Construction sector holds steady despite global economic downturn
With hiking interest rates and workforce shortages weighing on the Canadian economy, the Canadian Construction Association (CCA) continues to monitor the health of the industry with the release of our latest edition of ICIC Construction Quarterly Insights, Q4 2022. This Best Practices Services resource reports on the economic developments triggering slower growth in the Canadian economy and provides a snapshot of the current state of the construction industry.
The construction industry beat expectations in Q3, despite continuing to face supply-side obstacles and a sluggish Canadian economy thanks in part to increased activity in the engineering construction subsector.
Pressures caused by the pandemic on the supply side of the economy, including pent up consumer demand, supply chain bottlenecks and rising cost of construction materials, continue to feed uncertainty in the markets. Construction businesses continue to cite inflation (61.3%), the rising cost of inputs (54.8%), the recruitment of labour (48.5%), and the labour force shortage (44.2%) as the biggest obstacles to their growth in the Canadian Survey on Business Conditions for Q4.
Yet, sentiment in construction remains positive for businesses in the ICIC sectors. Investments continue to grow, with the ICIC sector recording a sixth consecutive monthly gain, an increase of 13.4 per cent in Q3 2022 compared to the same period in 2021.
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.