Post on 13-Jul-2020
Presentation
2013
#1 Reason to consider Canada
There are tremendous opportunities in the Canadian construction industry,
which according to Business Monitor International, is…
…the most attractive construction industry in the developed world
Canada is posting growth rates in excess of many emerging markets, whilst
boasting one of the most attractive business environments globally
Agenda
Short introduction to Canada
Overview of the Canadian Construction Industry
Opportunities in the Construction industry
Challenges and Barriers
How to Get Started in Canada
Key words for Canadian politics: Stability,
International engagement
Conservative majority government
Robust and growing economy
Strong relations between DK and Canada
• Artic issues
• International security
Goal of “maximum liberalization” between EU and Canada
Canada is one of the largest and fastest growing
countries
2nd largest country
35 mill. Inhabitants
• 28% British, 23% French, 3,5 % Native & 47 % Other
• 250.000 immigrants every year (total yearly growth ~350.000)
10 provinces and 3 territories
Capital: Ottawa
Largest City: Toronto
“Limited” impact by world turmoil
Strong growth shown in 1st and 2nd quarter 2013
Growth for 2012 at 2,5%
Very low risk of “European” public cut backs
Construction, Mining, Oil and Gas are major value drivers
Canada Denmark
GDP 1,334,143$million (14) 201,702$million (51)
GDP pr. Capita 39,171$ (13) 36,443$ (17)
2011 GDP growth 2,6% 1,1%
2012 GDP growth 2,5% 0,7%
Canadian economy is doing well
13
14
15
16
17
18
19
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
5
6
7
8
9
SA, Millions
Labour market: Canada
Source: Statistics Canada, RBC Economics Research
Unemployment Rate (RHS)
%
Employment (LHS)
Forecast
Canada’s labour market is in good health
The housing market is also healthy – maybe to
healthy ?
Forbes ranks Canada as #5 country in which to do
business
2011
Rank Country
1 Denmark
1 New Zealand
1 Singapore
4 Finland
4 Sweden
6 Canada
7 Netherlands
8 Switzerland
8 Australia
10 Norway
2011
Rank Country
15 Germany
21 Chile
22 United States
25 France
67 Italy
69 Brazil
78 China
87 India
98 Mexico
154 Russia
Corruption is not an issue
-40
-30
-20
-10
0
10
20
30
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Year-over-year % change
Import growth: Canada
Forecast
Source: Statistics Canada, RBC Economics Research
Canada is an open economy embracing imports
Canadian export to Denmark
Aircrafts
Fish
Machines
Plant- and fruit oils
Danish export to Canada in
Machines
Windmills
Medical products
Agricultural products
0
1
2
3
4
5
6
7
8
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Import Export
Billion DKK Annual export
growth of
8,0%
Annual import
growth of -1,0%
Danish export to Canada is healthy
Current main challenges
Canada–EU is significantly under-traded when
compared to other bilateral trade relationships
Most tariffs on traded goods are low
Main exception is tariffs on processed food:
EU exporters faces above 30% tariffs when
exporting to Canada
Canadian exporters faces above 17% tariffs when
exporting to EU
Other areas with high tariffs or quotas are:
EU tariffs of 23% on a number of fish and seafood
products
Canadian tariffs on footwear, textiles and apparel
of up to 18-20%
Canadian quotas on dairy products with out-of-
quote-tariff rates of 250-350%
Canadian tariff quotas on poultry, eggs, beef,
wheat, barley and margarine products (avg. 150%)
Latest Canadian free trade offer Trade goods: 98,8% of all tariff lines liberalized with 7
years (97,9% at time of agreement)
100% of fish and industry products
93% of processed food and agricultural products
(Dairy, poultry and eggs still to be non-liberalized)
Services: TBD
Latest EU free trade offer 99,2% of all tariff lines liberalized with 7 years (96,2% at
time of agreement)
100% of fish and industry products
99,4% on processed food
95,5% of agricultural products
Services: TBD
EU-Canada trade agreement in the making
Agenda
Short introduction to Canada
Overview of the Canadian Construction Industry
Opportunities in the Construction industry
Challenges and Barriers
How to Get Started in Canada
The Canadian building industry. The outperformer
of the developed market
Canada is the place to be for the construction industry
# of high-rise towers under construction.
New York City (84) + Chicago (19) +
Boston (15) + Los Angeles (6) + San
Francisco (5)
129
Toronto
129 (296 planned)
More action in Toronto than in Asia?
# of highrise towers
Breakdown of the Canadian construction activities
49 new projects to the list of Canada’s biggest
infrastructure projects added in 2013
… That’s double the value of 2012’s 29 new additions ($60 billion versus $30
billion) - twice the renewed investment in Canada’s construction industry
…excluding the massive mining, oil, and gas development projects and the
many commercial buildings
• $140 billion –
is the 2013 value
of top 100 most
expensive
infrastructure
projects
Resulting in infrastructure projects across all
sectors
Canadian construction industry is central to the
Canadian economy
• More than 10% of GDP and an annual turnover of more than $ 110 bill,
makes construction one of Canada’s most influential industries
• More than 260,000 active
construction companies,
totaling more than 1.3 million
employees.
The most attractive construction
industry in the developed world
Construction and buildings are becoming greener
• Green regulations and policies are
increasingly being put in place
• The number of LEED-certified buildings is
increasing
• Surge of activity for retrofitting and updating
existing buildings
• The main environmental pressures are
concerned with air quality, GHG emissions,
water quality, urban ecology and solid waste.
Healthy conditions supporting sustained growth for
the construction industry
• Infrastructure projects across Canada led the way as part of government
response to the financial crisis of 2008
• In addition to major transportation and social infrastructure projects,
massive energy projects valued at more than $43 billion, and record
investments of nearly $40 billion in oilsands over the past two years, $140
billion will be invested in new mining projects in Canada from 2012 to 2017
• Complementing these projects is a multi-billion dollar expansion and
redevelopment of office and retail space
Growth and increased profitability expected at
least the next 5 years
Construction in Canada, and
particularly in the Toronto area,
has seen an impressive
continuous growth of 8%,
despite global financial setbacks
It is forecast that the construction
industry will see a rise of 100,000
workers by 2020 to keep up with
increased demand
Non-contractor market for building products is also
growing
• The market building materials and do-it-yourself products exclusively for
smaller projects exceeds 8 billion dollars and is expected to increase
further in coming years.
• The 5 most central building centers cover over 60% of the market for DIY
and small contractors.
Confidence is reflected in increasing capital
expenditures
Capital expenditures for construction is increasing in every province.
During 2012 the CAPEX of
Alberta exceeded Ontario’s
by almost 1 $B mainly due
to increases in mining, oil
and gas extraction, utilities,
and housing.
Challenges
Rising energy costs
Labour supply
Increasing competition
Slimmer margins in some local markets
Stronger green building codes
Delivery times material
Accessibility to equipment
Agenda
Short introduction to Canada
Overview of the Canadian Construction Industry
Opportunities in the Construction industry
Challenges and Barriers
How to Get Started in Canada
Growth and challenges create opportunities for
danish companies
• High demand for solutions that are able to improve energy effeciency for
both construction phase and finished buildings
• Demand for strengtened knowledge base
• High demand for
building materials,
equipment and
machinery
• High demand for
solutions to reduce risk
and improve project
planning
Top 50 general contractors
Building Canada Plan
The plan (2007-2014)
Provides $33B in stable, flexible and
predictable funding
Focus on building a stronger, safer and better
Canada through modern world-class public
infrastructure. Cleaner air and water, safer
roads, shorter commutes and better
communities
The New Building Canada Plan:
Economic Action Plan 2013 provides $53B
over the next 10 years
Will encourage greater involvement of the
private sector in the provision of public
infrastructure
Economic Action Plan 2013 delivers a new
Building Canada plan to build roads, bridges,
subways, commuter rail and other public
infrastructure in cooperation with provinces,
territories and municipalities.
www.infrastructure.gc.ca/prog/bcp-pcc-eng.html
www.infrastructure.gc.ca/plan/plan-eng.html
Large number of retrofit and new projects are
underway in all provinces
’
• Transportation and social infrastructure projects; rail transit, subway
extensions, station renovations, healthcare and university spaces
• Commercial/Retail construction and redevelopment; 16 new office towers
and multiple malls being redeveloped
• $800M invested in Pan American Games Athletes
Village for the games 2015
• Healthcare projects include; $2B New Oakville
Hospital, $1.75B Humber River Regional Hospital
and $759M Niagara Healthcare System
• Energy and mining projects abound $7B in
wind/solar power generation
Large number of retrofit and new projects are
underway in all provinces
’
• Capital spending is supported by public and private sectors with
transportation, social infrastructure and commercial/retail projects
• Transportation and social infrastructure projects include $1.8B North East
Anthony Henday Drive, $1.8B Edmonton Airport expansion and $1.3B
Calgary Airport Concourse
• The major commercial/retail projects are: $2.25B
Stonegate Office Retail & Industrial Development
and $500M Airport Business Park Calgary
• Oil sands investments will continue to sustain the sector
• Housing starts will continue to increase due to jobs
within the oil sands and net migration
Large number of retrofit and new projects are
underway in all provinces
’
• Investments in healthcare and massive amounts going into infrastructure,
transportation, mining and energy projects
• Positive long-term prospect is the aerospace
sector due to Bombardier Aeronautics being
awarded two major contracts in 2012. One
is valued at $3.1B while the other is $7.3B
Large number of retrofit and new projects are
underway in all provinces
’
• Maritimes, Newfoundland and Labrador had an inventory 357 projects in
2012 valued at $100B, which is an increase of 39% compared to last year
• Multi-billion dollar investments are being made in
shipbuilding, mining and energy with Halifax
experiencing a commercial construction boom
• 2012 spending in this region also set a record at
$12.8B. Leading the investments is a 30-year,
$25B naval vessel-building contract
Large number of retrofit and new projects are
underway in all provinces
’
• Sustaining high construction levels due to private investment in mining,
energy and commercial/retail
• Personal consumption and residential investments are expected to be
boosted by return to the former tax system as well as positive net migration
and job growth
• Oil and gas, and mining sectors are strong with $4.7B
Kitimat Liquid Natural Gas Terminal & Pipeline and
$3.3B Rio Tinto Alcan Smelter Expansion
• Large single investment is federal government’s
8-year, $8B contract for seven non-combat ships
Large number of retrofit and new projects are
underway in all provinces
’
• Expected to lead Canada’s growth in 2013 with strong investments in
resources and energy development, and high levels of immigration
expected to sustain increased housing starts
• Major drivers are oil and gas sector and the $12B investment in potash
mining
• Most notable mining projects are: $4.5B new
Jansen mine, $3.25B Legacy potash mine and
$2.8B Rocanville expansion
Agenda
Short introduction to Canada
Overview of the Canadian Construction Industry
Opportunities in the Construction industry
Challenges and Barriers
How to Get Started in Canada
Takes time to penetrate the market
• The construction industry is very conservative – which is good when you are
in!
• Competition is strong – but capital intensity is low
• Different provinces have different areas of opportunity and different
regulations – takes time to navigate
• Large building chains have extensive sourcing strategies
Agenda
Short introduction to Canada
Overview of the Canadian Construction Industry
Opportunities in the Construction industry
Challenges and Barriers
How to Get Started in Canada
Consider events to participate in - some
examples…
Market
exploration
Market
strategy
First wave
sales
meetings
Meetings
set-up
Exhibitions
Incorporation
&
establishment
Incubation
Partner
identification
Customer
identification
and
outreach
Joint sales
efforts
Fact-finding
and network
mission
Discuss with TC Canada
The Trade Councils mandate is to promote danish
export
The Trade Council in Canada is part of the Danish
Ministry of Foreign Affairs. On a contractual basis, we
assist and work as consultants and advisors for Danish
companies exploring business opportunities in the
Canadian market
In 2012 TC Canada was in top 3 in the Ministry of
Foreign Affairs measured on value creation for our
clients and customer satisfaction
More than 50 projects were carried out
Construction cluster approach ?
DK
Suppliers
A
B
C
D
E
Canadian
targets
Towers
O&M
Services
Mining
cluster
Environment
and
Consultancy
Materials
Energy
Architecture
Equipment
Planning
tools
Construction
cluster
General
contractors
Developers
Distributors
/ retail /
rental
Architects/
engineers
Construction industry focus rest with the
Senior Advisor for Construction, Energy and
environment and the head of mission Krista Damgaard Friis. Senior Trade Advisor,
Construction, Energy and Environment
Krista has been responsible for the
construction, energy and environment
sector since 2008.
Krista has been a valuable partner for a
broad range of small and large Danish
companies and she has successfully lead a
number export promotion projects, including
joint initiatives with the Swedish and Norwegian Trade
Council
Krista has lived in Canada since 2006, and prior to
working for the Trade Council, Krista acted as the bid
manager for a Toronto-based senior level management
consultancy, focusing on business development and
tender processes.
Krista holds a master in Marketing and Communications
Management, as well as a minor in sustainable business
development, and a Bachelor in Business Administration
Morten Siem Lynge. Head of Mission at the Royal Danish
Consulate General in Toronto.
Morten took up his current position in
September 2011. He came from a similar
position in Dhaka, where he was heading
the Danish Trade Council as well as the
Danida Private Sector program, which
assisted Danish companies in setting up
production in Bangladesh.
Prior to working for the Ministry of Foreign Affair, Morten
worked 2½ years with the Boston Consulting Group and
4½ years at the Danish Ministry of Finance.
At the Boston Consulting Group Morten focused on
corporate strategy development, cost efficiency strategies
and strategy implementation.
Morten holds a Master in Political Science and a Diploma
in Business Administration (Finance). Both degrees are
from University of Aarhus, Denmark.
Consider getting financial support
Eksportstart pakker
Vitus
Klynge midt
Accellerator programmet
Markedstest