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Construction sector ramping up tech investments to address labour gap: KPMG survey
Construction sector ramping up tech investments to address labour gap: KPMG survey

CTV News

time9 hours ago

  • Business
  • CTV News

Construction sector ramping up tech investments to address labour gap: KPMG survey

TORONTO — A new survey says most Canadian construction companies are still coping with a shortage of skilled labour, however their productivity and efficiency has improved in recent years as a result of investments in technology. KPMG in Canada's third biennial survey on digital maturity and tech adoption in the construction industry found a shift is underway. Nearly eight in 10 respondents indicated that procurement processes are changing to encourage innovation and digital adoption. The survey of 265 construction companies across Canada, conducted from March 18 to April 4 in collaboration with the Canadian Construction Association, also highlighted the need for tech investment to continue ramping up throughout the industry amid a growing labour shortage. In recent years, experts have been sounding the alarm as the construction industry faces the dual challenges of replacing soon-to-retire workers while trying to grow the sector to address Canada's rising need for homes. The Canadian Home Builders' Association has estimated 22 per cent of residential construction workers are set to retire over the next decade. It has also said Canada would need more than one million additional residential construction workers to meet the Canada Mortgage and Housing Corp.'s target of boosting home construction by 3.5 million units by 2030 in order to restore affordability. Nearly three-quarters of construction leaders said they expect it will become 'increasingly difficult' to meet demand over the next five to 10 years, particularly as retirements outpace recruitment, according to the survey released Wednesday. 'The industry is well aware of their labour conundrum,' said Jordan Thomson, KPMG in Canada's national sector leader of building and construction, in a press release. 'The pressure is intensifying on the construction industry to do far more with less.' The survey said 78 per cent of companies are currently experiencing a shortage of skilled workers. While still 'incredibly high,' said Thomson, the figure is down from 90 per cent in 2023. Seven-in-10 said the labour crunch is affecting their ability to bid on projects and meet project deadlines according to the report, compared with 86 per cent in 2023. Those declines come as respondents indicate their companies are increasingly turning to digital technology to fill gaps. Around 81 per cent said labour productivity and efficiency have improved thanks to recent investments in technology, while 56 per cent are prioritizing technologies underpinning a demand-driven supply chain. In addition, 53 per cent are prioritizing artificial intelligence and AI-driven software in their operations. Nine-in-10 said better tools, such as AI and analytics, can boost efficiency and labour effectiveness, up from 86 per cent in 2023. Some of the technologies being adopted include drones for site surveys, robotic bricklaying and other forms of automation, along with advancements in modular or prefabrication construction — when buildings are constructed in a controlled factory environment and then transported to the construction site for assembly. Prime Minister Mark Carney has placed a large emphasis on scaling up prefabricated home construction as part of his housing plan, pledging $26 billion in financing to prefabricated home builders to reduce construction times by up to 50 per cent. 'It's encouraging to see signs that procurement is beginning to evolve, but we're not there yet,' said Canadian Construction Association president Rodrigue Gilbert in a press release. 'Too often, the system prioritizes lowest price over long-term value, which prohibits investment in innovation. If we want a modern, productive construction sector, governments must reform procurement to foster collaboration, ensure fair risk-sharing, and create the confidence companies need to invest and grow.' This report by The Canadian Press was first published June 18, 2025. Sammy Hudes, The Canadian Press

Construction sector ramping up tech investments to address labour gap: KPMG survey
Construction sector ramping up tech investments to address labour gap: KPMG survey

Winnipeg Free Press

time9 hours ago

  • Business
  • Winnipeg Free Press

Construction sector ramping up tech investments to address labour gap: KPMG survey

TORONTO – A new survey says most Canadian construction companies are still coping with a shortage of skilled labour, however their productivity and efficiency has improved in recent years as a result of investments in technology. KPMG in Canada's third biennial survey on digital maturity and tech adoption in the construction industry found a shift is underway. Nearly eight in 10 respondents indicated that procurement processes are changing to encourage innovation and digital adoption. The survey of 265 construction companies across Canada, conducted from March 18 to April 4 in collaboration with the Canadian Construction Association, also highlighted the need for tech investment to continue ramping up throughout the industry amid a growing labour shortage. In recent years, experts have been sounding the alarm as the construction industry faces the dual challenges of replacing soon-to-retire workers while trying to grow the sector to address Canada's rising need for homes. The Canadian Home Builders' Association has estimated 22 per cent of residential construction workers are set to retire over the next decade. It has also said Canada would need more than one million additional residential construction workers to meet the Canada Mortgage and Housing Corp.'s target of boosting home construction by 3.5 million units by 2030 in order to restore affordability. Nearly three-quarters of construction leaders said they expect it will become 'increasingly difficult' to meet demand over the next five to 10 years, particularly as retirements outpace recruitment, according to the survey released Wednesday. 'The industry is well aware of their labour conundrum,' said Jordan Thomson, KPMG in Canada's national sector leader of building and construction, in a press release. 'The pressure is intensifying on the construction industry to do far more with less.' The survey said 78 per cent of companies are currently experiencing a shortage of skilled workers. While still 'incredibly high,' said Thomson, the figure is down from 90 per cent in 2023. Seven-in-10 said the labour crunch is affecting their ability to bid on projects and meet project deadlines according to the report, compared with 86 per cent in 2023. Those declines come as respondents indicate their companies are increasingly turning to digital technology to fill gaps. Around 81 per cent said labour productivity and efficiency have improved thanks to recent investments in technology, while 56 per cent are prioritizing technologies underpinning a demand-driven supply chain. In addition, 53 per cent are prioritizing artificial intelligence and AI-driven software in their operations. Nine-in-10 said better tools, such as AI and analytics, can boost efficiency and labour effectiveness, up from 86 per cent in 2023. Wednesdays Columnist Jen Zoratti looks at what's next in arts, life and pop culture. Some of the technologies being adopted include drones for site surveys, robotic bricklaying and other forms of automation, along with advancements in modular or prefabrication construction — when buildings are constructed in a controlled factory environment and then transported to the construction site for assembly. Prime Minister Mark Carney has placed a large emphasis on scaling up prefabricated home construction as part of his housing plan, pledging $26 billion in financing to prefabricated home builders to reduce construction times by up to 50 per cent. 'It's encouraging to see signs that procurement is beginning to evolve, but we're not there yet,' said Canadian Construction Association president Rodrigue Gilbert in a press release. 'Too often, the system prioritizes lowest price over long-term value, which prohibits investment in innovation. If we want a modern, productive construction sector, governments must reform procurement to foster collaboration, ensure fair risk-sharing, and create the confidence companies need to invest and grow.' This report by The Canadian Press was first published June 18, 2025.

Construction sector ramping up tech investments to address labour gap: KPMG survey
Construction sector ramping up tech investments to address labour gap: KPMG survey

Yahoo

time9 hours ago

  • Business
  • Yahoo

Construction sector ramping up tech investments to address labour gap: KPMG survey

TORONTO — A new survey says most Canadian construction companies are still coping with a shortage of skilled labour, however their productivity and efficiency has improved in recent years as a result of investments in technology. KPMG in Canada's third biennial survey on digital maturity and tech adoption in the construction industry found a shift is underway. Nearly eight in 10 respondents indicated that procurement processes are changing to encourage innovation and digital adoption. The survey of 265 construction companies across Canada, conducted from March 18 to April 4 in collaboration with the Canadian Construction Association, also highlighted the need for tech investment to continue ramping up throughout the industry amid a growing labour shortage. In recent years, experts have been sounding the alarm as the construction industry faces the dual challenges of replacing soon-to-retire workers while trying to grow the sector to address Canada's rising need for homes. The Canadian Home Builders' Association has estimated 22 per cent of residential construction workers are set to retire over the next decade. It has also said Canada would need more than one million additional residential construction workers to meet the Canada Mortgage and Housing Corp.'s target of boosting home construction by 3.5 million units by 2030 in order to restore affordability. Nearly three-quarters of construction leaders said they expect it will become 'increasingly difficult' to meet demand over the next five to 10 years, particularly as retirements outpace recruitment, according to the survey released Wednesday. "The industry is well aware of their labour conundrum," said Jordan Thomson, KPMG in Canada's national sector leader of building and construction, in a press release. 'The pressure is intensifying on the construction industry to do far more with less." The survey said 78 per cent of companies are currently experiencing a shortage of skilled workers. While still "incredibly high," said Thomson, the figure is down from 90 per cent in 2023. Seven-in-10 said the labour crunch is affecting their ability to bid on projects and meet project deadlines according to the report, compared with 86 per cent in 2023. Those declines come as respondents indicate their companies are increasingly turning to digital technology to fill gaps. Around 81 per cent said labour productivity and efficiency have improved thanks to recent investments in technology, while 56 per cent are prioritizing technologies underpinning a demand-driven supply chain. In addition, 53 per cent are prioritizing artificial intelligence and AI-driven software in their operations. Nine-in-10 said better tools, such as AI and analytics, can boost efficiency and labour effectiveness, up from 86 per cent in 2023. Some of the technologies being adopted include drones for site surveys, robotic bricklaying and other forms of automation, along with advancements in modular or prefabrication construction — when buildings are constructed in a controlled factory environment and then transported to the construction site for assembly. Prime Minister Mark Carney has placed a large emphasis on scaling up prefabricated home construction as part of his housing plan, pledging $26 billion in financing to prefabricated home builders to reduce construction times by up to 50 per cent. 'It's encouraging to see signs that procurement is beginning to evolve, but we're not there yet,' said Canadian Construction Association president Rodrigue Gilbert in a press release. "Too often, the system prioritizes lowest price over long-term value, which prohibits investment in innovation. If we want a modern, productive construction sector, governments must reform procurement to foster collaboration, ensure fair risk-sharing, and create the confidence companies need to invest and grow.' This report by The Canadian Press was first published June 18, 2025. Sammy Hudes, The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Canada's Construction Industry Launches National Campaign Calling for Action on Infrastructure Investment and Development During Federal Election
Canada's Construction Industry Launches National Campaign Calling for Action on Infrastructure Investment and Development During Federal Election

Globe and Mail

time31-03-2025

  • Business
  • Globe and Mail

Canada's Construction Industry Launches National Campaign Calling for Action on Infrastructure Investment and Development During Federal Election

Construction for Canadians: Built by us, for you Ottawa, Ontario--(Newsfile Corp. - March 31, 2025) - In this federal election, construction will no longer be ignored. That's why Canada's construction industry has launched the Construction for Canadians campaign, supported by 57 national, provincial, and regional construction associations from coast to coast. "A strong construction industry is the key to a strong Canada," said Rodrigue Gilbert, President of the Canadian Construction Association (CCA). "To support long-term growth, the next federal government must make the necessary and overdue investments in trade-enabling infrastructure, workforce development, and modernized procurement." Construction affects every Canadian. It shapes Canada's physical landscape, grows our economy, connects communities, and plays a critical role in building a prosperous and resilient country. But underinvestment, workforce challenges, and outdated policies, combined with Donald Trump's threats and tariffs, are barriers to the growth Canadians need. To set Canada up for success, the next federal government must commit to supporting construction. "The stakes are high - without strategic investment, Canada risks falling further behind," added Gilbert. "We need bold action to ensure our industry has the resources, talent, and opportunities to keep building a strong economy and communities where Canadians can thrive." Canada's economy runs on construction. With over 1.6 million workers and $151 billion in economic impact, this industry is the foundation of our future. Learn more about Construction for Canadians at Canadians can help spread the word by sharing #construction4cdns on social media and sending a letter to their riding candidates at -30- About the Canadian Construction Association: CCA represents more than 18,000 member firms drawn from 57 local and provincial integrated partner associations across Canada. CCA gives voice to the public policy, legal and standards development goals of contractors, suppliers and allied business professionals working in, or with, Canada's institutional, commercial, industrial, civil and multi-residential construction industry. The construction sector is one of Canada's largest employers and a major contributor to the country's economic success. The industry, 99.6 per cent of which is made up of small and medium enterprises, employs more than 1.6 million Canadians and contributes 7.5 per cent of Canada's Gross Domestic Product. Media contact: Anthony Valenti Manager, Media Relations 613-608-2716 avalenti@ Website

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