Although the industry will expand, an unstable housing market will suppress growth
Los Angeles, CA (PRWEB) June 18, 2013
The Concrete Contractors industry plays a central role throughout Canada's construction sector. Virtually, every newly built structure requires concrete, typically as a building's foundation, floor, internal superstructure or exterior cladding. Concrete is used heavily for raising office buildings, retail structures (e.g. malls, sports stadiums and civic centres), and in energy infrastructure and other industrial buildings. Many contractors rely on the single-family housing market, which provides smaller operators with a high volume of contracts each year. With demand dispersed among many downstream construction markets, Canada's recession in 2008 and 2009 led to two years of sharp industry contraction. However, a quick turnaround in 2010 and more subdued progress since have led industry revenue to grow at a slow annualized rate of 0.5% to $4.5 billion in the five years to 2013. IBISWorld expects revenue to contract 5.5% in 2013, though, in response to the cooling Canadian housing market.
As more contractors enter the industry during the coming five years and underbid established players to gain business, margins are forecast to record limited growth. Like most specialty construction industries, the Concrete Contractors industry has a low level of market share concentration. Overall, the industry is composed of small-scale enterprises that serve a single local area and work on single-family homes and smaller commercial structures, such as stand-alone retail stores. The vast majority of operators have one office or location, and the average crew has six workers. The few nationwide companies compete for lucrative energy infrastructure projects or massive commercial structures like sports arenas, leaving the local markets to area contractors. IBISWorld expects concentration to rise slightly during the next five years as the single-family housing market cools from its cyclical high and investment into energy infrastructure continues, particularly in Alberta.
Canadian construction markets are projected to progress steadily during the five years to 2018, and concrete contractors will perform in kind. An unstable housing market, a primary source of contracts for the industry's small operators, will preclude more robust growth. After overbuilding before the recession and a rapid rebound in 2010, single-family housing markets are overheated in many areas and will demonstrate volatile performance during the next five years, limiting industry growth in the process. For more information, visit IBISWorld’s Concrete Contractors in Canada industry report page.
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IBISWorld industry Report Key Topics
Establishments in this industry primarily pour, build and finish concrete foundations and structural elements like retaining walls and private driveways and walks. Industry firms also perform grout and shotcrete work. The work performed may include new work, additions, alterations, maintenance and repairs.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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