Strong support: Sustained government infrastructure investment will drive industry growth

The Heavy Engineering Construction industry in Canada depends heavily on government spending at both the federal and provincial levels, private investment in physical assets and demand from the energy sector. Over the five years to 2018, the industry has benefited from the government's strong commitment to closing Canada's infrastructure gap, although volatility in commodity markets ultimately dampened this performance. The Canada Investing in Canada Plan, a 12-year, $180.0 billion fund for local and regional infrastructure, has underpinned growth since its launch in 2016. However, the industry's drop in revenue in 2015 amid a collapse in commodity prices which sent ripples throughout the economy significantly outweighs the benefits of this ambitious more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry will benefit from steady government support and a more attractive investment climate
  • The government has committed to improving the country’s infrastructure by closing gaps in funding
  • The expansion of electric power transmission infrastructure will generate healthy demand
  • Industry Report - Industry Products Chapter

    Electric power infrastructurePower plants are estimated to account for 25.7% of industry revenue in 2018. According to Natural Resources Canada, Canada generates nearly 60.0% of its total electricity supply from hydropower, making it the world leader in hydroelectricity. Industry operators do not construct electric and communication transmission or distribution lines but they do develop the power generating infrastructure so Canada's reliance on hydro-electric power is a boon for industry operators. Demand from this segment has increased over the past five years as investment in hydropower has picked up. Str...purchase to read more.

    Additional Insights for the Heavy Engineering Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Heavy Engineering Construction Industry are

  • Development of a symbiotic relationship with another industry
  • Access to highly skilled workforce
  • Ability to effectively manage risk
  • IBISWorld analysts also discuss how external factors such as Aggregate private investment and Government expenditure and investment in the Heavy Engineering Construction industry impact industry performance..

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    What's in this report

    What is the Heavy Engineering Construction Industry?

    This industry is engaged in heavy engineering construction projects, with the exception of highway, street, waterworks infrastructure and bridge construction. Work performed includes new construction, reconstruction, rehabilitation and repairs. The industry also includes specialty trade contractors if they primarily participate in activities related to engineering construction projects. Construction projects include the development of marine facilities, tunnels, railways and parking lots.

    Industry Products
  • Electric power infrastructure
  • Land transportation infrastructure
  • Marine and waterworks construction
  • Mining engineering construction
  • Repair and maintenance services
  • Industry Activities
  • Marine construction and repair
  • Mass transit construction
  • Harbour and port facility construction and repair
  • Conservation and development construction
  • Outdoor area development and construction
  • Hydroelectric plant construction
  • Power plant construction
  • Tunnel construction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Aggregate private investment
  • Government expenditure and investment
  • Value of nonresidential construction
  • Overnight rate

  • Current Performance
  • Government assistance mitigates decline
  • Industry trends
  • Chart: Revenue Growth

  • Industry Outlook
  • The Investing in Canada Plan
  • Energy and mining infrastructure expansion
  • Table: Heavy Engineering Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Heavy Engineering Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Rail Transportation in Canada
  • Ocean & Coastal Transportation in Canada
  • Public Transportation in Canada
  • Renewable Power in Canada

  • Key Selling Industries
  • Architects in Canada
  • Construction In Canada
  • Engineering Services in Canada
  • Heavy Equipment Rental in Canada
  • Ready-Mix Concrete Manufacturing in Canada
  • Wholesale Trade In Canada

  • Products & Services
  • Electric power infrastructure
  • Land transportation infrastructure
  • Mining engineering construction
  • Repair and maintenance services
  • Other
  • Marine and waterworks construction
  • Chart: Heavy Engineering Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Utilities
  • Private sector
  • Public sector
  • Chart: Major Market Segmentation for the Heavy Engineering Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation and other
  • Chart: Cost Structure Benchmarking – Sector vs Heavy Engineering Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heavy Engineering Construction Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Heavy Engineering Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Heavy Engineering Construction Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Value of nonresidential construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Refers to the act of preserving or protecting natural resources and lands.
  • Hydropower/ Hydraulic
  • Electricity generated using the energy of moving water.
  • Mass Transit
  • Refers to transportation systems designed to move large volumes of individuals at the same time.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Heavy Engineering Construction market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Heavy Engineering Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Heavy Engineering Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Heavy Engineering Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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