Canadian construction: doing more with less

The construction industry in Canada, a critical component of the nation's economy, represents 7.4% of the gross domestic product (GDP) and employs approximately 1.6 million people. Despite its importance, the sector has historically lagged behind other industries in productivity, achieving only a 0.4% annual increase since 1997 until a significant decline occurred in 2023, marking a near 30-year low in labour productivity.

The findings from our third biennial Digital Maturity Survey reflect a pressing need for innovation and efficiency within the industry, especially considering the burgeoning demand for construction across various segments including residential and infrastructure projects. KPMG in Canada in collaboration with the Canadian Construction Association (CCA) surveyed 265 construction companies, encompassing general contractors (63%), engineering firms (15%), subcontractors (12%), suppliers (8%), and institutional owners (3%). The varied respondent profile was designed to provide a holistic view of the industry's digital maturity, ensuring that the findings were reflective of the complexities and challenges faced by different segments within the sector.

The construction industry in Canada stands at a crossroads, where the need for transformation through technology is critical for overcoming productivity challenges and meeting the increasing demands for infrastructure and housing. The survey underscores a spirit of optimism that, with the right investment and commitment to adopting innovative practices, the sector can enhance its efficiency and output to contribute meaningfully to the economy.