September 11,2009 - The recession has weakened the outlook for Canada's non-residential construction industry in 2009, but the industry is benefiting from increased government spending on infrastructure, according to the Conference Board's Canadian Industrial Outlook - Canada's Non-Residential Construction Industry - Summer 2009.

"Although profits are expected to decline by 33 per cent from last year's highs, the industry is performing surprisingly well. Strong spending on institutional buildings, notably social housing, schools and hospitals, is supporting the industry's outlook this year," said Michael Burt, Associate Director, Industrial Economic Trends.

The industry posted record profits of $1.9 billion in 2008, which will dip to $1.3 billion in 2009. The recession lowered demand for office and industrial space. But the industry-particularly in western Canada- had already started to cool down before the recession began, which made the downturn less abrupt. On the downside, prices are forecast to decline this year after three years of strong growth. In addition, cost growth remains a concern: key material costs have not fallen significantly, and a labour shortage still exists for specific trades.

Profits are forecast to range between $1.2 billion and $1.3 billion annually between 2010 and 2013.