Construction Turns a Corner: Canada Builds Smarter, Not Just Faster
Faced with soaring housing demands, aging workers, and complex infrastructure needs, Canada’s construction industry is entering a new era of digital transformation. According to a new KPMG in Canada report, a remarkable nine in 10 construction leaders believe that investing in technology is essential to boost productivity and meet the country’s growing demands.
For years, productivity in the sector lagged behind. Now, with the urgency to build more—and faster—companies are finally committing to tech-powered solutions. “These investments are about to pay dividends,” says Tom Rothfischer, Partner and National Industry Leader at KPMG in Canada. “But tight economic conditions and trade challenges could threaten this momentum.”
Digital Tools Take Center Stage
Technology is no longer optional. From artificial intelligence and automation to modular construction and real-time data analytics, companies are deploying tools that enhance efficiency, reduce waste, and accelerate timelines.
More than 81% of firms report measurable improvements in productivity due to recent tech investments. And 56% are prioritizing the shift to a demand-driven supply chain, using digital platforms to sync material availability with actual site needs. Prefabrication and AI-driven software have also become top strategic priorities, each selected by over half of industry leaders.
Clients and Procurement Are Driving Change
According to the report, clients play a crucial role in encouraging technology adoption. Nearly 43% of leaders said clients were highly influential in shaping digital decisions. In fact, 78% believe procurement processes are finally evolving to support innovation.
Still, change isn’t happening fast enough. “Too often, procurement still rewards the lowest bid instead of long-term value,” says Rodrigue Gilbert, President of the Canadian Construction Association. “If we want a modern, high-performing sector, governments must rethink procurement, foster collaboration, and ensure companies feel confident investing in innovation.”
Labour Challenges Fuel the Need for Automation
Labour remains a persistent challenge. 78% of construction companies are experiencing skilled worker shortages—though that’s down slightly from 90% last year. As Canada’s workforce continues to age, nearly three-quarters of executives expect growing difficulty meeting project demands over the next decade.
Automation, AI, and robotics—like drone surveying and robotic bricklaying—are already helping fill the gap. But technology alone won’t fix the issue. “You also have to upskill your workforce,” notes Jordan Thomson, Director at KPMG’s Global Infrastructure Advisory. “Integration only works when people are trained to use these tools effectively.”
Breaking Barriers, Building Faster
Interprovincial trade barriers remain a major hurdle. With 14 sets of provincial regulations, many firms say productivity suffers. A strong 84% of respondents support the removal of these barriers to help unlock speed and scale across projects.
The pressure is real: delays, shortages, and rising costs mean every hour counts. But with smart investment and policy coordination, the industry believes it can meet the moment. “From clean energy to housing, nothing gets built without us,” says Gilbert. “The government must act—cut red tape, modernize procurement, and partner with us to deliver.”
The Tech Priorities Leading the Way
Here’s what’s topping construction firms’ digital investment lists:
- 56%: Demand-driven supply chain tech
- 53%: AI and AI-based software
- 53%: Modular and prefabrication construction
- 40%: Robotics, drones, and exoskeletons
- Institutional owners: Prioritizing AI
- Contractors: Focusing on cybersecurity
- Engineering firms and suppliers: Deploying intelligent automation
The momentum is building. “We’re in a better place than two years ago,” Thomson adds. “Now it’s about turning strategy into performance.”
Stay tuned to Maple Wire for the latest on how innovation is transforming Canada’s core industries.
