Innovations in Ontario’s Construction Industry: A Roadmap for Housing and Infrastructure Crises
Recent developments in the construction sector have brought to light a critical report that promises to reshape our understanding of housing and infrastructure solutions in Canada. Released at the State of Canada’s Cities Summit on Wednesday, the report, titled Learning from What Works: Leveraging Local Solutions to Make Better Places, showcases the innovative strides being made in Ontario and across Canada. It highlights how local construction innovations, such as mass timber modular panels and municipal investment strategies, are outpacing traditional top-down approaches.
A Collaborative Effort
The report is a collaborative product of the University of Toronto’s School of Cities and the Canadian Urban Institute (CUI). Following an intensive national competition that attracted 120 submissions, the report highlights 89 finalists that exemplify the power of local innovation in addressing key issues including housing supply, workforce development, and climate resilience.
Shifting the Narrative
Karen Chapple, director of the School of Cities, emphasized the need to change the national narrative. "We launched this initiative to shift the national conversation from what’s broken to what’s working,” she stated. This is a significant pivot that shows Canadian communities are not waiting for top-level interventions; they are actively building the future they envision.
Industrializing Construction to Boost Supply
The Housing Demand Challenge
Canada faces a daunting housing crisis, with the Canada Mortgage and Housing Corporation (CMHC) estimating that the country requires up to 480,000 housing starts annually until 2035 to meet demand. The report reveals that innovative off-site construction methods could be key to bridging this gap.
Spotlight on Mass Timber Innovations
Ontario’s Assembly Corp, a Toronto-based company, is transforming mid-rise construction through the use of mass timber. By treating buildings as products rather than unique projects, Assembly Corp manufactures standardized modular timber and light-frame wood panels off-site. This innovative approach not only reduces project timelines by half but also cuts carbon emissions by as much as 60% compared to traditional methods. Furthermore, by exceeding energy code requirements by 20%, this model provides developers with a predictable way to navigate increasingly stringent environmental regulations.
Another Ontario Pioneer: Tooketree Passive Homes
Another notable player, Muskoka-based Tooketree Passive Homes, is pioneering the use of SEED (sustainable, ecological, efficient, and durable) panels. Inspired by European prefabrication methods, these panels facilitate the rapid assembly of high-performance building envelopes. Impressively, Tooketree has sequestered 105,000 kilograms of carbon while delivering 65 housing units to date. Their partnership with Keepers of the Circle, an Indigenous women’s organization, is also noteworthy, as it provides training to underrepresented groups in the construction workforce.
De-risking Development
Innovative Municipal Policies
Beyond physical construction advancements, the report also identifies policy shifts that are enabling municipalities to unlock capital for affordable housing projects. The City of Edmonton’s Affordable Housing Investment Program (AHIP) stands out in this regard. The program acts as a primary investor, providing upfront capital which allows non-profit developers to mitigate risks and secure additional funding from provincial and federal sources. For every dollar contributed by the city, approximately four dollars are garnered from other orders of government. Since its inception in 2019, AHIP has facilitated the creation of over 2,400 affordable housing units while spurring significant regional construction activity.
Addressing the Missing Middle
Regulatory Innovations
Regulatory barriers continue to impede housing growth. The mddl initiative offers an innovative solution for small-scale developers and builders grappling with “missing middle” projects—those that fall between single-family homes and large high-rises. By providing educational tools and collaborating with municipalities to expedite approvals for pre-approved designs, mddl is effectively creating a new pipeline of work. Their initiatives have already gained traction in cities like Calgary, Kelowna, Edmonton, Regina, and Saskatoon, resulting in streamlined building permit approvals in some areas.
Reinforcing the Workforce Pipeline
Social Procurement Efforts
As workforce shortages loom due to impending retirements, the report highlights the vital role of Community Benefit Agreements (CBAs) and social procurement. For example, Buy Social Canada’s involvement in the redevelopment of New St. Paul’s Hospital in Vancouver has generated nearly $100 million in social procurement spending and $200 million in local procurement since construction began. This is instrumental in creating employment pathways for marginalized individuals within the construction sector.
Local Initiatives
In Toronto, the Inclusive Local Economic Opportunity (ILEO) initiative, spearheaded by United Way Greater Toronto and BMO, is actively enhancing the skilled trades pipeline. Their “Construction Union Employment Pathway” has been particularly effective, offering locally-relevant training and paid placements that connect significant infrastructure projects with workforce development.
Scaling for Climate Resilience
The Retrofit Economy
The report discusses the burgeoning retrofit economy as a growth sector for Ontario contractors. The Toronto and Region Conservation Authority’s Sustainable Neighbourhood Action Program (SNAP) is showcased for its holistic revitalization approach to aging towers. The Black Creek SNAP project, for instance, combines deep retrofits on buildings with green infrastructure to combat climate issues like flooding and heat. This model is now being replicated in cities like Hamilton and Peterborough, signaling an emerging demand for specialized retrofit contracting.
A Call to Action
Mary W. Rowe, CEO of the Canadian Urban Institute, encourages government and industry leaders to view these local successes as blueprints rather than exceptions. “Local solutions move at the speed of trust,” Rowe asserted. The report is a clarion call for stakeholders to invest in proven models, support civic infrastructure, and empower communities to lead their own initiatives.
For those interested in delving deeper into the report and exploring scalable innovations across various jurisdictions, the complete document is available through the University of Toronto’s School of Cities. The future of construction in Ontario—and Canada at large—may very well depend on embracing these local solutions.
