b'ECONOMIC FORECASTCONSTRUCTIONS FUTUREnow seeing fewer projects in the planninghome activities will support consumer Recovery forecasts vary among Canadasstages than anticipated coming into 2020.demand for renovations, with relatively industries. By and large, says Tapp, theThis means more competition for projectsless of a premium on downtown real recovery to date is looking K-shaped,and more pressure for bidding companiesestate, especially for large corporate office with some sectors performing wellto control their costs. buildings, explains Tapp. despite current challenges. This includes the manufacturing industry, which hasShifting demands in multifamily housing,Whether Ontario and its federal bounced back admirably in recent months,retail and office developments are alsocounterparts have money left to support and the tech sector, which is experiencingmaking future activity hard to predict.industries like construction remains to growth due to a surge in online shoppingThe move to remote working has drivenbe seen. The more likely scenario is that and a shift to a work-from-home focus.suburban projects, but it has also reducedpublic investment in infrastructure will not Conversely, he adds, Other sectors arethe need for office space and demand forreach anticipated levels until several years expected to be grappling with longer- downtown condos in places like Toronto.down the road, resulting in slower growth term structural adjustments, includingThe real estate market in Toronto defiedfor the sector and the Canadian economy. accommodation and food services, artsall odds during the pandemic, says and entertainment, transportation andCasaletto. The housing market explodedThere are still opportunities, however. aerospace industries, as well as oil because people were trying to get out ofSpecifically, Casaletto sees alternative and gas. condos into homes. So what does this dofinancing and public-private partnerships to the demand for condo construction?as a way to stimulate the economy Where does that leave construction? WhileDoes it change the profile and and invest in vital infrastructure. I see crews came back to a significant workthe footprint? a tremendous amount of growth and backlog after the shutdown, Casalettopenetration into our industry of public-predicts that very backlog will likely resultThere are factors that may still spurprivate partnerships and alternative in fewer projects down the road: We knowactivity. For example, says Tapp, interestfinancing methods as a way to get the that about 20 to 30 per cent of all projectsrates are expected to remain low for theinfrastructure we need, keep pace with in Canada were cancelled or delayedtime being, which will provide support todemand and stimulate the economy. during the first 90 days of the pandemic.new construction in Canada. And withIm less bullish on the private sector re-That means that for the constructionmore people working from home, thereengaging until 2022 or 2023, he says. industry theres going to be a smaller poolis optimism that demand for suburbanSo what I expect broadly for construction of projects coming on stream as we goresidential real estate will grow. Weis a very bearish industry, probably for the forward. Indeed, he adds, the industry isexpect that the increased work-from- next year or two as we sort this out.Image courtesy of E.S. Fox Limited Builtto last.Built to last.Canadas skylines were built on the enduring partnership between Canadas unionized contractors and our Ironworkerpartners. Its a commitment to professionalism without compromise that gets the job done right every time for all time. Start here to find the proven talent with seasoned skills and the health and safety standards to match. For your current or upcoming project, you can find a full list of our members at ontarioerectors.comBUILDERSDIGEST Quarter 3 202021'