Value of construction activity doubles in less than a decade

Alex Carrick, chief economist with CanaData of Reed Construction reports in Daily Commercial News online, April 20, that the total current-dollar value of new construction in Canada next year is expected to be around $300 billion. By comparison in 2004 the figure was half that, i.e. $150 billion.

Carrick’s report is based on Statistics Canada’s report “Private and Public Investment in Canada, Intentions.” He reports that construction represents an “impressive” 17% of Canada’s gross domestic product. The construction activity encompasses employment in a range of areas, including on building sites, with building product manufacturers, the real estate sector and the design community.

Statistics Canada’s figures show that the constant-value of total construction in Canada rose 15% in 2010, thanks largely to the federal government’s infrastructure stimulus package enacted by the provinces and municipalities.

In 2011, Carrick reports, the overall increase for construction activity was only 3.8%. In 2012, the increase is expected to be +4.5%.