Blog – Canada and the Construction Sector – December 2020
North America’s construction output is forecast to fall by 6.5% in 2020, with Canada projected to see the steepest decline in output (-7%) owed in part to the collapse in global oil prices, while construction output in the US is projected to decrease by -6.5%, according to GlobalData, a leading data and analytics company. - https://www.contractormag.com/construction-data/article/21135728/north-americas-construction-output-to-fall-by-65-in-2020
Commercial
CRE company leaders have their work cut out. To position their companies to thrive long term, they need to break inertia to move into rapid recovery. As monumental as 2020 has been, 2021 could be even more so; the critical decisions and investments leaders make now could come to fruition over the next 12 months. They should strive to be digital—optimizing business, operating, and customer models for a digital environment. Rapid digital transformation will likely be needed to build operational resilience, maintain a strong financial position, develop and retain talent, and create an enabling culture.
Source - https://www2.deloitte.com/us/en/insights/industry/financial-services/commercial-real-estate-outlook.html
Total investment in building construction edged down 0.4% to $15.2 billion in October, following a 1.5% decrease in September. Investment in the non-residential sector fell for the fourth consecutive month in October, remaining below pre-COVID-19 levels. Conversely, investment in the residential sector continued to strengthen for the sixth straight month.
https://www150.statcan.gc.ca/n1/daily-quotidien/201207/dq201207a-eng.htm
2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public
Finance and Advanced Management
Systems
Contact information:
Paul_Young_CGA@Hotmail.com
3. AGENDA
• Key Metrics
• Housing Market
• Building Permits
• Investment in new building
• Innovation
• Infrastructure
• Affordable housing
• What’s next
4. K E Y M E T R I C S F O R
C O N S T R U C T I O N
6. NEW BUILDING INVESTMENT
• COVID19 and the construction sector -
https://canada.constructconnect.com/dcn/news/economic/2020/11/canadas-construction-sector-took-a-covid-
19-hit-then-rebounded-survey
• 40under40 - https://www.on-sitemag.com/features/40-under-40-in-canadian-construction/
• Construction continues to rebound - https://www.newswire.ca/news-releases/canadian-construction-continues-
to-rebound-in-quebec-british-columbia-and-ontario-while-alberta-continues-to-slow-procore-construction-
activity-index-845879586.html. There are still issues with affordability, especially housing -
https://www2.slideshare.net/paulyoungcga/housing-market-canada-and-usa-october-2020
9. AFFORDABLE HOUSING
• Housing prices continue to grow faster than wage and the CPI index -
https://www.slideshare.net/paulyoungcga/affordability-have-the-liberals-improve-the-lives-of-
canadians
• Affordable housing is a big issue for many municipalities as they lack the funds to build new units -
https://www.municipalworld.com/press-releases/new-fcm-initiative-to-support-local-affordable-
housing-providers/
• There are many issues housing, like available land or cost of housing (raw materials, labor, permits, property taxes,
etc)
• There is talk about converting vacant commercial building space into affordable housing -
https://www.phillyvoice.com/greg-englesbe-real-estate-strategic-conversion-vacant-commercial-space-
affordable-housing-0599945/
• There needs to be an urban vs rural strategy as part of support affordable housing options -
https://www.slideshare.net/paulyoungcga/urban-and-rural-planning-whats-next-236315321
10. MUNICIPALITIES
https://fcm.ca/en/resources/mamp/infraguide-national-guide-sustainable-municipal-infrastructure
I have done a lot of work on asset management including different tools. I believe municipalities and cities need to
embrace AI, RPA, and other tools as part of maximizing the usage of their assets.
• https://www.slideshare.net/paulyoungcga/how-to-reform-local-and-municipal-government-237070928
There many things need to be dealt with in terms of better leverage funding. The infrastructure bank is not the solution -
https://www.slideshare.net/paulyoungcga/canada-infrastructure-analysis-of-policy-238326543
12. INFRASTRUCTURE
SPENDING
• Global Infrastructure -
https://www.pwc.com/gx/en/industries/capital-projects-
infrastructure/publications/infrastructure-trends.html
• China continues to fund many large projects around the world -
https://theconversation.com/chinas-worldwide-investment-
project-is-a-push-for-more-economic-and-political-power-
125190
• Belt Road Initiative -
https://policyoptions.irpp.org/magazines/january-2020/canada-
is-missing-the-boat-on-chinas-belt-and-road-initiative/
• Canada and failures of the infrastructure bank -
https://business.financialpost.com/opinion/jack-m-mintz-
beware-a-new-infrastructure-bank-canadas-had-enough-of-
these-failures-already or
https://torontosun.com/news/national/canada-infrastructure-
bank-approved-bonuses-to-ceo-who-resigned or
https://www.slideshare.net/paulyoungcga/canada-infrastructure-
investment-getting-goods-to-market
• More global infrastructure spending is required –
https://www.etftrends.com/alternatives-channel/data-confirm-
infrastructure-spending-needs-to-increase-asap/
• North American construction to fall by 6.5% for 2020 -
https://www.contractormag.com/construction-
data/article/21135728/north-americas-construction-output-to-
fall-by-65-in-2020
13. WHAT’S NEXT
• All countries will need to re-look at their urban vs
rural policies -
https://www.slideshare.net/paulyoungcga/urban-
and-rural-planning-whats-next
• 3D printing of housing needs to be part of urban
planning as way to reduce the cost of housing as
well a make housing more affordable -
https://thespaces.com/is-3d-printing-the-future-
of-affordable-housing/
• China continues to make debt arrangements with
developing countries. More oversight into China’s
investments is required -
https://www.slideshare.net/paulyoungcga/china-
path-to-global-domination
• Reforming all levels of government as part of
managing key policies like infrastructure
investments -
https://www.slideshare.net/paulyoungcga/public-
sector-how-to-reform-all-levels-of-government