No support: Declining oil prices will lead industry revenue to fall

The Municipal Building Construction industry includes a wide range of noncommercial markets, including healthcare, education, religious buildings and government offices. Direct government funding accounts for almost all education and public building construction, while the private sector funds most healthcare construction. Since the industry heavily relies on government investment, it has struggled over the past five years amid diminished tax revenue stemming from modest economic growth. Over the five years to 2022, the value of government expenditure and investment is expected to grow steadily, due in part to an anticipated partial recovery in oil prices and a recent stimulus package passed in Ottawa...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 12-17
2.1%
Forecast Growth 17-22
Profit
Employment
24,558
Businesses
4,601

Industry Threats & Opportunities

  • Faltering industry revenue has combined with the rising cost of construction material to squeeze average profit margins
  • Nonprofit corporations are the most common owners of healthcare and welfare structures
  • Uninterrupted growth in health expenditure will bolster the industry’s largest market
  • Industry Report - Industry Analysis Chapter

    The Municipal Building Construction industry is a key sector in Canadian construction. As of July 2017, more than one-quarter of the total value of nonresidential building permits comes from the institutional or governmental (i.e. municipal) markets. The industry includes both major building projects, such as hospitals and universities, and small- and mid-size contracts, such as the renovation of a local government office. As in the Commercial Building Construction industry (IBISWorld report 23622aCA), operators are general contractors, sometimes referred to as project managers or prime contractors, that are hired by a property owner or developer to organize and manage every aspect of a project buildout. Gen...purchase to read more.

    Additional Insights for the Municipal Building Construction Industry

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

  • Ability to compete on tender
  • Access to highly skilled workforce
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Government expenditure and investment and Number of children aged 19 and younger in the Municipal Building Construction industry impact industry performance..

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    What's in this report

    What is the Municipal Building Construction Industry?

    This industry constructs municipal and institutional buildings in the private and public sectors, including government buildings, churches, prisons, schools and healthcare facilities. Operators are usually general contractors and perform new work, additions, alterations and repairs, though they may also serve as construction managers.

    Industry Products
  • General contracting
  • Design-build contracting
  • Construction management
  • Public-private partnership
  • Industry Activities
  • Hospital and clinic construction and repair
  • Public school construction and repair
  • College and university construction and repair
  • Prison construction and repair
  • Religious building construction and repair
  • Library construction and repair
  • Courthouse and other governmental building construction and repair
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Government expenditure and investment
  • Number of children aged 19 and younger
  • Total health expenditure
  • Value of nonresidential construction

  • Current Performance
  • Public investment
  • Education and healthcare markets
  • Industry structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • New investment and regional trends
  • Healthcare leads the way
  • Moderate expansion to come
  • Table: Municipal Building Construction Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Educational Services In Canada
  • Healthcare and Social Assistance In Canada
  • Religious Organizations in Canada
  • Public Administration in Canada

  • Key Selling Industries
  • Construction In Canada
  • Glass Product Manufacturing in Canada
  • Iron & Steel Manufacturing in Canada
  • Lumber & Building Material Stores in Canada
  • Ready-Mix Concrete Manufacturing in Canada

  • Products & Services
  • General contracting
  • Design-build contracting
  • Construction management
  • Public-private partnership
  • Chart: Municipal Building Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Public sector demand determinants
  • Private sector demand determinants

  • Major Markets
  • Education building construction
  • Healthcare building construction
  • Aged care facility construction
  • Government and other institutional building construction
  • Other building construction
  • Religious building construction
  • Chart: Major Market Segmentation for the Municipal Building Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Municipal Building Construction

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

  • Industry Globalization
    PCL Construction Enterprises,
  • Table: PCL Construction Enterprises - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Municipal 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 Municipal Building Construction Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Government Expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Building Information Modeling
  • Software capable of modeling a project in 3-D that also projects how changes in materials or timetables affect costs and the project's schedule.
  • Computer-Aided Design (Cad)
  • Software used to design specific parts or the entirety of a building.
  • General Contractor
  • Also known as a project manager. The firm responsible for all aspects of a building's construction, including purchasing materials, hiring subcontractors and ensuring regulations are followed.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Municipal Building Construction market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Municipal 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 Municipal 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 Municipal 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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