Building up: A rebounding nonresidential sector will incite revenue growth

This industry relies heavily on capital and repair construction expenditures from its key downstream markets. Declines in corporate profit levels, which influence spending on industrial construction, are expected to drag down revenue over the five years to 2018. Over the five years to 2023, the possibility that commodity prices have reached a new normal poses a potential threat to the industry moving forward. Despite the threat, IBISWorld forecasts industry revenue during the five-year period. An anticipated rebound in nonresidential investment will unleash pent-up demand from the energy sector, boosting industry more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Expanding downstream markets will spur demand for industrial building construction
  • Discord in the energy sector has had ripple effects throughout the broader economy
  • An overall expanding economy is projected to spur steady growth in consumer spending
  • Industry Report - Industry Key Buyers Chapter

    The Industrial Building Construction industry in Canada has a low level of market share concentration, with the two largest companies accounting for an estimated 28.8% of industry revenue. The largest players are multinational general contractors, such as PCL Constructors Inc. and Aecon Group Inc., that have the resources and the staff to handle massive contracts for industrial facilities such as fertilizer plants. However, most participants in the industry are small-scale general contractors that serve a specific sector and local geographic region. According to Canada Statistics, only 1.4% of establishments employ more than 100 workers, while 39.6% of businesses have fewer than 50 employees. For...purchase to read more.

    Additional Insights for the Industrial Building Construction Industry

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

  • Ability to expand and curtail operations rapidly in line with market demand
  • Ability to negotiate successfully with regulator
  • Access to high-quality inputs
  • IBISWorld analysts also discuss how external factors such as Value of nonresidential construction and Industrial capacity utilization in the Industrial Building Construction industry impact industry performance..

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    What's in this report

    What is the Industrial Building Construction Industry?

    Industry operators construct industrial and manufacturing buildings via new work, additions, alterations, maintenance and repairs. Establishments include general contractors, design-build companies and construction management operators.

    Industry Products
  • Alterations, extensions and improvements
  • New construction
  • Industry Activities
  • Alterations, additions or repairs to and industrial buildings
  • New and industrial buildings
  • Waste and garbage disposal plant construction
  • Factory, plant and mill construction
  • Industrial warehouses, cold and dry storage and distribution facilities construction
  • Industrial laboratories and testing facilities construction
  • Speculative industrial construction (i.e. building on own land for the purpose of sale)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of nonresidential construction
  • Industrial capacity utilization
  • Canadian effective exchange rate index
  • Corporate profit

  • Current Performance
  • Rebuilding confidence
  • Exports cushion the fall
  • Structural characteristics
  • Chart: Revenue Growth

  • Industry Outlook
  • Technology sustains demand
  • Accommodative lending for expansion
  • Wages and operator bottom lines
  • Table: Industrial Building Construction Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Mining In Canada
  • Wholesale Trade In Canada
  • Transportation and Warehousing In Canada
  • Commercial Leasing in Canada
  • Storage & Warehouse Leasing in Canada
  • Public Administration in Canada

  • Key Selling Industries
  • Construction & Forestry Equipment Wholesaling in Canada
  • Construction In Canada
  • Finance and Insurance In Canada
  • Heavy Equipment Rental in Canada
  • Lumber Wholesaling in Canada
  • Professional, Scientific and Technical Services In Canada
  • Ready-Mix Concrete Manufacturing in Canada
  • Roofing, Siding & Insulation Wholesaling in Canada

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

  • Demand Determinants
    Major Markets
  • Factories and plants
  • Transportation and utilities
  • Agriculture and mining
  • Repairs and improvements
  • Chart: Major Market Segmentation for the Industrial Building Construction Industry

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

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

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Industrial 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 Industrial Building Construction Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Industrial Capacity Utilization (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.
  • Industrial Building
  • A building primarily used to accommodate capital equipment for the manufacturing, packaging or storage of products.
  • 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?

    IBISWorld’s Industrial Building Construction market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Industrial 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 Industrial 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 Industrial 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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