Market Trends of Infrastructure Sector in Canada
This section covers the major market trends shaping the Canada Infrastructure Sector Market according to our research experts:
Growth in Transportation Infrastructure
The Airport Critical Infrastructure Program, first announced in the 2021 Fall Economic Statement, is part of a federal stimulus recovery plan aimed at building a stronger, more inclusive, and more resilient economy post-COVID-19.
Established in May 2021, the Airport Relief Fund provides CAD 64.8 Million (USD 4.71 Million) in financing for targeted airports, with 2019 sales of less than CAD 250 Million (USD 181 Million) in 2021-2022. The Airport Critical Facilities Program announced financing of CAD 81.6 Million (USD 59.3 Million) in August 2021 to help Canada's primary airports with investments in COVID-19 testing and screening infrastructure.
As Canada recovered from the COVID-19 pandemic, improvements in airport infrastructure are critical to ensuring the safety, security, and connectivity of travelers, employees, and communities.
The Ministry of Transportation announced more than CAD 5 Million (USD 3.6 Million) in new funding in February 2022 to assist the Fort McMurray International Airport in recovering from the effects of the COVID-19 pandemic and support ongoing air services and critical transportation infrastructure projects at the airport.
The Ministry of Transportation announced CAD 10.4 Million (USD 0.75 Million) in additional financing in February 2022 to assist the Edmonton International Airport in recovering from the COVID-19 pandemic's effects.
This funding comes on top of nearly CAD 18.5 Million (USD 13.4 Million) announced in July 2021 as part of the Airport Critical Infrastructure Program for infrastructure improvements such as runway and airfield lighting, as well as CAD 6.2 Million (USD 4.5 Million) from Transport Canada's Airport Relief Fund to help the airport maintain continued airport operations and essential air services for residents and workers in Edmonton and surrounding communities.
The Kelowna International Airport will receive more than CAD 18 million (USD 13 Million) in funding from the Ministry of Transportation in January 2022.
Nova Scotia's Five-Year Highway Renovation Plan comprises more than 150 major construction and improvement projects for the coming year, all of which will improve the safety of the province's roads, highways, and bridges.
In 2022-23, the government planned to spend almost CAD 500 Million (USD 363 Million) on motorways, bridges, and roads. According to the Alberta government, around CAD 1.5 Billion (USD 1.09 Billion) was invested in 172 projects during the 2021 construction season.
CAD 2.25 Billion (USD 1.63 Billion) in capital expenditure for road and bridge twinning, widening, and expansion planning, design, and construction. Highway and bridge rehabilitation and replacement projects cost CAD 1.5 Billion (USD 1.09 Billion) in capital maintenance and renewal.
Increasing government's investment in Canada's infrastructure sector
Despite the obstacles of the pandemic, there is no shortage of large building projects, and high-value governmental and private sector projects continue to break ground at a steady pace. Major projects worth more than CAD 100 million (USD 79.74 million) includes Montreal's Bellechasse Transport Centre, Calgary's Complex Continuing Care Facility, and the new Brampton Transit Facility, to name a few.
Across the country, major construction projects are being planned. For example, under the Investing in Canada Infrastructure Program, the Canadian and Alberta governments have invested about USD 52.7 million in the completion of many infrastructure projects.
The Community Infrastructure Improvement Fund (CIIF) has set aside USD 150 million to repair and develop community infrastructure around the country. The Canadian government is eager to invest in significant infrastructure projects, and the stock market is optimistic.
CAD 704 million (USD 561.35 million) has been committed to 16 Air and 27 Maritime projects under the National Trade Corridors Fund, leveraging a total investment of CAD 1.45 billion (USD 1.16 billion); and CAD 1.09 billion (USD 0.87 billion) has been committed to 19 rail and 21 road projects, leveraging a total investment of CAD 2.5 billion (USD 1.99 billion).
The Ministry of Transport announced 29 new projects that will receive funding from the Enhanced Road Safety Transfer Payment Program in August 2021. The program will invest CAD 12.5 million (USD 9.97 million) in initiatives throughout Canada to improve vehicle safety and minimize collision risks, such as new tools to reduce drug-impaired driving, bicycle safety, new connected and automated vehicle sensors, and tools to reduce distracted driving and speeding.
