January 23, 2009

Survey: A snapshot of Canada at work

We asked, and you responded. For the first of what will become an annual event, Reed Construction Data reached out to the leaders of more than 300 general contracting firms across Canada to gather views and opinions on a few key topics impacting the industry. More than 200 of you responded to some or all of our questions. On this page, you will find a summary of some of the key topics we asked about.

By far, the economy has emerged as the hot-button issue. Perhaps not so surprising, if you are working in the West, you have optimism your firm will be able to ride out these tumultuous times and emerge a survivor. The sentiment is not quite as buoyant if you are in Ontario, as firms are already feeling the crunch. We look forward to hearing your views in 2009.

Today's economy in your own words

• The capital crunch will cause a reduction in construction projects and new starts.
• We are so tightly connected to the U.S. economy.
• We are going to get pulled down by it.
• Pent up demand will offset market losses.
• There are too many variables at the current time to predict.
• Take a conservative approach until the markets stabilize.
• Many are “tightening their belts” financially.
• Pessimism leads to less spending and less development overall.
• Bad or inflated negative press will drive the construction economy down.
• If the project is not underway, there is no longer financing available.
• It is difficult to predict the total impact of the global financial crisis.
• The slowdown in the USA will have a detrimental effect on Canada.
• Current market correction will flatten growth and cost increases.
• We should continue to see solid growth in Western Canada based on continued oil sands development and infrastructure spending.
• Availability for funds for financing construction projects will be harder to obtain.
• Alberta may be the exception.
• In Alberta, the commercial sector will have a similar economy in 2009.
• The current financial situation and project inventory is resulting in deferrals and cancellations.
• The credit crunch will have short term impact only.
• The economy remains strong with high demand for infrastructure improvement.
• Economy in Alberta will remain similar going forward, however pace of growth will slow significantly.
• Contractors that were doing private work are now bidding on government work.
• Skilled labour shortage will continue to be a factor in 2009.

By the numbers, our survey says...

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