In 2022, there were 252 large infrastructure projects under development valued at over 25 million U.S. dollars. In general, the construction industry is an important economic driver for Canada as well as an indicator of the strength of the nation’s economy. Canada is widely recognized as one of the world’s largest markets for commercial, residential and infrastructure development.

The global pandemic slowed down the construction industry’s growth to some extent; however, the sector has jumped back significantly in 2021 due to economic recovery. The industry represents 7.5% of the country’s economic activity and employs nearly 1.4 million Canadians. And the situation will not change in the near future, there is no shortage of big construction projects on the Horizon.

From the public to the private sector, high-value projects continue to break ground at a steady pace. With a variety of construction projects in different sectors such as the 16-km Ontario subway Line; Go Expansion, a project to rehabilitate and renew the railway transit corridor and civil infrastructure; or the refurbishment project at Darlington Nuclear Generating Station to keep performing the 3.512 MW power plant on its peak. It is possible to see that a great part of the highly developed Canadian economy rests on the Vibrant Canadian Construction Industry.

The construction sector is poised for growth near 5% in the coming years, creating spaces for new workers or innovations. According to BuildForce Canada’s national report, Construction and Maintenance: Looking Forward (2021–2030), while most of the sector’s growth is expected to occur by 2025, all industries across the province will have to replace close to 259,100 workers by the end of the decade due to retirements (22% of the current workforce). The same report also forecasted that construction employment is expected to rise by 64,000 workers over the next ten years.

Embracing this situation, the Canadian Construction Association carry out a study together with KPMG to see how construction enterprises are preparing for future demands. Most companies have little interest and incentives to invest in new technologies, leaving the risk management and costs in hands of their contractors. The majority consider the implementation of technologies such as Big Data, additive manufacturing, or robotics in construction as mere experiments, or it will not produce any leverage in the organization. This does not mean in any case that the industry is not adopting other technologies like Cloud or Cyber Security, but the slow promotion of recent innovations in the industry could be given by the traditional existent bureaucracy in the large enterprises, and the low power of decision in middle and upper-middle management.

On the other hand, the size of an organization need not be a limiting factor, either. Small and medium-sized companies can consider partnering with specialized firms to give them access to a broader range of expertise and help drive their transformation. In fact, smaller companies are often in the enviable position of being more nimble than larger ones. There is no doubt that a wave of technological disruption has started to transform construction firms around the world into new ways of operating, and the Canadian market will not be exempt from these trends. 

The moment for innovative SMEs is here. You would not want to miss the chance to have access to one of the largest construction countries in the world. In that case, do not hesitate to contact TRANSFER.LC, your Global Business Consultant.