In the face of mounting pressure to accelerate construction timelines and bolster productivity, Canadian construction leaders are sounding a clear call to action: embrace digital transformation or risk being left behind. The latest Digital Maturity Survey from KPMG in Canada, conducted in collaboration with the Canadian Construction Association (CCA), reveals a sector on the cusp of change, with nine in 10 leaders acknowledging the urgent need for advanced technologies to boost productivity and meet growing demands.
The survey, which polled 265 construction companies across Canada, paints a vivid picture of an industry grappling with chronic labour shortages, supply chain disruptions, and the ever-present need to build more, faster. Tom Rothfischer, KPMG’s national industry leader for building, construction, and real estate, underscores the critical role of technology in addressing these challenges. “It is good to see that the sector is investing in the technologies that are desperately needed to address persistently poor productivity levels,” he stated. “These investments are about to pay dividends and transform how we build in Canada.”
The findings highlight a sector under immense pressure. Nearly three-quarters of construction leaders anticipate that meeting demand will become increasingly difficult over the next decade, as an aging workforce and retirements exacerbate the labour crunch. This pressure is compounded by the need to navigate a complex regulatory landscape, with interprovincial trade barriers further hampering productivity. As Jordan Thomson, KPMG’s national sector leader for building and construction, notes, “The challenges of working under 14 different sets of provincial rules and regulations is a further and unneeded drag on productivity that needs to be addressed if we expect the industry to be able to handle the growing volume of projects in the pipeline.”
The report also underscores the pivotal role that procurement processes play in driving innovation. Nearly eight in 10 respondents indicate that procurement is evolving to encourage digital adoption, with a significant portion attributing their technology decisions to client influence. However, CCA president Rodrigue Gilbert cautions that the current system often prioritizes lowest price over long-term value, stifling innovation. “If we want a modern, productive construction sector, governments must reform procurement to foster collaboration, ensure fair risk-sharing, and create the confidence companies need to invest and grow,” he said.
The industry’s response to these challenges is multifaceted, with a wide range of technologies being deployed to enhance productivity. Building Information Modelling (BIM), robotics, automation, and prefabrication are among the key areas of investment. More than half of the respondents are prioritizing demand-driven supply chain innovation, AI, and AI-driven software. These technologies promise to revolutionize project planning, execution, and collaboration, driving real-time visibility and efficiency.
Yet, the path to digital maturity is fraught with obstacles. The industry must not only invest in technology but also in upskilling its workforce to effectively utilize these tools. As Thomson advises, “Making a commitment to invest in technology is the first step. Delivering returns requires careful integration and only works if you also invest in up-skilling your people to use it effectively.”
The survey’s findings are a clarion call for the construction industry to accelerate its digital transformation. As the sector grapples with labour shortages, regulatory hurdles, and the urgent need to build more sustainably, the adoption of advanced technologies is no longer a choice but a necessity. The future of construction in Canada hinges on its ability to embrace innovation, streamline processes, and foster a culture of continuous learning and adaptation. The time for action is now.