Russell Hixson is an award-winning investigative journalist who spent the early parts of his career doing crime and courts reporting in the U.S. before stumbling into covering Canada’s construction sector. He spent eight years writing for the Journal of Commerce where he became well versed on the industry and its issues. He’s covered the federal budget from Ottawa and documented the early impacts of the COVID-19 pandemic while locked down in his bedroom.
Hixson has developed a passion for the construction industry and seeks to convert others by sharing its stories through SiteNews. When he’s not writing stories, the East Vancouver resident enjoys kayaking, skateboarding and avoiding the neighbourhood skunks.
SoftBank, OpenAI, Oracle, and MGX are launching The Stargate Project, a $500 billion initiative over four years to build advanced AI infrastructure in the U.S., with $100 billion being deployed immediately.
The project aims to secure U.S. leadership in AI, support re-industrialization, create hundreds of thousands of jobs, and enhance national security, while promising significant global economic benefits.
The initiative involves major technology players like Arm, Microsoft, NVIDIA, Oracle, and OpenAI. It leverages existing collaborations—such as OpenAI’s partnerships with NVIDIA and Microsoft—and plans to use Azure for advancing AI model development and deployment.
The Whole Story:
SoftBank, OpenAI, Oracle, and MGX have announced plans to partner on The Stargate Project, a new company which intends to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the United States.
The group says it will begin deploying $100 billion immediately. They stated that the infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world. They added that the project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies.
Arm, Microsoft, NVIDIA, Oracle, and OpenAI are the key initial technology partners. The buildout is currently underway, starting in Texas, and Stargate is evaluating potential sites across the country for more campuses as definitive agreements are finalized.
As part of Stargate, Oracle, NVIDIA, and OpenAI will closely collaborate to build and operate this computing system. This builds on a deep collaboration between OpenAI and NVIDIA going back to 2016 and a newer partnership between OpenAI and Oracle.
This also builds on the existing OpenAI partnership with Microsoft. OpenAI will continue to increase its consumption of Azure as OpenAI continues its work with Microsoft with this additional compute to train leading models and deliver great products and services.
“All of us look forward to continuing to build and develop AI—and in particular AGI—for the benefit of all of humanity,” said the group. “We believe that this new step is critical on the path, and will enable creative people to figure out how to use AI to elevate humanity.”
Key Takeaways:
Tom Sparrow, with over 35 years of experience in construction and infrastructure management, is recommended as Winnipeg’s first Chief Construction Officer (CCO). He has led high-profile projects across Canada, including hospitals, schools, and data centers, with values exceeding $1 billion.
The CCO position aims to enhance infrastructure governance, improve project management, and increase competition for city projects. Sparrow’s first task, pending City Council approval, will be overseeing governance improvements for the North End Water Pollution Control Centre, a multi-billion-dollar initiative.
The unanimous recommendation by a search committee of councillors and city officials highlights confidence in Sparrow’s qualifications. Mayor Scott Gillingham emphasizes the importance of the CCO role in addressing cost control and strategic project management challenges for the city.
The Whole Story:
Winnipeg Mayor Scott Gillingham’s campaign pledge to create a Chief Construction Officer (CCO) to provide expert guidance on infrastructure and construction policy is moving closer to reality. This month, a City Council search committee unanimously recommended Tom Sparrow for the position.
Sparrow brings more than 35 years of experience in construction and infrastructure management across both the public and private sectors to the role. He has led major projects including hospitals, schools, airports, and data centres across B.C. and Yukon, with project values ranging from tens of millions to over a billion dollars.
A seasoned public service leader, Sparrow previously served as a Director with Public Works and Government Services Canada and advised the Office of the Auditor-General of Canada on infrastructure issues from 2015 to 2018. He is a certified Professional Project Manager and holds a Master of Science from the University of Victoria and an MBA in IT Management from Athabasca University.
Councillor Brian Mayes, chair of the search committee, expressed confidence in Sparrow’s capabilities, stating, “Mr. Sparrow is more than qualified to help City Council and City Hall navigate complex strategic infrastructure challenges – including the effort to get more bidders and more competition for City projects, for example.”
Mayor Gillingham emphasized the urgency of the role, noting, “Just this month, auditors have said we need to improve project management to control costs on major initiatives like the North End Water Pollution Control Centre. If City Council approves this appointment, improving governance for this multi-billion dollar project will be the first file on Mr. Sparrow’s desk.”
The search committee consisted of three City Councillors – Brian Mayes (St. Vital), Jason Schreyer (Elmwood-East Kildonan), and Shawn Dobson (St. James), alongside senior representatives from the City Public Service and the Mayor’s Office. Their recommendation will go to City Council for final approval at the January 30, 2025 meeting. Pending approval, Sparrow is expected to begin his role no later than April 1, 2025.
Sparrow’s recent leadership roles include: • Chief Project Officer, Cowichan Secondary School Replacement ($87M) • Project Advisor, Victoria High School Redevelopment ($100M) & Cedar Hill Middle School ($46M) & Langley School District Smith Campus Project (Middle School & Secondary School) ($312M) • VP, Project Delivery, Iris Energy – Led the design & construction of two institutional data centers (50MW & 80MW) • Chief Project Officer, North Island Hospitals Project ($606M) & Royal Columbian Hospital ($1.4B) & Fort St. John Hospital and Complex Care Project ($302M)
BBA, based in Mont-Saint-Hilaire, Quebec, has acquired Calgary-based Kilo Power, a consulting engineering firm specializing in utility-scale solar energy projects across North America and New Zealand. Kilo Power provides comprehensive services for photovoltaic (PV) generation, grid interconnections, and high- and medium-voltage AC systems. The acquisition aims to bolster BBA’s renewable energy footprint, particularly in Alberta, and enhance its capabilities in solar PV and battery energy storage solutions.
CPP Investments and Bridge Industrial have committed over $1.13 billion to establish a portfolio of industrial properties in core U.S. markets, with CPP owning 95% and Bridge managing the portfolio. The joint venture will focus on acquisitions and potential new developments to meet growing demand for logistics properties supporting faster shipping times in a market with limited warehouse construction space. This marks the second collaboration between the firms, following a 2021 venture investing $1.4 billion in developments in Miami and Los Angeles.
Rendering of the proposed Ksi Lisims floating LNG project.
Western LNG has secured over $150 million in a private equity placement, led by Blackstone Energy Transition Partners, to advance its Ksi Lisims LNG and Prince Rupert Gas Transmission (PRGT) projects through to a Final Investment Decision (FID) expected in 2025. With cumulative investments now exceeding $265 million, the funding supports environmental permitting, engineering, and engagement with Indigenous and local stakeholders, including the Nisga’a Nation.
United Rentals announced its $4.8 billion acquisition of H&E Equipment Services to expand its presence in the U.S. equipment rental market, driven by strong demand from construction firms amid increased infrastructure spending and reshoring trends. The deal offers H&E shareholders $92 per share, a 109.4% premium, and includes a 35-day “go-shop” period for alternative bids. The merger will add nearly 64,000 units to United Rentals’ fleet and is expected to achieve $130 million in annual cost synergies within two years.
Forest products producer Marwood Ltd. has announced that it has agreed to purchase all of the assets of Fraser Specialty Products Ltd., operating as Fraser Wood Siding. Fredericton, N.B.-based Marwood said in a release that the acquisition will add a ninth manufacturing site to its network. Fraser, headquartered in Edmundston, N.B., manufactures and paints solid wood siding, trims, and shingles.
EllisDon Corporation has partnered with Palantir Technologies to deploy advanced AI and data analytics tools, enhancing its operational capabilities and driving growth in the construction technology sector. This collaboration, which began in summer 2024, leverages EllisDon’s modernized data infrastructure—developed over a decade—to optimize operations and improve efficiency.
GFL Environmental Inc. has agreed to sell its Environmental Services business to Apollo and BC Partners for $8 billion, while retaining a 44% equity stake. The transaction will provide GFL with approximately $6.2 billion in net cash proceeds, enabling it to reduce debt by up to $3.75 billion, allocate up to $2.25 billion for share repurchases, and use the remainder for transaction costs and general corporate purposes.
The sale of our Environmental Services business at an enterprise value of $8 billion is substantially above our initial expectations and is a testament to the quality of the business that we have built. The transaction will allow us to materially delever our balance sheet which will accelerate our path to an investment grade credit rating.
Patrick Dovigi, Founder and Chief Executive Officer of GFL
The First Nations Major Projects Coalition has announced the launch of ‘Nations Forward: First Nations in Major Projects’, a brand-new magazine produced in partnership with MediaEdge Communications. Nations Forward will become the official voice of the FNMPC, delivering knowledge and resources to help advance fully informed decision-making regarding First Nations participation in major projects.
UK-based renewable energy company Low Carbon has signed a 10-year Power Purchase Agreement (PPA) with Quebec-based carbon removal developer Deep Sky to supply 10 GWh of renewable energy annually from its Lethbridge 1 solar project in Canada. This clean energy will power 100% of operations at Deep Sky’s Alberta facility, Deep Sky Alpha. The agreement underscores Low Carbon’s role as a leading independent power producer and aligns with the growing trend of organizations securing renewable energy contracts to meet climate goals. Both companies highlighted the importance of this partnership in supporting decarbonization and innovative carbon removal initiatives.
YRH Inc. and Pinargon Ltd., two Canadian consulting engineering firms specializing in telecommunications infrastructure and wireless communications, announced their merger, effective February 1, 2025, forming a unified entity under the YRH Inc. name. Combining decades of expertise, the merger will enhance their capabilities in wireless communications, telecom structures, fibre optics, and intelligent transportation systems (ITS), enabling them to offer more integrated and innovative services.
China’s Sinopec is in discussions with Pembina Pipeline for a potential liquefied natural gas (LNG) offtake agreement and an equity stake in the Cedar LNG project, a proposed $4 billion LNG export terminal in Canada. The project, a joint venture with the Haisla First Nation, would produce 3 million metric tons of LNG annually, with completion expected by 2028, pending a final investment decision in mid-2024.
A rendering shows the Cedar LNG project in B.C.
Key Takeaways:
Overall, Canada’s construction investment decreased by 0.5% in November 2024, but the non-residential sector reached a record high, offsetting the decline in residential investment.
Ontario’s multi-unit dwelling investments drove the residential sector’s decline, contributing significantly to the $168.1 million drop in overall residential construction.
Quebec experienced growth in residential building investments, while Ontario’s performance in both residential and commercial sectors played a major role in shaping national trends.
The Whole Story:
Canada’s construction investment showed signs of fluctuation in November 2024, with mixed results across various sectors. While some areas of the industry saw growth, others experienced setbacks, reflecting broader trends in the market. The latest report from Statistics Canada reveals key shifts in both residential and non-residential construction, highlighting regional variations and emerging patterns in investment.
Overall, investment in building construction edged down 0.5% (-$96.6 million) to $21.4 billion in November, following a 1.1% decrease in October. Year over year, investment in building construction grew 2.7% in November.
The monthly decline in investment in building construction in November was driven by the residential sector (-$168.1 million to $14.8 billion) but was partially offset by a gain in the non-residential sector (+$71.5 million to $6.6 billion).
On a constant dollar basis (2017=100), investment in building construction decreased 0.5% compared with the previous month to $12.8 billion in November, but it was up 0.1% year over year.
Ontario’s multi-unit component drags down residential
Investment in residential building construction declined 1.1% (-$168.1 million) to $14.8 billion in November, with decreases occurring in four provinces and three territories, led by Ontario (-$227.8 million). Quebec (+$84.1 million) led the gains recorded in the remaining provinces in November.
Investment in multi-unit dwelling construction was down 4.8% (-$374.4 million) to $7.5 billion in November, largely attributable to Ontario (-$317.9 million). Declines were also recorded in five other provinces and two territories.
Single family home construction investment rose 2.9% (+$206.4 million) to $7.3 billion in November. Monthly increases were observed in eight provinces, with Ontario (+$90.0 million) leading the national gains.
Investment in residential building construction, November 2024.
Non-residential construction investment reaches record high
Investment in non-residential building construction increased 1.1% (+$71.5 million) to a record-high $6.6 billion in November. This marked the fourth consecutive monthly increase.
The industrial component increased 2.2% (+$30.7 million) to $1.4 billion in November.
Commercial construction investment edged up 0.4% (+$12.8 million) to $3.3 billion in November. The gain in Ontario (+$25.0 million) offset decreases in Alberta (-$4.4 million) and British Columbia (-$9.5 million).
In November, institutional construction investment rose 1.5% (+$27.9 million) to $1.9 billion, with six provinces and the three territories recording increases. Quebec (-$1.7 million) led the decline in the remaining provinces.
B.C.
Vancouver heritage building demolished due to collapse risk
On Nov. 25, 2024, president-elect Trump proposed tariffs of 25% on all Canadian and Mexican imports to the United States, and an additional 10% on imports from China.
Premier David Eby has met with several state governors and impressed upon them the devastating impacts tariffs would bring on both sides of the border. He and other premiers will travel to Washington, D.C., on Feb. 12 to continue to make the case against unjustified tariffs for all Canadians.
The ministry’s preliminary assessment is based on internal planning assumptions, including that a 25% U.S. tariff would remain in place for the duration of the Trump presidency and that Canada retaliates as well as key economic indicators and inputs, including economic activity, trade, the labour market and demographics.
The Whole Story:
How much are 25% tariffs on all Canadian imports going to cost British Columbians?
The province has done a preliminary assessment of potential impacts to the B.C. economy.
In president-elect Donald Trump’s tariffs scenario, B.C. could see a cumulative loss of $69 billion in economic activity between 2025 and 2028. The province’s real GDP is projected to potentially decline by 0.6% year over year in both 2025 and 2026.
Job losses are estimated at 124,000 by 2028 with the largest declines in natural-resource sector export industries and associated manufacturing. Losses would also be felt in the transportation and retail sectors. The unemployment rate could increase to 6.7% in 2025 and 7.1% in 2026, and corporate profits could see an annual decline in the range of $3.6 billion to $6.1 billion.
Tariffs imposed by the United States, along with potential retaliatory measures, could impact many of the p rovince’s key revenue streams, such as personal and corporate income taxes. Preliminary analysis indicates this could reduce annual revenues by between $1.6 billion and $2.5 billion.
Officials noted that the preliminary assessment, done by the Ministry of Finance, is one of many possibilities as there is considerable uncertainty about the exact nature, magnitude and timing of United States policies that may be implemented.
In 2019, the Bank of Canada estimated the impacts of a 25% tariff. National Bank recently reported that the Bank of Canada’s estimate of the Canadian GDP impact “would exceed that of any previous recession, barring the temporary setback at the onset of the COVID-19 pandemic.”
To prepare, the province plans to use a three-part strategy: respond, strengthen and diversify.
To respond to these tariffs, B.C. is engaged in contingency planning across government and will participate in nationally co-ordinated retaliation if and when required. B.C. aims to strengthen its domestic position by growing the economy to create high-paying jobs to generate the wealth needed to support people through strong public services, such as health care and education. This includes fast-tracking permitting in B.C. and reducing trade barriers between provinces. Lastly, B.C. will focus on diversifying its trade relationships, using the Asia-Pacific network to become less reliant on exports to the United States.
Key Takeaways:
Alberta set historic records for housing starts in 2024, with 46,632 new homes under construction, marking a 32% increase from 2023. This growth was driven by targeted government policies, making Alberta the national leader in housing starts per capita.
The increase in housing supply contributed to a decline in rental prices, with Calgary experiencing a 7.2% drop, the largest in Canada. Smaller communities like Lloydminster and Fort McMurray also ranked among the most affordable rental markets nationwide.
Alberta’s government facilitated this boom by cutting red tape, launching initiatives like the “Stop Housing Delays” portal, and investing $216 million in affordable housing. Collaborative efforts with industry stakeholders further streamlined the construction process to meet growing demand.
The Whole Story:
Alberta is building homes faster than ever, with the province setting historic records for housing construction.
Year-end data from the Canada Mortgage and Housing Corporation (CMHC) shows that last year was a record-breaking one for homebuilding in the province. Alberta led the country in housing starts per capita in 2024, with the province seeing a historic jump in the number of new homes under construction.
“Alberta had a remarkable year for housing, which goes to show that our plan to build more homes faster is working,” Jason Nixon, Minister of Seniors, Community and Social Services. “I am looking forward to building on the successes of this past year as we look forward to 2025.”
Officials noted that they believe it is helping improve affordability. According to the latest National Rent Report from Rentals.ca and Urbanation, Alberta was the province that experienced the largest year-over-year decline in asking rents in 2024. Calgary saw the biggest drop in rental prices in the entire country, with Calgary’s apartment rents decreasing by 7.2%. Outside of the larger cities, Alberta communities made up six out of the top ten most affordable small- and mid-size rental markets in Canada, including Lloydminster and Fort McMurray.
Alberta says it continues to support builders and encourage new residential housing construction by cutting red tape, incentivizing housing construction and supporting innovative strategies that speed up the home building process.
Over the past year, some of the province’s work on this has included launching the Stop Housing Delays online portal, making provincial land available for housing, exempting designated affordable housing from property taxes, supporting home ownership through alternative financing options and taking action to ensure Alberta receives federal funding for housing.
Looking ahead, Alberta’s government says it will continue to empower its housing partners.
“2024 was a milestone year for residential construction, highlighted by record-breaking housing starts, including a significant increase in rental housing,” said Scott Fash chief executive officer, BILD Alberta Association. “This achievement demonstrates industry’s responsiveness to growing demand and the Government of Alberta’s dedication to working collaboratively with industry and stakeholders to reduce barriers and advance housing development. With continued collaboration and thoughtful policies to cut red tape, our industry is well-positioned to meet the evolving needs of Albertans and deliver more attainable housing options.”
Alberta is getting shovels in the ground faster and building the homes Albertans need. Year-end data from the Canada Mortgage and Housing Corporation (CMHC) reinforces that Alberta continues to show strong success in increasing the supply of homes, which helps stabilize housing costs and improves the housing outlook for Albertans across the province.
As the population continues to grow, Alberta’s government recognizes the need for more housing options. That’s why the province has been clearing the way for more homes to be built faster to help Albertans find housing that meets their needs and budgets – and it’s working. Last year was a record-breaking one for homebuilding in the province. Alberta led the country in housing starts per capita in 2024, with the province seeing a historic jump in the number of new homes under construction.
“Alberta had a remarkable year for housing, which goes to show that our plan to build more homes faster is working. I am looking forward to building on the successes of this past year as we look forward to 2025.”
Jason Nixon, Minister of Seniors, Community and Social Services This homebuilding boom positively affects not only homebuyers, but renters as well. According to the latest National Rent Report from Rentals.ca and Urbanation, Alberta was the province that experienced the largest year-over-year decline in asking rents in 2024. Calgary saw the biggest drop in rental prices in the entire country, with Calgary’s apartment rents decreasing by 7.2 per cent. Outside of the larger cities, Alberta communities made up six out of the top ten most affordable small- and mid-size rental markets in Canada, including Lloydminster and Fort McMurray.
Alberta’s government says it supports builders and encourages new residential housing construction by cutting red tape, incentivizing housing construction and supporting innovative strategies that speed up the home building process. Over the past year, some of the province’s work on this has included launching the Stop Housing Delays online portal, making provincial land available for housing, exempting designated affordable housing from property taxes, supporting home ownership through alternative financing options and taking action to ensure Alberta receives its fair share of federal funding for housing and that the funding meets provincial priorities.
Looking ahead, Alberta’s government will continue to empower its housing partners to make sure the province continues to go from permits issued to shovels in the ground and finally to new homes ready for Albertans.
“2024 was a milestone year for residential construction, highlighted by record-breaking housing starts, including a significant increase in rental housing,” said Scott Fash chief executive officer, BILD Alberta Association. “This achievement demonstrates industry’s responsiveness to growing demand and the Government of Alberta’s dedication to working collaboratively with industry and stakeholders to reduce barriers and advance housing development. With continued collaboration and thoughtful policies to cut red tape, our industry is well-positioned to meet the evolving needs of Albertans and deliver more attainable housing options.”
By the numbers:
In 2024, Alberta saw 46,632 new homes under construction, breaking historic records. It led the country in housing starts per capita for 2024. The first half of 2024 saw 9,903 apartment unit starts – the highest in any half-year in Alberta’s history, breaking the record set in 1977.
Housing starts for 2024 compared with 2023 saw a 32% increase provincewide. In Edmonton starts went up 39%. In Calgary they went up 24%.
According to a recent report by Rentals.ca, Alberta experienced the largest year-over-year decline in asking rents in 2024. Calgary saw the biggest drop in rental prices in the entire country, with Calgary’s apartment rents decreasing by 7.2 per cent. Alberta communities made up six out of Canada’s top ten most affordable small- and mid-size rental markets.
In 2024, the province’s investments in affordable housing included funding increases for housing providers to fight inflation, and a $21 million increase to meet the evolving needs of housing operators. $216 million went toward the Affordable Housing Partnership Program to support the build of new affordable housing units.
Are you looking to learn from Canada’s top construction companies?
This February, we are hosting some of the most progressive businesses in the country at our SiteHQ to toast the latest winners of our 25 Innovators in Construction competition. It will be a night of drinks, food, networking, learning opportunties, hands-on tech demos and more.
Go to 25innovators.com right now and use the code INNOVATOR2025 to get 25% off tickets. Check out what we have in store for attendees:
Hear from expert panels
The evening’s festivities will feature two panels stacked with winners from our winning companies.
The first, Small Giants: Subtrades disrupting the industry, will explore how subtrades are leading the way when it comes to modernizing construction work and cultivating a skilled workforce. It will feature Fettback and Heesterman Principal Andrew Fettback, NuFrame CEO and Founder Lorne Derksen, and Maxan Interiors’ Vice President of Construction Doug Villeneuve.
The second, Big Ideas: Implementing Enterprise-Level Innovation, will have Kinetic Chief Operating Officer Mike Walz, Fast + Epp Partner Tobias Fast and RCJ Engineers Associate Mohammad Fakoor. They will explore ways larger operations implement and maintain innovation across their teams.
Test drive technology
A digital, immersive road building experience will be parked in the middle of the venue. The BC Road Builders & Heavy Construction Association’s RoadShow trailer features simulators and virtual reality technology that is being used to introduce British Columbians across the province to heavy equipment careers. It allows for realistic and safe training environments on five different simulators that replicate different models of heavy equipment and attachments.
The venue
We couldn’t think of a better place to host than SiteHQ—our new, 10,000-square-foot office and Canada’s first specialized industrial studio. In addition to SiteNews, SiteHQ is home to the Site group of companies, including SitePartners, SiteTechnology and SiteTalent.
This unique space is changing the game for industrial clients who want to tell compelling stories. Featuring a 36’ wide, corner-to-corner infinity wall with a full lighting grid rigged above, SiteStudio gives our friends at SitePartners complete control over lighting and sound.
About the competition
Now in its second year, the 25 Innovators in Construction award has become a coveted SiteNews honor, recognizing the industry’s most forward-thinking companies. This prestigious award celebrates organizations that are pushing the boundaries of construction through risk-taking and innovation.
This year’s winners exemplify groundbreaking advancements that are transforming the industry. From CarbonCure Technologies’ carbon-saving concrete innovations to Pomerleau’s integration of robotics on job sites, these organizations showcase a commitment to sustainability, technology, and efficiency.
Here are the event details at a glance:
Where: Site HQ – 2393 W Railway St, Abbotsford, B.C.
When: 6:00 p.m., February 6, 2025
What: High tech demos, expert panels, elite networking opportunities
To join us, visit 25innovators.com and use the code INNOVATOR2025 to get 25% off tickets.
Key Takeaways:
The first half of the new five-lane Steveston Interchange is now complete, with westbound traffic beginning to use the new structure on January 16, 2025. Eastbound traffic will follow once road tie-ins are finalized.
When completed, the new interchange will improve traffic flow with three westbound and two eastbound lanes, enhance regional transit access, and provide safer pedestrian and cycling infrastructure, including sidewalks and separated bike lanes.
The full Steveston Interchange is scheduled for completion in fall 2025. In the interim, the removal of the old crossing and subsequent construction phases will involve lane closures and diversions, potentially causing delays for drivers. The project is part of the larger Highway 99 Tunnel Program.
The Whole Story:
Construction of the new five-lane Steveston Interchange has hit a major milestone with the first half of the new crossing now complete.
Westbound drivers on Steveston Highway will begin using the new structure the morning of Thursday, Jan. 16, 2025.
“This is a major step in a project that will improve how people get around in our communities,” said Kelly Greene, MLA for Richmond-Steveston, on behalf of Mike Farnworth, Minister of Transportation and Transit. “When completed, the new five-lane Steveston Interchange will improve connections between Highway 99 and Steveston Highway to reduce queuing for vehicles in all directions, while improving regional transit and cycling connections. Whether you’re taking your kids to hockey practice at Richmond Ice Centre or supporting local businesses, the new interchange will help get you there faster.”
The traffic changeover will begin with westbound Steveston Highway traffic routed to the new structure overnight tonight, Wednesday, Jan. 15. Once all road tie-ins have been completed, eastbound Steveston Highway traffic will be moved to the new structure and removal of the old crossing will begin.
The removal of the old Steveston Highway crossing will take three weekends to complete and will require lane diversions on Highway 99 and periodic lane closures on Steveston Highway to allow for safe removal of the structure. During this work, drivers can expect delays and should plan alternative routes. Details of these closures will be communicated as dates are confirmed.
Once the old crossing is removed, work will begin on the second half of the new interchange. The new Steveston Interchange will have three westbound and two eastbound lanes to improve traffic flow. It will also provide better access to transit stops and safer pedestrian and cycling connections across Highway 99, with sidewalks and separated bike lanes on both sides of the overpass. The new interchange is scheduled to be finishedin fall 2025.
The Steveston Interchange Project is a key part of the Highway 99 Tunnel Program and is being delivered in advance of the new tunnel project.
From transforming self-storage facilities into cutting-edge, multi-story solutions to navigating the complexities of the COVID-19 pandemic, Prism Construction’s journey reflects resilience and adaptability. We caught up with Omar Rawji, who took the helm as CEO in 2022 after over a decade with the company. He shared insights into Prism’s keys to success, emerging trends in construction, and the opportunities shaping B.C.’s building landscape.
SiteNews:With a decade and $2 billion in construction under your belt at Prism, tell me about the growth you have seen during your time leading the team.
Omar Rawji: Since becoming CEO in 2022, and during my time as VP starting in 2011, I’ve watched Prism grow steadily—not only in the scale of the projects we handle but also in the variety of markets we serve.
While we’re based in the Lower Mainland, we have worked in nearly every major city across Canada. No matter the location, our approach has remained consistent: staying true to our design-build philosophy, prioritizing quality and keeping our commitments to our clients.
Over the past decade, we’ve consistently tackled large, multi-million dollar projects, with 60% of our business coming from repeat clients. Hayden Drilling is a great example—a long-term partner who has trusted us with three major projects since 2008, including our most recent development on #5 Road in Richmond.
These enduring partnerships are a testament to the trust we’ve built over the years and continue to drive our growth.
Another significant contribution to the construction landscape: Prism pushed the evolution of mini storage buildings, transforming them from single-story, drive-up buildings to advanced, multi-story, climate-controlled structures.
Our self-storage projects have set a new standard in the industry, enhancing the functionality and security of these spaces while meeting the rising demand for flexible, high-quality storage solutions. We’re proud of the impact we’ve made in this sector and the lasting improvements we’ve helped bring to the design and use of self storage facilities.
One of the greatest challenges I’ve faced as CEO has been navigating the effects of COVID-19 from the rush of economic activity to subsequent slowdown. The pandemic disrupted the labor market in ways no one could have predicted and the construction industry faced rapid increases in pricing and material costs.
In response, we had to adapt quickly—working closely with our suppliers to secure materials and manage costs effectively while maintaining our commitment to pricing and quality. We prioritized flexibility and transparency with clients, keeping them informed and working together to manage expectations during these unpredictable times.
Overall, the growth I’ve seen at Prism is a result of our expertise, built up through decades of experience.
What would you say are some of your biggest keys to success?
Some of our biggest keys to success are rooted in a few key practices.
First, we prioritize reliable and realistic budgets from the outset, and we have a longstanding track record of keeping promises to our clients—three decades of successful projects and repeat clientele are proof of this.
Rawji
We also focus on training top talent from within, ensuring our team consists of experts who are among the best in the field. Their knowledge and commitment to excellence are key to delivering high-quality results.
Finally, we emphasize open communication and proactive problem-solving, which allows us to address challenges swiftly and effectively.
Where do you see the biggest opportunities in B.C. for builders?
B.C. is a dynamic market with several promising opportunities for builders. The biggest areas I see are:
Affordable Housing: As housing prices continue to rise, there’s a significant need for more market and below-market housing options. Builders who can deliver cost-effective, high-quality residential projects will not only help address this urgent need but also secure long-term growth opportunities. Government initiatives to support affordable housing are expected to increase, making this a high-impact area for builders who are willing to innovate and find creative solutions.
Mixed-Use Urban Developments: With B.C. cities facing continued population growth, there’s a rising demand for mixed-use developments that integrate residential, commercial, and recreational spaces. Builders who can create innovative, sustainable communities that combine living, working, and leisure in one place will be at the forefront. As land becomes more limited, these types of projects will play a key role in shaping B.C.’s urban landscape.
Tech and Innovation Infrastructure: As B.C. continues to emerge as a leading hub for technology and innovation, there’s a growing demand for specialized infrastructure to support industries like AI, cloud computing, and biotech. Builders who can create high-tech, energy-efficient facilities such as data centers, research labs, and innovation hubs will have a significant advantage.
What are the biggest trends or changes you are seeing in construction?
There are several key trends shaping the future of construction:
Urbanization and Density: As B.C.’s cities grow, the demand for high-density, mixed-use developments is rising. Developers are thinking more vertically to address population pressures while trying to maintain affordability in urban centers.
Skilled Labor Shortage: The industry is grappling with a shortage of skilled workers, and we’re seeing an increasing reliance on automation and robotics to fill labor gaps, especially in repetitive tasks like material handling and prefabrication. At the same time, initiatives like upskilling programs and immigration are crucial to bring in the talent we need.
Digital Transformation: Technologies like AI, drones, and digital twins are reshaping the way we manage projects. These innovations allow for better planning, improved collaboration, and enhanced cost efficiencies across the board.
Sustainability and Net-Zero Goals: As regulations tighten around environmental performance, there is a greater push towards energy-efficient designs and green technologies. Sustainability is no longer just a trend—it’s becoming a necessity as clients demand environmentally responsible buildings that meet net-zero standards.
Beyond these overarching trends, we’re also seeing significant changes within the industry:
Multi-Use Business Parks: A key change in the commercial sector is the rise of multi-use business parks, which combine office, retail, and industrial spaces into flexible environments that can adapt to changing market needs. This shift reflects how companies are looking for more versatile spaces that offer operational efficiency and cost savings.
Self-Storage Demand: With increasing urban density, we’re seeing growing demand for high-efficiency self-storage facilities. These projects are evolving to meet the needs of urban residents and businesses looking for secure, convenient storage solutions in crowded areas.
Adaptive Reuse: The adaptive reuse of existing buildings is becoming a prominent strategy in urban areas. As cities become more congested, converting underutilized industrial or commercial spaces into modern residential or mixed-use developments is an effective way to meet housing and business needs while minimizing environmental impact.
Specialized Facilities: The demand for specialized facilities like luxury auto showrooms, food processing plants, and data centers is increasing as B.C.’s economy diversifies. These projects require unique design solutions tailored to specific industry needs, reflecting how the market is evolving toward more niche, customized spaces.
These trends and changes highlight the industry’s growing need for flexibility, innovation, and sustainability. As builders, we must be prepared to adapt quickly to these shifts, whether through technology, new design approaches, or the ability to meet the specialized demands of emerging industries.
As the industry shifts, what is Prism doing to adapt?
Prism is committed to staying ahead of the curve by embracing smart technologies and sustainable practices. We’ve integrated AI into many facets of our organization to enhance efficiency, improve cost management, and create future-ready buildings.
As client priorities evolve, we’re focused on creating customized, energy-efficient spaces that offer long-term adaptability. Clients want buildings that not only meet today’s needs but can also accommodate future growth and change. To help with this, we’re using advanced design tools that allow clients to visualize their projects early on, make data-driven decisions, and ensure long-term value.
In addition, we’re actively addressing the ongoing challenges of supply chain disruptions and cost management by streamlining workflows, strengthening relationships with suppliers, and being proactive in managing budgets and timelines. As regulations shift and new policies are introduced, we’re staying agile and ready to adapt, ensuring that our projects remain resilient no matter what changes may come.
As you hit some of these big milestones, what are some projects that stick out in your mind as being most significant for you and why?
A few projects stand out as defining moments in our journey, each demonstrating our ability to tackle unique challenges and push the boundaries of what we can achieve.
For instance, Bridge Studios is a highlight, where we built Canada’s second-largest fossil-fuel-free movie studio. Bridge Studios is known for having major productions companies like Netflix and Amazon Prime utilizing their facilities.
Our extensive work in self-storage also comes to mind. Transforming outdated facilities for clients like Public Storage and Maple Leaf Storage into modern, multi-story, energy-efficient spaces exemplifies how we adapt to meet evolving market needs.
Finally, our cold storage projects for companies like Konscious Foods and Centennial Food Service stand out because they support the critical infrastructure behind sustainable and locally sourced food systems. These facilities are essential for industries driving a healthier and more sustainable future.
Key Takeaways
The Calgary Planning Commission has unanimously approved the Scotia Place design, granting the final development permit.
Construction is set to progress to the next phase after excavation completes in spring 2025, with project completion expected in 2027.
The excavation, which began in July 2024, has lowered the event bowl by over 10 meters, creating a barrier-free experience that seamlessly integrates the main concourse with the outdoor plaza and The Culture + Entertainment District.
The Whole Story:
The Calgary Planning Commission (CPC) has unanimously approved the Scotia Place design and granted the project its final development permit. This milestone means that the next phase of construction will start once excavation is complete by spring 2025.
“With the Calgary Planning Commission’s final approval on the Scotia Place design, it is exciting to think about the amount of work that will take place over the next two and a half years. Excavating to the bottom of the site will be the first of many exciting milestones we will see between 2025 and the project’s completion in 2027,” said Bob Hunter, Project Committee Member.
Since excavation began in July 2024, crews have dug down over 10 metres to lower the event bowl of Scotia Place. This design feature gives visitors a barrier-free experience between the main concourse and the outdoor plaza, providing street level accessibility and integration with The Culture + Entertainment District.
In early 2025, Calgarians will see more materials and workers on site as underground utility work and installation of the foundation begins. Structural concrete and steel work across the entire site will occur over 2025—foundation walls will go up first, followed by below grade columns, stairs, elevator cores, and access ramps.
Over the past two years, the project team has been focused on design. Officials stated that strong alignment between The City and its partner, the Calgary Sports and Entertainment Corporation (CSEC), and the development team helped to expedite the design process, ready the Scotia Place design for approval, and keep the project on schedule.
“The work that has been accomplished to allow us to arrive here today is truly remarkable,” said Calgary Sports and Entertainment Corporation, President and CEO Robert Hayes. “We have witnessed it in the board rooms for the past year and now we see it out our windows everyday as Scotia Place is becoming a reality. We are both proud and appreciative of the teamwork displayed by the partners to create Calgary’s premier sports and entertainment destination that will be enjoyed by all Calgarians.”
Beyond hosting sporting events and concerts, the site will accommodate a wide range of indoor and outdoor community events.
Key Takeaways:
The Ontario government has tasked Ontario Power Generation (OPG) with exploring the development of a new nuclear energy generation facility at the Wesleyville site. This initiative responds to a projected 75% increase in energy demand by 2050 and includes active engagement with local communities, Indigenous groups, and municipal leaders.
The proposed nuclear development could contribute $235 billion to Ontario’s GDP over a 95-year lifespan and create significant employment opportunities, including 10,500 jobs across Ontario and 1,700 new jobs in Port Hope, representing a 15-20% boost in local employment. The project is also expected to generate $10.5 million annually in municipal property taxes for Port Hope.
To facilitate early growth readiness and community engagement, the Ontario government has announced $1 million in immediate funding for Port Hope and capacity funding for the Williams Treaties First Nations (WTFNs), including opportunities for equity participation. Port Hope could also receive up to $30 million for infrastructure and planning investments as part of a Host Municipal Agreement process.
The Whole Story:
The Ontario government has asked Ontario Power Generation (OPG) to explore opportunities for new nuclear energy generation at their Wesleyville site, following expressions of interest from the Municipality of Port Hope and the Williams Treaties First Nations (WTFNs). OPG will work with local communities to determine support as the province seeks to expand generation to meet the rising demand for electricity.
“With energy demand in Ontario set to increase by 75% by 2050, we are doing the early engagement and development work now that will ensure the province has options to meet that growing demand,” said Stephen Lecce, Minister of Energy and Electrification. “I’m excited to be continuing these conversations with Indigenous and municipal leaders to explore options for new nuclear generation at the Wesleyville site, including new good-paying jobs and other associated benefits.”
Officials noted that the Wesleyville site, which is maintained by OPG, located near existing transmission, road, and railway infrastructure, and already zoned for new electricity generation, is well-suited to support a large new nuclear site. Based on early assessments by OPG, this site could host up to 10,000 megawatts (MW) of new nuclear generation, which could power the equivalent of 10 million homes.
According to the Conference Board of Canada, a potential nuclear development in Port Hope would also contribute $235 billion to Ontario’s GDP over an estimated 95-year project life, which includes design, construction, operation, and maintenance. It would also support 10,500 jobs across Ontario, including 1,700 new jobs in Port Hope, representing an average 15 to 20% boost to overall employment levels in the local area.
Crews work to refurbish the Darlington Nuclear Generating Station
Following active engagement with community leaders by Minister Lecce and OPG, the Council of the Municipality of Port Hope unanimously passed a motion on December 17, 2024, endorsing continued engagement with OPG and the Ministry of Energy and Electrification on the potential for new energy generation at the Wesleyville Site.
To support continued engagement, the Ontario government announced that OPG will provide the WTFNs with capacity funding and an opportunity for equity participation in any generation project. The province also announced immediate funding of $1 million for the Municipality of Port Hope to support early growth readiness, assessment of planning and infrastructure requirements, and to meet consultation requirements. As part of a milestone-based process, leading toward the development of a Host Municipal Agreement, Port Hope could also access up to $30 million of funding for associated infrastructure investments and to attract co-located industries.
The potential nuclear build would also allow local communities to benefit from additional co-located industry and supply chain spending. The Municipality of Port Hope would also benefit from increased municipal property taxes from the station, which according to the Conference Board of Canada are estimated to be $10.5 million annually.
“Ontario needs more affordable and reliable energy to meet soaring demand, and I am excited to work with our municipal and Indigenous leaders to explore how we meet that challenge, while creating new jobs and opportunities right here in Port Hope,” said David Piccini, MPP for Northumberland-Peterborough South. “New energy generation represents an incredible opportunity for our region, and I am committed to working closely with Premier Ford and Minister Lecce to ensure our community is supported as this work advances – including immediate funding of $1 million for Port Hope.”
Key Takeaways:
Pitt Meadows Plumbing and Houle Electric are co-hosting the Future of Work 2025 event on April 24–25, focusing on innovation, collaboration, and workforce development in the construction industry. The event features a mix of keynote speeches, panel discussions, and hands-on sessions.
The event will highlight cutting-edge advancements such as 3D modeling, collaborative construction technology, and Industrialized Construction, aiming to inspire new benchmarks in the industry.
Supported by prominent sponsors like Procore, Olympic International, and Victaulic, the event showcases a wide array of industry partnerships, offering networking opportunities for attendees. Ticket sales begin January 15, with options for individual days or a combination pass.
The Whole Story:
Pitt Meadows Plumbing (PMP) is partnering with Houle Electric for the Future of Work 2025 event, taking place on April 24th and 25th. The contractor stated that the collaboration unites two industry leaders in their shared mission to drive innovation, foster collaboration, and address the most pressing challenges facing the construction sector.
Future of Work 2025 will bring together experts, innovators, and leaders from across the industry to explore groundbreaking technologies, advanced methodologies, and strategies for building a resilient and skilled workforce
Taking place at PMP’s Shop XL in Maple Ridge, B.C., Future of Work is one of the only events held in a working fabrication shop.
The event kicks off on Thursday evening with an Industry Mixer, featuring a keynote presentation by Amy Marks, joined by special guests Nick Masci & Melissa McEwen from ICG Build. Organizers say the mixer will be an opportunity to connect with top industry professionals.
Friday’s schedule transitions into a conference-style format, focusing on a series of dynamic panel discussions and collaborative sessions. Attendees will explore topics such as innovation in construction, workforce solutions, and successful collaborative delivery models.
“Our partnership with Houle underscores a shared commitment to advancing our industry and shaping its future,” said Steve Robinson, President of Pitt Meadows Plumbing. “With the support of our sponsors and collaborators, we are creating a space to inspire new ideas, celebrate achievements, and tackle construction challenges head-on.”
Matthew Bewsey, VP, Major Projects & Field Operations, Houle Electric added:
“Future of Work 2025 represents the strength of collaboration. By bringing together leaders from across the construction ecosystem, we aim to set a new benchmark for what is possible when innovation meets partnership.
This year’s event is supported by Platinum Sponsors: Procore, Olympic International, Victaulic, and KMS Tools. In addition to these key partners, the event has attracted significant sponsorship interest, with a substantial number of partnership opportunities already filled.
The event will spotlight advancements like 3D modeling, collaborative construction technology and other aspects of Industrialized Construction.
Tickets for Future of Work 2025 will be available starting Wednesday, January 15th, at 9:00 AM PST. Ticket options include $99 for Thursday’s Industry Mixer, $149 for Friday’s Conference, or $199 for a combination pass covering both days. Visit www.futureofwork.me for details.
PMP is also partnering many others for the event, including:
Silver Sponsors: Milwaukee, BC Construction Association, Novarc Technologies
Bronze Sponsors: Wesco, United Rentals, Stratus, QMC Metering, Wolseley Canada Inc., ABB Electrification Canada, ICG Build and Sterling Fleet Outfitters
Lanyard Sponsor: EMCO Langley
Patio Bar Sponsor: Noble
Washroom Sponsor: JNJ Site Services
Key Takeaways:
Incorporating just 20% of recycled crushed aggregates (RCA) into public infrastructure projects can save local governments over $260 million and reduce greenhouse gas emissions equivalent to removing 15 million cars annually. RCA also preserves non-renewable resources, reduces waste, and minimizes traffic congestion.
Extensive testing and use in major Ontario infrastructure projects, such as 400-series highways and Pearson International Airport, demonstrate RCA’s high performance. A coalition of nine industry organizations is advocating for policies to maximize RCA’s economic and environmental benefits in Ontario.
The coalition suggests key policy measures, including mandating a minimum 20% RCA usage, harmonizing municipal specifications with provincial standards, and prohibiting “primary-only” specifications in tenders. They also recommend funding incentives to encourage municipalities to adopt RCA in public infrastructure projects.
The Whole Story:
A coalition of Ontario civil infrastructure leaders, builders, suppliers, and engineers has launched a campaign to urge government leaders to adopt policy changes to increase sustainability in the construction of public infrastructure projects.
A government mandate to include just 20 per cent of recycled crushed aggregates (RCA) for critical construction projects like roads, subdivisions, highways, bridges, and tunnels can save local governments more than $260 million, while reducing greenhouse gas emissions equivalent to removing 15 million cars from the road annually.
“Recycled aggregates are cost-effective, sustainable, and high-performing and can help municipalities deliver more from their capital plans while helping to reach their net-zero targets,” said Raly Chakarova, Executive Director of the Toronto and Area Road Builders Association (TARBA). “Using more recycled materials in construction projects can preserve non-renewable resources, reduce waste and traffic congestion, and contribute to long-term sustainability.”
RCA is made from reclaimed concrete and asphalt that would otherwise end up in landfills. By adding it to upcoming infrastructure projects, RCA offers significant economic advantages for municipalities struggling to address a growing state of good repair backlog and the infrastructure investments needed to keep up with population growth.
Provincial standards and extensive testing have shown RCA to be as high-performing as primary aggregate, and RCA already has a proven track record in Ontario, including in our 400-series highways, Pearson International Airport, house-enabling infrastructure in subdivisions, and Greater Toronto Area transit projects.
Across the world, governments are incentivizing the use of RCA through policies and regulations that accelerate the shift toward sustainable construction materials. A coalition of nine industry organizations — Concrete Ontario, Good Roads, the Greater Toronto Sewer and Watermain Construction Association (GTSWCA), Heavy Civil Association of Toronto (HCAT), Ontario Road Builders Association (ORBA), Residential and Civil Construction Alliance of Ontario (RCCAO), Ontario Sand, Stone, and Gravel Association (OSSGA), Ontario Society of Professional Engineers (OSPE), and Toronto and Area Road Builders Association (TARBA) —
is advocating for municipal and provincial decision-makers to take the lead here in Ontario and maximize RCA’s economic and environmental benefits.
At the municipal level:
Include the use of RCA in tenders for construction projects.
Mandate a minimum amount of RCA for all public infrastructure projects.
GFL Environmental Inc. is selling its Environmental Services business to Apollo Funds and BC Partners for an enterprise value of $8 billion. GFL will retain a 44% equity interest, expecting$6.2 billion in net cash proceeds after equity retention and taxes.
GFL plans to allocate up to $3.75 billion of the proceeds to repay debt, reducing its net leverage to 3.0x.
This will cut annual cash interest expenses by approximately $200 million, enhance free cash flow, and support share repurchases, dividend increases, and growth investments.
The Whole Story:
GFL Environmental Inc. announced that it has entered into a definitive agreement with funds managed by affiliates of Apollo and BC Partners for the sale of its Environmental Services business for an enterprise value of $8 billion.
GFL will retain a $1.7 billion equity interest in the Environmental Services business and expects to realize cash proceeds from the transaction of approximately $6.2 billion net of the retained equity and taxes.
GFL intends to use up to $3.75 billion of the net proceeds from the transaction to repay debt, making available up to $2.25 billion for the repurchase of GFL shares, subject to market conditions, and the balance for transaction fees and general corporate purposes. Net Leverage, pro forma for the planned use of proceeds, is expected to be 3.0x.
“The sale of our Environmental Services business at an enterprise value of $8 billion is substantially above our initial expectations and is a testament to the quality of the business that we have built,” said Patrick Dovigi, Founder and Chief Executive Officer of GFL. “The transaction will allow us to materially delever our balance sheet which will accelerate our path to an investment grade credit rating. A deleveraged balance sheet will provide ultimate financial flexibility to deploy incremental capital into organic growth initiatives and solid waste M&A and allow for a greater return of capital to shareholders through opportunistic share repurchases and dividend increases, while maintaining a targeted Net Leverage in the low 3’s.”
Dovigi continued, “The transaction allows us to monetize the Environmental Services business in a tax efficient manner while retaining an equity interest that will allow us to participate in what we expect to be continued value creation from these high-quality assets. In addition, GFL will maintain an option, not an obligation, to repurchase the Environmental Services business within five years of closing.”
He explained that the repayment of debt is expected to reduce GFL’s annualized cash interest expense by approximately $200 million, resulting in significantly improved free cash flow conversion.
The company plans to provide more details on the financial impact of the transaction when it reports its 2024 full year results in February and hosts its Investor Day on February 27 at the New York Stock Exchange.
“After a long, robust and highly competitive process, we are excited to have selected the Apollo Funds and BC Funds to partner with on this transaction,” Dovigi concluded. “We have a long-standing relationship with BC Partners, to whom we have delivered significant returns on their capital. We also look forward to working with Apollo, a leading alternative asset manager, with deep expertise and a demonstrated track record of value creation for its stakeholders.”
Craig Horton, Partner at Apollo stated that GFL Environmental Services is a leading North American provider of increasingly essential industrial and waste management services, with a broad customer base and exposure to attractive and growing end markets. \
“We believe this transaction will provide the Environmental Services business with greater flexibility to pursue organic and inorganic growth opportunities as an independent business, while also taking advantage of the strategic, value-added resources and structuring capability of the Apollo platform,” said Horton. “This is a great example of partnership capital from the Apollo Funds, including our Hybrid Value and Infrastructure strategies, and we look forward to working with the talented management team as well as GFL and BC Partners to accelerate growth and drive value creation.”
Paolo Notarnicola, Partner and Co-Head of Services at BC Partners noted that their long and successful relationship with Patrick and the GFL team underlines BC Partners’ true partnership approach, supporting entrepreneurial leaders at high-growth businesses in defensive sectors to scale and grow.
“Under Patrick’s leadership we have seen GFL’s Environmental Services business grow from a small franchise in Ontario in 2018 to a leading operator with over $500 million in Adjusted EBITDA,” said Notarnicola. “Going forward, we are excited about the growth potential of this business, which is best placed to capitalize on the significant consolidation opportunity in the environmental services industry, including further expansion in the United States. In addition, we look forward to working with the management team of GFL Environmental Services and our partners at GFL and Apollo to accelerate the delivery of the margin-enhancing and growth opportunities we have identified together.”
Pursuant to the Transaction Agreement, GFL will retain a 44% equity interest in the Environmental Services business and the Apollo Funds and BC Funds will each hold a 28% equity interest. The Transaction is expected to close in the first quarter of 2025 and is subject to certain customary closing conditions. The Transaction is not subject to any financing conditions.
In 2024, over 80,000 Ontarians were identified as homeless, reflecting a 25% increase since 2022. Without significant intervention, homelessness in Ontario could double within a decade and potentially reach nearly 300,000 during an economic downturn.
The crisis is attributed to decades of underinvestment in affordable housing, income support, and mental health services, coupled with economic pressures. Municipalities in Ontario bear the financial burden for social housing, with municipal funding for housing programs exceeding $2.1 billion in 2024, while provincial contributions remain inadequate.
The study recommends shifting focus to long-term housing solutions over temporary emergency measures. Modelling showed that eliminating chronic homelessness would require $11 billion over 10 years to create 75,050 new housing and support spaces. Addressing encampments would cost $2 billion over 8 years, providing 5,700 housing and support spaces.
The Whole Story:
A new study found that more than 80,000 Ontarians were known to be homeless in 2024, a number that has grown by more than 25% since 2022.
The Association of Municipalities of Ontario (AMO) released the study, noting that without significant intervention, homelessness in Ontario could double in the next decade, and reach nearly 300,000 people in an economic downturn.
“The scope and scale of homelessness across Ontario’s municipalities is truly staggering,” said Robin Jones, AMO President. “Without real and meaningful provincial action, the quality of life and economic prosperity of Ontario’s communities is at risk. We can solve this crisis, but we need to work together.”
The study was conducted by HelpSeeker Technologies, in partnership with AMO, the Ontario Municipal Social Services Association (OMSSA) and the Northern Ontario Service Deliverers Association (NOSDA).
AMO stated that the crisis stems from decades of underinvestment in deeply affordable housing, income support and mental health and addictions treatment, combined with escalating economic pressures on communities.
The group added that Ontario is the only province where responsibility for social housing has been downloaded to municipalities. Municipal funding for housing and homelessness programs has grown significantly in recent years, totalling more than $2.1 billion in 2024. Meanwhile, recent provincial investments represent just a fraction of what’s required, offering nominal increases to already overstretched shelter and housing programs.
The report proposes a fundamentally new approach that focuses on long-term housing solutions over temporary emergency measures and enforcement:
AMO found that an estimated additional $11 billion over 10 years could end chronic homelessness by boosting the supply of affordable housing, improving transitional and supportive services, and enhancing prevention programs.
According to AMO’s modelling, eliminating chronic homelessness during this time period would include creating 75,050 new housing and support spaces, ensuring the infrastructure exists to house people permanently.
An additional $2 billion over 8 years could largely eliminate encampments. This includes 5,700 new housing and support spaces to stabilize and transition people out of encampments. AMO urged provincial and federal governments to take “significant, long-term action” on affordable housing, mental health and addictions services, and income supports to fix homelessness to improve communities’ economic foundations and quality of life.
Key Takeaways:
Canada’s construction sector is anticipated to recover from a 3.1% output decline in 2024, growing at an annual average rate of 2.2% from 2025 onward.
This growth will likely be driven by government investments in transport, renewable energy, healthcare, education, and a gradual recovery in the residential market.
Declining interest rates, stabilizing inflation, and increased efforts to recruit younger workers have improved the sector’s outlook. However, uncertainties such as economic volatility, geopolitical tensions, and fluctuating market conditions continue to pose risks, particularly in financing new housing projects and addressing supply chain disruptions.
The return of Donald Trump as U.S. President and related trade policies, such as a threatened 25% tariff on Canadian imports, could severely impact Canada’s economy and the construction sector.
Additionally, geopolitical challenges, including war in Ukraine, tensions in the Middle East, and the renewal of the Canada-U.S.-Mexico trade agreement in 2026, add layers of uncertainty to the industry’s future.
The Whole Story:
Is Canada’s construction sector on track to soar in 2025 or crash and burn?
As we peer into the future, some experts believe a rebound is on the horizon. But others feel the next 12 months will be a mixed bag of growth and risk. However, all agree that our neighbours down south will play a large role.
Here are some of the key themes experts have their eyes on for the coming year:
Donald Trump and the U.S.
Don’t expect to see incoming president Donald Trump disappear from headlines anytime soon. All construction experts we spoke with cited the U.S. as a huge factor for 2025.
“Should he carry forward with the threat to levy a 25% across-the-board tariff on all goods imported from Canada (and Mexico), the Canadian economy will quickly be catapulted into a recession. Looking a little further ahead, the Canada-U.S.-Mexico trade agreement (CUSMA) is up for renegotiation/renewal in 2026. That, too, represents a risk for Canada, as with Trump in the White House there is a chance the agreement itself could be scrapped.”
Canadian Construction Association President Rodrigue Gilbert also expressed concerns about developments in U.S. politics.
“It’s hard to not focus on the American election and the impact this will have on our industry. With just a few weeks before his inauguration, President Trump has been able to create uncertainty, economic disruption and sow division amongst our governments,” he said. “Between tariffs, border management, a nationalistic economic policy, it’s safe to say the Canadian Government was not prepared and it affected our industry. We are hopeful that this will be handled in the new year and that the effect on Canada’s construction industry will be minimal.”
Interest rates
Interest rates have been a ray of sunshine during 2024 and experts believe the warmth could continue into 2025.
“Over the past 18 months, the construction sector has benefited from several positive developments,” said Bill Ferreira, Executive Director of BuildForce Canada. “One of the most significant has been the steady decline in interest rates, which has started to ease financing pressures on new projects and investments.”
Finlayson called it the main reason for optimism about the economic environment in the coming year.
“This should be helpful in setting the stage for increased investment across all segments of the construction business – homebuilding, the industrial sector, engineering infrastructure, etc.,” he said. “The outlook for new office development is less favourable, given the stickiness of the work-from-home phenomenon and significantly higher office vacancy rates in many cities.”
However, Linesight Executive Vice President Patrick Ryan noted that while decreased construction activity in some sectors has alleviated demand temporarily, a potential rise in activity due to falling interest rates could push labor costs back up. Regions with significant high-tech and mission-critical projects still struggle with a lack of skilled labor, particularly in the MEP trades.
Rebounding
Linesight anticipates the residential sector is to rebound in 2025, supported by lower interest rates and government initiatives aimed at reducing the housing deficit. These include affordable housing programs, tax incentives like the removal of the Goods and Services Tax on new rental projects, and significant investments to increase the housing stock.
From 2025 onwards, the construction industry is expected to recover and grow at an annual average rate of 2.2%. This growth will be fueled by substantial government investments in transportation infrastructure, renewable energy projects targeting carbon neutrality by 2050, and the expansion of healthcare and educational facilities. The largest infrastructure project in the pipeline is the US$17bn Alberta to Alaska rail line development project.
Some believe this recovery will be slow to pick up steam.
“It will take time for companies to get settled again, and not only feel more confident in the market – but start executing in a way that reflects that confidence,” shares Raymond Wong, Vice President of Client Delivery at Altus Group. “Canada is facing a significant challenge on the employment side, and I think that will take some time for the labour market – and the economy at large – to reflect the positive impact of the rate-cutting cycle.”
Labour unrest
In 2024, Canada experienced significant labour unrest, with major strikes affecting postal services and ports. The Canada Post strike, which began on November 15 and lasted 32 days, involved approximately 55,000 postal workers demanding better wages and working conditions. It ended on December 17 after government intervention.
Concurrently, port strikes hit Canada’s major maritime hubs, with lockouts at the Ports of Montreal and Vancouver starting in early November. These disputes involved dockworkers, the Maritime Employers’ Association, and the International Longshoremen’s Association, centering on issues of scheduling and wage increases. The strikes at Canada’s two busiest ports, along with actions at East Coast terminals, severely disrupted supply chains. On November 13, Labour Minister Steve MacKinnon ordered the Industrial Relations Board to intervene, citing daily economic impacts of $1.3 billion. These labour disputes significantly disrupted Canada’s postal and port operations.
With the rise of artificial intelligence threatening to shrink some industries and the overall challenging economic climate, it is likely that we could see more labour unrest going into 2025. And depending on which sector its in, major supply chains could be impacted.
Optimism
Despite the challenges and uncertainty ahead, many experts believe builders will rise to meet them.
“2025 is gearing up to be another interesting year,” said Gilbert. “With our neighbours to the south welcoming a new (old) President to the White House and as we prepare for the certainty of a federal election here at home, I’m optimistic because I know that no matter the challenges ahead, our industry is resilient, ready and willing to work.
He also noted that there is significant momentum within the Canadian government to finally tackle real challenges, like workforce and the reduction of red tape, which will allow the industry to build the infrastructure and projects Canadians need.
