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Economic trends and opportunities for Canadian welders in 2024

The welding industry, along with the broader industrial and construction sectors, is navigating difficult and disruptive economic conditions.

It's not news that Canada's economy has been exhibiting a downward trend. Central bank interest hikes and higher living costs have led to falling consumer spending, rising unemployment, and a drop in job openings. This inevitably impacts the welding sector, and the immediate outlook calls for resilience and adaptability.

The third quarter of 2023 was a particularly uncertain time for businesses that are important for fabrication and welding. The downturn in construction, for example, indicates that the welding sector must pivot and adapt, potentially by exploring opportunities in maintenance, repair, and retrofitting, which may see higher demand in a slowing construction market.

Inflation is still a critical concern, with the consumer price index rising to 3.9 per cent as of December 2023. For the welding sector, this means having to control costs of source materials prone to price instability, like steel. The industry also needs to make use of new technologies and investigate new markets.

Looking ahead, there is reason to be cautiously optimistic. The research shows that GDP growth is likely to pick up again in the second half of 2024. The recovery in business investment could boost demand for welding services, especially in industries like manufacturing and building, and in regions that see a boost in natural resource products and construction investment.

Businesses in the welding industry can get through these tough times with strength and insight if they understand these economic trends and plan ahead.

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