Presentation 2013 - Denmark in Canada/media/Canada/TC Canada...49 new projects to the list of Canada’s biggest infrastructure projects added in 2013 … That’s double the value

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






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.

http://www.homedepot.ca/

http://www.lowes.com/

http://www.homehardware.ca/en/index.htm

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






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



’

• 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



’

• 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



’

• 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



’

• 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



’

• 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






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






Consider events to participate in - some

examples…

http://www.sustainabuild.com/

http://supplychainforum.ca/

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

Documents

Presentation 2013 - Denmark in Canada/media/Canada/TC Canada...49 new projects to the list of Canada’s biggest infrastructure projects added in 2013 … That’s double the value