exchange rates and tax policy.
Document Highlights
Strong revenue growth this year will boost construction industry profits to $4.3 billion in 2005, an increase from $3.5 billion in 2004.
After a long period of rapid growth—due to low interest rates and hot demand for housing—residential construction output will weaken in 2005. Non-residential construction is showing signs of fragility as well, with industrial, commercial and institutional building activity all declining.
On the bright side, engineering construction activity is driving the industry’s revenue, with oil and gas sector investments leading the way. Thanks to strength in the engineering construction sector, output and employment in the overall construction industry are expected to rise by 6.7 per cent and 1.4 per cent, respectively, in 2005.
From 2006 to 2008, construction industry profits will range between $2.9 billion and $3.6 billion.
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