A new KPMG in Canada report reveals that 90% of Canadian construction leaders agree the industry must urgently adopt advanced technologies to meet increasing demand, improve productivity, and overcome ongoing labour shortages. Encouragingly, 81% of construction companies report that recent technology investments are already making a positive impact.

Tom Rothfischer, KPMG’s National Industry Leader for Building, Construction and Real Estate, underscores the critical role of technology in addressing Canada’s housing supply shortage and enabling large-scale infrastructure projects. However, economic and trade pressures risk stalling these much-needed investments.

Clients play a significant role in driving innovation. According to the report, 78% of industry leaders see procurement processes evolving to support digital adoption, with 43% saying clients are highly influential in their tech investment decisions.

Despite progress, Rodrigue Gilbert, President of the Canadian Construction Association, emphasizes that procurement systems still too often prioritize cost over long-term value, discouraging innovation. He calls for government reforms to foster fair risk-sharing and stimulate confidence in tech adoption.

With the workforce aging and skilled labour in short supply, 73% of respondents anticipate increasing difficulty in meeting demand over the next decade. Currently, 78% report a labour shortage, a slight improvement from 90% in 2023, but still a major concern.

To address these challenges, companies are turning to various technologies:

• Prefabrication and Modular Construction (53% priority): Streamlining project timelines and reducing waste.
• Robotics and Drones (40%): Enhancing productivity and safety.
• AI and AI-driven Software (53%): Improving planning, risk management, and automation.
• Demand-Driven Supply Chains (56%): Leveraging real-time data to manage material supply and costs more effectively.
• Building Information Modelling (BIM): Supporting collaboration and project visualization across stakeholders.

The industry also seeks policy changes, with 84% supporting the elimination of interprovincial trade barriers that currently hinder efficiency.

Jordan Thomson, KPMG’s National Sector Leader, emphasizes that while tech adoption is growing, true transformation requires proper integration and workforce upskilling.

Ultimately, the report positions construction as the backbone of Canada’s nation-building efforts. From housing to clean energy infrastructure, the path forward depends on coordinated action between industry, clients, and government.

Read the full report here

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