North American Construction Landscape in 2016
A positive outlook for the construction industry in 2016 is something that not all of us would expect. Particularly for those involved in the oil & gas and pipeline construction markets. The truth is the construction market keeps a positive momentum, just shifting from one sector to another. The word for cost estimators this year is diversity, shift into the construction sectors, which are showing all the positive signs for a healthy year ahead.
So what are the construction sectors which will keep us busy this year?
According to Compass International, all building construction is showing signs of healthy growth in Canada.
While it seems like Oil, Gas, and Pipeline construction will struggle in North America for the foreseeable future, Compass International is anticipating growth in the Health Care, Hotel, Retail, Office and Housing construction industries in Canada
You can read the very detailed article on the construction outlook for 2016 in Canada and the US here, https://www.compassinternational.net/north-america-construction-costs/. While on their website, do not forget to check out the “Tools and Resources” page, which is a great tool for estimators.
According to an article published by Forbes, in the US, the forecast
In 2016 and 2017, housing construction will increase and home prices will rise.
Read the full article here.
Dodge Data & Analytics, in their October 2015 release of the 2016 construction outlook, predicts that
Total U.S. construction starts for 2016 will rise 6% to $712 billion, following gains of 9% in 2014 and an estimated 13% in 2015
Read the full article here.
The Canadian construction landscape is a mixed bag. According to Build Force Canada,
total market requirements for the 34 trades and occupations tracked by BuildForce will grow by 11,400 jobs, with notably different demand profiles for the residential sector, where requirements drop by 24,300 jobs, and the non-residential sector, where requirements rise by 35,700.
Read the full article here.
According to the same source, a more positive outlook awaits the province of British Columbia:
BuildForce Canada’s 2016‒2025 Construction and Maintenance Looking Forward forecast shows B.C. construction beginning the year in a growth phase with new infrastructure projects and energy development leading investment. Specialized trades will be in demand from 2016 to 2019. As projects wind down, labour market conditions will ease in 2020 and 2021 leaving a gain in new jobs by the end of the scenario period in 2025. Residential construction is expected to remain largely unchanged between now and 2018, before new housing activity declines as population growth slows, while demand for home renovation work rises.
Read the full article here. For more construction-related forecasts in Canada, visit https://www.constructionforecasts.ca/en
Do you have any more resources for construction forecasts for 2016? Please leave your comments below.
