The Dollar Forecasts − $85.5 Billion for Engineering in 2008
Engineering construction can only be measured in dollar terms. For example, it makes no sense to speak of the square footage of roadway construction or electric power work, Therefore, CanaData projects investment or put-in-place numbers for this category of work.

In 2007, the total dollar value of engineering construction in Canada was $80.0 billion. In 2008, it will climb to $85.5 billion. There will be further steps upward to $92.2 billion in 2009, $99.5 billion in 2010 and $109.3 billion in 2011. The 2008 rise (versus previous year) will only barely cover cost increases. In succeeding years, the constant-dollar gains will be +2.8% in 2009, +3.9% in 2010 and +5.6% in 2011.

Roads and Highways, Sewers and Watermains
There are four major sub-categories of engineering work. In the first two − roads and highways (including bridges) and sewer and watermain work − reduced levels of residential construction will cut into the need for this work to some degree.

However, a long history of spending neglect in these areas, plus public safety issues on the heels of headline-making bridge collapses and water contamination cases, appear to be getting some action. In particular, the federal government has opened its coffers with respect to infrastructure spending, making money available to all of the provinces under its Building Canada investment plan.

Alternative Electric Power
The other two primary areas of engineering work are energy-related. There is normal growth in the economy that will raise the need for power generation. In addition, electric power, when generated without the use of fossil fuels, can be a prime means to lower carbon emissions. For example, proposals to reduce dependence on gasoline mainly turn on developing hybrid cars that employ rechargeable batteries. Helping the environment is also the impetus behind a range of smaller electric power projects, mainly in the area of windmill farms, to generate electricity as cleanly as possible.

Also a New Era of Mega Electric Power Projects

Canada is also about to embark on a new era of mega electric power projects. The use of renewable and carbon-free resources is the touchstone for proposed hydroelectric projects in Newfoundland, Manitoba and British Columbia. Clean-burning nuclear will be the focus of projects in Ontario and possibly Saskatchewan and Alberta.

Fossil Fuel Construction Projects

In fossil fuels − oil, natural gas and coal − there are ongoing massive investments in the Tar Sands and in the waters of offshore Newfoundland. There are also large liquified natural gas (LNG) projects underway or planned in the Atlantic and Québec.

Furthermore, in recognition of growing environmental concerns and the move to taxation (or a "cap and trade" system) as a means to curb carbon emissions, there are experimental projects in such areas as carbon capture and storage − in Alberta and Saskatchewan − that involve major dollar spending and advances in scientific expertise.

Total Construction Dollar Spending − $219 Billion in 2008

As a final note, CanaData is forecasting that the nation's total new construction market in 2008 −residential, non-residential buildings and engineering − will be $219 billion in current dollars, versus $208 billion in 2007. The figure will climb to $227 billion in 2009, $239 billion in 2010 and $262 billion in 2011. Due to the fact that inflation in construction is currently at a cyclical peak, the constant-dollar percent changes will be -0.8% in 2008 (versus previous year), -0.5% in 2009, +1.8% in 2010 and +5.7% in 2011.