Articles tagged with "Forecast"

The demand for data centers continues to grow, even as concerns about a potential market bubble are raised. Developers are involving contractors earlier in the project lifecycle to evaluate site conditions, mitigate risks, and secure necessary materials. This proactive involvement aims to streamline the construction process and address any possible issues early on.

The article discusses the importance of accelerating national priority projects in Canada to enhance self-reliance, economic resilience, and sovereignty signaling amid current economic challenges. It proposes strategic infrastructure projects that span provincial borders to improve domestic connectivity and engage in more diverse international trade. Suggestions include the establishment of trade corridors and zones, as well as streamlined regulatory approval processes to facilitate the development of such projects. The focus is on projects with long-term benefits for Canada's stability and prosperity.

The article discusses the impact of new tariffs on Canadian exports to the United States, resulting in a significant decrease in export volume. To counter these economic challenges, Canada is focusing on nation-building through significant construction projects. This strategy is aimed at boosting the domestic economy and reducing reliance on exports to the U.S. The article highlights Canada's shift towards strengthening its infrastructure as a means to sustain economic growth.

In May, Canada experienced a stagnation in housing starts with a slight increase in the six-month trend but a minor monthly decline, according to CMHC. Actual housing starts rose by 9% year-over-year in cities with populations over 10,000, partly due to single-detached homes and rentals in Quebec and the Prairies. Montreal saw an increase in housing starts, while Vancouver and Toronto experienced declines, largely due to weaker condominium markets.

Tampa Airport has revealed its plans for a new $1.5 billion terminal named Airside D, led by the construction company Hensel Phelps. The cost of this project has almost doubled since it was first proposed. The terminal is expected to be completed and operational in 2028.

The latest Producer Price Index data reveals that construction costs have surged by 6% on an annualized basis. This increase is mainly due to significant price rises in materials such as iron, steel, copper, and aluminum in May. These spikes have largely counterbalanced any reductions in energy costs.

The recent military escalation in the Middle East, with Israel launching missile strikes against Iranian targets, has led to a sharp increase in oil prices. This has revived inflationary concerns among North American construction professionals, particularly impacting the costs of steel and aluminum. The conflict is expected to create additional financial pressures on the construction industry.

Residential rents in Canada decreased by 3.3% year-over-year in May from a record high as per the National Rent Report by Rentals.ca and Urbanation. However, rental prices are still significantly higher than two and three years ago, having increased by 5.7% and 12.6% respectively. Over the past five years, average asking rents have risen by 4.1% annually, indicating worsening rental affordability since the COVID-19 pandemic.

The construction backlog has decreased from its two-year high due to tariff-related delays and cancellations, according to the Associated Builders and Contractors. These setbacks have impacted contractors' project pipelines, leading to reduced backlogs. The report suggests that these economic factors are temporarily easing the demand for construction projects.

Chris Evans, president of Timberlab, a Swinerton-owned supplier and contractor, is exploring opportunities in the economy under the current steel tariffs. He highlights the potential of mass timber as an alternative to steel in construction projects. As steel prices increase, companies are seeking materials that offer flexibility and long-term value, pushing the industry towards timber adoption. Timberlab is positioning itself to capitalize on this shift in the construction materials landscape.

The nonresidential construction pipeline has increased by 24% compared to 2024, driven by warehouse and hotel construction. Activity in the data center sector has slowed down, but the overall growth in commercial planning bolsters the market. This trend reflects a significant upswing in commercial building despite some sector slowdowns.

The future of California's high-speed rail project is uncertain as it struggles to secure additional funding. The California High-Speed Rail Authority is looking for a way to continue, but financial support from the state or private investors seems unlikely. This raises questions about the project's sustainability without federal funding.