BDC report highlights $443 billion opportunity for Canadian SMEs in major projects

The Business Development Bank of Canada (BDC) has released a report highlighting the significant economic opportunities for small and mid-sized enterprises (SMEs) as the country ramps up investments in major projects. The analysis, using calculations from Transition Accelerator, estimates that projects in defence, housing, civil infrastructure, energy, mining, and artificial intelligence could attract $670 billion in additional investment by 2030. This influx could generate approximately $443 billion in cumulative economic activity for SMEs.

Pierre Cléroux, BDC’s chief economist vice-president, research, noted that many mid-size firms are already involved in mega projects and are eager to capitalize on future opportunities. The report suggests that supporting these projects will require the participation of around 280,000 SMEs, with the strongest growth expected in construction, mining, manufacturing, professional services, and wholesale trade sectors.

A June poll conducted by BDC surveyed 1,000 Canadian SMEs, revealing that 67% of those already engaged in major projects expect to increase their involvement over the next 24 months. However, both new and experienced firms need support to fully participate. Key barriers include better access to information about upcoming opportunities, reduced financial or bonding requirements, and shorter or more predictable payment terms. Financial constraints are the main barrier for businesses looking to enter these projects.

To meet the demand for planned major projects, Canada will need about 580,000 new workers by 2030, many of whom will be required in the construction sector. The report notes that while Canada has met similar workforce demands in the past, current conditions such as an aging population and labor force growth slowing pose new challenges.