Investment in Building Construction Declined 3.6% in March

Investment in Building Construction

June 3, 2020

Total investment in building construction decreased 3.6% to $15.4 billion in March, with declines in both residential (-3.3% to $10.5 billion) and non-residential (-4.3% to $4.9 billion) investment. Construction in March was negatively affected by COVID-19 restrictions, especially in Quebec, which shut down all non-essential building construction on March 25. National declines coincided with a drop in construction hours worked in March, as reported by Statistics Canada’s Survey of Employment, Payrolls and Hours. 

On a quarterly basis, total investment edged up 1.0% in the first quarter compared with the fourth quarter of 2019.

On a constant dollar basis (2012=100), investment in building construction decreased by 4.1% to $12.5 billion.

Investment in residential construction

Quebec (-18.7% to $2.0 billion) and British Columbia (-2.9% to $1.9 billion) contributed to the majority of declines in residential construction investment in March, outweighing gains in six other provinces. Quebec reported its largest decrease since the beginning of the current series in 2010, down $462.9 million for the month. 
The overall decline in residential investment in March was driven by the multi-unit dwellings component, which fell 6.9% to $5.2 billion. Six provinces posted declines, with the largest decrease in Quebec (-23.3% to $1.1 billion). 

The single-unit dwelling component of residential investment rose slightly in March, up 0.6% to $5.3 billion. Ontario led in provincial gains, up 5.8% to $2.4 billion, bouncing back from a 6.0% drop from September 2019 to February 2020. Quebec (-13.0%), New Brunswick (-5.0%) and Manitoba (-0.5%) were the only provinces to post declines in single-unit construction investment for the month.

Investment in non-residential construction

All three components of non-residential investment decreased in March, leading to the first overall decline (-4.3% to $4.9 billion) since November 2018. Prince Edward Island was the only province to report growth in non-residential investment for the month, up 1.4% to $18.8 million. The increase was driven, in part, by the expansion of BioVectra’s manufacturing facility in Charlottetown. 

The commercial component posted the largest declines in non-residential investment, decreasing 4.2% to $2.9 billion. Quebec (-14.1%) and British Columbia (-4.6%) reported the majority of the declines in March, while Ontario was the only province to post an increase, edging up 0.3% to $1.1 billion. 

The institutional component fell 4.2% to $1.1 billion. Seven provinces reported declines for the month, with the largest drop in Quebec (-12.1% to $275.9 million). 

The industrial component decreased 5.0% to $886.7 million in March, with declines in eight provinces.

First quarter of 2020

In the first quarter, total investment in building construction increased 1.0% (+$445.8 million) compared with the fourth quarter of 2019. Ontario (+2.0%) led the provinces in investment growth for the quarter. A strong January and February led Quebec to the second-largest quarterly growth in investment (+3.4%), despite reporting a sharp decline in March. In contrast, Manitoba (-$90.7 million) and British Columbia (-$77.5 million) reported the most significant declines for the quarter.

Residential investment increased in the first quarter, up 0.8% to $32.0 billion, with increases in multi-unit dwellings (+1.3%) outpacing those in single-unit dwellings (+0.3%). Multi-unit construction investment has outpaced single-unit dwellings for 8 out of the last 10 quarters. Quebec and Ontario reported the largest gains in residential construction, while Manitoba posted a notable decline for the quarter.

Non-residential investment increased quarter over quarter, up 1.2% to $15.0 billion. Ontario and Quebec had the strongest growth, while British Columbia, Alberta and Saskatchewan reported the largest declines. Despite a slow March, all three components of non-residential investment increased in the first quarter of 2020. Commercial investment increased 1.8% to $8.9 billion, while institutional investment edged up 0.3% to $3.4 billion and industrial investment rose 0.5% to $2.7 billion.

Source: Statistics Canada, www150.statcan.gc.ca/n1/daily-quotidien/200601/dq200601a-eng.htm?CMP=mstatcan

Related Articles


Latest Articles

  • Alberta Municipalities EV Charging Installation Rebate

    Alberta Municipalities EV Charging Installation Rebate

    April 4, 2025 Alberta Municipalities are proud to provide financial rebates for applicants to purchase and install electric vehicle charging stations in Alberta as part of the Electric Vehicle Charging Program (EVCP), funded by Natural Resources Canada (NRCan) & Alberta Municipalities.  The funding will cover up to 46% of your total project cost, which can… Read More…

  • Industry Legend Bill Smith Retires

    Industry Legend Bill Smith Retires

    April 4, 2025 By Electro-Federation Canada On March 25, Electrozad, a Sonepar Company, hosted a special retirement reception at Caesars Windsor for industry titan Bill Smith who marked an incredible 50-year career with the company.  The reception was held in the elegant Caesars Ballroom, which featured an array of food stations and elegant decor. In… Read More…

  • Schneider Electric: Your Trusted Partner in Sustainability and Efficiency

    Schneider Electric: Your Trusted Partner in Sustainability and Efficiency

    April 4, 2025 By Krystie Johnston Schneider Electric is on a mission to be the trusted partner in sustainability and efficiency. Since 1836, they have pioneered technological innovation to create a world where life is on. Frederick Morency, Vice President of Sustainability, Strategic Initiatives & Innovation at Schneider Electric Canada, has experienced this joie de… Read More…

  • The Evolving Landscape of Energy Management in Buildings with Trilliant’s Steven Lupo: AMI, EV Charging, DERs & Beyond Metering

    The Evolving Landscape of Energy Management in Buildings with Trilliant’s Steven Lupo: AMI, EV Charging, DERs & Beyond Metering

    March 31, 2025 By Blake Marchand Late last year Trilliant announced partnerships with Oshawa Power and Milton Hydro to enable suite metering and advanced metering technology using their Smart Building Platform. Those partnerships were the jumping off point for my conversation with Steven Lupo, Managing Director, North America at Trilliant, a company with four decades of innovation in Canada… Read More…


Changing Scene

  • NSAA Fee Change Effective April 1, 2025

    NSAA Fee Change Effective April 1, 2025

    As of April 1, 2025, the Nova Scotia Apprenticeship Agency’s fees have changed due to the 1% reduction in HST in Nova Scotia. NSAA noted on their website that due to the number of references across various pages, you may still come across old fee amounts as they work through updating their website. Here is… Read More…

  • Nominations Open for 2024 NETCO Leadership Excellence Award

    Nominations Open for 2024 NETCO Leadership Excellence Award

    Established in 2016, the NETCO Leadership Excellence award honours an industry training professional for his/her role for the success and their outstanding contributions to apprenticeship training and continuing electrical training. Read More…

  • Munded Partners with Kane Test Equipment in Atlantic Canada

    Munded Partners with Kane Test Equipment in Atlantic Canada

    April 4, 2025 Munden Enterprises has announced a partnership with Kane Test Equipment to bring their test and measurement solutions to Atlantic Canada. “We are now excited to announce a new and promising partnership with Kane Test Equipment. Kane Test Equipment brings innovative solutions that align with our dedication to providing the best tools for… Read More…

  • Nedco Announces Western Canadian Wire & Cable Sales Manager

    Nedco Announces Western Canadian Wire & Cable Sales Manager

    April 4, 2025 Don Blake has joined Nedco as their Western Canadian Wire & Cable Sales Manager. “With over 20 years of experience in the Wire & Cable industry, Don brings a wealth of knowledge and expertise to our Nedco West team,” said the company on LinkedIn. “His focus will be on expanding our product… Read More…