Midtown Appraisal Group’s Post

Construction in Canada: There's lots of it, but it may not be as productive as it should be. https://ow.ly/H6xQ50TmvvJ . . #realestate #housing #construction #newconstruction #constructionindustry

Industry News!! Exciting news for Ontario's construction industry! 🏗️. The latest report from Build Force Canada forecasts robust growth in both residential and non-residential sectors, offering promising opportunities for job seekers and industry professionals alike. With major projects driving demand across the province, there's never been a better time to be part of the construction landscape in #Ontario. The report highlights the need for approximately 35,500 new workers over the next decade, presenting a significant opportunity for those considering a career in construction. Things are looking bright for Ontario's construction sector and here at Skyline Recruitment we cant wait to play a major role in it. #ConstructionIndustry #OntarioConstruction #JobOpportunities Read more: https://lnkd.in/gqZ-xvXu

The article highlights that Canada’s construction sector is the main culprit in the country’s productivity crisis, with its fragmented, outdated methods and lack of scale. VEGO’s building technology can directly address these issues: 1. **Economies of Scale**: VEGO’s ability to mass-produce 20,000 square feet of building space per hour allows for large-scale, efficient housing production, consolidating a fragmented industry dominated by small firms. 2. **Modular Construction**: VEGO’s pre-engineered, steel-based modular system reduces construction time dramatically, aligning with the article’s point that modular housing can cut build times by 50%. 3. **Cost and Efficiency**: VEGO’s factory-based approach lowers material and labor costs, making it resilient to price hikes and interest rate fluctuations, unlike smaller firms that struggle with volatility. 4. **Industry Consolidation**: VEGO can scale rapidly, providing an opportunity to consolidate the construction sector, bringing in modern, efficient methods to a sector in need of investment and innovation. 5. **Standardization**: VEGO’s standardized components simplify regulatory approvals and help streamline construction across Canada, overcoming the barrier of inconsistent building codes. By leveraging VEGO’s technology, Canada can boost construction productivity, deliver affordable housing faster, and overcome the systemic issues dragging down the industry. "We are proposing a joint venture in Canada, requiring an investment of US$10 million to establish production of 20,000 square feet of building space per hour."

Construction activity in Ontario is expected to remain strong through the end of the decade, according to a recent report from BuildForce Canada. The non-residential sector is projected to experience sustained growth until at least 2029, thanks to a range of major projects across the province. Meanwhile, residential building is set to resume growth from 2025, following a period of stagnancy caused by high interest rates and inflation. As housing costs ease and population growth drives demand for additional housing, this is welcome news for the industry.

Interesting economic insight from Statistics Canada.

The total value of building permits in Canada increased by $1.3 billion (+11.5%) to $13.0 billion in September 2024, reaching the second-highest level since the start of the new series in January 2017. https://lnkd.in/ezKU2dBY Ontario's construction intentions grew by $1.2 billion (+25.0%) to $5.9 billion in September 2024, leading gains in both the non-residential and residential sectors.

The European Construction Industry Federation (FIEC) released its 67th Statistical Report, and although the data suggests each of the European Union’s (EU) 27 countries – in addition to #Norway, #Switzerland, and #Ukraine (EU27-plus) – have their own unique strengths and weaknesses in the #construction industry, the continent has been hampered overall by a declining #residential build segment. FIEC’s report shows more than three million enterprises compile 12 million labourers to operate in the region. Of those three million companies, 95% are staffed with less than 20 workers. Across the EU27-plus countries, the sector represents 5.5% of total employment and 48.7% of GFCF (gross fixed capital formation). The report also shows that new housebuilding and residential #renovations still take up most of EU27-plus construction activities; an aggregate of 50.2% in 2023, with renovations consuming 30.3% of that total. Non-residential construction was the highest of the four single categories tracked by FIEC; it accounted for 31.8% of activity in 2023. Overall, European construction is contracting: “Looking at individual member states, the picture is bleak across most of #Europe, with the construction sector in most countries experiencing either weak growth or contraction,” says FIEC, which adds the reductions reached “crisis” levels in 2023. “Projections for 2024 are rather pessimistic across most of Europe.” While the Euro recorded 2023 growth of 0.4% and employment increased slightly (0.3%) in the year’s final quarter, FIEC’s report notes that real GDP growth in the EU was more modest than projected; it increased 0.4%, which was half the 0.8% projection. “The construction sector in Europe, which has proved more resilient than other sectors in previous #economic downturns, is expected to contract by 2.3% in 2024,” says FIEC. “Total investment in construction started to slow down in 2022, contracting by 0.3% last year.” The report cites Bulgaria (-9.8%) and Sweden (-5.6%) as having the largest pullback in 2023. “In the case of Sweden, this is mainly due to the ongoing crisis in housing construction,” says FIEC. Full article below...

Operating locally, construction firms lack the economies of scale of regional and national enterprises. It is not surprising, then, that the construction sector, according to TD, has achieved no productivity growth for 40 years. As a rule, construction firms cannot afford the most modern equipment. They often have not been able to absorb the hikes in raw material costs of recent years. Compounding the problem are today’s high interest rates. Amid a crisis of insufficient shelter, housing starts actually fell by seven per cent last year, to 223,513 in communities of more than 10,000 people, according to the CMHC.

Construction activity in both residential and non-residential sectors in Ontario is expected to be robust coming out of 2024 and the industry should see continuous growth through to the end of the decade says a new report from BuildForce Canada / ConstruForce Canada  . . . . . . . . . #RMGInsights #ConstructionNews #ConstructionInsights #BuildingTrends #ConstructionIndustry #ConstructionUpdates #InfrastructureNews #ConstructionGrowth #IndustryInsights #ConstructionTech #OntarioConstruction #BuildingInnovation #ProjectManagement

This opinion piece suggests that building more modular housing in Canada will help to not only build more housing faster but also address our lagging productivity in the residential construction sector. https://lnkd.in/g5BKHUSp #housing #modularhousing #construction #productivity #Sweden #Japan