Construction costs in Canada\u2019s three most populous provinces are slated to rise 3-5% in 2021, according to BTY Group\u2019s annual Market Intelligence Report (MIR), with planned infrastructure projects driving the increases.<\/p>\n
\u201cAn already robust program\u2014bolstered by increased government stimulus spending\u2014will help offset sharp declines in commercial building and a projected dip in housing starts,\u201d said the international consultancy group\u2019s 17th annual MIR.<\/p>\n
\u201cInfrastructure, renewable energy and industrial building are forecast to be the top performing sectors, with mega projects in B.C., Quebec and Ontario counterbalancing declines in commercial and leisure sectors. Investment in renewable energy is the bright spot in Alberta, which, like most provinces, is also increasing investment in infrastructure to boost the economies.\u201d<\/p>\n
Capital spending investments increased by 8% in Ontario in 2020, much of which was driven by transit projects. Three big LRT developments are on the go in the Greater Toronto Area, and another large-scale one is being developed in Ottawa. Although BTY projected a decrease in non-residential construction in 2020, it\u2019s slated to rebound in tandem with the provincial economy this year.<\/p>\n
Non-residential construction increased nearly 7% in B.C. last year, despite the lockdowns, with the massive LNG Kitimat project leading the way. Major projects, including pipelines and the SkyTrain extension on Broadway in Vancouver, will ensure elevated activity for the next few years. Moreover, on the heels of a late summer announcement that it was funding 11 clean energy infrastructure projects, British Columbia revealed this month that it\u2019s investing $5.3 million in seven other green energy projects. The province already has a slew of liquefied natural gas projects underway in its northern region.<\/p>\n
Quebec\u2019s non-residential construction sector is expected to return to pre-pandemic levels soon, driven by major government-funded transportation projects. However, the MIR noted that, despite having one of Canada\u2019s , the province\u2019s residential sector could sputter into 2021 with fewer housing starts.<\/p>\n
All in all, Canada\u2019s construction industry has fared well in 2020, rallying quickly in the wake of pandemic-induced lockdowns. But sustained success, says BTY\u2019s report, is contingent upon an efficacious vaccine.<\/p>\n
\u201cIn the longer term, we are expecting changes driven by COVID-19\u2014especially in technology\u2014to accelerate improved productivity,\u201d said Toby Mallinder, BTY\u2019s managing director. \u201cAchieving\u2014and surpassing\u2014pre-2020 construction activity levels still depends on a robust economic recovery supported by a speedy, successful and sustained vaccine rollout.\u201d<\/p>\n
The COVID-19 pandemic did indeed imperil some planned infrastructure projects. According to the , the pandemic put pressure on MUSH (municipalities, universities and colleges, school boards and hospitals) budgets, and many within the sector responded by either cancelling or deferring crucial investment in infrastructure maintenance. The RCCAO argued that such cancellations would delay Ontario\u2019s economic recovery.<\/p>\n
Fortunately, with help from the feds, the provincial government stepped in with financial relief for municipalities grappling with budget shortfalls.<\/p>\n
\u201cThis funding comes at a crucial time for municipalities across Ontario and we commend the leadership and cooperation shown by both the provincial and federal governments in working together to address this unprecedented economic crisis,\u201d said RCCAO board chair Peter Smith. \u201cAs a result of this funding, municipalities can now begin putting their financial houses in order.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Construction costs in Canada\u2019s three most populous provinces are slated to rise 3-5% in 2021, according to BTY Group\u2019s annual Market Intelligence Report (MIR), with planned infrastructure projects driving the increases. \u201cAn already robust program\u2014bolstered by increased government stimulus spending\u2014will help offset sharp declines in commercial building and a projected dip in housing starts,\u201d said […]<\/p>\n","protected":false},"author":6,"featured_media":23086,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8929"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=8929"}],"version-history":[{"count":1,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8929\/revisions"}],"predecessor-version":[{"id":23085,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8929\/revisions\/23085"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/23086"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=8929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=8929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=8929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}