The State of Canada’s Construction Industry: Growth Amid Challenges

Introduction

As 2020 approached, Canada’s construction industry showcased a formidable swell of activity, anchored by megaprojects and urban expansion. With cities like Toronto, Ottawa, and Vancouver leading the charge, the construction landscape seemed vibrant and brimming with opportunities. Yet, the reality was nuanced; while certain regions buzzed with growth, others faced stagnation or decline. A closer look reveals the interplay of challenges and advancements shaping this vital sector.

Urban Growth and Expansion

Montreal, Toronto, Ottawa, and Vancouver emerged as frontrunners in this construction boom, driven by a plethora of residential and commercial projects. For instance, Ottawa’s Centre Block rehabilitation, deemed "the largest, most complex heritage rehabilitation" ever undertaken in Canada, signifies commitment to preserving historical infrastructure while meeting modern needs. Major infrastructure projects are indispensable for accommodating growing populations and enhancing urban connectivity, as emphasized by project managers and industry leaders alike.

Construction workers at the Centre Block project in Ottawa. (Photo: Public Services and Procurement Canada)

Regional Disparities

However, Canada’s vastness means that opportunities are not uniformly distributed. The Prairie provinces, heavily reliant on the oil and gas industry, were marked by muted growth. Declining resource sector activity weighed down construction prospects, positioning Saskatchewan and Alberta in a challenging landscape. Meanwhile, Atlantic Canada grappled with an absence of significant catalysts for growth.

Conversely, British Columbia thrived with LNG projects, pipelines, and major civil constructions like the Pattullo Bridge. Such dynamic environments fostered a spirit of optimism, bolstered by forecasts of economic growth in the province, making it a beacon of opportunity in the national landscape.

Workforce Challenges

At the core of construction’s future lies a pressing issue: workforce availability. A large number of seasoned professionals are retiring, creating a void that younger generations are hesitant to fill. Construction, traditionally viewed as a less appealing career path, must evolve to attract diverse talent.

Industry experts predict that this labor shortage could hinder progress unless innovative strategies are deployed. Encouraging initiatives inclusive of traditionally underrepresented groups and focusing on increasing productivity through technology will be pivotal.

The Keeyask Dam construction in Manitoba, nearing the end of its peak period. (Photo: Manitoba Hydro)

Embracing Technology

As the industry confronts labor shortages, technology’s role becomes increasingly pronounced. The adoption of cutting-edge tools—like building information modeling (BIM), drones, and machine learning—promises to revolutionize the sector. These innovations can enhance productivity, streamline operations, and mitigate some of the labor force issues plaguing the industry.

Contractors are now recognizing the importance of integrating technology into their workflows. This evolution is not merely a matter of convenience; it’s becoming essential for survival in a competitive market.

A launching gantry being utilized in Montreal’s REM construction. (Photo: REM)

Regional Insights

British Columbia

With substantial ongoing projects like pipelines and the Broadway Subway, B.C. stands resilient amidst national trends. The real estate market continues to flourish, further driving demand for multi-unit residential construction.

Alberta

Although Alberta faced economic hardships in recent years, 2020 forecasts indicate a slight uptick in growth. Pending energy projects could bolster the local economy, yet reduced governmental spending on infrastructure raises concerns about long-term stability.

Ontario

Ontario, particularly the Greater Toronto Area, remains a hive of activity. Major infrastructure projects like the Eglinton Crosstown LRT continue to develop, promising sustained growth. However, the challenge of consistently sourcing adequate labor looms large.

Quebec and Atlantic Canada

Quebec’s outlook is bright, with Montreal leading substantial developments. In contrast, Atlantic Canada presents a more stable but less dynamic market, where populations and projects are growing slowly, particularly in Newfoundland and Labrador.

The Future of Construction

As industry leaders address the looming labor crisis, the need for strategic collaboration and innovative procurement is clear. Emphasizing integrated project delivery methods can foster creativity and efficiency, while reducing hurdles associated with conventional contracting models.

Moreover, the industry’s evolution depends on institutions like the Infrastructure Bank taking proactive roles in funding and enabling innovative projects. Learning from global examples could help in reimagining how construction is approached in Canada.

A bustling Toronto skyline, demonstrating the robust construction activity in the city. (Photo: On-Site Mag)

Conclusion

Canada’s construction industry mirrors the country itself—diverse, complex, and evolving. While challenges abound, particularly with workforce availability and regional disparities, the incorporation of technology and collaborative models offers a path forward. As stakeholders unite to tackle these hurdles, the construction industry’s future holds promise for innovation and growth, reaffirming its critical role in shaping a resilient Canadian economy.

Further Reading

For more insights on the state of construction trends, refer to the original article in the December 2019 issue of On-Site.