North America’s construction output is forecast to fall by 6.5% in 2020, with Canada projected to see the steepest decline in output (-7%) owed in part to the collapse in global oil prices, while construction output in the US is projected to decrease by -6.5%, according to GlobalData, a leading data and analytics company.
Even though all construction activities have been allowed to continue in most parts of the US and Canada since the start of the COVID-19 pandemic, many projects in the bidding or final planning stages have been delayed or canceled largely due to the uncertainty surrounding the economy, falling demand for new construction works, and concerns related to COVID-19 safety measures at construction sites.
Dariana Tani, Economist at GlobalData, comments: “With the absence of a vaccine and the number of coronavirus cases continuing to increase across the region, especially in the US, the short-term outlook for North America’s construction industry remains highly uncertain and will depend to a large extent on how long the social distancing measures both voluntary and compulsory prevails in the second half of 2020 and in 2021.”
GlobalData expects construction activity to remain weak over the remaining the forecast period (2021-2024). Public authorities in the US and Canada are currently trying to find a balance between returning their economies back to normal while making sure that citizens remain safe through social distancing guidelines, increased testing and contract tracing, and workforce protection controls. These measures will become more or less strict depending on the rate of infection and the operating capacity of the healthcare system.
Related Stories
Market Data | Apr 16, 2019
ABC’s Construction Backlog Indicator rebounds in February
ABC's Construction Backlog Indicator expanded to 8.8 months in February 2019.
Market Data | Apr 8, 2019
Engineering, construction spending to rise 3% in 2019: FMI outlook
Top-performing segments forecast in 2019 include transportation, public safety, and education.
Market Data | Apr 1, 2019
Nonresidential spending expands again in February
Private nonresidential spending fell 0.5% for the month and is only up 0.1% on a year-over-year basis.
Market Data | Mar 22, 2019
Construction contractors regain confidence in January 2019
Expectations for sales during the coming six-month period remained especially upbeat in January.
Market Data | Mar 21, 2019
Billings moderate in February following robust New Year
AIA’s Architecture Billings Index (ABI) score for February was 50.3, down from 55.3 in January.
Market Data | Mar 19, 2019
ABC’s Construction Backlog Indicator declines sharply in January 2019
The Construction Backlog Indicator contracted to 8.1 months during January 2019.
Market Data | Mar 15, 2019
2019 starts off with expansion in nonresidential spending
At a seasonally adjusted annualized rate, nonresidential spending totaled $762.5 billion for the month.
Market Data | Mar 14, 2019
Construction input prices rise for first time since October
Of the 11 construction subcategories, seven experienced price declines for the month.
Market Data | Mar 6, 2019
Global hotel construction pipeline hits record high at 2018 year-end
There are a record-high 6,352 hotel projects and 1.17 million rooms currently under construction worldwide.
Market Data | Feb 28, 2019
U.S. economic growth softens in final quarter of 2018
Year-over-year GDP growth was 3.1%, while average growth for 2018 was 2.9%.