Procore survey finds majority of Canadian construction firms are confident about market conditions

June 22, 2023 – Procore Technologies, Inc. released their construction industry benchmark report How We Build Now: Technology and industry trends shaping Canadian construction in 2023. The report examines the general sentiment of the industry, the digital maturity and adoption of construction technologies, as well as the challenges and opportunities that businesses face.

Nine out of 10 of respondents in Canada express confidence (44 per cent very confident) about industry conditions over the next 12 months, with seven out of 10 construction businesses expecting an increase in the number (70 per cent) or value of projects (72 per cent) over the same timeframe. 

A recent poll reveals 92 per cent of Canadians agreed there is an urgent need to build more or update current infrastructure in Canada over the next two years. The How We Build Now  (Canada) report shows 43 per cent of those who work in the residential sector expect to build more housing units in 2023 compared to 2022. Over half of respondents from B.C. (51 per cent) and Alberta (55 per cent) who work in the residential sector expect to build and deliver fewer housing units in 2023 compared to 2022. This is a stark contrast in comparison to Ontario where 60 per cent of respondents expect to build and deliver more housing units in 2023

Labour shortages and supply chain

Respondents consider hiring and retaining skilled labour as one of the top challenges they face over the next 12 months. 29 per cent report they have been unable to take on more projects in the past three to six months due to labour shortage

27 per cent agree it is hard for construction to compete with other industries for good employees. 27 per cent agree there is too much competition in construction for talent. 32 per cent fear that some of their most experienced people will retire within the next few years and take valuable knowledge with them

Supply chain problems are impacting respondents to a different extent across the country. Québec-based respondents report the highest impact, with 41 per cent reporting significant delays due to supply chain issues, compared to 35 per cent of respondents from Ontario and just a quarter of respondents in B.C.

Digital transformation

Construction firms in Canada understand that digital transformation is required to overcome the labour shortage: 22 per cent of construction businesses consider themselves a digital-first business and 51 per cent are ‘well on the way’ to adopting digital formats and workflows.

Construction decision makers recognize that technology provides benefits, particularly around resource efficiency through less rework, an enemy of sustainability. The survey shows 27 per cent of the total time spent on a project is spent on rework or rectifying issues.

Almost half of all projects go over budget (50 per cent) and over schedule (49 per cent) according to respondents. Over 30 per cent of respondents identify needing new technology to improve operational efficiency and cost controls amid economic volatility. Paper remains a common medium for Canadian construction decision makers. About a quarter of respondents (23 to 28 per cent, depending on the workflow) still use paper-based records or non-digital processes as part of their workflows .

Data as a competitive difference

According to the report, the industry realizes the value of data yet they are not able to leverage it to the fullest. Forty-one per cent of respondents feel that they would be able to make better decisions if they had better access to real time and historic information on project performance. 

Respondents believe they could save up to 12 per cent of their total spending on projects if they captured, integrated and standardized data more efficiently. They reported spending 17 per cent of their time on a typical project searching for data or information. Half say they have a foundation in place to begin learning from their data but don’t necessarily have a dedicated data team in place. One in five say much of their data exists in spreadsheets or on paper and they do not leverage data to drive business outcomes.

Construction technology

Respondents rate construction management platforms, clean technologies involving green, sustainable or innovative materials, and next generation BIM as the top technologies that will drive change in the construction industry over the next three years.

Over half of respondents (56 per cent) are either currently using (29 per cent) or plan to adopt a construction management platform (27 per cent) over the next 12 months. More than six out of 10 (62 per cent) of Canadian organizations are either currently using (26 per cent) or plan to adopt (36 per cent) clean technologies over the next 12 months.

Sustainability

Overall, the industry is keen to adopt more environmentally conscious and sustainable building practices. Approximately half of the respondents (50 per cent) have started to focus on strategies like prefabrication and improved material selection to reduce the carbon footprint of their projects. Four in 10 are either currently tracking or plan to start tracking (within the next 12 months) carbon emissions on their construction projects.

Workplace diversity and inclusion 

Currently, women make up a minority of the construction workforce, particularly in executive (24%). Subcontractors have the lowest ratio when it comes to having female members on staff. Only 22 per cent of executive staff at trade contractors are female compared with around 25 per cent at owners and general contractors. 

Almost four in 10 (38 per cent) of construction decision makers believe that there is a need to improve diversity and inclusion in construction workplaces to attract women, minorities and historically underrepresented groups. Only 41 per cent of respondents have a diversity and inclusion policy in place with another 45 per cent planning to implement one in the next 12 months 

Many organizations recognize the need to improve the well-being of their workforce (see Procore’s Get Construction Talking campaign). Four in 10 (41 per cent) report having a wellness and mental health practice or policy in place to reduce the likelihood of burnout; 46 per cent plan to implement a process in the next 12 months.      

Despite some fundamental labour challenges, respondents are optimistic about the future. Approximately eight in 10 are confident they will have enough people to meet their organizational needs (79 per cent) and the necessary skills to meet demand (80 per cent) over the next 12 months.   

Procore partnered with Censuswide to survey 502 construction industry stakeholders in Canada across owners, general contractors and subcontractors. Find the whole report here: http://www.procore.com/en-ca/ebooks/how-we-build-now-report-can 

Learn more about Get Construction Talking here.