Analysis of the Construction Industry in Canada

This report provides an analysis of the construction industry in Canada, focusing on its critical role in addressing the housing crisis. It outlines the industry's significant contribution to the economy, noting that it was the fifth-largest sector nationally in 2022, accounting for approximately 1.6 million jobs. The report discusses the challenges faced by the industry, including high building costs, labor shortages, and the impact of rising interest rates on housing affordability. It highlights the demand for housing driven by population growth and the inadequacy of current supply to meet this demand. The document also examines recent trends in construction investments, noting that residential construction has been the primary driver of growth. Additionally, it addresses the need for improved productivity within the sector and suggests potential solutions such as the adoption of digital technologies and prefabricated housing. The report concludes by emphasizing the importance of meeting housing supply objectives to ensure future economic stability.