Over the five years to 2017, federal spending on infrastructure increased; however, there is usually a time lag between increases in federal funding and the completion of projects, which demonstrates that though federal spending on infrastructure has grown over the past five years, revenue gains derived from these projects will not be realized until projects are finished. Despite challenging operating conditions, rising industry profitability has encouraged new entrance into the market. As the industry experiences declines in revenue, employment and wages, amid growth in establishments and enterprises, this suggests that the industry is moving toward a greater reliance on technology and automation, which is demonstrated by increasing depreciation costs. Over the five years to 2022, industry revenue is expected to return to growth, as the economy improves and oil prices rebound, causing government tax incomes to rise. Consequently, all levels of governments will have more resources to fund industry projects. Moreover, increased traffic congestion, urbanization and aging road stock will further encourage investment in Canada's road network.
This industry constructs new highways, streets, roads and airport runways (excluding elevated roadways). The industry also includes highway and street construction management operators and special-trade contractors that perform subcontract work on projects (e.g. grading, laying pavement, installing guardrails and installing public sidewalks). Establishments may subcontract some or all of the actual construction work.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.