every business sector faces challenges to and opportunities for improving productivity. The productivity of construction works is estimated by dividing the total value of construction (GDP) by the total number of working hours (i.e., the time workers spend on their tasks). For years, the Canadian construction industry has faced challenges to improve productivity (to add value and/or save time). A 2014 study published by the Canadian Parliament noted that it has followed the same slow trend since 1961. However, there are opportunities to improve productivity now, and mobile digital solutions can lead to industrial transformation in Canada in 2018
Current Construction Productivity Challenges in Canada
current challenges facing the Canadian construction industry involve human, economic, and distributive factors.
Human Factor: Aging population and lack of diversity
Last year, BuildForce Canada reported that nearly 0.25 million construction workers are expected to retire this decade. Therefore, attracting and retaining the next generation of construction workers is once again emphasized as a top priority. He also said that female and indigenous workers make up only 4% of the country’s skilled construction workforce. At BuildForce Canada’s 2nd National Industrial Strategy Summit held last year, there was also industry-wide consensus on the need to ensure that workplaces and operations are respectful and safe. and flexibility to meet the needs of a diverse and increasingly mobile workforce. The emphasis on the people side of the construction industry, to ensure that all workers are involved, is seen as essential to help “drive” the required productivity gains.
Another challenge is that productivity growth in Canada’s construction sector is highly cyclical and often locked in what we call a “vicious cycle of productivity”. During an industry downturn, companies that invest in capital and innovation are considered vulnerable. During this time, the sector is reluctant to invest in the innovations, new technologies and new processes that have effectively revolutionized other sectors. These range from construction management software and mobile apps to modern construction methods, such as off-site fabrication.
In Canada, productivity can also vary geographically by state or province, depending on the level of construction/infrastructure related to the mining or energy industries (including oil and gas). It can also vary across disciplines and areas within the sector itself, with some being more productive than others. The existence of these geopolitical challenges does not mean that great strides cannot be made in Canada, including by organizations and individuals themselves, to increase productivity at the national level.
3 productivity opportunities in construction in Canada
ScriptandGo examined the latest industry numbers and research to assess three key areas facing the Canadian construction industry in 2018. These opportunities include government policy, support from institutions and associations, and trends in the construction industry.
- Government policy: focus on skills and innovation
Announced in the government of Canada’s 2017 budget, the “Innovation and Skills Plan” is an ambitious effort to position Canada as a world leader in innovation and targets six key areas: including the digital industry. It is a comprehensive plan to equip Canadians with the digital skills and tools of the future.
The same government created and updated the “Digital Canada 150” (DC150) plan in the same year. This five-pillar plan covers Canada’s connectivity, security, economic opportunity, digital government and content issues. The government support provided through these initiatives is and will continue to be a major catalyst for increasing adoption of mobile digital solutions in Canada and increasing productivity there and Some people have called for a Canadian industrial strategy because it is not the modern equivalent of the UK.
- Institutional and organizational support: voice and support
The voices of Canadian professional, academic and industry organizations provide invaluable support to industry and can only be strengthened through inter-organizational dialogue. In addition to Canada’s many academic universities and colleges, Canada’s construction and related technology industry is served by many professional institutions and other organizations. These bodies include the Canadian Institute of Quantity Surveyors (RIQS), Royal Architectural Institute of Canada (RAIC), Construction Institute of Canada (CIC), Canadian Design-Build Institute (CDB), Canadian Construction Association, Canadian Home Builders Association (CHBA ), BuildForce Canada, Canadian Building Trades Unions (CBTU), Progressive Contractors Association of Canada (PCA), Canadian Modular Housing Institute (CMHI), ), General Presidents Maintenance Committee of Canada (GPMCC), National Maintenance Council of Canada (NMC) and many many more changes. In 2017, as part of its Construction Productivity Initiative, Buildforce Canada produced the report, “Construction Productivity – Where Are We Now and Where Do We Need to Go?” raise awareness of productivity developments in the Canadian construction industry and initiate a national conversation.
Written reports and publications, events and training opportunities organized by these and academic bodies, as well as large national industry events such as Construct Canada and Batitech, provide useful platforms for sharing. This is crucial to increase industrial productivity at the national level. Canada’s schools, colleges and universities have an important role to play in showing young people the benefits of working in the construction industry, working more closely with them and providing them with more opportunities for hands-on and increasingly digital experiences. More structured training initiatives would encourage construction enthusiasts and give young people the necessary opportunity to learn both digital and manual construction skills.
- Trends in the construction sector
Due to population growth and urbanization
Population growth and urbanization, along with improvements in domestic manufacturing, will be the main drivers of productivity growth in Canada. Industrial, institutional and commercial construction continue to increase, while new housing construction growth is expected to slow this year, after a long period of expansion.
Accommodation
However, housing is expected to remain just under 40% of total industry value in Canada in 2020, as government efforts to improve residential and public infrastructure contribute to growth. There are also reports that the government plans to spend C$7.4 billion on social infrastructure by 2020, through renovations and new housing, including affordable housing.
