Embracing Technology: The Future of the Canadian Construction Industry
Recent research conducted by KPMG in Canada reveals a promising outlook for the nation’s construction firms. Approximately 80% of surveyed construction companies express enthusiasm and support for adopting new technologies, highlighting a significant shift in an industry traditionally slow to innovate. This move is not just a trend; it is a necessary adaptation to the mounting pressures of increased demand and a severe shortage of skilled labor.
Understanding the Current Landscape
The survey, which encompassed 275 construction firms across Canada, presents a compelling picture of an industry on the brink of transformation. Nearly 90% of respondents reported that the shortage of skilled trades is hindering their ability to bid on projects and meet deadlines. However, the consensus is clear: digital technology can bridge the gap, enhancing the effectiveness of their existing workforce and addressing labor shortages in innovative ways.
Tom Rothfischer, partner and national industry leader for building, construction, and real estate at KPMG in Canada, emphasizes the transformative potential of digital tools. He states, “Technology can help the construction industry address Canada’s housing and infrastructure challenges.” By saving time and money, reducing waste, and improving worker safety, digital solutions can facilitate timely and budget-friendly project completions.
The Role of Technology in Construction
The research suggests that various technological advancements could be adapted from the manufacturing sector to bolster productivity in construction. For instance, 3D printing technologies, traditionally used in manufacturing, are now being employed to streamline the construction of complex structures. Similarly, drone-based surveying offers efficient methods for layout planning, quantity measurement, and monitoring progress.
Building Information Modeling (BIM) also stands at the forefront of this technological revolution, enabling teams to collaborate more effectively. The integration of digital twin technologies further enhances this capability, providing real-time insights into project dynamics.
A Catalyst for Change
Historically, Canada’s construction industry has been resistant to rapid digital transformation. However, the COVID-19 pandemic and the escalating labor shortfall have acted as pivotal catalysts, prompting firms to reassess their practices and embrace technology. Rothfischer notes a “definite recalibration” within the sector, as leaders begin to recognize the power of technology to reshape their operations and planning processes.
The Investment in Innovation
Despite many firms still at the nascent stage of their digital journey, there is a clear intention to invest heavily in technological advancements. It’s important to note that merely acquiring technology is not sufficient; the real competitive edge will come from integrating these tools seamlessly into operations, from back-office functions to construction sites.
Addressing Industry Challenges
The survey highlights that 75% of respondents believe Canada’s construction sector lags behind other countries in the adoption of digital technologies, though a significant 85% feel that disruptive technologies could enhance their competitiveness. Mary Van Buren, president of the Canadian Construction Association, reiterates that leading firms are proactively leveraging technology to boost productivity, enhance project management efficiency, improve safety at worksites, and refine decision-making processes.
Furthermore, the efficient allocation of trades remains one of the most pressing challenges in the industry. Jordan Thomson, senior manager of infrastructure advisory at KPMG in Canada, underscores the importance of digital tools in improving on-site efficiency. The application of data analytics, wearable technology, and IoT sensors can drive productivity and optimize scheduling while simultaneously enhancing quality and safety.
Conclusion
The KPMG survey reveals that while Canadian construction firms face significant challenges—including a pervasive shortage of skilled labor—the industry is ready to embrace digital technological solutions. With 90% of companies currently experiencing labor shortages, and nearly all agreeing that enhanced project management tools could alleviate some of these pressures, the path forward is clear. As the industry continues its digital journey, the integration of these innovative tools will not only help firms manage their existing challenges but will also pave the way for a more efficient, productive, and competitive future.
For those interested in a deeper analysis, the full survey can be accessed through KPMG in Canada’s website or by clicking here.
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