The high road: Increased traffic congestion and urbanization will encourage investment in Canada's road network

Operators in the Road and Highway Construction industry in Canada build, expand, alter and reconstruct roads, highways, streets and runways for the public and private sectors. Over the five years to 2018, federal spending on infrastructure has been volatile. In 2014, the Canadian government introduced the $53.0 billion New Building Canada Plan, which is the largest and longest federal infrastructure plan in Canada's history, and will help sustain future revenue growth. Alongside volatile operating conditions, industry profitability has remained at historically low levels, encouraging little market 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

  • Industry profitability has remained at historically low levels, encouraging little market entry
  • Low interest rates and government incentives led to a surge in residential construction
  • Long-term demographic trends will drive public sector spending on roads, highways and streets
  • Industry Report - Industry Locations Chapter

    Industry establishment location is based on several factors. Typically, provinces with large populations and commercial traffic require extensive road and related infrastructure construction. However, even thinly populated regions can have a relatively large number of establishments because they contain large stretches of roads that connect important population and commercial destinations.Ontario and QuebecOntario and Quebec account for an estimated 24.4% and 16.1% of industry establishments, respectively, in 2018. Ontario is the nation's most heavily populated province, with nearly 38.3% of the population. Ontario is home to the nation's largest city, Toronto, as well as its capital, Ottawa. Add...purchase to read more.

    Additional Insights for the Road & Highway Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Road & Highway Construction Industry are

  • Access to highly skilled workforce
  • Having links with suppliers
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Value of nonresidential construction and Government expenditure and investment in the Road & Highway Construction industry impact industry performance..

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    What's in this report

    What is the Road & Highway Construction Industry?

    This industry constructs new highways, streets, roads and airport runways (excluding elevated roadways). The industry also includes highway and street construction management operators and special-trade contractors that perform subcontract work on projects (e.g. grading, laying pavement, installing guardrails and installing public sidewalks). Establishments may subcontract some or all of the actual construction work.

    Industry Products
  • Highway and road construction
  • Existing road reconstruction and expansion
  • Industry Activities
  • Highway and road construction
  • Existing road reconstruction and expansion
  • Driveway and toll road construction
  • Runway construction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of nonresidential construction
  • Government expenditure and investment
  • Value of residential construction
  • Total vehicle-kilometres

  • Current Performance
  • Government intervention
  • Private sector
  • Road to expansion
  • Chart: Revenue Growth

  • Industry Outlook
  • Public sector funding recovers
  • Private interests
  • Industry landscape
  • Table: Road & Highway Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Road & Highway Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Land Development in Canada
  • Airport Operations in Canada
  • Public Administration in Canada

  • Key Selling Industries
  • Asphalt Manufacturing in Canada
  • Heavy Equipment Rental in Canada
  • Ready-Mix Concrete Manufacturing in Canada
  • Steel Rolling & Drawing in Canada

  • Products & Services
  • Highway and road construction
  • Existing road reconstruction and expansion
  • Chart: Road & Highway Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Public sector funding
  • Private sector funding

  • Major Markets
  • Municipal government
  • Provincial government
  • Federal government
  • Other
  • Chart: Major Market Segmentation for the Road & Highway Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and depreciationOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Road & Highway Construction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Road & Highway 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 Road & Highway 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 Road & Highway 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 non-residential construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Building Canada Plan
  • Seven year plan, launched in 2007, that provides funding for infrastructure development.
  • Canada's Economic Action Plan
  • Counter-cyclical economic stimulus plan passed in 2009.
  • Earthwork
  • The excavation and piling of earth in connection with construction projects.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Road & Highway Construction market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Road & Highway 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 Road & Highway 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 Road & Highway Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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