Despite significant challenges, the outlook for the engineering and construction industry across the country remains positive and highly receptive to mergers and acquisitions.
A new report examining the Canadian engineering and construction industry in Q4 2021 from Baker Tilly Canada Capital Corporation finds that while the industry performed well in the quarter and fundamentals remain strong – including growing investment in non-residential and commercial construction – considerable challenges remain.
Key among these are the rising cost of materials and equipment, labour shortages and continuing supply chain disruptions, which are collectively pressuring industry margins. In addition to these factors, adapting to next-generation digital technologies, integrating data and analytics into workstreams and implementing end-to-end digitized construction capabilities represent emerging considerations.
Nevertheless, promising opportunities for mergers and acquisitions in this sector appear limitless, especially regarding the drive towards digitization of the industry. Overall, 2021 saw the highest deal count and capital invested within Canada, making it the busiest year for Canadian deals in the last century. As such, despite persistent near-term challenges, the medium- to long-term growth outlook of the Canadian construction industry is solid.
For all the highlights and full analysis, read the full report.
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