I recently published forecast by the Construction Sector Council (CSC) shows considerable growth in Ontario based construction over the next 9 years in various parts of the province.
With the housing market leveling off in some areas, the majority of growth is expected to come from commercial, industrial, institutional, mining, and utilities projects.
Here’s the link to the full article … http://www.newswire.ca/en/releases/archive/May2011/24/c5996.html
The increased level of construction projects and spending is going to require increases in the pool of construction workers.
The construction industry as a whole is calling for 100,ooo new workers to enter the industry and receive training to cover off the estimated 27,000 new workers that will be required plus 73,000 new workers to replace retirements that are expected to occur over the next 8 years.
Much of the construction work outlined in the report is related to big projects around the project which of course are going to require construction financing for the most part.
While its hard to have an accurate crystal ball, its likely that construction funding on average is going to be more available and more competitive that it is right now.
Larger projects from larger credit worthy borrowers are going to improve the financing portfolios of construction lenders, allowing them to diversity even further into smaller projects that may be considered higher risk due to borrower credit profile, industry, location, or some combination of these factors.
And because construction financing is a very lucrative form of mortgage financing, its going to attract more private money as well.
The real risk to smaller projects is likely not related to access to capital but more towards higher costs related to higher demands on the labor supply.
From a construction financing point of view, lots of larger projects are going to bring more profit potential into the market place which is going to attract more money to invest in construction.
If the CSC’s projections are accurate, the better part of the next decade is going to have a great deal of potential for those working in the Ontario construction industry and the rest of use working to get these projects funded properly for the respective owners, builders, and developers.
Click Here To Speak With Construction Mortgage Broker Joe Walsh