1. Better Things Ahead.
- Author
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Deffenbaugh, Paul
- Subjects
- *
WAGE increases , *COVID-19 pandemic , *EMERGENCY management , *FINANCIAL markets , *BALANCE of trade - Abstract
The Canadian construction market experienced a significant decline in the first quarter of 2024, with total construction starts falling by 41.2% compared to the previous year. This decline was seen across all three construction sectors: residential, nonresidential, and civil engineering. However, there is hope for a rebound in the coming years, with ConstructConnect Chief Economist Michael Guckes predicting a 26% increase in construction starts in 2025. The nonresidential sector is expected to see a 25% jump in activity in 2026, but growth may slow down after that. Despite the overall decline, certain areas, such as industrial facilities and warehousing, are experiencing strength in the construction market. One factor contributing to the strain on infrastructure in Canada is rapid population growth, which is creating an infrastructure deficit. Rising inflation and interest rates have also impacted the construction industry, causing some building owners and developers to delay or cancel their plans. However, construction companies that are well-positioned and in the right niche can still find success even during challenging economic periods. [Extracted from the article]
- Published
- 2024