Canada’s real GDP is expected to rise by 1.5% in 2019 and by 1.9% in 2020, according to the IMF. The construction sector is one of the largest sectors and most important driver of the Canadian economy contributing almost 7% of Canada’s GDP and employing about 7.5% of Canada’s total workforce.
Canada’s construction industry output value was estimated to be US$291.2B in 2018. This is expected to grow to US$304.6B in 2023 (measured at constant 2017 US dollar exchange rates), at a compound annual growth rate (CAGR) of 0.90%, according to GlobalData, a leading data and analytics company.
Globally, every year, there is about $10 trillion in construction-related spending globally, equivalent to 13 percent of GDP. However, the construction industry is like a battleship - it moves very slowly. It is based on standards of productivity that have not evolved over the past 25 years.
Because of the productivity trail - there is a $1.6 trillion opportunity to close the gap.
Increasing Construction Costs:
Labor Shortage in Construction is an Industry wide Concern:
Productivity Challenges in Construction:
Challenges to Construction Digitization:
Sources: McKinsey Global Institute , GCP, Construction Economic Forum, World Economic Forum , KPMG , Project Analysis Group, MCSER, Navigant Construction Forum, Accenture