This is a post from Alex Carrick's blog that covers the Canadian construction industry.

Since 1985, Mr. Carrick has held the position of Canadian Chief Economist with Reed Construction Data's CanaData, the leading supplier of statistics and forecasting information for the Canadian construction industry.

Go to Alex Carrick's blog home

Construction Industry Forecasts

Notes from Alex Carrick - Mar 17, 2010

Alex Carrick
Sub-sector investment spending intentions from Statistics Canada’s latest survey

The following are some key sub-sector results from Statistics Canada’s 2010 Public and Private Investment survey. Capital spending intentions by 28,000 owners in the private and public sectors were collected and tabulated between October 2009 and late January 2010. The grand total national figure projects a 5.1% gain in capital spending on construction between 2009 and 2010.

Owners among mining and oil and gas extraction companies reported that they intend to invest 10.3% more in 2010 than in 2009. This will make 2010 a partial recovery year. In 2009, owners in this sector dropped their investment spending by nearly one-third (-32%). Job-site work in this sector is mainly categorized to engineering construction.

Last year’s drop was mainly due to oil and natural gas price declines. The world price of oil peaked in July 2008 at $145 USD per barrel. Then it fell to a low of $30 USD per barrel in early 2009. The global oil price has since recovered about one-half of its peak-to-trough decline.

Construction investment by utilities will increase 1.9% in 2010 versus 2009. This will almost all be engineering work. There may be some pipeline work in here as well as electric power projects.

The wholesale trade investment figure is -23.9%, coming out of commercial construction.

Retail trade construction spending, however, is expected to increase 5.9%. Retail construction suffered along with the recession, but not to the same degree as many other categories. Even in the worst of times, individuals and families have to spend on food, clothing and school supplies.

Transportation and warehousing construction investment (-1.2%) will be essentially flat in 2010 versus 2009. Activity levels in this sector depend on retail trade, foreign trade and manufacturing.

Educational services expect an increase in construction investment of 5.6% in the current year. This seems a little low given the extent of government stimulus spending that is going into this institutional category of construction.

Even more surprising is the 8.0% decline projected for the health care and social assistance sector. This may be modified upward depending on whether or not a mega hospital project or two is started in Montreal. This is medical centre work to be connected with the city’s major universities.

Art, entertainment and recreation construction investment will be -20.1% and accommodation and food services will be -2.7%. These come under the commercial category of construction. It will be another year or so before the impacts of the recession are completely put behind us in terms of having the confidence to be free with leisure-time spending.

It’s no surprise that public administration construction spending is expected to increase 16.7%. This will be on government office buildings in the commercial category and on some institutional public assembly buildings.

Alex Carrick

Find Canadian construction-related economic articles in Canadian Construction Market News and in the Economic Outlook section of Daily Commercial News. Mr. Carrick also has a lifestyle blog that can be reached by clicking here.


RSS Feed

» back to blog home

Member Comments

Posted by peter muller
Alex it is just a great Article! Keep working or better saying writing like this! <a href="">tomsbikecorner</a>
Posted by Derek Fisher
I must say in my country and my native town (Puerto Rico) we huge problems in transportation. People move to big cities and our transportation has overload. We did some <a href="">paper writing</a> about it to press to get people and local officials involved in this question and make some changes. Still pointless...
Posted by Todd Cook
Alex, I love your writing. I was turned onto your site from a buddy of mine that lives in London, Ontario. I run a production unit of <a href="">plastic training</a>. It has became a great resource for current statistics and figures. Thanks for your insights.
Post Your Own Comments 
» Not a member? Register now to become one. Otherwise, login to post your comments on this article.

Read Other Recent Alex Carrick Posts

10/12 - Latest Economic Nuggets: Mid-October 2012
10/04 - Auto Sales Set a Blistering Pace in the U.S. and Canada
09/18 - Canada’s Energy Future is Assured, Right? Think Again
09/14 - Latest Economic Nuggets: Mid-September 2012
09/06 - Auto Sector Labor Relations will Play a Role in Construction Outlook
08/30 - Raucous Behavior in the Party Room Next Door
08/13 - Latest Economic Nuggets: Mid-August 2012
07/31 - Canada’s GDP Advanced a Timid 0.1% in May but Support Will Come from Better U.S. Home Prices
07/19 - Finding the Pearls in the Latest U.S. and Canadian Economic News
07/13 - Latest Economic Nuggets: Mid-July 2012
07/04 - U.S. Auto Sales Continue Bullish While Canadian Incomes Languish
06/28 - Three Pivot Points for the World Economy - U.S. Housing, Europe’s Conundrum and Oil Prices
06/14 - Economic Nuggets – June 15, 2012
06/06 - Canada’s First Quarter GDP Growth Met Expectations, But What Comes Next?
05/30 - Ontario has a Backbone of Strength for the Decade Ahead
05/14 - Economic Nuggets - May 15, 2012
05/11 - Canada Rode a Second Consecutive Month of Strong Job Gains in April
05/04 - U.S. Employment Rose by a Mediocre 115,000 in April
04/27 - U.S. GDP +2.2% in Q1 2012 and Alberta led Canadian Provinces in 2011
04/18 - U.S. Inflation Low in March; Canada’s Central Bank Looking to Raise Rates

click here to update your log-in and member information

click here to maintain your company profile & view metrics