New York, Dec. 15, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "North America Construction Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06190209/?utm_source=GNW
The year 2018 saw a rapid increase in construction growth across the US and Canada, with the residential sector a key driver of the pick-up, with low borrowing costs and wage growth continuing to increases demand more housing units.
Covid-19 outbreak has severely impacted business and consumer sentiment in North America, leading to building construction sectors recording lowest growth in years. Even though all construction activities have been allowed to continue in most parts of the US and Canada since the start of the COVID-19 pandemic, many projects in the bidding or final planning stages have been delayed or canceled.
The pace of growth will recover from 2021 onwards as the ongoing infrastructure investments and smart city projects will add momentum for the region’s construction industry. Engineering and construction firms are key enablers of this powerful vision for upgrading infrastructure to incorporate sensing technology and data analytics that could contribute to making more smart cities in the region.
Key Market Trends
Recovering US Construction Market
Construction is the largest contributor to the U.S. economy. In 2019, the value-added of the construction industry was around 4.1% of the GDP in the United States. The construction market in the United States is one of the largest in the world, with private spending reaching 977 billion U.S. dollars in 2019 and with about 11.2 million people employed in the industry. It is expected that new construction put in place will total 1,449 billion U.S. dollars by 2023. It is one of the largest customers for manufacturing, mining, and a variety of services. The industry is expected to be led by public investment across non-residential buildings and nonresidential structures. Followed by transport and public safety sectors.
Top construction projects of 2019 were: NYC Housing Authority Office Of Design (Brooklyn, NY), Landmark Real Estate and Development (Chicago, IL), Houston Bullet-Train Station - Texas Central (Houston, TX), Massachusetts Department of Transportation (MassDOT) Rail and Transit Division (Boston, MA), California High-Speed Rail Authority (Bakersfield, CA) and Art Silicon Valley (BSV) Phase II - Santa Clara Valley Transportation Authority (Santa Clara, CA) among others.
Currently, a shortage in skilled labor has slowed the speed of on-site projects and made it even more difficult for encouraging new talent to begin. The construction industry is also notoriously sluggish in its integration of new advancements and technology, such as project management software, drones, and building information modeling.
Stable growth in the Canada Construction Market
The Canadian government has committed to building and maintaining infrastructure across the country. Under the ‘Investing in Canada Plan’, the government has earmarked over USD 180 billion (CAD) in key infrastructure for the next decade. The plan includes funding for long-waited projects related to public transit, affordable housing, and developing rural communities, among others. Green energy is another core investment area, with a focus on sustainability and stimulating local economies.
Big investments in construction are planned across the country. For instance, the Governments of Canada and Alberta have committed over USD 52.7 million to the completion of several infrastructure projects through the Investing in Canada Infrastructure Program. The Community Infrastructure Improvement Fund (CIIF) has earmarked USD 150 million for the repair and improvement of community infrastructure facilities across the country. TC Energy has approved the construction of a USD 8 billion project to transport up to 830,000 barrels a day of oil from Alberta to Nebraska, which is about one-fifth of all the oil Canada transports to the United States each day.
Major projects such as the Bellechasse Transport Centre in Montreal, Calgary’s Complex Continuing Care Facility, and the new Brampton Transit Facility are some examples of USD 100 million+ projects that were expected to commence in the final months of 2020.
Competitive Landscape
The North America construction market is less competitive, with the presence of major international players occupying a large market share and leaving less scope for other small and medium scale players. The North America construction market presents opportunities for growth during the forecast period, which is expected to further drive market competition. Along with growing infrastructure and construction investments in the large economies of the region create ample opportunities for the other players. With a few players holding a significant share, the North Americai construction market has an observable level of consolidation.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06190209/?utm_source=GNW
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