Commercial Building Construction in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: July 2024
NAICS 23622aCARevenue
$37.7bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
64,596
Businesses
9,214
Wages
$X.Xbn
Commercial Building Construction in Canada industry analysis
Revenue for the Commercial Building Construction industry in Canada is determined by broader macroeconomic performance, which has been driven by commodity prices, corporate valuations and financial conditions. In recent years, improving economic conditions have raised revenue as the effects of the pandemic waned, even as heightened interest rates have stifled investment in commercial building construction, slowing growth. Over the past five years, industry revenue is forecast to have decreased at a five-year CAGR of 0.9% to reach $39.3 billion in 2024, when revenue is expected to grow 0.5%. Average industry profit has also seen an overall decline as contractors, facing perennial labour shortages, have had to dedicate a growing share of their overall revenue to wages.
Trends and Insights
- Falling interest rates will improve growth prospects for commercial builders. The Bank of Canada began cutting rates in 2024; looser borrowing conditions will stimulate demand for construction projects.
- Trade, services and warehouses are the largest commercial construction markets. Warehouse construction, in particular, has seen high growth in recent years.
- Ontario and Quebec are the primary locations for commercial builders. This reflects both provinces' high population and large economy.
- Companies compete with other major contractors and numerous midsize and smaller contractors. Contractors compete primarily based on prices for construction services, ability to obtain funding and reputation for quality, timeliness and experience.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.7 % over the past five years, to reach an estimated $37.7bn in 2024.
Trends and Insights
Macroeconomic conditions dictate performance
- Pandemic-related disruptions in 2020 and 2021 weighed on commercial property values and new construction activity. Specifically, consumer spending fell in 2020 and remained below 2019 levels in 2021, contributing to falling revenue for commercial building construction in 2020 and 2021.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Expanding urbanization set to help industry growth
- Changes in the Canadian population are expected to continue to support demand for commercial building construction over the coming years.
Biggest companies in the Commercial Building Construction in Canada
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
PCL Constructors | 2,349.1 | 54.1 | 2.3 | |
Ledcor Group of Companies | 332.7 | N/A | N/A | |
Quorex Construction Services Ltd. | 37.0 | N/A | N/A |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Alterations and improvements, New construction and Other. Alterations and improvements is the largest segment of the Commercial Building Construction in Canada.
Trends and Insights
Alterations and improvements remain steady as a segment
- Main segment offerings include structural extensions, maintenance, repairs and more.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Industrial Building Construction in Canada
Complementors
- Homebuilders in Canada
- Bridge & Elevated Highway Construction in Canada
- Road & Highway Construction in Canada
International industries
- Commercial Building Construction in the US
- Hotel Construction in the US
- Restaurant Construction in the US
- Construction Project Management Services in the US
- Commercial Property Remodeling in the US
Table of Contents
About this industry
Industry definition
This industry constructs office, retail, hotel and entertainment buildings. Operators in this industry are responsible for new constructions, additions, alterations, maintenance and repairs. The majority of participants are general contractors or project managers. This industry does not include municipal building construction, which comprises institutional buildings such as schools, hospitals and churches.
What's included in this industry?
Office building constructionHotel and motel constructionRestaurant, cafe and bar constructionRetail store constructionShopping centre or shopping mall constructionCommercial warehouse constructionService and gas station constructionAuto service and sales store constructionEntertainment and recreation building construction (e.g. casinos, gyms, cinemas and arenas)Radio and TV broadcast studio constructionCompanies
PCL ConstructorsLedcor Group of CompaniesQuorex Construction Services Ltd.Purchase this report to view all 3 major companies in this industry.
Related Terms
GENERAL CONTRACTOR (GC)COMPUTER-AIDED DESIGNTENDERIndustry Code
NAICS 236220 - Commercial Building Construction in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Falling interest rates will improve growth prospects for commercial builders. The Bank of Canada began cutting rates in 2024; looser borrowing conditions will stimulate deman...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Trade, services and warehouses are the largest commercial construction markets. Warehouse construction, in particular, has seen high growth in recent years.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ontario and Quebec are the primary locations for commercial builders. This reflects both provinces' high population and large economy.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Companies compete with other major contractors and numerous midsize and smaller contractors. Contractors compete primarily based on prices for construction services, ability ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The industry consists or a large number of smaller contractors. As a result, few companies dominate in terms of market share.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of PCL Constructors's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Ledcor Group of Companies's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Quorex Construction Services Ltd.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for PCL Constructors, and factors influencing its performance in the industry
- Description and key data for Ledcor Group of Companies, and factors influencing its performance in the industry
- Description and key data for Quorex Construction Services Ltd., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Industry growth tends to fluctuate alongside the broader business cycle. Financing conditions and longer-term business sentiment help drive investment in commercial structure...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Declines in revenue earlier in the period weighed on earnings while rising wages have driven down profit for the industry. Tighter credit conditions and a gloomy outlook for ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Commercial Building Construction industry in Canada in 2024?
The market size of the Commercial Building Construction industry in Canada is $37.7bn in 2024.
How many businesses are there in the Commercial Building Construction in Canada industry in 2024?
There are 9,214 businesses in the Commercial Building Construction industry in Canada, which has grown at a CAGR of 0.8 % between 2019 and 2024.
Has the Commercial Building Construction industry in Canada grown or declined over the past 5 years?
The market size of the Commercial Building Construction industry in Canada has been declining at a CAGR of 1.7 % between 2019 and 2024.
What is the forecast growth of the Commercial Building Construction industry in Canada over the next 5 years?
Over the next five years, the Commercial Building Construction industry in Canada is expected to grow.
What are the biggest companies in the Commercial Building Construction market in Canada?
The biggest companies operating in the Commercial Building Construction market in Canada are PCL Constructors, Ledcor Group of Companies and Quorex Construction Services Ltd.
What does the Commercial Building Construction in Canada include?
Office building construction and Hotel and motel construction are part of the Commercial Building Construction industry.
Which companies have the highest market share in the Commercial Building Construction in Canada?
The company holding the most market share in Canada is PCL Constructors.
How competitive is the Commercial Building Construction industry in Canada?
The level of competition is high and steady in the Commercial Building Construction industry in Canada.
