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.
B.C. Premier David Eby announced a $36-billion investment for community and regional infrastructure projects that will deliver electricity.
This represents an increase of 50% over BC Hydro’s previous capital plan.
These new construction projects are projected to support 10,500 to 12,500 jobs on average annually.
The province and BC Hydro are also implementing a new streamlined, one-window approval process to speed up approvals
The Whole Story:
BC Hydro plans to embark on an “unprecedented level of construction” over the next 10 years, building out the province’s electricity system.
“We must expand our electrical system like never before, to power industrial development, to power our homes and businesses, to power our future,” said Premier David Eby. “Clean, affordable energy will help us meet that opportunity, while reducing pollution, securing good-paying jobs and creating new opportunities for our growing economy.”
Investing billions
At the B.C. Natural Resources Forum in Prince George, Eby announced a $36-billion investment for community and regional infrastructure projects that will deliver electricity to people and businesses in the future.
BC Hydro’s updated 10-year capital plan, Power Pathway: Building BC’s energy future, includes almost $36 billion in community and regional infrastructure investments throughout the province between 2024-25 and 2033-34. This represents an increase of 50% over BC Hydro’s previous capital plan ($24 billion), and includes a significant increase in electrification and emissions-reduction infrastructure projects (nearly $10 billion, up from $1 billion).
These new construction projects are projected to support 10,500 to 12,500 jobs on average annually, and will increase and maintain BC Hydro’s capital investments as major projects like Site C are completed.
Officials say the plan reflects growing demand for electricity across sectors due to population growth and housing construction, increased industrial development, and people and businesses switching from fossil fuels to clean electricity, among other factors. It includes:
building new high-voltage transmission lines and supporting infrastructure from Prince George to Terrace to meet industrial customer demand in the north coast area, including in the mining sector;
building or expanding substations and installing new equipment to support residential housing growth and transit electrification in high-growth areas across the Lower Mainland and Vancouver Island; and
upgrading B.C.’s dams and generating facilities to make them safer, more reliable and more efficient.
“We’re taking action to build a clean energy future and create thousands of construction jobs for skilled workers as major infrastructure projects like Site C reach completion,” said Josie Osborne, minister of energy, mines and low carbon innovation. “Together with our first call for power in over 15 years, BC Hydro’s new capital plan – with almost $4 billion in spending every year for the next decade – will drive economic growth for communities all over the province and ensure households and businesses can power up with clean, reliable and affordable electricity.”
BC Hydro’s goal is to acquire new sources of clean, renewable electricity, including wind and solar. They argue that B.C. is well positioned to add additional intermittent renewables to the grid as its integrated, flexible system of hydro-electric dams act as batteries. The reservoirs store water and allow BC Hydro to ramp production up or down almost instantly, providing a reliable back up for when the sun isn’t shining or the wind isn’t blowing.
“Our electricity grid is already one of the cleanest in the world, and to meet the scale and pace of what’s required, we need to invest in our system and build for the future,” said Chris O’Riley, president and CEO of BC Hydro. “We have already taken significant steps toward sourcing the clean electricity needed to meet the future demand, and we are now embarking on the next step, our $36 billion 10-year capital plan, which includes everything from investing in our generation assets and large transmission infrastructure to the substations and local wires that deliver power to homes and businesses across the province.”
Streamlining approvals
In addition to the 10-year capital plan, Eby announced that the province and BC Hydro are implementing a new streamlined, one-window approval process to speed up approvals to get electricty to in-demand industries faster, and to support jobs.
“Industrial greenhouse gas emissions make up about 40% of B.C.’s total, so we need to work closely with the private sector to electrify rapidly to meet our CleanBC climate goals by 2030 and keep B.C. industries strong and competitive,” said George Heyman, minister of environment and climate change strategy. “This new, one-window approach will help companies reach final investment decisions sooner so they can move to a decarbonized future that will benefit our province for generations to come and meet the growing global demand and opportunities for low carbon commodities.”
The process will result in the Climate Action Secretariat and BC Hydro managing streamlined approvals for industrial electrification projects between the CleanBC Industry Fund and BC Hydro’s Large Customer Low Carbon Electrification programs. Officials say that transitioning to a one-window process will speed up approvals, increase efficiency, and deliver more funding certainty for proponents.
Power crisis in the prairies
The announcement comes at a time when record-breaking weather prompted the province of Alberta to issue an emergency alert warning residents to conserve power due to increased demand. The province stated that extreme cold resulting in high power demand placed the Alberta grid at a high risk of rotating power outages. Officials asked Albertans to do the following:
Albertans are asked to immediately limit their electricity use to essential needs only
Turn off unnecessary lights and electrical appliances
Minimize the use of space heaters
Delay use of major power appliances
Delay charging electrical vehicles and plugging in block heaters
A growing group of construction professionals has been hitting the trails every week in Metro Vancouver.
Organizers say it has been a great way to encourage non-traditional networking.
It also encourages healthy ways to destress after work and get advice from other professionals.
The Whole Story:
Every Sunday morning, a group gathers in North Vancouver, B.C. to trek through the mountains, discuss the industry’s biggest topics and connect with others in the construction sector. The group is growing fast, now with more than 120 active members that form a rotating crew of 15-20 hikers each weekend.
The origins go back 20 years when engineering school pals Jesse Unke and Shervin Teymouri began doing the Grouse Grind on Wednesday nights or Sunday mornings.
“It was just me and Shervin and it got me into doing the Grouse Grind. We had been doing that consistently for years,” said Unke.
A lot has changed since then. Shervin went into the mining sector and is now president and CEO of Red Paramount Iron as well as the founder and principal mining engineer for Mineit Consulting. Unke has lent his talents to the construction sector, working at several major firms before becoming the president and CEO of Maven Consulting.
Unke also recently added the role of “father” to his list of responsibilities, which has changed his schedule and priorities. Rather than being able to go out for a beer in the evenings to network with colleagues and clients, Unke began inviting people to join him on the trails.
Hike Club members brave the snow on some B.C. trails. – Jesse Unke
“Now that I have a baby at home, things have changed,” said Unke. “I want to be home for dinner time, story time, bath time, so I started saying ‘come get a workout with me’. People started joining me and we made a LinkedIn group.”
The hikes start with a group photo at the bottom as well as a topic of discussion for the journey up.
“It’s a great way to build your network. At the bottom we go around so people can say what organization they are with, how they got tied to the hike club, and then we have a topic of discussion that is figured out ahead of time. It can be how to deal with risk management, your approach to retaining staff,” said Unke.
The group then can chat about the topic on the way up and share ideas.
“It has been great because it has allowed me to stay in touch with folks, meet new people and get a workout at the same time,” said Unke. “I have nothing against getting a beer, but with a young baby, I want to be home in the evenings.”
Unke noted that regular exercise has been a critical part of maintaining his physical and mental health in a stressful industry.
“It’s just as much physical as it is mental. You get some fresh air, clear your head. I do some of my best thinking while hiking and since it’s a Sunday, I am thinking about the coming week. It’s an energizing way to end one week and begin another,” said Unke. “It’s an outlet to get rid of stress, clear the head, challenge myself to reach certain milestones in fitness as well as with pursuing a project or client in my professional goals.”
Unke added that the social distancing required during the height of the COVID-19 pandemic showed him how important face-to-face networking is.
“Trying to network over Teams and Zoom was awkward and painful,” he said. “When doing in person, this can be more informal, you read body language, things are more organic. Networking in engineering and construction is important because the construction is about relationships. You want to work with people you can trust and rely on.”
Unke stressed that while the group is mostly made up of construction and engineering professionals, all are welcome and encouraged to join the LinkedIn group.
Key Takeaways:
Lafarge and nidus3D are partnering on a 3D-printed housing project to reduce its carbon footprint.
The project team will use Lafarge’s OneChem cement which can reduce carbon emissions by up to 10%.
The project named “Kakatoosoyiists” (Star Lodge) will consist of four buildings, comprising a total of sixteen units, each specifically designed to provide a supportive haven for individuals of SikSika Nation fleeing domestic violence or facing homelessness.
The Whole Story:
Lafarge Canada partnering with nidus3D in supplying its OneCem low-carbon cement in Canada’s largest 3D-printed housing project, aimed at addressing the acute housing challenges faced by the SikSika Nation.
While nidus3D has successfully completed 3D-printed housing projects in Ontario, this marks the first venture of its kind in Alberta. Located one hour’s drive east from the city of Calgary, the project named “Kakatoosoyiists” (Star Lodge) will consist of four buildings, comprising a total of sixteen units, each specifically designed to provide a supportive haven for individuals of SikSika Nation fleeing domestic violence or facing homelessness.
According to Lafarge, the initiative directly confronts a pressing issue underscored by the Social Planning & Research Council of Hamilton. According to their report, Indigenous peoples in Canadian cities are eight times more likely to face homelessness compared to the general population.
Lafarge is supplying its OneCem low-carbon cement for this project, recognized for its ability to deliver a reduced carbon footprint. When manufactured, the higher limestone content of OneCem translates into a reduction of greenhouse gas emissions—up to 10% when compared to traditional Portland cement. OneCem achieves this sustainable advantage while maintaining its strength, durability, performance and workability.
“Our shared goal with nidus3D extends beyond mere innovation,” says Brad Kohl, president and CEO of Lafarge Canada (West). “This project is about helping address the critical housing needs of the nation and foster a resilient, inclusive future through sustainable construction practices. We were proud to contribute to this project.”
nidus3D, a leading innovator in 3D-printed housing, is excited to bring its expertise to Alberta.
“Nidus3D is honoured and energized to be working with Siksika First Nation and Lafarge Canada on this innovative Canadian first,” says Ian Arthur, nidus3D’s president. “This multi-build development will not only provide much needed housing but show the immense potential of 3D construction printing to address Canada’s housing crisis. This project will demonstrate efficiencies and savings the technology can deliver through rapid, repeatable construction.”
Lafarge added that they believe the collaboration stands as a testament to the potential of combining expertise, resources, and a shared commitment to building not just structures but sustainable, supportive communities for a brighter future. The project is expected to be completed by March 31st, 2024.
Key Takeaways:
Employers want diverse spaces with added functional amenities that create a “home away from home” for workers.
Biophilic designs have become increasingly crucial for promoting mental health.
Hootsuite has successfully drawn employees back to the office by investing in recording studios, cozy pods, inviting lounges, and well-stocked kitchens.
Rather than being homogenous, spaces are now designed with flexibility as a cornerstone, featuring collaborative workspaces, hot desking options, and functional areas.
The Whole Story:
What does the modern office look like?
Real estate and design experts gathered in Vancouver, B.C. to tackle that question at a roundtable discussion on the workplace of the future and current trends in office design.
Lee shared that gone are the days of traditional office spaces. To cater to Vancouver’s changing workforce, especially as more employees return to the office, employers are now looking at diverse spaces with added functional amenities, like pods, to accommodate various work and collaboration needs.
The event featured a special look at Marco Polo, a state-of-the-art lifestyle business hub featuring AAA strata office units. – Gryphon
She noted that dynamic and adaptable workspaces are also being favoured over offices with static walls. Offices that emphasize modular furniture and walls foster a more versatile and responsive environment, which resonates with a wide variety of potential tenants.
Lee also shared that biophilic designs have become increasingly crucial for promoting mental health, as exemplified in the design philosophy of Marco Polo, such as speakers that mimic natural sounds.
Moving into 2024, Emily stated that “hotelification” of office spaces, turning offices into a luxurious “home away from home”, will be a key trend with a wide array of wellness offerings that will continue to be popular.
Bringing softer vibes into the office with the utilization of strategically chosen materials and finishes plays an integral role in employees wanting to stay and work in the office. Lee explained that these well-rounded spaces give the end-users the flexibility to customize their experience based on their individual preferences, making it more enticing to come back to work.
Waldmann shared Hootsuite’s strategic emphasis on providing employees the autonomy to choose their work environment, be it from the comfort of their homes or within the office premises.
She stated that Hootsuite has successfully drawn employees back to the office by investing in enticing amenities, including recording studios, cozy pods, inviting lounges, and well-stocked kitchens brimming with a variety of snacks.
These amenities, thoughtfully tailored to individual preferences, coupled with initiatives fostering human connection, address the inherent longing for interpersonal relationships among employees who have been working remotely. Coming out of the pandemic, Hootsuite consolidated three Vancouver offices into a singular, innovative workspace. Departing from traditional desk configurations, the company has introduced flexible workspaces, incorporating lounges, pods, and dedicated focus areas. This approach affords employees a diverse range of workspaces to choose from, enhancing both productivity and well-being.
Waldmann also shared that incorporating forward-thinking trends such as individual stall washrooms, Braille signage, and mobility amenities will be critical, cultivating a work environment that prioritizes diversity and inclusion.
Burgar shared that for the tech industry, individuals want environments that foster creativity; thus, having dedicated spaces tailored to their innovative needs is hugely important. He also shared that the surge in Vancouver’s tech market necessitates the development of spaces not only to accommodate the growing influx but also to retain talent by offering amenities like gyms and food courts that contribute to a vibrant city lifestyle.
Dan is currently working on creating a 150,000-square-foot innovation hub to bring entrepreneurs, creators, and start-ups together to turn Vancouver into one of the world leaders in technology and share optimism about the future of the tech industry in Vancouver. Dan explained that it is essential for office spaces to be intentional, cultivating specific “vibes,” bringing souls into the spaces where they work, and building small neighbourhoods and communities within larger areas to enhance the overall work and living experience.
Ollek highlighted a notable surge in employees returning to the office, emphasizing the growing necessity for adaptable work environments. Recognizing that a company’s functionality is intricately tied to the spaces they inhabit, businesses are strategically opting for a diverse range of office setups. This includes the incorporation of private offices catering to executive teams and open-layout workspaces fostering collaborative efforts among employees. Ollek underlined the pivotal role played by amenities in the workspace, which has been a driving force in enticing employees back to the office.
According to Ollek, this trend gained momentum in the latter half of 2023 and is anticipated to persist throughout 2024. Notably, spaces are now designed with flexibility as a cornerstone, featuring collaborative workspaces, hot desking options, and functional areas that align with the evolving needs of tenants. A palpable shift is observed as tenants actively seek changes in how they utilize their spaces, prompting intentional and tailored designs for workspaces.
Key Takeaways:
Capital Power Corporation and Ontario Power Generation have signed an agreement to assess the development and deployment of grid-scale small modular reactors (SMRs) in Alberta.
Capital Power and OPG will complete the feasibility assessment within two years.
The governments of Alberta, Ontario, Saskatchewan, and New Brunswick jointly released a Strategic Plan in 2022 for the deployment of SMRs.
The Whole Story:
Nuclear power could be coming to the prairies.
Capital Power Corporation and Ontario Power Generation have entered into an agreement to jointly assess the development and deployment of grid-scale small modular reactors (SMRs) to provide clean, reliable nuclear energy for Alberta.
Through the agreement, the two companies will examine the feasibility of developing SMRs in Alberta, including possible ownership and operating structures. SMRs are being pursued by jurisdictions in Canada and around the world to power the growing demand for clean electricity and energy security.
Capital Power and OPG will complete the feasibility assessment within two years, while continuing to work on the next stages of SMR development.
OPG is currently building North America’s first fleet of SMRs at its Darlington New Nuclear site in Ontario. The construction of the first of four SMRs is scheduled for completion at the end of 2028, and the unit is expected to be online by the end of 2029. Once assembled from modular pieces, the reactor would be roughly the size of a football field. It could provide power to 5,000 people for 20 years.
The governments of Alberta, Ontario, Saskatchewan, and New Brunswick jointly released a Strategic Plan in 2022 for the deployment of SMRs. The Commitment Agreement announced advances the plan, placing the provinces at the forefront of nuclear innovation, clean energy, and emerging markets for SMRs across Canada and around the world.
This agreement offers Capital Power a tremendous opportunity to elevate the company and Alberta on the world stage and marks a key milestone in its evolution to build a decarbonized power system and create real net-zero power solutions for customers.
“Ontario looks forward to leveraging our world-class nuclear expertise to advance the next generation of SMR technology in other jurisdictions across Canada and around the world,” said Todd Smith, Ontario’s minister of energy. “SMRs will help secure new investments that will create good-paying jobs and safely and reliably power communities to meet their growing needs.”
Record-breaking cold temperatures this month highlighted the province’s need for reliable energy. Energy demand began to outstrip supply, prompting officials to issue an emergency alert broadcast asking Albertans to shut off lights, unplug cars and avoid using appliances.
Elsewhere in Canada, some of its largest and most important nuclear facilities are currently undergoing enormous upgrades while still generating power:
Ontario’s Bruce Power, the world’s largest operating nuclear facility is in the midst of a $13- dollar upgrade project. It provides 30% of Ontario’s power. The work will extend the facility’s life by decades.
Darlington Nuclear Generating Station in Clarington, which supplies 20% of Ontario’s power is also in the midst of a massive $12-billion refurbishment.
Pickering Nuclear Generating Station is currently asking the federal government to allow it to continue operations and to conduct refurbishments of its own.
Officials in New Brunswick are currently negotiating a potential partnership with Ontario Power Generation aimed at improving operations at the Point Lepreau Nuclear Generating Station, a plant NB Power has owned and operated for 40 years.
Key Takeaways:
87% of B.C. construction contractors expect 2024 to be as busy – or even busier – than last year.
In 2025, the industry’s average hourly wage – before any bonuses, benefits, profit-sharing or overtime – will reach $37.51, or about $78,000 annually.
Wages for refrigeration and HVAC mechanics are expected to go up the most.
The Whole Story:
Despite economic uncertainty both domestic and international, 87% of B.C. construction contractors expect 2024 to be as busy – or even busier – than last year, according to the results of a new survey of Independent Contractors and Businesses Association (ICBA) member companies.
The nearly 250,000 men and women who work in construction in B.C. will benefit from this growth – with ICBA employers reporting that the average construction hourly wage will grow 5% this year, and another 6% in 2025. With these increases, in 2025, the industry’s average hourly wage – before any bonuses, benefits, profit-sharing or overtime – will reach $37.51, or about $78,000 annually.
“Construction is dynamic, fast-paced, and rewarding – people wake up every day and go to a job site to build everything around us, creating inspiring legacies that shape our communities and the way we will live for generations,” said ICBA President Chris Gardner, who released ICBA’s annual Wage and Benefits Survey of its member companies today. “It’s a message we have to convey to young people in a more convincing way than we have in the past.”
ICBA
Despite record levels of immigration, B.C. builders flag labour shortages of people (79% of contractors say there aren’t enough skilled workers), as a major challenge. Said Gardner: “Fewer than 2% of permanent immigrants entering Canada pursue a construction trade, so as a country we are failing to identify the gaps in our economy and recruiting people to move to Canada with the skills to fill those gaps – we have to do better and quickly.”
Other major issues include supply chain constraints (62% say they are experiencing supply delays), and government red tape (only 4% say government is on the right track in dealing with them) cited as major drags on their work – and this is driving up costs and impeding the efforts to tackle housing affordability.
“We have not moved the needle on housing supply for the past 50 years – we are building fewer homes today than we did in 1972. Reams of new regulations and convoluted approval processes have choked the supply we need to keep home prices affordable for first time homebuyers and young families,” said Gardner. “All three levels of government need to stop the finger-pointing and working at cross-purposes, and collaborate meaningfully to fast track housing, cut red tape, and put in place practical policies that will make a real difference for home buyers.”
Interior: 42% of contractors expect more work in 2024 than last year; 83% say they are short of workers.
North: 47% of contractors expect more work in 2024 than last year; 88% say they are short of workers.
Vancouver Island: 32% of contractors expect more work in 2024 than last year; 77% say they are short of workers.
Lower Mainland: 50% of contractors expect more work in 2024 than last year; 66% say they are short of workers.
New data released by BC Housing shows for the second consecutive year, a record number of purpose-built rental homes were registered in B.C., approximately 30% more than in 2022.
The December 2023 New Homes Registry Report shows 19,064 rental homes were registered in B.C. in 2023, the highest annual total since BC Housing started collecting this data in 2002. Compared with 2022, the number of registered rental units increased by 30.9%.
“Our government’s actions to tackle the housing crisis are starting to take hold as evidenced in the record-setting number of purpose-built homes registered in B.C. last year,” said Ravi Kahlon, minister of housing. “When you compare that to the fewer than 2,000 rental units registered in 2012, it’s quite remarkable how the landscape has changed under our government. I’d like to thank our province’s construction industry for its work to get more homes built for the people of B.C.”
In total, 45,647 new homes were registered in B.C. in 2023. These include 6,522 single detached homes and 39,125 multi-unit homes.
Registered new-home data is collected at the beginning of a project, before building permits are issued, making it a leading indicator of housing activity in B.C.
Under the Homeowner Protection Act, all new homes in the province are required to be registered with BC Housing before a building permit is issued. Each new home must either be enrolled in home-warranty insurance by a licensed residential builder or have an applicable exemption, such as a purpose-built rental exemption or an owner-builder exemption.
The province says home-warranty insurance protects new homes in B.C. against construction defects in materials and labour, building envelope and structural defects.
As the world’s construction sector is in the midst of battling high costs, labour shortages, unprecedented demand and more, many are looking to the tech sector to see if there is a better way to build.
According to a recent report by Cemex Ventures, Cemex’s corporate venture capital and open innovation unit, contech investment in 2022 was $5.38 billion. Nearly 50% of this investment took place in North America, 30% in Europe. The most active countries were U.S., U.K. and Canada. The most investment went into products that enhance productivity, at 53%.
In addition, Cemex released its annual list of the Top 50 Contech Startups. We went through the whole list and picked out 10 that caught our eye.
Automatic Construction
You can’t just inflate a home like a balloon, can you? The idea of inflatable concrete buildings sounds crazy. But it could be another tool to rapidly build structures. Here’s how Automatic Construction does it: Plastic fabrics with reinforcement and internal structures are delivered to a site and then pumped full of air. The inflated structure is then filled with whatever pumpable concrete you want. The forms stay put, providing built-in waterproofing and an airtight barrier. Mechanical systems are installed in built-in chases.
Mix Interesting
Mix Interesting is a digital mixing master that uses artificial intelligence to help to develop greener concrete 10 times faster than traditional methods. The company combines mathematical optimization, physical models and AI in a software tool that is able to propose new and promising concrete mix designs with a single click . The company says that this makes innovation cycles shorter, cheaper and reduces the number of laboratory experiments significantly.
Waste Robotics
Based out of Quebec, Waste Robotics is making the dream of robots doing the dirty work a reality. Waste Robotics integrates advanced waste handling processes, computer vision, deep learning algorithms and state-of-the-art robotic technologies to enable smaller, more precise, safer and more profitable waste recycling facilities. This is particularly useful for construction, which generates nearly 1.3 billion tons of waste each year. And let’s be honest, it’s oddly satisfying to watch robots methodically sort things.
2050 Materials
2050 Materials is a digital information and research platform and API for the AEC industry to explore, compare and source building materials. Their goal is to take the global data on building products, which can often be complex and hard to access, and present it all in a singular format that can be used by anyone. The company also developed the Embodied Carbon Optimizer, a visual tool that provides a simplified LCA for early design phases to quickly compare the climate impacts of building systems, like facades and roofs, by customizing standard assemblies per component.
Advanced Construction Robots
Advanced Construction Robotics’ name pretty much says it all. They make advanced construction robots for the construction sector. They also use artificial intelligence to automate processes. Currently, the company has TyBOT, which performs rebar tying duties, a painful and relative task when done by humans. TyBOT self-locates, self-positions and self-ties more than 1,200 intersections per hour. The company also offers IronBOT, which lifts, carries and self-places horizontal and longitudinal rebar.
oculai
Oculai isn’t a generic AI like ChatGPT. It knows construction inside and out and can recognize building processes. Using jobsite camera data, oculai records the work carried out for each day and automatically enters it into a ready-made daily construction report. This inlcudes photos, working hours and even weather data.
Aren
Aren’s patented technology brings together civil engineering, computer vision, deep learning, and artificial intelligence to monitor infrastructure assets, minimize the risk of failure, prioritize repairs, and optimize global infrastructure spending. After a digital twin of an asset is created and monitored, Aren’s artificial intelligence tool automatically detects and quantifies the severity of any damage, tracks changes over time, assesses how the damage is evolving and calculates the rate of deterioration of the asset to predict future structural changes.
BuildWitt
Founded in 2018 by self-described “chief dirt nerd” Aaron Witt, BuildWitt started off using photography and video to document some of the most incredible heavy construction sites on the planet. They have grown to offer specialized marketing services and training software for the construction sector. But most importantly, Witt and his team make construction look unbelievably cool and fun. And that is a huge part of what the industry needs to recruit more works. Witt’s YouTube channel alone has more than 250,000 subscribers.
Conox
Rather than toss out concrete waste, Conox has developed a process to melt it down to make traditional glass and other glass products. Conox says its propriety methods add a high value use of recycled concrete and provides the glass industry with a new, low greenhouse gas raw materials. Waste concrete is generated at a rate of nearly 2.2 billion tons a year. Conox gets it out of landfills and back into the economy.
Faber
It’s no secret that finding workers is one of the biggest if not the biggest challenge the industry faces today. Based in Vancouver, B.C., Faber has created an online marketplace that allows for contractors or construction companies to sign up and connect to a large database of skilled labour resources in their local city. Additionally, the platform allows contractors the flexibility to add or remove workers based on project demands.
Anthem noted that Cedarglen is recognized as one of Calgary’s top home builders, building and selling more than 300 homes per year.
They stated that dynamic synergy between Anthem and Cedarglen creates opportunities to support the growth strategy of both organizations.
“The acquisition of Cedarglen is a highly significant transaction for Anthem,” said Eric Carlson, Anthem core-founder and CEO. “It fortifies our position as an Alberta business and synergizes well with our Land division, and everything else we are doing in Calgary. Anthem and Cedarglen are well aligned on our growth strategy, Great People, culture, values, and process. This is a huge win-win, in every aspect.”
Anthem stated that for the foreseeable future the Cedarglen Homes brand, systems, processes, senior leadership team and partner relationships will continue to run as is, and the day to-day operations of Cedarglen Homes will run independently to Anthem and remain business as usual under the leadership of Howard Tse, President of Cedarglen Homes.
“This exciting partnership with Anthem Properties will open a world of opportunities for our employees and customers,” said Tse. “For our employees, it means joining a larger, dynamic company with a strong commitment to growth and development. For our customers, it means continued access to a wide range of high-quality homes in more communities in Calgary and the surrounding areas. We are confident that this partnership will be mutually beneficial and rewarding for everyone involved.”
Anthem explained that the immediate benefit between the two organizations is the shared knowledge of our market, systems and process.
“The potential future integration of our companies, people, culture, business strategies, systems and tools would only transpire in the event it became obvious to the senior leadership of both companies that doing so would materially enhance the success of the business,” said Anthem.
Key Takeaways:
The $194 million primarily comes from the federal government and Nunavut.
Some of the projects that will be funded are a long term care facility in Rankin Inlet and several water treatment facilities for other communities.
The funds will also purchase transit vehicles for Pond Inlet and Resolute Bay.
The Whole Story:
The federal and territorial governments are investing $194 million for infrastructure and to establish vital services for Nunavut.
Minister Sean Fraser, Premier P.J. Akeeagok and Minister David Joanasie announced that these projects will help advance Canada’s transition to a low-carbon future, while enabling the delivery of essential services such as health care, public transportation, and a safe and reliable supply of drinking water for Nunavummiut.
Funding will support the completion of a 24-bed seniors long term care facility in Rankin Inlet, which will provide essential personal care and health services to Nunavummiut Elders. The new facility will enable residents to age closer to home, while supporting the unique values and lifestyles of Nunavummiut. Once complete, the new space will operate in an energy efficient manner with low greenhouse gas emissions.
From increasing public transportation options in northern communities to improving critical water access, long-term care facilities, and more energy-efficient infrastructure, these projects support our commitment improving the health and well-being of Nunavummiut, while protecting the environment. By working hand-in-hand with our partners, we are building livable and sustainable communities now and into the future.
Sean Fraser, minister of housing, infrastructure and communities
The Municipality of Sanikiluaq will also benefit from the creation of a new water treatment facility. This work will consist of the design and construction of a building that will support the growing needs of this Inuit community and ensure compliance with public health standards. Furthermore, several other communities will see the addition of new water treatment facilities, such as the hamlets of Pond Inlet, Arctic Bay, and Grise Fiord. These projects will ensure the effective treatment of water and the availability of a safe and reliable drinking water supply for these communities for generations to come.
In addition, direct funding to municipalities will support the purchase of transit vehicles for the hamlets of Pond Inlet and Resolute Bay. These new transportation options will better connect residents, including seniors and persons with disabilities, to essential services in their communities such as medical appointments, along with other day-to-day activities.
The federal funding comes from various programs including the Green and Inclusive Community Buildings (GICB) program, the Rural Transit Solutions Fund (RTSF), as well as the Green Infrastructure Stream (GIS) of the Investing in Canada Infrastructure Program (ICIP). The Government of Nunavut is investing $64,863,750 while the hamlets of Pond Inlet and Resolute Bay are contributing a combined $76,755.
Key Takeaways:
Morrison Hershfield is one of the few large Canadian-based engineering firms with core strengths, business lines, and clients that are additive to its presence in multiple key growth markets.
The addition of Morrison Hershfield’s Horizontal Infrastructure business will double Stantec’s transportation presence in Ontario.
The acquisition will increase Stantec’s Canadian workforce by approximately 10%.
Morrison Hershfield’s portfolio includes work on the Gardiner Expressway, the Microsoft Redmond Campus Renovation and the NextStar EV battery plant in Windsor, Ont.
The acquisition is expected to be finalized this quarter.
The Whole Story:
Global engineering firm Stantec has signed an agreement to acquire Morrison Hershfield, a 1,150-person engineering and management firm headquartered in Markham, Ont. Founded in 1946 and employee-owned, Morrison Hershfield specializes in transportation, buildings, and environmental services. Morrison Hershfield has offices in 22 cities in Canada and the United States, and one office in India. With a particularly strong presence in Canada, Morrison Hershfield will increase Stantec’s Canadian workforce by approximately 10%.
The acquisition, which is being completed by way of a court approved plan of arrangement, is subject to Morrison Hershfield shareholder approval, court approvals, and certain regulatory approvals and is expected to close in Q1 2024. The terms of the transaction are not disclosed.
Stantec stated that the acquisition expands its presence in most major Canadian markets, and further strengthens its U.S. presence in buildings engineering. Stantec officials explained that Morrison Hershfield is one of the few large Canadian-based engineering firms with core strengths, business lines, and clients that are additive to its presence in multiple key growth markets, including the Greater Toronto Area. Similarly, Stantec’s global market presence and client relationships will accelerate Morrison Hershfield’s business line growth opportunities as part of Stantec.
“We are thrilled to bring a firm of Morrison Hershfield’s stature into the Stantec fold,” said Gord Johnston, president and chief executive officer, Stantec. “Our firms have shared a mutual admiration over many years. Stantec and Morrison Hershfield have a similar history from our roots in the Canadian market, growing and diversifying services both by geography and service line. And, importantly, our values and culture are very well aligned.”
Stantec noted that the addition of Morrison Hershfield’s Horizontal Infrastructure business will double Stantec’s transportation presence in Ontario, bolstering the firm’s bridge, highway, construction administration, program management, and inspection services in a key growth market.
They added that Morrison Hershfield’s capabilities, geographic strengths, and client mix are complementary to Stantec’s, and combined will result in a formidable player in transportation throughout Canada’s largest province. In Western Canada, Stantec says its strong market presence will be further solidified with the addition of Morrison Hershfield’s diversified transportation services, well positioning the combined practice for upcoming significant infrastructure project opportunities.
Morrison Hershfield is providing engineering services for the Gardiner Expressway East from Cherry Street to the Don Valley Parkway in Toronto. – City of Toronto
Morrison Hershfield is an industry leader in building and facilities engineering design. Stantec says the firm’s capabilities align with and augment its own buildings business in several of its key growth markets, including advanced manufacturing, transit facilities, and industrial building design. Additionally, Morrison Hershfield adds capacity in the high-growth mission critical and data center market space, which will further complement Stantec’s recent acquisition of Environmental Systems Design Inc.
Morrison Hershfield’s longstanding telecom and technology consulting business will add new capabilities directly tied to smart buildings and 5G implementation. Stantec’s decarbonization and high-performance building design work is expected to be strengthened by Morrison Hershfield’s industry-leading position in building envelope and building science design, as well as code life safety consulting, commissioning, sustainability, and whole building energy modeling consulting, among others.
The company added that Morrison Hershfield’s Environmental Services business will bolster its capacity to support infrastructure projects in key Canadian markets, including Toronto, Vancouver, and in Canada’s North by combining teams in Whitehorse, Yukon. The firm will also support Stantec’s work in the energy transition by providing additional capacity in environmental impact assessment, ecological services, and geosciences. Stantec noted that Morrison Hershfield’s client base will benefit from Stantec’s expertise in nature-based solutions, carbon sequestration, and natural capital. Morrison Hershfield also has a team dedicated to climate change risk, climate resilience assessment and adaptation services, which will augment Stantec’s own expertise in this critical area.
“Joining the Stantec family marks a historic moment for our 78-year-old company. Stantec is a highly successful firm that shares our corporate values and mission, with a unique culture that complements our own,” said Anthony Karakatsanis, president and chief executive officer, Morrison Hershfield. “With access to Stantec’s depth of renowned experts, resources, and cutting-edge technology, we will be able to provide our employees with exciting and meaningful work, growth, and professional development for the long term. This acquisition provides us with access to many high-profile North American and global projects and markets in the communities where our employees live and work.”
Projects in Morrison Hershfield’s portfolio include:
Engineering services for the Gardiner Expressway East from Cherry Street to the Don Valley Parkway in Toronto. Work included condition assessment, detailed design, and preparation of tender documents for interim repair, as well as preliminary design for the replacement of this section. Morrison Hershfield also led a multi-firm team for contract administration services on the deck replacement from Jarvis to Cherry Streets. The combined construction value of both projects is $748 million.
Owner’s engineer on the Confederation and Trillium lines of Ottawa’s Light Rail Transit system. Morrison Hershfield provided services for preliminary engineering and procurement, as well as implementation and construction phases. The project involves the construction of 44 kilometres (27 miles) of new light rail running way, as well as 24 stations. Several interchange modifications were also needed on Highway 417.
Engineer of record for NextStar’s lithium-ion EV battery manufacturing facility in Windsor, Ont. Morrison Hershfield’s services include mechanical, electrical, and civil services on the 418,000 square-metre facility.
Buildings engineering services for the Microsoft Redmond Campus Renovation in Redmond, Washington. The campus project includes 19 new buildings across four villages, a 6,500-car parking garage, a visitor center and a Central Utility Plant. Morrison Hershfield services include building envelope consulting and commissioning, façade engineering, energy modeling, and field performance testing. Morrison Hershfield’s work on the project is complementary to Stantec’s, which includes technology, acoustics, MEP, and lighting design for multiple buildings on the campus.
Environmental monitoring for the Ministry of Transportation of Ontario’s stormwater management ponds as part of their West Nile Virus monitoring and treatment program. Services include program planning and resource allocation, land use and hydrological assessment, monitoring and documenting daily results, and analysis of results. Morrison Hershfield has managed this program exclusively for the Ministry since 2004.
2023 was a busy year for B.C. Housing Minister Ravi Kahlon as he helped get several major pieces of housing legislation passed and he has his eyes on more reforms. With so much movement on speeding up construction, SiteNews caught up with the minister to talk construction barriers, prompt payment, his own experiences in the trades and much more.
SiteNews: B.C. has been on a massive run of legislative reforms to speed up the development and construction of homes. What sort of effort did it take to get these reforms across the finish line?
B.C. Housing Minister Ravi Kahlon: These changes are a reflection of the basic concept that we can’t do the same thing and expect different results. We know the system needs reform and we started engaging in that better path back in 2018. Premier Eby made it clear that we need change because things are not working for too many people. Our staff worked around the clock and stakeholders worked with us aggressively to ensure that we land on the right policies.
What do you feel is the biggest barrier to home construction in the province and what are the next major ones B.C. is looking to address in the coming years?
There are process barriers that we are reforming through legislation. This means getting to decisions quicker. One of the biggest frustrations is we develop these community plans and then require projects to go through an extensive process again. That is why we are reforming the process, including CACs and ACCS. We have also moved to allow housing as-of-right to ensure we get housing faster. Then there is the actual construction. We have to find ways to build differently. We are looking at allowing single-egress stairs. We are looking at mass timber to allow housing to be built much quicker because we know it can be built with less people, as we will have a labour shortage for the next few years. So there is the process side and the construction side and we are working on both at the same time.
Tell me about the role data and modeling played in crafting some of B.C.’s policies. I understand you looked at Washington State and New Zealand. The province also worked with economic and planning experts to analyze potential impacts.
The policies that were brought into place, we believe, are best practices across North America. Our BC Housing advisory group recommended many of the things that we have done. We also looked at Ontario’s housing reports and incorporated things from both reports. We also brought in economists to quantify the economic impacts, but that analysis didn’t drive the changes. It was nearly there to ensure that what we were doing aligned with the targets we want.
Many in B.C.’s construction sector are frustrated that prompt payment legislation has yet to be passed in the province. Is this something that is on the ministry’s radar and do you have any updates on this?
The attorney general is actually leading this and they started just now on engagement, getting the scope of the problem and a possible path for us here in B.C. but that is being led by the AG and not the Ministry of Housing.
I read that your father worked at a sawmill. How did this impact your view on people who work blue collar jobs in construction, manufacturing etc.?
I was raised on jobs that required hard work, rolling up your sleeves and getting your hands dirty. After I graduated high school, I thought about maybe taking a year off. My dad said ‘great’ and sent me off to work for a company installing new windows in old homes. I worked for a plumbing company digging ditches in the winter to lay pipes. It gave me a real good understanding of the amount of work it takes to build housing and how hard that work is. I have many family in the trades or homebuilding sector so it is a comfortable space for me to be in. It is critically important for building the housing and important infrastructure in our communities.
Of all the skilled trades in the construction sector, if you had to choose one to learn, which one would it be and why?
There’s something wonderful, beautiful and artistic about being an architect and designing some of these homes. If I took one trade, I’d say it would be frame just because you can see something put up and into a structure. I enjoyed plumbing work but it was a bit to challenging for me. Maybe I’d have to revisit it again so plumbing would be my third.
Key Takeaways:
AtkinsRéalis and Bird Construction are teaming up with Metrolinx to deliver the East Harbour Transit Hub.
They have entered into an alliance development agreement as a joint venture, Rail Connect Partners.
The East Harbour Transit Hub is expected to bring about 100,000 daily riders
The Whole Story:
AtkinsRéalis and Bird Construction, have entered into an alliance development agreement to work collaboratively with Metrolinx to deliver the East Harbour Transit Hub: a new interchange station that is part of a broader transit-oriented community plan for Toronto. AtkinsRéalis is partnered with Bird under the Rail Connect (RC) Partners joint venture.
It was also announced that Hatch will be the lead design participant and will provide architectural, engineering, project management, and advisory services to support the project.
Under the alliance development agreement, services include optimizing the design solution, preparing detailed estimates for resources, costs and schedules, preparing a project proposal, finalizing the project Alliance agreement, and performing early works.
“The alliance development agreement represents a significant development for us in how we execute large projects without a fixed price contract model; we are thrilled to work closely with our alliance partners to apply this collaborative model to deliver an exciting new regional transportation hub,” said Ian L. Edwards, president and CEO, AtkinsRéalis. “We are proud to contribute to improving transportation links in the Greater Toronto Area and developing innovative solutions to improve accessibility for commuters.”
Officials say the The East Harbour Transit Hub will support local transit needs in the community and regional connectivity, through the incorporation of the GO Train, Ontario Line subway and future Toronto Transit Commission (TTC) light rail transit. Service levels planned as part of GO Expansion would see a GO train arriving as frequently as every five minutes.
According to Metrolinx, the project will use 40 km of existing GO rail corridors so that new rail stations are more convenient for neighbourhoods and major commercial areas.
Based on preliminary analysis, East Harbour Transit Hub is expected to bring about 100,000 daily riders, with an approximately even split between East Harbour customers using the Ontario Line and SmartTrack GO Station.
Some of the project benefits include:
Concourse area with customer amenities and accessible drop off;
Connections to the future Broadview Ave extension.
GO platforms for local and express train service, complete with elevators.
Access to GO trains, the future Ontario Line subway and future TTC light rail transit in one location.
A multi-use path and trail bridge and landings over the Don River
Eastern Avenue Bridge reconstruction to support both GO transit and the new Ontario Line subway.
Single train connection to Pickering, Whitby, and Oshawa as well as destinations such as Mississauga, Oakville and Hamilton.
Key Takeaways:
Samsung Heavy Industries (SHI) and Black & Veatch have been selected to provide engineering, procurement and construction for the design, fabrication and delivery of the project’s floating LNG production unit
Project officials say a final investment decision is expected by the end of the first quarter of 2024.
Onshore construction work for the project could commence as early as the second quarter 2024, with the delivery of the FLNG and substantial completion expected in 2028.
The Whole Story:
The Haisla Nation and Pembina Pipeline Corporation, partners in the development of the proposed Cedar LNG Project, announced Samsung Heavy Industries (SHI) and Black & Veatch have been selected to provide engineering, procurement and construction for the design, fabrication and delivery of the project’s floating LNG production unit (FLNG), subject to a Final Investment Decision (FID).
“This is a critical milestone on our path towards a FID for Cedar LNG, the first Indigenous majority-owned LNG project in the world,” said Doug Arnell, Cedar LNG CEO. “We have secured world-class FLNG expertise and look forward to working with SHI and Black & Veatch to build an LNG facility with one of the cleanest environmental profiles in the world that will usher in a new era of low carbon, sustainable LNG production.”
Cedar LNG now has major regulatory approvals and signed memorandums of understanding for long-term liquefaction services for the project’s total LNG capacity. Officials say the project is now at an advanced stage of planning and development with a FID expected by the end of the first quarter 2024. However, early last year, Cedar LNG stated that it was anticipating a FID in the third quarter of 2023.
Subject to a positive FID, onshore construction work for the project could commence as early as the second quarter 2024, with the delivery of the FLNG and substantial completion expected in 2028.
The Cedar LNG Project is a partnership between the Haisla Nation and Pembina Pipeline Corporation to develop a floating liquefied natural gas facility in Kitimat, B.C. within the traditional territory of the Haisla Nation. Cedar LNG will be powered by renewable electricity from BC Hydro, making it one of the lowest carbon intensity LNG facilities in the world.
An artist’s Rendering shows the proposed facility and docked LNG carrier. – Cedar LNG
Originally, the $5.7 billion project was scheduled for completion in November 2024 with opening anticipated by the end of that year.
The new completion date is September 2025 and the updated overall contract value is $6.4 billion.
The project team stated that the delays were due the unique COVID-19 restrictions the project had, as the site is in Canada and the U.S.
The Whole Story:
The Gordie Howe International Bridge has been delayed by 10 months and its costs have shot up $700 million.
The Gordie Howe International Bridge project team announced a new completion and opening timeline. Construction completion is planned for September 2025 with the first vehicles expected to travel across the bridge that fall.
Originally, the $5.7 billion project was scheduled for completion in November 2024 with opening anticipated by the end of that year. However, the team stated that the project experienced “unprecedented disruptions” as a result of the COVID-19 global pandemic. They added that the disruptions were even more prevalent for the Gordie Howe International Bridge project given the differing applicable restrictions in the U.S. and Canada, combined with the ramping up of construction activities in early 2020.
An aerial photo shows progress on the bridge from the U.S. side in September 2023.
“After a three-year pandemic and considering the size and complexity of the Gordie Howe International Bridge project, our project team is pleased that the impact to the construction schedule is limited to only 10 months beyond the original contracted completion date and that we could agree on a reasonable adjustment to the contract value,” explained Charl van Niekerk, CEO, Windsor-Detroit Bridge Authority. “With safety as our top priority, we will continue to work together to deliver this much needed infrastructure to the thousands of eager travellers ready to cross North America’s longest cable-stayed bridge.”
The public-private partnerships (P3) contract between Windsor-Detroit Bridge Authority (WDBA) and Bridging North America (BNA) provides for the schedule and cost impacts of certain risks to be shared. As a result, WDBA and BNA have agreed to amend the contract to include the new September 2025 construction completion date, new measures to ensure this date is achieved, and an updated overall contract value of $6.4 billion.
According to the project team, the new timeline is achievable without compromising quality, and the health and safety of workers.
Recognizing that an extended construction period impacts the project host communities, WDBA has budgeted for a one-year extension of the Gordie Howe International Bridge Community Benefits Plan. With $3 million to be divided equally between Canada and the U.S. and expended over the 2025-2026 fiscal year, residents and business owners in Sandwich/west Windsor and Delray/Southwest Detroit will see positive outcomes from further regional investments. Additional details on the approach to allocating this funding will be shared later in 2024.
Beginning in March 2020 and over the remainder of the pandemic, various governments, including the Governments of Ontario and the State of Michigan, issued hundreds of emergency and executive orders that applied to the Gordie Howe International Bridge project resulting in schedule and cost relief that is contemplated in the Project Agreement between WDBA and BNA.
Over 2022 and 2023, the project team says it was able to make significant progress on bridge and road deck construction, stay cable installation and port of entry facilities which helped drive the overall construction schedule.
In 2024, the public can expect to see the bridge deck connect over the Detroit River and the last of the 216 stay cables installed, as well as the completion of the POE agency buildings and the concrete for the I-75 ramps.
Following construction completion, the project team will finalize operating processes and testing to fully prepare the facilities for traffic crossing the border starting in fall 2025.
Key Takeaways:
The marketing partnership will showcases Skilled Trades College of Canada within UFC’s live events hosted in Canada, including Pay-Per-Views and Fight Nights.
STC will receive brand integrations within UFC’s Canadian live events, including high visibility placement inside the octagon, and in-venue booth activations.
The college will begin activating its partnership with UFC during UFC 297: STRICKLAND vs. DU PLESSIS on Jan. 20 at Scotiabank Arena in Toronto.
The Whole Story:
A new partnership is looking to land some heavy blows on skilled trades shortages in Canada.
Mixed martial arts organization UFC, and Skilled Trades College of Canada (STC) announced a new marketing partnership that showcases STC within UFC’s live events hosted in Canada, including Pay-Per-Views and Fight Nights.
“We’re thrilled to welcome STC as an official UFC partner,” said Grant Norris-Jones, executive vice president and head of global sponsorships, UFC & WWE. “Their mission of providing young people vocational training to create a foundation for meaningful careers is a cause we are proud to use our UFC platforms to promote and support.”
As an official partner of UFC, STC will receive brand integrations within UFC’s Canadian live events, including high visibility placement inside the octagon, and in-venue booth activations that will provide opportunities for in-person fan engagement. In addition, UFC and STC will collaborate on custom content that will be distributed through UFC’s Canadian digital and social channels.
The construction industry is like being in the Octagon – the best trainers and coaches make the difference between winning and losing.
Mike Di Donato, chief operating officer, Skilled Trades College
“To partner with UFC and serve as Presenting Partner of UFC 297 is incredibly exciting and meaningful to all of us at Skilled Trades College,” said Ralph Cerasuolo, president and CEO of Skilled Trades College. “For almost 20 years, Skilled Trades College of Canada has educated and trained people to be job ready in the skilled trades. Partnering with UFC reflects our shared values with an understanding that opportunities need to be earned and seized. Students at STC align with the qualities of grit, determination, and a work ethic that are necessary in the trades – and always visible inside the Octagon.”
STC noted that they are also launching the Building Champions Scholarship later this year which will unlock new opportunities for STC students. The initiative aims to grant a full scholarship to 12 students to use towards any STC pre-apprenticeship program.
“Like UFC, we are always looking to evolve and innovate, and we are so excited to collaborate on such a meaningful endeavor,” said Cerasuolo. “Together, we are unveiling a first-of-its-kind scholarship that will transform the lives of 12 youth with the Building Champions Scholarship.”
Additionally, STC will host two viewing parties in 2024. The viewing parties will feature silent auctions with all proceeds benefiting Steel Toe Careers, a registered nonprofit in Toronto that provides scholarships to young people to gain equitable access to education and hands-on skills training to pursue a career in the construction industry.
“The construction industry is like being in the Octagon – the best trainers and coaches make the difference between winning and losing,” said Mike Di Donato, chief operating officer, Skilled Trades College. “At STC we pride ourselves on providing the industry’s top training and employment services. We are excited to work with UFC on the Building Champions Scholarship, and having those winners be trained, job ready, and into meaningful employment.”
STC will begin activating its partnership with UFC during UFC 297: STRICKLAND vs. DU PLESSIS on Saturday, Jan. 20 at Scotiabank Arena in Toronto, where they will serve as the presenting sponsor. Returning to Toronto for the first time since 2018, the event will feature a world championship double header, headlined by a middleweight championship bout between Sean Strickland and No. 2 ranked contender Dricus Du Plessis. Also, a new women’s bantamweight champion will be crowned when No. 2 ranked contender Raquel Pennington battles Mayra Bueno Silva.
You know the names of construction companies and projects, but what about firms behind the secenes providing capital? This week were are taking a look at investment groups that have taken an interest in the construction space, helping seed new ventures or acquiring growing businesses. Some are generalists that have only dipped their toe into construction, while others are specialists steeped in the industrial sector.
Hillcore Group
2023 was a massive year for the Hillcore Group. They made major moves in the construction sector, acquiring Midlite Construction, Ruskin, Zanron Mechanical Services and Thompson Construction Group. They invest predominantly in the life sciences, real estate, seniors living, financial, logistics, industrial, forestry and energy sectors. Founded in 1995 in Toronto, Hillcore manages more than $5 billion in assets. Since 2005, they have completed acquisitions, directly or indirectly through their investment funds, with an aggregate asset value in excess of $9 billion.
TriWest Capital
TriWest was founded in 1998 by Ron Jackson, Lorne Jacobson, and Cody Church, following the sale of Burns Foods, a 110-year-old, private Canadian food conglomerate with revenues of $1.1 billion. Today, they are a leading Western Canadian-based private equity firm with 23 years of experience investing in 47 companies, many of them geared towards heavy industrial work. Their portfolio includes heavy construction provider Broda Group, concrete manufacturer Con-Force, Strike Group and many more. Recent activity includes selling ZyTech Building Systems to Dick’s Lumber and selling modular builder Triple M Housing to ATCO Structures.
Yellow Point Equity Partners
Co-founded by former Greenlight Power CEO Dave Chapman and investment banking expert Brian Begert, Yellow Point wants to take a more personal approach to investing and partnering with management. Their team says they assist with tough transitions and facilitate growth, succession planning, management, buyouts and more. Each member of Yellow Point has a significant portion of their personal wealth invested in our funds, which makes them committed to a company’s success. Past and current investments in the industrial sector include Remcan, CIMS, Bravo Target and Crossroads CCI Industries, the world’s largest manufacturer of Allan Block concrete retaining wall systems.
CAI Capital Partners
Vancouver-based CAI has a passion for founder-owned businesses in the lower middle market, many of them serving Canada’s construction sector. Current investments include Midwestern Electric, LineStar Utility Supply, Universal Group, GLM Industries and more. Over the past 30 years, CAI has invested $1.6 billion. The company states that the most important element of their approach is forming meaningful relationships.
Cassiar Partners
Founded in 2020, Cassiar describes itself as a boutique private investment firm committed to the success of small and medium sized Canadian businesses. Their approach is people-centered and geared towards long-term investments. Current investments in the construction sector include CEL Electrical Contractors, H.H.S. Drilling & Blasting
Business Development Bank of Canada
Technically a crown corporation, BDC is heavily involved in venture capital with the construction sector, particularly green construction technology. It has investments with prefabricated housing tech company Intelligent City, sustainable construction materials provider Carbon Upcycling, AI concrete data company Giatech and green concrete company CarbiCrete.
StandUp Ventures
The goal of Toronto-based StandUp Ventures is clear: To champion breakthrough companies led by women. More specifically, they invest in seed-stage, for-profit technology companies with at least one woman in a C-level leadership position within the company who has an equitable amount of ownership. They also lean heavy into tech. Their portfolio includes jobsite communication platform Bridgit and construction intelligence platform Mercator AI.
GroundBreak Ventures
Investing has also become an activity that companies can do to help their own industry advance. GroundBreak Ventures, the investment arm of multi-faceted real estate developer Hopewell, is a venture capital firm specializing in real estate and property technology. The Toronto firm invests as early as the pre-seed stage, and provides both the capital and the domain expertise needed to support the growth. Some of their investments include construction materials marketplace TOOLBX, modular construction tech platform Modulous and CAD drawing conversion provider AirWorks.
The start of a new year is often a time for us to reflect on the past and look ahead to the future. We cast a wide net to ask construction leaders for their thoughts. The respondents include CEOs, architects, construction association directors, researchers, unions and more. Here’s what they had to say:
What do you believe was the biggest story to come out of 2023 and why?
The Federal and Provincial Governments are finally listening to the development community and taking steps to address housing supply after years of industry pushing the issue to the forefront. Also interesting to see the increased attention to automatic rezoning based on distance to transit hubs and missing middle housing strategies.
Mike Maierle, President ETRO Construction Limited
People and opportunities in construction have become a focus of discussion across the industry and beyond. Everyone is recognizing that the industry needs more people to build and maintain the built environment in Canada. There is a driving need to improve productivity, recruit people into the construction industry, and leverage innovative technologies to make it more attractive for everyone.
Dom Costantini, President, BLDR Consulting Corporation
In 2023, one of the most significant stories in the construction industry was the accelerated adoption and advancement of 3D concrete printing technology. This innovation garnered widespread attention due to its potential to revolutionize the construction sector.
Jeff Olafson – CEO, Business Development, Gardon Construction Ltd.
It would be a toss up between the economy and the various labour strikes held in 2023 as a result of the rising cost of living.
Affordability defines so much of the discussion we are having in construction. We have not been able to move the needle on our housing supply for the past 50 years. In 1972, 230,000 new homes were built in Canada. In 2022, 220,000 new homes were completed—and this year has trended even lower. Decades of regulations and red tape have choked the supply we need to keep home prices affordable for first time homebuyers and young families. Governments must act with urgency in four key areas: expedite permits and approvals, slash the punitive costs strangling home construction, recalibrate our immigration approach to alleviate undue strain on our resources, and, most critically, all three levels of government need to stop finger-pointing and working at cross-purposes, and instead work together meaningfully. Only through decisive and sustained action can we address this national crisis.
Chris Gardner, President – Independent Contractors and Businesses Association (ICBA)
High interest rates, high inflation, lack of affordable housing and commercial office space is empty!
Zenon Radewych, Principal, WZMH Architects
I think we saw the ripple effect of a few big stories play out in 2023. The housing crisis in B.C. and across the country dominated headlines and debates by government officials, but it also shined a brighter light on the skilled labour shortage in the sense that we can’t build more affordable homes without more boots on the ground.
Jeannine Martin, Vancouver Regional Construction Association (VRCA) President
On October 16th, Premier David Eby announced his government will bring in a requirement for flush toilets on construction sites with 25 workers or more. The announcement came on the heels of a years-long advocacy push from the BC Building Trades. This is a landmark moment for construction workers in this province. For too long, workers have been forced to deal with undignified washroom facilities on the job.
Brynn Bourke, Executive Director, BC Building Trades
The most impactful narrative of 2023 was the likely stabilization of the interest rate environment by year’s end, a perception that will underpin many investment decisions. This reduction in uncertainty will provide businesses with a clear foundation for strategic planning and encourage long-term investments, providing both investors and companies with a more secure basis for capital allocation. It will also act as a catalyst for executing acquisition/disposition strategies and initiating construction starts.
Andrew Petrozzi, Director and Head of Canada Research, Newmark Canada
Certainly the Bank of Canada policy rate and its effects on rising interest rates. The first increase earlier in 2023 sent shivers throughout the real estate community both in commercial and residential. 2023 was already experiencing the crippling effects of rising costs of construction, coupled with the demands from all levels of government on taxes and levies for new construction and labour increases. The rise of interest rates created a new challenge for the health of our industry.
Mark Fieder, Principal and President, Avison Young Canada
What was the biggest construction innovation to come out of 2023?
I still believe as an industry we are lagging well behind other industries but I finally see more and more organizations focused on LEAN Construction, looking at pre-fabricated elements throughout projects and creating standard work. Although not really innovative, I believe government mandated “flushable toilets” on construction sites will be a game changer in the long term and help attract more diversity to construction.
Mike Maierle, President ETRO Construction Limited
Not an easy question to answer. I would say that software, AI, ML, Robotics, and Sensors are going to continue pushing the technology innovation in the industry. However, perhaps the biggest innovation this year is coming through changes to zoning by-laws to allow more housing units on lots in many cities and municipalities that is being driven by the federal government’s CMHC Housing Accelerator Fund. This will drive increased investment and should increase housing supply. It will change the fabric of communities and neighborhoods.
Dom Costantini, President, BLDR Consulting Corporation
In 2023, the construction industry witnessed several innovations, but the most significant was likely the advancements in autonomous construction robotics. These robots, equipped with AI and machine learning capabilities, have been increasingly integrated into construction sites for tasks like bricklaying, painting, welding, and even complex assembly work.
Jeff Olafson – CEO, Business Development, Gardon Construction Ltd.
It’s hard not to be inspired with how rapidly the construction industry is embracing change in key areas – technology adoption, recruiting women and Indigenous workers, and talking more openly about mental health. Construction has an undeserved bad reputation for not moving faster in these areas. But the pace of change has accelerated, and I can think of no more exciting time to be pursuing a career in construction than today.
Chris Gardner, President – ICBA
We’re looking forward to AI and the impacts it might have on construction and the potential that it might have on fieldwork. We’re also hopeful for the promise of digitized permitting that will help streamline the permitting process in construction.
Jeannine Martin, VRCA President
It should never have been eliminated in the first place, but because it was…the biggest innovation was the return of Skilled Trades Certification in B.C. The Province of B.C. has selected 10 trades for compulsory certification (7 that came into effect on December 1st) including Steamfitter/Pipefitter, Refrigeration and Air Conditioning Mechanic, Gasfitter A & B, Sheet Metal Worker and Electrician. Up to 10 more trades are set to join the program in 2024.
Brynn Bourke, Executive Director, BC Building Trades
The rising prevalence and availability of low-carbon cement/concrete and other alternative wood-derived building materials. Cement production is one of the largest polluting sectors in the world in terms of global greenhouse gas (GHG) emissions. The industry’s increasing efforts to adopt low-carbon and carbon-neutral alternative building materials signifies a crucial stride towards addressing this environmental challenge.
Andrew Petrozzi, Director and Head of Canada Research, Newmark Canada
Although I am consistently impressed by innovations in technology and design, what struck me in 2023 was the people: how we as a commercial real estate industry responded in uncertain times. Our industry is one of resilience and tenacity, built upon the foundation of collaboration. Throughout 2023, we became even more solution-oriented, staying close to our clients and finding creative ways to navigate them through the new roadmap of economic changes. Avison Young’s unique offering of an integrated, cohesive team approach demonstrates how holistic services under one roof can break down siloes – and put people first – by eliminating confusion and adding efficiencies.
Mark Fieder, Principal and President, Avison Young Canada
Do you believe builders will be more or less busy in 2024?
The outlook for ETRO is positive. We are looking at a significant revenue jump from 2023 to 2024 along with continued hiring of all roles within the company from field operations to leadership roles.
Mike Maierle, President ETRO Construction Limited
I expect builders will be busier than 2023. The push for housing and GST rebate will drive that sector even more. I expect that decarbonization will play a major role in new work for those involved with deep energy retrofits of existing buildings.
Dom Costantini, President, BLDR Consulting Corporation
I think we will continue to see cranes in the sky across the Lower Mainland and have a similar business pace.
Jeannine Martin, VRCA President
We anticipate a busy future for the construction industry. Here’s why: Economic Outlook: A stable or growing economy in Canada and North America likely means sustained or increased construction activities. We’re closely monitoring economic trends and government infrastructure investments, which seem promising. Technological Advancements: Our commitment to 3D concrete printing and additive manufacturing puts us at the forefront. These emerging technologies could lead to new projects and improved efficiencies, boosting our workload. Environmental Focus: The shift towards green building standards aligns with our expertise. This trend could bring more business, especially from clients prioritizing eco-friendly construction practices. Residential Growth: A strong housing market often boosts commercial construction. If housing demand stays high, we might see a surge in residential and subsequent commercial projects.
Jeff Olafson – CEO, Business Development, Gardon Construction Ltd.
I think this will depend on what markets and industries you work in. I think overall new construction is going to slow with the exception of large infrastructure and hospital work. Retrofit and service industries will likely remain consistent and busy. New developments are slowing with the high cost of borrowing.
The past few years have seen compounding crises. First COVID-19, then the shortage of people, then supply chain challenges and the historic escalation in materials costs, and most recently inflation and high interest rates. Through all of this, construction has been remarkably resilient. But economic and regulatory headwinds now slow our progress: Despite the demand for housing, higher interest rates and the impact on the cost of financing projects and mortgages have slowed residential construction. The prospect of interest rates easing in the second half of 2024 will provide some relief. While there is much uncertainty, both internationally and domestically, and a lot of reasons to be concerned about the outlook for 2024, we believe that work volumes, while softer than in the past few years, will remain relatively strong next year.
Chris Gardner, President – ICBA
Excitement is the build-up of innovation starting to take place and the one concern is still the high cost of construction, high interest rates and high inflation that will slow down the construction of new projects.
Zenon Radewych, Principal, WZMH Architects
While the nature of the projects driving construction activity are predicted to change with some major industrial projects winding down, massive public investment in infrastructure projects are expected to keep construction workers very busy for the next few years.
Brynn Bourke, Executive Director, BC Building Trades
I anticipate a busier year for builders in 2024. Labour and construction costs are stabilizing, and there’s a massive push for increased housing construction from the provincial and federal governments. This drive is expected to boost construction activity across Canada. The combination of residential construction, several large-scale rapid transit initiatives nationwide, the construction and refurbishment of Canadian power infrastructure and notable investments in transportation infrastructure, will ensure high demand for builders throughout the entirety of 2024.
Andrew Petrozzi, Director and Head of Canada Research, Newmark Canada
Avison Young expects developers to continue to hold on new construction, with the exception of industrial, multifamily and grocery-anchored retail. Should the industry see interest rate reductions by mid-year, we could see an increase in other sectors, like condo, toward the later part of the year as buyers become comfortable with interest rate levels, and construction and labour costs soften. We also predict that municipalities will help remove roadblocks to new development by streamlining approvals, changing outdated zoning requirements, and reducing taxes, fees, and levies. We also anticipate that investors will pay more attention to opportunities to acquire office assets.
Mark Fieder, Principal and President, Avison Young Canada
What is one thing that makes you excited about being in Canadian construction going into 2024, and one thing that makes you concerned?
I’m excited about the opportunities in all sectors with our continued population growth in Vancouver which is not only driving residential multi-family construction but also intuitional spaces for people to learn, play and create community. I remain concerned about how interest rates and record high household debt will impact our communities and remain very concerned about housing affordability for middle and lower income families.
Mike Maierle, President ETRO Construction Limited
I am excited about the big emphasis on innovation and opportunities in the Canadian construction industry. I am concerned, we are not investing enough in building the industry and that the complexity of projects and contracts risk management is not where it needs to be.
Dom Costantini, President, BLDR Consulting Corporation
One exciting aspect for the Canadian construction industry in 2024 is the potential for innovation in sustainable building practices, especially with technologies like 3D concrete printing. Canada’s commitment to environmental sustainability and the push for green building initiatives can provide a great platform for your company to lead in additive manufacturing in construction. On the concern side, the rising costs of materials and potential supply chain disruptions could pose significant challenges. These factors can impact project timelines and overall budgets, requiring careful planning and perhaps even more innovative solutions to mitigate these risks.
Jeff Olafson – CEO, Business Development, Gardon Construction Ltd.
Starting with what makes me concerned, obviously I think the #1 answer anyone will give is the economy and what the future forecast of work will look like as we skirt a potential recession. With that said there is a lot of exciting infrastructure spending that the construction industry will benefit from based on infinitives being taken by the various levels of Government. I’m excited to see many new projects come out and take shape over the next year.
Excited: Excitement is an understatement when you consider construction’s massive impact. Nearly 250,000 men and women work in construction in B.C., an unsung hero accounting for 10% of our economy. It also presents endless challenging and inspiring career opportunities. Construction is dynamic and fast-paced – people wake up every day and go to a job site to build everything around us, creating inspiring legacies that shape our communities and the way we will live for generations. Concerned: However, we should all be concerned about the ongoing shortage of people being acutely felt throughout the industry. For young people, we need to do a much better job of telling the entrepreneurial story of construction, highlighting the exciting ways technology is changing the way we design and build. We also need to do a better job of attracting people to Canada who have a background in the trades – to date we have done a poor job of identifying the skills gaps in our economy and attracting the talent we need to fill those gaps. Currently only about 2% of new immigrants to Canada end up working in a construction trade.
Chris Gardner, President – ICBA
I think the opportunity that collaborative business models bring is something to be excited about in 2024. Also, the opportunity for industry to recognize the significant role women and underrepresented groups can play in advancing construction both by helping to mitigate the labour shortage and improve business. One concern I have is that although the construction industry equates to 7.4% of the national GDP and 10.3% to B.C.’s GDP, it does not get the level of attention from government it deserves.
Jeannine Martin, VRCA President
I’m both excited and concerned about the labour supply challenge we face. On the one hand, there has never been a better time to join the construction industry. Employers are hiring and work is steady making an apprenticeship much more manageable. The benefits of a career in the trades are clear, with high wages and improving working conditions. On the other hand, we will need to work harder than ever as an industry to build new pathways to recruit, assess and properly place a whole new generation of workers. More employers will need to commit to sponsoring apprentices and industry will need to work together to promote construction careers to a more diverse range of workers.
Brynn Bourke, Executive Director, BC Building Trades
I’m excited about the adoption of new technology, especially for improving sustainability in building construction and design. This is critical, as the built environment is a major contributor to greenhouse gas (GHG) emissions, and progress in this area is needed in order to hit emission reduction targets. A significant concern I have is the demographic shift impacting the construction workforce. If not managed effectively, this generational shift could hamper construction activity precisely when it’s most needed – especially in sectors like housing, hotels and infrastructure.
Andrew Petrozzi, Director and Head of Canada Research, Newmark Canada
I am positive about Return to Office efforts – and, as a by product of that, about office leasing and sales. Of late, we are seeing some pent up demand in the market for office space and I see that carrying into 2024. As a matter of fact, for investors with longer-term outlooks and higher risk tolerances, I’d recommend looking at this sector as there are opportunities in the broader Toronto area. For 2024, we continue to keep a close eye on the interest rate environment and the surrounding uncertainty. We predict high interest rates will keep GDP growth in negative territory until spring 2024, creating short-term headwinds for the real estate market. However, we believe that 5.0% marks the peak for interest rates.
Mark Fieder, Principal and President, Avison Young Canada