OTTAWA, Sept. 10 /CNW Telbec/ - The recession has weakened the outlook
for Canada's non-residential construction industry in 2009, but the industry
is benefiting from increased government spending on infrastructure, according
to the Conference Board's Canadian Industrial Outlook - Canada's
Non-Residential Construction Industry - Summer 2009.
"Although profits are expected to decline by 33 per cent from last year's
highs, the industry is performing surprisingly well. Strong spending on
institutional buildings, notably social housing, schools and hospitals, is
supporting the industry's outlook this year," said Michael Burt, Associate
Director, Industrial Economic Trends.
The industry posted record profits of $1.9 billion in 2008, which will
dip to $1.3 billion in 2009. The recession lowered demand for office and
industrial space. But the industry-particularly in western Canada- had already
started to cool down before the recession began, which made the downturn less
abrupt. On the downside, prices are forecast to decline this year after three
years of strong growth. In addition, cost growth remains a concern: key
material costs have not fallen significantly, and a labour shortage still
exists for specific trades.
Profits are forecast to range between $1.2 billion and $1.3 billion
annually between 2010 and 2013.
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