Under construction: Collapsing commodity prices have caused industry revenue declines

Operators in the Commercial Building Construction industry in Canada have struggled over the five years 2018. The reduced world price of oil affected Canada's economy, corporate profit and the value of nonresidential construction and in turn led to reduced revenue for the industry. Over the five years to 2023, revenue growth is expected to stabilize. As the economy has shifted gears and is showing strong growth, corporate profit levels will likely rise, enabling companies to pursue expansion opportunities...read more.

Industry Statistics & Market Size
Revenue
$31bn
Annual Growth 13-18
0.0%
Forecast Growth 18-23
Profit
Employment
57,422
Businesses
9,592
Market Share of Companies

Industry Threats & Opportunities

  • Demand is expected to stabilize as the market adapts to a new normal for commodity prices
  • Corporate profit levels are a key demand determinant for the industry
  • Changes in the population are expected to continue to support demand for commercial construction
  • Industry Report - Industry Key Buyers Chapter

    The Commercial Building Construction industry in Canada is estimated to have a low level of concentration, with the three top companies making up less than 20.0% of market share. As of 2018, there is only one major industry player, PCL Constructors Inc., which competes with regional and local contractors. Market share concentration among the largest enterprises has been steady over the past five years, as these competitors have not partaken in major consolidation activity. Although industry concentration is classified as low, the regional concentration is often higher...purchase to read more.

    Additional Insights for the Commercial Building Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Building Construction Industry are

  • Access to multiskilled and flexible workforce
  • Ability to compete on tender
  • Access to high-quality inputs
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Corporate profit in the Commercial Building Construction industry impact industry performance..

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    What's in this report

    What is the Commercial Building Construction Industry?

    This industry constructs office, retail, hotel and entertainment buildings. Players in this industry are responsible for new constructions, additions, alterations, maintenance and repairs. The majority of participants are general contractors or project managers. This industry does not include municipal building construction, which comprises institutional buildings such as schools, hospitals and churches.

    Industry Products
  • Alterations and improvements
  • New construction
  • Industry Activities
  • Office building construction
  • Hotel and motel construction
  • Restaurant, cafe and bar construction
  • Retail store construction
  • Shopping centre or shopping mall construction
  • Commercial warehouse construction
  • Service and gas station construction
  • Auto service and sales store construction
  • Entertainment and recreation building construction (e.g. casinos, gyms, cinemas and arenas)
  • Radio and TV broadcast studio construction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Corporate profit
  • Value of nonresidential construction
  • World price of steel

  • Current Performance
  • Insulated at first
  • Downstream demand
  • Structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Migration building up demand
  • Downstream demand set for growth
  • Green building projects present opportunities
  • Table: Commercial Building Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Building Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wholesale Trade In Canada
  • Supermarkets & Grocery Stores in Canada
  • Gas Stations with Convenience Stores in Canada
  • Office Supply Stores in Canada
  • Accommodation and Food Services In Canada

  • Key Selling Industries
  • Construction & Forestry Equipment Wholesaling in Canada
  • Construction In Canada
  • Wholesale Trade In Canada

  • Products & Services
  • Alterations and improvements
  • New construction
  • Other
  • Chart: Commercial Building Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Trade, services and warehouses
  • Office buildings
  • Other
  • Hotels, restaurants and resorts
  • Entertainment and recreational buildings
  • Chart: Major Market Segmentation for the Commercial Building Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Building Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Building Construction Industry

  • Industry Globalization
    PCL Constructors Canada Inc.,
  • Table: PCL Constructors Canada Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Building Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Commercial Building Construction Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Consumer Spending (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Computer-Aided Design
  • The use of computer technology to aid the design and drafting of a part or product using software tools that can create two-dimensional drawings or three-dimensional models.
  • General Contractor (Gc)
  • Also called a prime contractor. An individual or company that manages the construction of a structure for a property owner or developer. A GC may retain a labour force or use subcontractors.
  • Tender
  • A written offer or bid to contract goods or services at a specified cost or rate.
  • What Our Customers Say

    Why buy this report?

    The Commercial Building Construction market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Commercial Building Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Commercial Building Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Commercial Building Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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