THE ROCKY ROAD

2024 OUTLOOK
THE ROCKY ROAD
Lessons learned from Canadian construction data by Gerard McCabe
HE PAST FEW YEARS have been a turbulent time for the
economy and for construction. The sharp recovery
of activity following the pandemic was hampered by
stubbornly high in昀氀ation and skills shortages. For
many, 2024 has by comparison looked like a welcome
return to stability. But with economic growth still
rocky, the path for construction clients is not yet smooth.
Higher interest rates and greater in昀氀ationary pressure
than in some other sectors is dampening construction activity, but infrastructure remains a bright spot. By looking
back at recent data trends, what can clients learn about
what lies ahead? How should they prepare or adapt their
approaches to navigate these challenges and keep projects
on track for successful delivery?
WATERFRONT TORONTO
T
Infrastructure is propping up growth
The volatility of recent years, and recent elevated interest
rates, are impacting growth in construction and the overall
economy. Canada’s GDP (Gross Domestic Product) fell by
RENEWCANADA.NET
0.3 percent from Q2 to Q3 2023, although the latest Bank
of Canada forecasts, at time of writing, indicate low but
positive GDP growth of 0.9 for 2024.
The construction landscape is more challenging—and
in the year to Q3 2023, construction GVA (Gross Value
Added) reduced by 0.6 per cent. This is the third quarter
in a row where GVA has reduced when measured quarteron-year and suggests a persistent reduction in activity.
Not all segments of construction are equal, however.
Infrastructure o昀昀ers reasons for optimism, as engineering and other non-real estate GVA grew 8.9 per cent
on the year to Q3 2023. Overall, this metric has seen an
impressive rise of 32.1 per cent since Q3 2020, the lowest
Businesses working in the
infrastructure segment of
construction can still expect
to be subject to a volatile
market and supply chain
disruption through 2024.
Gerard McCabe, is
managing director,
Canada, at Turner &
Townsend.
MARCH/APRIL 2024 – RENEW CANADA 19

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