New report details opportunities for sector beleaguered by workforce shortage and inflation
November 10, 2022
The Canadian Construction Association (CCA) released a new resource providing members with timely economic insights on the construction sector. The ICIC Construction Sector Quarterly Insights, Q3 2022 delivers an overview of the current economic health of the industry and implications for member businesses.
Despite labour challenges, persistent inflation and rising interest rates, the sentiment for non-residential construction in Canada remains positive. Construction investments have continued an upward trend since October 2021, according to the Bank of Canada’s Business Outlook Survey. Investment in non-residential construction rose five per cent in Q2 2022, above the pre-pandemic high seen in Q1 2020, reaching $5.34 billion in July.
Businesses did however cite inflation (72%), the rising cost of inputs (62.2%), and the recruitment and retention of skilled employees (51%) to be the biggest obstacles to growth through the next quarter, according to Statistics Canada’s Canadian Survey on Business Conditions for Q3.
CCA has been working on various initiatives to help offset the impact of inflation and workforce shortages, with a focus on construction as a career of choice, more favourable immigration policies, and subsidies to hire apprentices. We will also continue to monitor the impact of macroeconomic changes on the industry’s growth, such as future interest rate hikes, geopolitical tensions, and changes in global oil production.
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.