Commercial building construction contractors have endured declines. Interest rate hikes plunged business sentiment, decreasing expansion projects and hindering new commercial construction. Also, the transition to remote and hybrid work environments has hampered demand for office building construction, with office rental vacancies reaching a 30-year high in the fourth quarter of 2024. Industry revenue has been declining at a CAGR of 0.2% over the past five years to total an estimated $40.0 billion in 2025, including an estimated gain of 1.5% in 2025 as interest rate cuts begin to encourage new construction. Contractors have managed to expand profit from lows in 2020 but surging wage costs have strained considerable profit growth. Some of the growth for commercial building construction contractors has been price-based because of rising material costs for commercial buildings. This trend has been particularly true with office building construction, which increased as a share of revenue despite square footage under construction being at its lowest point in twenty years in the fourth quarter of 2024. Still, growth in additions and improvements spending, particularly from hotels, restaurants and bars, have buoyed the performance of contractors. Also, new construction in markets like warehouses, indoor recreational buildings and retail and wholesale outlets has provided contractors with avenues for growth. Commercial building construction contractors will enjoy solid growth. Continued rate cuts through 2025 will incentivize new construction. One market that will greatly benefit contractors is new hotel construction. While other markets will improve, office building construction may lag as vacancy rates remain high and 90.0% of active office building construction is set to be complete in 2025. Contractors will struggle to expand profit as labour shortages persist and push up wage costs. Tariffs may hike construction material prices, particularly HVAC equipment, potentially disincentivizing downstream construction expenditures. Also, contractors will have to adapt to some evolving trends, like the increased use of modular construction and changing building codes to improve commercial building sustainability. Modular construction techniques will help contractors combat labour shortages and higher wage costs because they are less labour-intensive. Overall, industry revenue is forecast to expand at a CAGR of 1.9% to total an estimated $44.0 billion through the end of 2030.

The value of new construction put in place in Canada was expected to increase slightly in 2024. That came after drop in the value of constructions put in place in 2023. Construction spending for all types of construction projects in Canada amounted to approximately 368.8 billion U.S. dollars in 2023. By 2028, it is expected to reach over 445 billion U.S. dollars.

The Canadian Residential Construction Market Report is Segmented by Type (apartments/Condominiums and Villas/Landed Houses), and by Key City (Edmonton, Calgary, Toronto, Vancouver, Ottawa, Montreal, and Rest of Canada). The Report Offers Market Sizes (USD) and Forecasts for all the Above Segments.

Forecast: Construction Output in Canada 2024 - 2028 Discover more data with ReportLinker!

This statistic shows the projection of the change in employment in the Canadian construction sector between 2019 and 2028, broken down by province. Employment in the construction sector is expected to rise around 10.2 percent between 2024 and 2028 in the province of Alberta.

The Canadian commercial building construction market is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 5% from 2025 to 2033. This expansion is fueled by several key drivers. Firstly, a burgeoning Canadian economy, particularly in major cities like Toronto, Vancouver, and Ottawa, is stimulating demand for new office spaces, retail outlets, and hospitality facilities. Secondly, increasing urbanization and population growth are creating a need for more infrastructure and commercial buildings across the country. Thirdly, government initiatives promoting sustainable and green building practices are driving investment in environmentally conscious construction projects. Finally, technological advancements in construction methods and materials are enhancing efficiency and reducing project timelines. The market is segmented across various building types, with hospitality, office, and retail construction representing significant shares. While the "Other Types" segment also contributes, its exact breakdown requires further investigation.
However, the market faces certain restraints. Fluctuations in material costs, labor shortages, and potential economic downturns can impact project timelines and budgets. Furthermore, stringent building codes and regulations can increase project complexity and costs. Despite these challenges, the long-term outlook remains positive, driven by ongoing urbanization, economic growth, and a sustained need for modern commercial spaces across diverse sectors. Key players like Pomerleau Inc, EllisDon Group, and PCL Construction are well-positioned to capitalize on these opportunities. Competitive pressures are high, encouraging innovation and efficiency within the industry. The ongoing development and revitalization projects in major Canadian cities, particularly in Toronto, Vancouver and Ottawa, are expected to continue attracting significant investments in the commercial construction sector throughout the forecast period. This comprehensive report provides an in-depth analysis of the Canada commercial building construction market, covering the period from 2019 to 2033. With a base year of 2025 and an estimated year of 2025, this report offers valuable insights into market size, growth drivers, challenges, and key players. The report utilizes data from the historical period (2019-2024) and forecasts market trends until 2033. It's an essential resource for industry professionals, investors, and anyone seeking to understand this dynamic market. Recent developments include: March 2022: Anthem Properties (a Canadian development, investment, and management company), along with KingSett Capital (a capital market company), have acquired an 8.34-acre mixed-use site located at Willingdon Avenue and Dawson Street in the City of Burnaby's active Brentwood Town Centre. The company developed this space into a four-phased master-planned community, including 2,100 market condominiums, 340 rental units, and 60,000 square feet of new retail and office spaces., January 2022: Bird Construction Inc. (a Canadian construction company) has entered into a three-year strategic partnership for the Building Good initiative along with Chandos Construction Inc. (North America's commercial builder). Building Good is a thought leadership initiative that aims to catalyze owners and industry partners to change the way the architecture, engineering, and construction industries design and build for the betterment of people and the planet.. Key drivers for this market are: Government Initiatives in the Infrastructure and Construction Sector to Boost the Industry, Need for Precast Concrete Technology Driving the Market. Potential restraints include: Higher Transportation Cost. Notable trends are: Office Building Construction is Expected to Dominate the Market.

The Canada Data Center Construction Market Report is Segmented by Infrastructure (Electrical Infrastructure [Power Distribution Solution (PDU, Transfer Switches, Switchgear, Power Panels and Components, and Others), Power Back-Up Solution (UPS and Generators), and Service (Design and Consulting, Integration, and Support and Maintenance)], Mechanical Infrastructure [Cooling Systems (Immersion Cooling, Direct-To-Chip Cooling, Rear Door Heat Exchanger, and In-Row and In-Rack Cooling), Racks, and Other Mechanical Infrastructure], and General Construction), Tier Type (Tier 1 and 2, Tier 3, and Tier 4), and End User (Banking, Financial Services and Insurance, IT and Telecommunications, Government and Defense, Healthcare, and Other End Users).

The Report Covers Canada Commercial Construction Companies and It is Segmented by Type (Office, Retail, Industrial and Logistics, Hospitality, and Others)

Forecast: Construction Value Added in Canada 2024 - 2028 Discover more data with ReportLinker!

Forecast: Contribution to GDP of Construction in Canada 2024 - 2028 Discover more data with ReportLinker!

This statistic shows the employment figures for the Canadian construction sector in 2017 with projections from 2018 to 2027, broken down by gender. By 2027, over 1.08 million of male workers are expected to be employed in the Canadian construction industry, compared to 46,000 female workers.

The Report On the North American Construction Market is Segmented by Country (Canada and the United States), Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utilities Construction), and Construction Type (Additions and Demolition and New Construction). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

In 2024, the Canadian construction sands market increased by 42% to $28M, rising for the sixth year in a row after two years of decline. Overall, consumption continues to indicate perceptible growth. Construction sands consumption peaked at $45M in 2016; however, from 2017 to 2024, consumption stood at a somewhat lower figure.

Canada’s construction industry is now forecast to grow by 2.5% in 2021, following an upwardly revised decline of 3% in 2020 (-3.4% previously). This compares to the previous forecasts of 0.6% for this year. The revision reflects stronger-than-expected growth in Q1 2021, helped by significant investments in the housing sector, and assumes that construction activity will accelerate in the next few quarters, supported by higher public spending in infrastructure and clean energy projects, while an improving external environment and higher oil prices will boost business confidence in the short term. Read More

This statistic represents data on the year-on-year dollar volume change of non-residential construction starts in Canada from 2015 to 2021. In 2021, construction starts were expected to increase by roughly 6.4 percent compared to the previous year.

The value of new residential buildings put in place in Canada decreased significantly in 2023, and it is expected to also fall slightly in 2024. By 2024, residential construction spending in Canada would amount to approximately 151.1 billion Canadian dollars. In 2016, residential construction spending was valued at just over 105 billion Canadian dollars.

Forecast: Construction Permit Procedures in Canada 2024 - 2028 Discover more data with ReportLinker!

Transmission line construction contractors are at the crux of an evolving energy landscape, driven by an uptick in renewable energy projects and increased manufacturing construction. Contractors have been navigating a period of considerable transformation, shaped largely by the surge in utility-scale renewable installations and government-backed infrastructure investments geared towards a more sustainable energy future. This influx of projects has opened up numerous opportunities for contractors, especially those involved in designing and constructing the extensive networks needed for new remote installations. Significant governmental financial commitments, such as the Canada Infrastructure Bank's recent emphasis on clean power projects, have further bolstered the sector, enabling contractors to tap into large-scale energy projects while modernizing their operational capabilities to meet growing demand. Industry revenue has been increasing at a CAGR of 2.5% over the past five years to total an estimated $6.8 billion in 2025, including an estimated increase of 1.6% in 2025. While telecom sector investments have seen adjustments because of regulatory changes, transmission line contractors have largely thrived by aligning with expanding sectors, such as renewables and manufacturing. However, contractors have also had to contend with challenges like heightened labour costs and supply chain disruptions, which have squeezed profit despite the notable uptick in project opportunities. Still, profit has expanded from lows in 2020. The next five years promise a mix of opportunities and challenges for transmission line construction contractors. There's a clear pathway for growth stemming from large investments, with projects like the massive Waasigan Transmission Line and others in Ontario. Provinces like Alberta, British Columbia and Quebec are spearheading renewable energy initiatives and opening significant contractor opportunities. Projects demand wind, solar and remote infrastructure expertise, urging contractors to invest in renewables and logistics capabilities. As Canadian energy policies like the Clean Electricity Regulations evolve, a pivotal shift will be towards renewable-focused projects, requiring contractors to reorient their strategies and expand their technical prowess. Yet, contractors must also brace for potential disruptions, such as labour shortages and global material price fluctuations, possibly exacerbated by geopolitical tensions. Industry revenue is forecast to increase at a CAGR of 2.3% to total an estimated $7.6 billion through the end of 2030.

Canada Construction equipment Rental market Size, Share, Trend & Market Analysis By Type, By Distribution Channel, By End User, Competition, Forecast & Opportunities.

Canada Construction Price Index: Non Residential Building: Structures: Institutional data was reported at 153.100 1997=100 in 2007. This records an increase from the previous number of 140.600 1997=100 for 2006. Canada Construction Price Index: Non Residential Building: Structures: Institutional data is updated yearly, averaging 130.800 1997=100 from Dec 2003 (Median) to 2007, with 5 observations. The data reached an all-time high of 153.100 1997=100 in 2007 and a record low of 116.800 1997=100 in 2003. Canada Construction Price Index: Non Residential Building: Structures: Institutional data remains active status in CEIC and is reported by Statistics Canada. The data is categorized under Global Database’s Canada – Table CA.EA015: Construction Price Index: 1997=100.