Canadian Contractor

Conference Board says renos gain in importance

Demand for renovations in Canada will grow modestly in 2012, says Conference Board of Canada


March 19, 2012
By Robert Koci

“Although it has always accounted for more than half of the industry’s revenues, this segment (renovation) has gained in importance in the last few years,” says the Conference Board of Canada’s Canadian Industrial Outlook, Winter 2012 for the residential construction industry.

Revenue from the renovations segment of the residential construction industry now account for 60 per cent of all revenue, whereas in the past, that number has been much closer to 50 per cent.

The Home Renovation Tax Credit gets some credit from the board for the increase, but it says even without the credit, the industry segment grew 2.9 per cent last year. This year, it expects real growth to be closer to a more modest 1.2 per cent.

In general, the report is positive, saying consumers are still enjoying low interest rates and seem to be able to still afford them. and though consumer confidence has dropped, the report expects the renovation industry to hold up well throughout the year.

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On the revenue and salary, the conference board says revenue to the residential sector will rise slightly, but the pay gap between the residential and nonresidential sector will widen. Profits for residential companies will improve but will not reach the peak experienced in 2008.

For more information, go to the Conference Board’s website.