Canada Construction Monitor<\/em><\/a> continue to point to a relatively cautious backdrop in the face of increased trade tariffs set by the United States. That said, the latest feedback is somewhat more stable than in the previous quarter, though the mood remains noticeably less upbeat than during most of last year.<\/p>\nThe headline Construction Sentiment Index (CSI) posted a reading of +6 in Q2, marking a small improvement compared to the figure of -3 returned in Q1. Nevertheless, tariff induced uncertainty is still clearly evident, with the latest reading significantly more subdued than the average score of +21 seen over the previous twelve months.<\/p>\n
Respondents noted a strong rebound across infrastructure over the latest survey period. Indeed, a net balance of +40% of contributors saw a pick-up in such workloads during Q2 \u2013 the strongest reading going back to early 2023. Within this, the \u2018social\u2019 infrastructure sub-sector recorded the most notable uplift, with water & waste, as well as transport, also seeing a marked improvement. In fact, agribusiness was the only infrastructure category in which workloads did not reportedly rise during Q2; instead, activity was largely flat according to respondents in this area.<\/p>\n
Outside the more resilient infrastructure sector, the indicator tracking private residential activity slipped deeper into negative territory, registering a net balance of -34%. This is the weakest reading across the sector since the survey was formed in late 2019. With respect to private non-residential\/ commercial development activity, the latest net balance of -6% is a little less unfavourable than -18 last time.<\/p>\n
Twelve-month expectations across key variables tracked in the Monitor<\/em>. Concentrating on forward-looking sentiment around workloads, the infrastructure sector continues to stand out as displaying the strongest growth prospects over the year ahead. Moreover, respondents upgraded their projections significantly in Q2, with the latest net balance of 56% the most upbeat since 2022.<\/p>\nTurning to the industry employment outlook, a net balance of +17% of contributors at the national level foresee headcounts rising over the next twelve months, up from a reading of +6% beforehand. Alongside this, respondents are now of the view that profit margins will see minimal change over the course of the next twelve month, parring back some of negativity seen in the previous iteration of the survey.<\/p>\n
Sheila Lennon, CEO of the Canadian Institute of Quantity Surveyors, said: \u201cDespite growing uncertainty in the residential and non-residential sectors and continued concern regarding the US tariffs, rising material costs, and continued skills shortages, infrastructure workloads saw the strongest pickup since early 2023.\u00a0 This infrastructure growth offers significant opportunities for quantity surveyors, as they play a critical role in forecasting costs and ensuring project efficiency to manage risk and maintain financial stability of projects. \u201c<\/p>\n
Comments from survey participants<\/strong><\/p>\nBuilding codes and environmental code requirements have increased so drastically that even though we work in one of the most expensive housingmarkets in the world, we are still not able to build for a low enough cost to turn a pro\ufb01t due to increasing building costs, and slow permitting processes from the municipalities<\/em> \u2013 Abbotsford<\/p>\nThe current provincial government does not have a positive outlook on building \u201cgreen\u201d \u201csustainable\u201d etc. and there is not much for incentives right now for renewables or reducing carbon<\/em> \u2013 Calgary<\/p>\nMarket uncertainty is limiting starts on private development<\/em> \u2013 Calgary<\/p>\nLack of understanding of economic \ufb02uctuations in high\/low demand of building materials\/labour concerning local, regional and global factors. Complete lack of preparation for future impacts of AI on all aspects of construction<\/em> \u2013 Calgary<\/p>\nWe are currently seeing approx 90% of projects tendered are considerably over budget in the infrastructure sector. These budgets are beingprepared by owners, designers, and engineers \u2013 all of whom are underskilled to perform this work<\/em> \u2013 Chilliwack<\/p>\nThe continual and increased threat of (unknown) tari\ufb00s are driving cost increases across the industry<\/em> \u2013 Halifax<\/p>\nI\u2019m afraid that sustainability doesn\u2019t jive with a\ufb00ordability. In this shrinking market, virtue become less a priority. We maybe don\u2019t like the carbon footprint of concrete although we don\u2019t see much data about the lifecycle of such product compared to others. Carbon footprint, sustainability, biodiversity are added layers with stockholders who have di\ufb00erent opinions about construction issues and the cost related to it<\/em> \u2013 Kelowna<\/p>\nImminent threat of tari\ufb00s from the USA with the new president. A shortage of skilled labour. High demand for construction resources. A high level of approvals needed from all levels of government (municipal, provincial, and federal) hinder the approval process for new projects<\/em> \u2013 Kelowna<\/p>\nMany do not work with a matrix structure based on project and activity management<\/em> \u2013 Laval<\/p>\nElectrical power upgrades to serve electri\ufb01cation projects are the issue currently. Long lead times, rising costs, etc.<\/em> \u2013 Oakville<\/p>\nSustainability requirements seem to be more government-driven be it on the federal or local government levels. Private developers seem to decide ona building-by-building basis based on the requirements from the stakeholders<\/em> \u2013 Ottawa<\/p>\nVolatility caused by tarri\ufb00s from the US remains a high risk. This however has created more supply of Canadian steel in the eastern part of thecountry. Recently, we have seen very competitive steel pricing tenders<\/em> \u2013 Ottawa<\/p>\nTari\ufb00 increases placed by USA on some of the construction materials creating uncertainty<\/em> \u2013 Regina<\/p>\nStill unknown the cost impact of the tari\ufb00s wars \u2013 Spruce Grove tari\ufb00 and steel\/aluminium tax a\ufb00ecting tender price<\/em> \u2013 Toronto<\/p>\nUncertainty due to tari\ufb00s is causing owners to pause projects<\/em> \u2013 Vancouver<\/p>\nWe see a slower than usual housing market which slows construction as well. Lots of uncertainty due to the ongoing trade war with USA. Lots ofgovernment regulations drove away foreign investors and market is cooling down<\/em> \u2013 Vancouver<\/p>\nThe real estate market is currently experiencing instability, which is contributing to uncertainty in the construction industry. Fluctuations in property values and buyer demand are a\ufb00ecting project \ufb01nancing, investment decisions, and overall market con\ufb01dence<\/em> \u2013 Vancouver<\/p>\nSupply disruptions arising from trade barriers and other geopolitical factors have destabilized pricing and product and material availability<\/em> \u2013 Vancouver<\/p>\nCost of \ufb01nancing, increasing development fees, increases in construction costs and reductions in property values are negatively impacting our ability tobring projects to market<\/em> \u2013 Vancouver<\/p>\nReducing labour pool with the incoming workforce having di\ufb00erent mindsets and attitudes from those retiring out of the workforce. Government-driven housing projects are ensuring a relatively stable market (prices not reducing) when reductions should be occurring which could lead to issues when theprivate market recovers could lead to reinforced a\ufb00ordability issues<\/em> \u2013 Victoria<\/p>\nChanges in seismic code speci\ufb01c to Vancouver Island \u2013 Victoriad Cost of construction and the concern about the USA\u2019s tari\ufb00 impact on the economy are keeping investors on the sidelines until they can forecast where the market is headed<\/em> \u2013 Windsor<\/p>\nNo real factors to consider this quarter, summer is busy for all sectors in Manitoba<\/em> \u2013 Winnipeg<\/p>\n<\/div>\n
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