Canadian Construction Association

Canadian Construction Association
Construction Sector Council

Construction Sector Council

December 06, 2006 09:01 ET

Canadian Construction Association and the Construction Sector Council Release 5-Year Forecast

Construction Investment Growth Expected to Moderate

OTTAWA, ONTARIO--(CCNMatthews - Dec. 6, 2006) - The Canadian Construction Association (CCA), in partnership with the Construction Sector Council (CSC), today released a 5-year economic and employment forecast for the Canadian construction industry. For the first time, data for this 5-year forecast is being supplied by the Construction Sector Council.

The forecast suggests that after two strong years, the construction industry is set to record a more moderate performance in 2007. Following growth in construction investment of 3.2% in 2005 and 3.4% in 2006, construction investment is expected to grow by only 1.7% in 2007, 1.7% in 2008, and 1.7% in 2009.

However, investment rates mask significant differences between the non-residential and residential construction markets. Non-residential construction investment has boomed over the past two years - recording growth of 7.4% in 2005 and 7.2% in 2006. Non-residential construction growth will moderate to 3.2% in 2007 and 2.2% in 2008. Residential construction investment has been in the midst of a decline - investment dropped by 1.6% in 2005 and 1.1% in 2006 - a further drop of 0.1% is expected in 2007. It will not be until 2008 that residential construction will rebound, with growth of 1.3% expected in 2008.

Employment growth is also expected to cool. After the construction labour force grew by 7.1% in 2005 and 2.7% in 2006, the workforce is expected to grow by 0.9% in 2007, averaging over 1,055,000 workers. With over 150,000 workers set to retire over the next ten years, or 19% of the current workforce, the supply of labour will be a continuing challenge.

A copy of this 5-year forecast, including provincial breakdowns, can be obtained via the CCA website at http://www.cca-acc.com/factsheet/factsheet.html.

Contact Information

  • CCA
    Jeff Morrison
    Director of Government Relations and Public Affairs
    613-236-9455, x432
    jeff@cca-acc.com