Growth and Challenges in Canada’s Construction Industry Under Prime Minister Mark Carney

Article submitted by the CIOB

As the world’s largest professional body for construction management and leadership, the Chartered Institute of Building (CIOB) is poised to closely monitor the evolution of Canada’s construction industry under the leadership of newly elected Prime Minister Mark Carney and his Liberal government. This article highlights key insights from Rami Daniel MCIOB, CIOB Americas Hub Vice-Chair, and Eddie Tuttle, Director of Policy, External Affairs and Research at CIOB.

Ambitious Housing and Infrastructure Agenda

Carney’s government has set forth an ambitious agenda centered on housing and infrastructure, heralding potential growth in the construction sector. Both Rami and Eddie express caution, emphasizing that ambition without the necessary workforce capacity may fall short of expectations. Carney’s pledge to double Canada’s housing production to 500,000 units per year signifies a transformative vision for the built environment. However, this goal significantly surpasses the average of just over 227,000 homes the country has constructed annually over the past decade. Achieving this new operational reality will require strategic planning to reinforce an already stretched workforce.

The Labour Shortage Dilemma

A significant obstacle to the realization of Carney’s housing plans is the prevailing shortage of skilled labor across Canada. This issue, recognized globally, poses a threat to the construction industry’s ability to ramp up housing output. The current landscape reveals a deficit in skilled trades and construction professionals, and Eddie and Rami caution against pursuing such aggressive targets without addressing this pressing labor crisis.

Carney’s campaign included plans to expand immigration to facilitate the infusion of more skilled tradespeople and to streamline apprenticeship pathways. One proactive solution championed by the CIOB is the establishment of a national construction workforce task force. This group would unite federal, provincial, territorial, municipal, and industry stakeholders to align labor supply with construction demand effectively.

Improving Apprenticeship Pathways

To tackle the skilled labor shortage, Rami advocates for enhancing apprenticeship pathways. Though this initiative may take time to develop, it underscores the strategic role of the federal government. Tying infrastructure funding to workforce development goals could incentivize provinces to modernize and reintroduce skilled trades education in secondary schools. Such actions could help cultivate a future workforce equipped with the necessary skills to meet the industry’s demands.

Modernizing Building Codes

Carney has signaled intent to reform the National Building Code (NBC) to expedite modular housing development, which Rami identifies as a "game-changing opportunity." Effective implementation will require collaboration across all levels of government in Canada, but if achieved, modernized building codes could reduce construction timelines, lower costs, and accelerate progress toward housing targets.

Broader Infrastructure Investment

In addition to increasing housing supply, Carney’s government aims to invest heavily in public transit expansion and energy-efficient retrofitting. The CIOB views this as a promising direction, as continued investment in transit, schools, and community spaces could yield substantial opportunities for construction workers across various disciplines. However, maintaining a balance is crucial; the accelerated development must not compromise build quality or sustainability. Rami encapsulates this sentiment by stating, “we can be fast, but we have to be smart.”

Collaborative Political Approach

To achieve housing objectives, Rami suggests a collaborative, cross-party approach inspired by practical policy ideas from various political angles. Such collaboration could yield targeted tax incentives and reduced development charges, effectively jumpstarting stalled housing projects. In provinces like Ontario, where housing starts are at historic lows, these measures could prevent a potential severe shortage within the coming years.

Conclusion: A Call for Strategic Action

The construction industry in Canada stands at the precipice of transformative growth, yet achieving policy goals requires practical strategies and sufficient skilled workers. Policymakers must focus on developing achievable programs that bolster the construction sector’s capacity to fulfill ambitious plans. This includes investing in the recruitment and training of workers while also retaining those already in the industry. Rami emphasizes the importance of bringing in talent that can learn from the private sector and enhance medium- and long-term planning.

As Eddie succinctly puts it, “this is a once-in-a-generation opportunity to reshape the built environment in Canada – but it has to start with people, skills, and support.” The CIOB will continue to advocate for these principles on behalf of its members in Canada and the broader global construction community.

For further engagement with the CIOB, interested individuals can reach Sereena Kang at skang@ciob.org. Additionally, industry professionals are invited to send comments and column ideas to editor@dailycommercialnews.com.