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With Canada rushing to build housing, it should be no surprise that some entrepreneurial minds feel like it’s a business worth getting into.
Driving the news: The federal government made a wave of announcements this week for housing initiatives that will feature in the 2024-25 budget. They include a $6 billion pledge for housing construction and infrastructure, and a $1.5 billion fund to protect existing rental units.
Why it matters: Besides trying to build more housing during a housing crisis (which should go without saying), these new federal initiatives — alongside provincial plans to slacken building regulations — could grow construction into a bigger part of Canada’s economy.
- A new BuildForce Canada report projected that after experiencing a slight contraction in 2023 the sector is poised to grow through 2033. A JLL report came to a similar conclusion.
- And, for the second straight year in 2023, a construction-related company topped The Globe and Mail’s list of Canada’s top-growing companies.
Big picture: Last year, Canada’s construction sector employed over 1.5 million people, or roughly one in every 13 workers. With demand for construction workers higher than ever and enrolment in trade schools rebounding from a pandemic slump, that number stands to grow.
Zoom out: All this money flowing into construction should attract foreign interest, which has already trickled in. This week, France’s Saint-Gobain acquired one of Canada’s largest metal frame manufacturers for $880 million, its third Canadian acquisition since 2022.—QH