Latest news with #KPMGinCanada
Cision Canada
31-07-2025
- Business
- Cision Canada
Canadian business leaders want open banking and the real-time rail immediately, KPMG poll shows Français
Nearly six in 10 business leaders believe that without payments modernization, Canada's competitiveness as a country will continue to erode TORONTO, July 31, 2025 /CNW/ - While recent public discourse around nation-building has focused on major infrastructure mega-projects, modernizing Canada's digital infrastructure is also an emerging priority, with new research showing nearly two-thirds of business leaders want Canada's payments system and open banking fast-tracked to boost productivity and competitiveness. In a recent KPMG in Canada survey of 250 business leaders across Canada, 65 per cent of respondents said the infrastructure underpinning Canada's financial and payments system must be modernized immediately to enable open banking, digital identity and real-time payments. Nearly six in 10 (58 per cent) believe that without payments modernization, Canada's competitiveness will continue to erode. "Canada is in the midst of a trade war, and it must do everything it can to insulate itself from outside economic threats. We have an opportunity to advance our competitive position by modernizing one of our largest industries – financial services. Digital infrastructure advancements like the real-time rail and open banking will foster more competition, enable innovation, promote financial inclusion, and drive more growth and investment in Canada. We must seize this opportunity now, or we will fall behind," says Geoff Rush, Partner and National Industry Leader for financial services at KPMG in Canada. Canada is developing the Real-Time Rail (RTR), a national payment infrastructure that will allow Canadians to send and receive payments in real-time and enable around-the-clock instant payment clearing and settlement between financial institutions in real-time. Canada also plans to implement open banking (or consumer-driven banking), which allows consumers to easily share their financial data with third-party financial services providers such as app-based fintechs, allowing them to control and transport their information and see their entire financial picture across multiple accounts in one dashboard. Both initiatives have faced years of delays but have taken on a renewed sense of urgency as the focus on nation building gathers momentum. The federal government plans to launch a framework for open banking next year after passing initial legislation in 2024, but further legislation is needed for a full rollout. Meanwhile, the real-time rail technical build is scheduled to be completed in July, with a year-long testing phase to follow, according to Payments Canada. Mr. Rush says now is an opportune time to expedite both projects, given the strong push from governments, citizens and business leaders to boost Canadian productivity, competitiveness and economic self-sufficiency. "Our survey shows that 64 per cent of business leaders agree that open banking, digital identity systems and real-time payment rails are not mere upgrades – they are the bedrock of a resilient, competitive, and inclusive economy, so it's imperative for those projects to move forward as quickly as possible," Mr. Rush says. "Without a real-time rail, payments can take days to be processed, exposing organizations to increased credit, liquidity, operational and systemic risks. Without open banking, consumers who want to engage with fintechs are forced to share their financial data through 'screen scraping,' which creates serious privacy concerns and deters them from signing up for the innovative services that fintechs offer. We need to reduce these risks and competitive barriers for Canadian businesses and consumers," Mr. Rush says. KPMG in Canada survey highlights 65 per cent say the infrastructure underpinning Canada's financial and payments system must be modernized immediately to enable open banking (consumer-driven banking), digital identity and real-time payments 58 per cent believe without payments modernization, Canada's competitiveness will continue to deteriorate 64 per cent agree that open banking, digital identity systems and real-time payment rails are not mere upgrades – they are the bedrock of a resilient, competitive, and inclusive economy 58 per cent have seen "a definite improvement" in business-to-business (B2B) banking services from the major banks even though opening banking and payments modernization have not yet been implemented Payment modernization programs already underway Despite the absence of opening banking and real-time rail in Canada, nearly six in 10 (58 per cent) respondents said they have seen "a definite improvement" in business-to-business (B2B) banking services from the major banks, according to the KPMG survey. Edwin Isted, Executive Director and Payments Lead in KPMG in Canada's Financial Services Solutions practice says those improvements are likely the result of Canadian financial institutions' efforts to modernize their payments programs. "In absence of the real-time rail, financial services organizations are already doing their part to modernize Canada's payments ecosystem," notes Mr. Isted. In a separate survey of global financial institutions by KPMG International, nearly all (94 per cent) Canadian respondents said they are either planning or actively engaged in payment modernization programs. "Many financial institutions in Canada are still using outdated legacy technology systems, but our survey clearly shows that they are working to modernize their systems to facilitate faster, more efficient payments that are predictable, transparent and enhance the customer experience," he adds. Mr. Isted says while the high number of financial institutions with payment modernization programs is encouraging, activating the real-time rail will accelerate the progress of those programs significantly. "The real-time rail isn't just about faster payments, it's about enabling more data-rich transactions so organizations have more valuable context about payments. When organizations have a better understanding about why and how a payment was made, the parties involved in the payments, as well as the frequency and history of the payments, they can serve their customers and clients more effectively. Implementing the real-time rail is a win-win for Canadian businesses and consumers," he adds. KPMG International survey highlights 94 percent of Canadian financial institutions are either planning or actively engaged in payment modernization programs Top benefits of modernization cited by respondents include faster transaction processing, improved customer experience and enhanced security. Payments modernization programs are expected to cost between US$10 million and US$25 million About the KPMG in Canada Productivity Survey KPMG in Canada surveyed 250 business leaders in all industry sectors across Canada between May 9 and May 20, 2025, on Sago's premier business panel, using Methodify's online research platform. Thirty-one per cent lead companies with annual gross revenue between $500 million and $1 billion, 25 per cent report revenue between $100 million and $300 million, 22 per cent have revenue between $300 million and $500 million, 12 per cent between $10 million and $100 million, and 10 per cent, over $1 billion. No companies under $10 million in annual revenue were surveyed. Over half (52 per cent) are privately held, 28 per cent are owned by private equity firms, 18 per cent are publicly traded with headquarters in Canada, and 2 per cent are foreign-owned subsidiaries. About the KPMG International Modernizing Payments Survey KPMG International conducted quantitative research about payments modernizations programs in September 2024. 810 financial institutions took part, including 66 in Canada. Financial Institutions spanned four categories with respondents from: established mainstream banks, building societies, challenger banks, wholesale banks and private banks. 60 per cent of respondents reported revenue between US$500 million to US$1 billion; 36 per cent between US$1 billion to US$5 billion; and 3 per cent with more than US$5 billion. KPMG LLP, a limited liability partnership, is a full-service Audit, Tax and Advisory firm owned and operated by Canadians. For over 150 years, our professionals have provided consulting, accounting, auditing, and tax services to Canadians, inspiring confidence, empowering change, and driving innovation. Guided by our core values of Integrity, Excellence, Courage, Together, For Better, KPMG employs more than 10,000 people in over 40 locations across Canada, serving private- and public-sector clients. KPMG is consistently ranked one of Canada's top employers and one of the best places to work in the country. The firm is established under the laws of Ontario and is a member of KPMG's global organization of independent member firms affiliated with KPMG International, a private English company limited by guarantee. Each KPMG firm is a legally distinct and separate entity and describes itself as such. For more information, see
Cision Canada
26-06-2025
- Business
- Cision Canada
Canadian businesses want tax system to drive investment and resilient economic growth Français
U.S. tax bill and tariffs make need for Canadian tax reform more urgent TORONTO, June 26, 2025 /CNW/ - As the focus on building a stronger Canada dominates the national agenda, tax reform has emerged as an imperative for Canadian business leaders, with nine in 10 (91 per cent) saying it's time to simplify the tax system and cut the investment tax rate to grow the economy, finds a new KPMG in Canada survey. The survey of 250 business leaders identified comprehensive tax reform as a top three priority for the federal government to increase business competitiveness. Nearly six in 10 (58 per cent), named it a priority, second only to removing interprovincial trade barriers (64 per cent). "In this period of nation-building, we have an historic opportunity to overcome years of complacency and build a competitive tax system that responds to today's challenges of sluggish productivity and slowing business investment in Canada," says Lucy Iacovelli, Canadian Managing Partner, Tax and Legal, KPMG in Canada. "It will take bold leadership to streamline complex taxes and regulations that are a growing burden on business and optimize the tax system. Corporate tax policies should incentivize businesses to put investment capital to work and make our industries and people more productive. This goes to the very heart of a resilient economy and our standard of living as Canadians." KPMG's poll revealed that nearly three quarters (72 per cent) of business leaders believe current Canadian tax policies are not providing enough of an inducement to invest; 91 per cent believe governments need to implement tax and regulatory policies that encourage greater investment and accelerate the adoption of technologies, such as artificial intelligence (AI). "Canada's business community and governments need to align on more favourable corporate tax policies that will help to blunt the impact of disruptive U.S. trade and retaliatory tax policy," adds Ms. Iacovelli. Key survey findings: 91 per cent say Canada must simplify the corporate income tax system 90 per cent agree that Canada needs to eliminate barriers to investment 90 per cent say Canada must reduce tax rates on investment to stimulate economic growth 91 per cent believe governments need to implement tax and regulatory policies that encourage greater investment and accelerate technology adoption 88 per cent believe Canada needs a complete overhaul of its economic and industrial policies 57 per cent say they have been investing in their business but the current trade war makes it difficult to tap into the markets. A more competitive tax system Tax measures proposed by the new federal government include: expanding flow-through shares beyond the mining sector to Canadian startups that allow investors to deduct eligible R&D expenses; a 20 per cent AI adoption tax credit for certain small- and mid-sized businesses; enhancing the Scientific Research & Economic Development (SR&ED) program and a patent box regime that lowers tax rates on intellectual property (IP) income to enable more Canadian companies to own and commercialize their ideas within Canada. "While these targeted measures are a start, the federal government needs to reaffirm its commitment to ambitious, broad-based corporate tax reforms that apply to businesses of all types and sizes," says Ms. Iacovelli. "Tax changes should ease access to domestic and foreign capital and reward productivity-enhancing investments, including AI adoption." U.S. tax bill to affect Canada Following dramatic cuts in U.S. corporate tax rates and the introduction of other significant tax incentives in 2017, the Canadian government responded with temporary measures that provided faster write-offs for a wide range of depreciable property (the "Accelerated Investment Incentive"), along with immediate expensing for certain manufacturing equipment and clean technology assets. "Current tax legislation before Congress would make permanent many of the 2017 U.S. tax incentives, which puts pressure on Canada to continue our own incentives that allow for faster business write-offs that free up capital to reinvest," says Brian Ernewein, Senior Advisor, KPMG in Canada's National Tax Centre. "Simply matching the U.S. on these tax incentives would not restore Canada's competitive corporate tax advantage. Actions – federally and provincially – to reduce the top corporate income tax rate in Canada would be a powerful response to these pending U.S. tax changes and, more generally, to the greater uncertainty of the current U.S. trade and investment environment." The bill also targets countries that impose what the U.S. administration considers "discriminatory or extraterritorial taxes". "This retaliatory U.S. legislation has the potential to significantly increase the tax rate applying to U.S income generated by Canadian businesses and investors and could make such investments economically unviable," adds Mr. Ernewein. "It's critical that this legislation, if enacted, not apply to Canada." Attracting more capital investment to Canada According to the survey, nearly nine in ten (88 per cent) business leaders believe a preferential capital gains tax rate for private capital investment would encourage long-term investment into Canadian startups, small-and-mid-sized businesses and scaleups. "In a global economy, capital is mobile," says Johanna Gerrie, National M&A Tax Leader, KPMG in Canada. "For Canada to remain a destination of choice for investment, we must ensure our tax system is efficient, stable and aligned with the realities of international competition. We face stiff competition from the U.S. and other countries in attracting large-scale investment from institutional investors, venture capital and pension funds. These sources of capital can unlock growth and accelerate technology and infrastructure development to support nation-building projects." Additional poll findings: 60 per cent say limited access to capital impedes or hinders their ability to invest in their operations, move forward with expansion plans, or invest in technology. 53 per cent say their company is exploring tapping the private capital markets to help drive growth, expand into new markets and provide business acumen and expertise. KPMG ideas to improve the corporate tax system: Be ambitious. Given current economic conditions, evaluate new approaches, including a possible reduction to the top corporate tax rate, in conjunction with fiscally responsible government spending. Make the tax system simpler and easier. Reduce complexity through greater rationalization as it applies to large and small businesses, review tax rates, credits and deductions, and eliminate tax measures that are overly complex to administer. Enable faster investment write-offs. Further accelerate tax deductions for the cost of new investments in order to maximize the incentive for businesses to enhance productivity. Speed-up R&D incentives. Fast-track enhancements to SR&ED and the creation of a Canadian "patent box", which are positive, productivity-enhancing initiatives. Provide adequate R&D incentives to large companies. Currently, SR&ED tax credits generated by larger firms – Canadian or foreign-owned – can only be applied against tax otherwise payable and are not refundable. This undercuts the value of this incentive for some of the biggest firms carrying out these activities in Canada. Simplify provincial sales tax collection for business. Retail sales taxes, in provinces that continue to impose them, are a significant added business expense. Both the monetary cost of retail sales taxes and the cost of complying with two systems impose a substantial additional tax and compliance burden, in contrast to a harmonized value-added tax or provincial HST. Reduce the reporting burden. Evaluate business tax reporting requirements to determine whether they are worthwhile given the costs, and if various reporting obligations can be rationalized or their objectives achieved more efficiently through other means. Review business penalties. Determine the number and level of potential penalties businesses may be exposed to currently, in conjunction with the government's plan to impose stricter enforcement, with an additional $3.75 billion in fines and penalties over the next few years. About the KPMG in Canada Productivity Survey KPMG in Canada surveyed 250 business leaders in all industry sectors across Canada between May 9 and May 20, 2025, on Sago's premier business panel, using Methodify's online research platform. Thirty-one per cent lead companies with annual gross revenue between $500 million and $1 billion, 25 per cent report revenue between $100 million and $300 million, 22 per cent have revenue between $300 million and $500 million, 12 per cent between $10 million and $100 million, and 10 per cent, over $1 billion. No companies under $10 million in annual revenue were surveyed. Over half (52 per cent) of the companies are privately held, 28 per cent are owned by private equity firms, 18 per cent are publicly traded with headquarters in Canada, and two per cent are foreign-owned subsidiaries. KPMG LLP, a limited liability partnership, is a full-service Audit, Tax and Advisory firm owned and operated by Canadians. For over 150 years, our professionals have provided consulting, accounting, auditing, and tax services to Canadians, inspiring confidence, empowering change, and driving innovation. Guided by our core values of Integrity, Excellence, Courage, Together, For Better, KPMG employs more than 10,000 people in over 40 locations across Canada, serving private- and public-sector clients. KPMG is consistently ranked one of Canada's top employers and one of the best places to work in the country. The firm is established under the laws of Ontario and is a member of KPMG's global organization of independent member firms affiliated with KPMG International, a private English company limited by guarantee. Each KPMG firm is a legally distinct and separate entity and describes itself as such. For more information, see For media inquiries: Nancy White National Communications and Media Relations KPMG in Canada 416-876-1400 [email protected]
Yahoo
18-06-2025
- Business
- Yahoo
Canada's construction industry gets serious about investing in technology as pressure mounts to do more with less
Nine in 10 construction leaders say digital tools are needed to boost productivity to build more, faster, finds new KPMG in Canada report TORONTO, June 18, 2025 /CNW/ - In the face of growing pressure to build more, faster, nine in 10 Canadian construction leaders agree that the industry must move quickly to embrace new and advanced technologies, with most saying digital tools are already starting to boost their productivity, finds a new KPMG in Canada report on digital maturity in the construction industry. "It is good to see that the sector is investing in the technologies that are desperately needed to address persistently poor productivity levels," says Tom Rothfischer, Partner and National Industry Leader, Building, Construction and Real Estate, KPMG in Canada. "These investments are about to pay dividends and transform how we build in Canada. But the current economic and trade environment is squeezing bottom lines, putting at risk much-needed continued spending on tech – technology that is essential if we are to address the chronic housing supply shortage in this country and transform our economy through an ambitious era of nation-building mega-projects." Clients – those who commission and fund construction projects -- can play a key role in influencing the industry to modernize, the report says. Nearly eight in 10 (78 per cent) say procurement processes are changing to encourage innovation and digital adoption, and 43 per cent indicated that their clients play a "highly influential" role in their decision to adopt technologies. "It's encouraging to see signs that procurement is beginning to evolve, but we're not there yet," says Rodrigue Gilbert, President of the Canadian Construction Association. "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." The level of tech investment will need to ramp up given that the industry's labour crunch is expected to worsen as the workforce ages and retirements increase in the next decade, the report points out. Nearly three-quarters (73 per cent) of construction leaders expect that it will become "increasingly difficult" to meet demand over the next five-to-10 years, particularly as retirements outpace recruitment. "The pressure is intensifying on the construction industry to do far more with less," says Jordan Thomson, Director, Global Infrastructure Advisory, KPMG in Canada. "The industry is well aware of their labour conundrum, with eight in 10 companies still experiencing a shortage in skilled labour that's affecting their ability to take on new work and complete current jobs. While it's improved slightly from two years ago, it's still incredibly high. "The industry is also counting on the removal of interprovincial trade barriers," he adds. "The challenges of working under 14 different sets of provincial rules and regulations is a further and unneeded drag on productivity that needs to be addressed if we expect the industry to be able to handle the growing volume of projects in the pipeline." The report finds that the industry is focused on deploying a wide range of technologies to improve productivity and expedite project completion, with 81 per cent of construction companies saying their recent investments in technology are already making a difference. Some of these technologies include advancements in modular or prefabrication construction that streamline processes, reduce waste, and accelerate timelines by constructing buildings in a controlled factory environment and then transporting them to the construction site for assembly; robotics and automation, such as robotic bricklaying that improves productivity and safety, or drones for site surveys; and, building information modelling (BIM), which improves planning and collaboration among stakeholders by providing a comprehensive digital view of the project from the architectural design to the materials, systems and infrastructure that will be needed. Investing in technologies to create a demand-driven supply chain that aligns supply with actual demand was ranked the top priority by more than half (56 per cent) of respondents surveyed, the report finds. "The industry has always faced supply chain challenges, whether it's the cost or availability of materials," says Mr. Thomson. "But that's recently been exacerbated by, among other things, U.S. tariffs, ongoing ripple effects from the pandemic, and other global macroeconomic events, prompting many companies to invest in supply chain innovation that uses digital tools, data analytics and automation that drive real-time visibility into projects and material requirements." The report shows that industry players are prioritizing a number of new technologies in parallel, spanning from 56 per cent exploring demand-driven supply chain innovation to 40 per cent exploring robotics, drones, exoskeletons. More than half (53 per cent) are prioritizing prefabrication as well as artificial intelligence (AI) and AI-driven software. Engineering firms and suppliers are focused on deploying intelligent automation, institutional owners are investing in AI, and contractors are prioritizing cybersecurity technologies. "We're seeing much more interest in tech adoption compared to where we were even two years ago. However, the sector still has a long way to go to move the needle on productivity," says Mr. Thomson. "Making a commitment to invest in technology is the first step. Delivering returns requires careful integration and only works if you also invest in up-skilling your people to use it effectively." Key Survey Findings: 87 per cent of 265 Canadian construction leaders agree the industry will need to implement new and advanced technologies to meet the demand for housing 90 per cent agree that better tools, such as AI, analytics, BIM and digital twins, can boost efficiency and labour effectiveness, up from 86 per cent in 2023 78 per cent say procurement processes are changing to encourage innovation and digital adoption 43 per cent say their clients are "highly influential" in their decision to adopt technology to meet project or contractual requirements 73 per cent expect it will become "increasingly difficult" to meet demand over the next five-to-10 years, particularly as retirements outpace recruitment 78 per cent are currently experiencing a shortage of skilled workers, compared to 90 per cent in 2023 70 per cent say the labour crunch is impacting their ability to bid on new projects and/or meet project deadlines, compared to 86 per cent in 2023 84 per cent want to see interprovincial trade barriers eliminated as quickly as possible 81 per cent say labour productivity and efficiency has improved as a result of their company's recent investments in technology 56 per cent are prioritizing technologies underpinning a demand-driven supply chain 53 per cent are making prefabrication and modularization a top or high priority in their business and another 27 per cent have it as mid-level priority 53 per cent are also prioritizing AI and AI-driven software "The construction sector is the foundation of Canada's nation-building ambitions. From housing to trade-enabling infrastructure to clean energy, nothing gets built without us," said Mr. Gilbert. "It's time for coordinated action. The government must modernize procurement, cut red tape, and provide the clear, consistent policy direction our sector needs to deliver. The time to act—together—is now." Read the full report here. About the SurveyIn its third biennial survey, KPMG in Canada surveyed 265 construction companies across Canada from March 18 through April 4, 2025, in collaboration with the Canadian Construction Association to measure the sector's digital maturity. The survey was conducted among KPMG clients and Sago's construction industry business panel respondents on the polling agency's online Methodify platform. The survey included general contractors (63 per cent), engineering firms (15 per cent), subcontractors (12 per cent), suppliers (8 per cent), and institutional owners (3 per cent). About KPMG in CanadaKPMG LLP, a limited liability partnership, is a full-service Audit, Tax and Advisory firm owned and operated by Canadians. For over 150 years, our professionals have provided consulting, accounting, auditing, and tax services to Canadians, inspiring confidence, empowering change, and driving innovation. Guided by our core values of Integrity, Excellence, Courage, Together, For Better, KPMG employs more than 10,000 people in over 40 locations across Canada, serving private- and public-sector clients. KPMG is consistently ranked one of Canada's top employers and one of the best places to work in the country. The firm is established under the laws of Ontario and is a member of KPMG's global organization of independent member firms affiliated with KPMG International, a private English company limited by guarantee. Each KPMG firm is a legally distinct and separate entity and describes itself as such. For more information, see About the Canadian Construction AssociationCCA 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. For media inquiries: Caroline Van HasseltNational Communications and Media RelationsKPMG in Canada(416) 777-3288cvanhasselt@ Anthony ValentiManager, Media Relations Canadian Construction Association(613) 608-2716 avalenti@ SOURCE KPMG LLP View original content to download multimedia: Sign in to access your portfolio
Cision Canada
18-06-2025
- Business
- Cision Canada
Canada's construction industry gets serious about investing in technology as pressure mounts to do more with less Français
Nine in 10 construction leaders say digital tools are needed to boost productivity to build more, faster, finds new KPMG in Canada report TORONTO, June 18, 2025 /CNW/ - In the face of growing pressure to build more, faster, nine in 10 Canadian construction leaders agree that the industry must move quickly to embrace new and advanced technologies, with most saying digital tools are already starting to boost their productivity, finds a new KPMG in Canada report on digital maturity in the construction industry. "It is good to see that the sector is investing in the technologies that are desperately needed to address persistently poor productivity levels," says Tom Rothfischer, Partner and National Industry Leader, Building, Construction and Real Estate, KPMG in Canada. "These investments are about to pay dividends and transform how we build in Canada. But the current economic and trade environment is squeezing bottom lines, putting at risk much-needed continued spending on tech – technology that is essential if we are to address the chronic housing supply shortage in this country and transform our economy through an ambitious era of nation-building mega-projects." Clients – those who commission and fund construction projects -- can play a key role in influencing the industry to modernize, the report says. Nearly eight in 10 (78 per cent) say procurement processes are changing to encourage innovation and digital adoption, and 43 per cent indicated that their clients play a "highly influential" role in their decision to adopt technologies. "It's encouraging to see signs that procurement is beginning to evolve, but we're not there yet," says Rodrigue Gilbert, President of the Canadian Construction Association. "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." The level of tech investment will need to ramp up given that the industry's labour crunch is expected to worsen as the workforce ages and retirements increase in the next decade, the report points out. Nearly three-quarters (73 per cent) of construction leaders expect that it will become "increasingly difficult" to meet demand over the next five-to-10 years, particularly as retirements outpace recruitment. "The pressure is intensifying on the construction industry to do far more with less," says Jordan Thomson, Director, Global Infrastructure Advisory, KPMG in Canada. "The industry is well aware of their labour conundrum, with eight in 10 companies still experiencing a shortage in skilled labour that's affecting their ability to take on new work and complete current jobs. While it's improved slightly from two years ago, it's still incredibly high. "The industry is also counting on the removal of interprovincial trade barriers," he adds. "The challenges of working under 14 different sets of provincial rules and regulations is a further and unneeded drag on productivity that needs to be addressed if we expect the industry to be able to handle the growing volume of projects in the pipeline." The report finds that the industry is focused on deploying a wide range of technologies to improve productivity and expedite project completion, with 81 per cent of construction companies saying their recent investments in technology are already making a difference. Some of these technologies include advancements in modular or prefabrication construction that streamline processes, reduce waste, and accelerate timelines by constructing buildings in a controlled factory environment and then transporting them to the construction site for assembly; robotics and automation, such as robotic bricklaying that improves productivity and safety, or drones for site surveys; and, building information modelling (BIM), which improves planning and collaboration among stakeholders by providing a comprehensive digital view of the project from the architectural design to the materials, systems and infrastructure that will be needed. Investing in technologies to create a demand-driven supply chain that aligns supply with actual demand was ranked the top priority by more than half (56 per cent) of respondents surveyed, the report finds. "The industry has always faced supply chain challenges, whether it's the cost or availability of materials," says Mr. Thomson. "But that's recently been exacerbated by, among other things, U.S. tariffs, ongoing ripple effects from the pandemic, and other global macroeconomic events, prompting many companies to invest in supply chain innovation that uses digital tools, data analytics and automation that drive real-time visibility into projects and material requirements." The report shows that industry players are prioritizing a number of new technologies in parallel, spanning from 56 per cent exploring demand-driven supply chain innovation to 40 per cent exploring robotics, drones, exoskeletons. More than half (53 per cent) are prioritizing prefabrication as well as artificial intelligence (AI) and AI-driven software. Engineering firms and suppliers are focused on deploying intelligent automation, institutional owners are investing in AI, and contractors are prioritizing cybersecurity technologies. "We're seeing much more interest in tech adoption compared to where we were even two years ago. However, the sector still has a long way to go to move the needle on productivity," says Mr. Thomson. "Making a commitment to invest in technology is the first step. Delivering returns requires careful integration and only works if you also invest in up-skilling your people to use it effectively." Key Survey Findings: 87 per cent of 265 Canadian construction leaders agree the industry will need to implement new and advanced technologies to meet the demand for housing 90 per cent agree that better tools, such as AI, analytics, BIM and digital twins, can boost efficiency and labour effectiveness, up from 86 per cent in 2023 78 per cent say procurement processes are changing to encourage innovation and digital adoption 43 per cent say their clients are "highly influential" in their decision to adopt technology to meet project or contractual requirements 73 per cent expect it will become "increasingly difficult" to meet demand over the next five-to-10 years, particularly as retirements outpace recruitment 78 per cent are currently experiencing a shortage of skilled workers, compared to 90 per cent in 2023 70 per cent say the labour crunch is impacting their ability to bid on new projects and/or meet project deadlines, compared to 86 per cent in 2023 84 per cent want to see interprovincial trade barriers eliminated as quickly as possible 81 per cent say labour productivity and efficiency has improved as a result of their company's recent investments in technology 56 per cent are prioritizing technologies underpinning a demand-driven supply chain 53 per cent are making prefabrication and modularization a top or high priority in their business and another 27 per cent have it as mid-level priority 53 per cent are also prioritizing AI and AI-driven software "The construction sector is the foundation of Canada's nation-building ambitions. From housing to trade-enabling infrastructure to clean energy, nothing gets built without us," said Mr. Gilbert. "It's time for coordinated action. The government must modernize procurement, cut red tape, and provide the clear, consistent policy direction our sector needs to deliver. The time to act—together—is now." Read the full report here. About the Survey In its third biennial survey, KPMG in Canada surveyed 265 construction companies across Canada from March 18 through April 4, 2025, in collaboration with the Canadian Construction Association to measure the sector's digital maturity. The survey was conducted among KPMG clients and Sago's construction industry business panel respondents on the polling agency's online Methodify platform. The survey included general contractors (63 per cent), engineering firms (15 per cent), subcontractors (12 per cent), suppliers (8 per cent), and institutional owners (3 per cent). About KPMG in Canada KPMG LLP, a limited liability partnership, is a full-service Audit, Tax and Advisory firm owned and operated by Canadians. For over 150 years, our professionals have provided consulting, accounting, auditing, and tax services to Canadians, inspiring confidence, empowering change, and driving innovation. Guided by our core values of Integrity, Excellence, Courage, Together, For Better, KPMG employs more than 10,000 people in over 40 locations across Canada, serving private- and public-sector clients. KPMG is consistently ranked one of Canada's top employers and one of the best places to work in the country. The firm is established under the laws of Ontario and is a member of KPMG's global organization of independent member firms affiliated with KPMG International, a private English company limited by guarantee. Each KPMG firm is a legally distinct and separate entity and describes itself as such. For more information, see 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. For media inquiries: Caroline Van Hasselt National Communications and Media Relations KPMG in Canada (416) 777-3288 [email protected] Anthony Valenti Manager, Media Relations Canadian Construction Association (613) 608-2716 [email protected] SOURCE KPMG LLP
Cision Canada
06-05-2025
- Business
- Cision Canada
Media Advisory: Bringing AI to life in Alberta with KPMG in Canada
AI Made Real Summit brings together business and thought leaders to share knowledge and insights on achieving results with AI CALGARY, AB and EDMONTON, AB, May 6, 2025 /CNW/ - Members of the media are invited to attend KPMG in Canada's AI Made Real Summit, an afternoon of panel discussions, keynote presentations and live technology demonstrations for C-Suite executives, senior decision-makers, finance professionals, technology and human resources leaders in Edmonton on May 13 and Calgary on May 15. Presented in collaboration with Microsoft Canada, the third annual summit is part of a series of exclusive half-day events in six major Canadian cities featuring real-life case studies from organizations that have implemented AI successfully, and practical strategies for organizations looking to achieve results with AI. "Over the past few years, we've seen the impact AI has made across our professional and personal lives. Now, with agentic AI, Canadian business leaders can unlock enormous efficiency gains and improve quality to a whole new level, if they get ahead of the curve and start adopting the technology," says Stephanie Terrill, Canadian Managing Partner of Digital and Transformation, KPMG in Canada. "This event brings together some of Alberta's most innovative leaders who will share their knowledge, insights and experience so others can learn how to transform their business with AI," she adds. Members of the media who wish to attend the summit can contact Alannah Page of KPMG in Canada's media relations team at [email protected]. KPMG LLP, a limited liability partnership, is a full-service Audit, Tax and Advisory firm owned and operated by Canadians. For over 150 years, our professionals have provided consulting, accounting, auditing, and tax services to Canadians, inspiring confidence, empowering change, and driving innovation. Guided by our core values of Integrity, Excellence, Courage, Together, For Better, KPMG employs more than 10,000 people in over 40 locations across Canada, serving private- and public-sector clients. KPMG is consistently ranked one of Canada's top employers and one of the best places to work in the country. The firm is established under the laws of Ontario and is a member of KPMG's global organization of independent member firms affiliated with KPMG International, a private English company limited by guarantee. Each KPMG firm is a legally distinct and separate entity and describes itself as such. For more information, see SOURCE KPMG LLP
