Industry Analysis & Industry Trends
The Municipal Building Construction industry's fate will stay tied to government expenditure during the next five years, with the health of federal, provincial and local budgets determining demand for new institutional and government buildings as well as the repair and renovation of existing ones. The federal government has made balancing the budget by 2015 a priority, and though the stimulus program was over by 2011, carefully reducing government spending has been made more difficult due to slowing economic growth. This trend will also affect provincial budgets, which have a more direct influence on demand for new educational construction. However, uninterrupted growth in health expenditure will bolster the industry's largest market... purchase to read more
Industry Report - Industry Investment Chapter
The Municipal Building Construction industry has a low level of capital intensity, with capital investment mostly limited to office furniture, computer equipment and software. Industry services are rendered primarily by skilled employees like project managers, who use no heavy equipment. As such, in-house wage costs (and labour payments made to subcontractors) vastly outweigh depreciation costs in the industry.
In 2015, IBISWorld estimates that the average operator spends $0.03 in capital investment for every $1.00 spent on labour costs. This investment level is unchanged from 2010, when the average general contractor spent the same amount... purchase to read more