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.
The Ontario government is investing in road and highway upgrades to enhance connections between First Nations communities in the Greenstone area and the provincial highway network. This includes replacing culverts and planning pavement rehabilitation on major highways like Hwy. 584 and Hwy. 11.
Investments include a $2 million funding boost for the Migizi Plaza Rest Stop, which will create jobs and support revenue generation for First Nations and the Municipality of Greenstone. Additionally, $2 million has been allocated to purchase and expand the Greenstone Gold Mine Assay Laboratory, creating long-term employment opportunities in mining.
The Indigenous Workforce Development Program has enrolled 45 participants in mining-related pre-trades training, equipping Indigenous community members with skills for jobs in the mining and resource sectors, fostering long-term economic reconciliation and empowerment.
The Whole Story:
This month, officials in Ontario marked the completion of critical highway infrastructure improvements in the Greenstone area in Northern Ontario. These highway upgrades at the gateway to the Ring of Fire region will improve connections to the provincial highway network for First Nations in the Greenstone area while also supporting the province’s ongoing work to unlock the economic potential of Ontario’s critical minerals in partnership with First Nations.
“I’m excited to see first-hand the improvements being made to road and highway infrastructure in Greenstone, as we continue working with First Nations partners to unlock new economic opportunities here at the gateway to the Ring of Fire region,” said Premier Doug Ford. “Along with the upgrades being made to infrastructure, we’re also investing in skills development programs for Indigenous community members in the mining and construction sectors as part of our ongoing efforts to advance meaningful and lasting economic reconciliation with First Nations.”
Completing highway infrastructure improvements that improve First Nations communities’ road connections to the province’s highway network, which include successfully removing and replacing seven culverts on Hwy. 584 in 2024 and finishing work on three culverts along Hwy. 11 in 2025. An additional 26 culverts will be replaced along Hwy. 584 during the 2025-2026 construction seasons, while pavement rehabilitation of Hwy. 584 is planned for 2027.
Supporting development of the Migizi Plaza Rest Stop, which will serve First Nation members, tourists and residents while creating jobs and driving revenue for First Nations and the Municipality of Greenstone. Ontario is investing $2 million in additional funding to support construction and maintenance of truck parking, washroom facilities and amenities for the Migizi Plaza Rest Stop throughout the terms of the agreement. Site preparation work has begun for transport truck parking and associated amenities with work starting during the 2025 construction season.
Approved funding of $2 million from the Northern Ontario Heritage Fund Corporation (NOHFC) to Kenogamisis Investment GP Corporation for the purchase of the Greenstone Gold Mine Assay Laboratory in Geraldton. The corporation plans to renovate and expand the facility to accommodate additional staff and mining process services, creating long-term employment opportunities for members of the First Nation communities involved in the project.
Enrollment of 45 participants in the Indigenous Workforce Development Program, which is operated by Minodahmun Development LP and funded by the Ministry of Labour, Immigration, Training and Skills Development. Participants are currently engaged in mining-related pre-trades training, equipping them with the skills needed to secure jobs in mineral development within the region.
“Working in close partnership with First Nations leaders, we are laying the groundwork for Greenstone to become a powerful centre of economic opportunity in Northern Ontario,” said Minister of Indigenous Affairs Greg Rickford. “Our shared commitment to building long-term prosperity for northern communities is creating meaningful progress today and paving the way for a brighter future for generations to come.”
Key Takeaways:
Asahi Kasei is building a $1.7 billion lithium-ion battery separator plant in Port Colborne, marking Canada’s first facility of this kind. This significant investment is aimed at enhancing Ontario’s end-to-end electric vehicle (EV) and battery supply chain.
Asahi Kasei has entered a joint venture with Honda Motor Co. to oversee the Port Colborne plant’s construction and operations. This collaboration aims to supply materials for approximately one million EVs annually by 2027, creating over 300 jobs in the region.
Ontario has attracted over $45 billion in EV-related investments since 2020, securing its position as a leader in the EV industry. However, recent EV demand fluctuations have caused delays in some projects, including Umicore’s and Stellantis’ battery plants, highlighting potential volatility in the sector.
The Whole Story:
Multinational Japanese chemical company Asahi Kasei has begun work on a $1.7 billion manufacturing facility in Port Colborne to produce lithium-ion battery separators, a key component of electric vehicle (EV) batteries.
The new plant, the first of its kind in Canada, is a significant part of Ontario’s growing end-to-end EV and battery supply chain, accelerating the production of Ontario-made EVs.
“The start of construction on Asahi Kasei’s battery separator plant is a major step forward in building Ontario’s electric vehicle supply chain, connecting minerals in the north with electric vehicle battery makers and automakers across the province,” said Premier Doug Ford. “This facility will help lay the groundwork to produce electric vehicles from start to finish by Ontario workers with Ontario-made components, bringing better jobs and bigger paycheques to communities across the province.”
The start of construction closely follows the recent announcement of a joint venture between Asahi Kasei and Honda Canada Inc. that will be established to oversee construction and production activities at the Port Colborne plant.
Earlier this year, Honda announced plans to establish Canada’s first comprehensive electric vehicle supply chain with four new manufacturing plants including this separator plant in partnership with Asahi Kasei. With phase one expected to be complete in 2027, the separator plant is projected to produce enough material to supply approximately one million EVs annually and create more than 300 jobs in the region.
“Asahi Kasei’s investment in Ontario’s auto sector represents a clear vote of confidence in our province’s world-class workforce, dependable supply chains, competitive business environment and reliable clean energy,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “As our government continues to position Ontario as the epicentre of electric vehicle innovation, we look forward to seeing the partnership between Asahi Kasei and Honda come to fruition and bring economic growth and good-paying jobs to the Niagara Region.”
Since 2020, Ontario has attracted over $45 billion in EV and battery investments from companies including Honda, GM, Ford and Stellantis, along with key parts and component producers, helping to build-out the province’s end-to-end supply chain and solidifying the province as a leader in the EV sector.
However, the EV market’s recent slowdown has led to some setbacks. Umicore Rechargeable Battery Materials Inc. has delayed construction of its $2.7 billion battery component plant near Kingston, citing a decline in EV demand. Similarly, Stellantis temporarily halted construction on a portion of its EV battery plant in Windsor due to a dispute with the federal government over funding commitments.
Key Takeaways:
Alberta’s government has launched the Stop Housing Delays portal to expedite housing development by allowing developers, municipalities, and partners to report construction delays and bureaucratic red tape, aiming to speed up home-building projects.
The government will use a collaborative, cross-departmental approach to address issues raised, potentially implementing solutions ranging from minor adjustments to larger policy reforms, ensuring that obstacles in the housing construction process are minimized.
Alberta is experiencing a historic high in housing starts, with 33,577 new units from January to September 2024, a 35% increase over the previous year.
The Whole Story:
Alberta has launched an online portal intended to speed up housing construction across the province.
Officials say the new Stop Housing Delays online portal will allow developers, municipalities and other housing partners to report red tape and unnecessary home-building delays.
“The Stop Housing Delays portal will allow Alberta’s government to hear directly from developers, municipalities and other partners on where delays are happening in the construction process,” said Jason Nixson, Minister of Seniors, Community and Social Services. “This will help identify and remove barriers, ultimately getting homes built faster and continuing Alberta’s record home-building pace.”
Once developers, municipalities or industry partners have submitted their issue using the online form, government will collect and assess the information provided. Alberta’s government says it will be taking a collaborative, cross-ministry approach to ensure the appropriate departments are working together to find solutions where possible. Solutions may range from minor changes to policy reform.
“This webpage is an excellent opportunity to gather knowledge and further eliminate red tape,” said Dale Nally, Minister of Service Alberta and Red Tape Reduction. “Government has been persistent in our approach of cutting red tape and removing roadblocks, and this will help to speed up residential construction. I look forward to hearing from developers and our other partners on how we can help get projects moving and Albertans in homes.”
Officials noted that the province continues to see strong housing starts and increases. The first half of 2024 saw 9,903 apartment unit starts in the province. This marks the highest amount in any half year in Alberta’s history, breaking the previous record of 9,750 set in 1977. Albertans will benefit from 33,577 new housing starts from January through September 2024, up 35% from the same period last year. Alberta’s government remains focused on working with industry and non-profit partners to ensure that the province’s growing population has access to the housing it needs.
Key Takeaways
Carbon Upcycling’s CO2-enhanced concrete mix demonstrated significant environmental benefits, reducing cement use by 12.5% while increasing strength by 28% at 28 days and 32% at 56 days.
A three-year study, conducted on an active Minnesota highway by Carbon Upcycling, MnDOT, and the NRRA, rigorously tested 16 concrete mixtures.
With over 3,000 tonnes of low-carbon cement deployed since 2021, Carbon Upcycling is positioning itself as a leader in sustainable construction.
The Whole Story:
A recent study shows Canada’s low-carbon cement producers have a winning formula for road construction.
Carbon Upcycling Technologies, Inc. (Carbon Upcycling), a Calgary-based decarbonization and carbon capture & utilization (CCU) company, along with, the Minnesota Department of Transportation (MnDOT) and the National Road Research Alliance (NRRA) has successfully completed a three-year study on the use of low-carbon cement in highways.
The study, managed by Sutter Engineering LLC and sponsored by the National Road Research Alliance (NRRA), rigorously tested 16 unique concrete mixtures in real-world conditions on an active Minnesota highway to identify options that could reduce the carbon footprint of infrastructure without sacrificing strength or durability.
Completed in early 2024, the study aimed to find materials that could significantly lower the carbon footprint of concrete paving without compromising durability. Carbon Upcycling’s CO2-enhanced mix achieved a 12.5% reduction in cement content while matching the workability of traditional concrete, allowing seamless handling, placement, and setting times for construction crews.
Carbon Upcycling officials say these findings provide valuable data to guide future low-carbon infrastructure projects across North America, as the seamless integration into existing workflows offers a drop-in, low-carbon alternative without compromising ease of use or performance.
The study revealed significant performance and environmental benefits of Carbon Upcycling’s concrete mix:
Increased Strength: 28% stronger at 28 days and 32% stronger at 56 days compared to the advanced control concrete.
Reduced Cement Use: The CCU process allowed a 12.5% reduction in cementitious material, effectively reducing both carbon emissions and material costs.
“Infrastructure is the very foundation of a sustainable future, and at Carbon Upcycling we’re committed to creating materials that support this vision while establishing a secure, stable North American supply chain,” said Apoorv Sinha, CEO of Carbon Upcycling. “Our collaboration with the Minnesota Department of Transportation highlights how Carbon Upcycling can transform captured emissions into local materials that strengthen our infrastructure. By focusing on resilience and sustainability, we’re contributing to a vision where our essential structures are clean and built to last.”
Carbon Upcycling partnered with BURNCO to deploy and test 140 m³ of its CCU-enhanced concrete mix, monitored by Larry Sutter, Principal Engineer at Sutter Engineering LLC, for strength, workability, and environmental impact on a Minnesota highway.
“Carbon Upcycling submitted a very impressive mixture design to the trial,” said Larry Sutter, MnDOT’s Principal Engineer and the project’s technical manager. “Their material not only achieved the highest reduction in cementitious content among all submissions but also demonstrated remarkable strength. By embedding CO2 and reducing the reliance on portland cement, Carbon Upcycling’s technology addresses one of the concrete industry’s most pressing challenges—lowering its carbon footprint as global demand for cement is expected to double by 2050. This project data will be invaluable as the industry works toward its 2030 CO2 reduction targets.”
Since 2021, Carbon Upcycling has deployed over 3,000 tonnes of low-carbon cement and has attracted investment from some of the world’s largest cement industry players such as Cemex, CRH and Titan Cement.
Key Takeaways:
The Residential Construction Council of Ontario (RESCON) report forecasts a significant weakening in housing starts and residential construction employment through 2025, with only a slow recovery projected between 2026 and 2028.
They argue that rising costs from land values, government-imposed fees and delays in land use approvals are major barriers to building affordable housing.
RESCON stresses the urgent need for governments to address the crisis by reducing taxes, fees, and bureaucracy to lower construction costs and improve affordability.
The Whole Story:
Housing starts over the next few years will likely weaken and the already-dire supply shortage could get even worse, warns a comprehensive report released by the Residential Construction Council of Ontario (RESCON), which represents new home builders.
The report also indicates that employment in new residential construction has peaked and will probably fall quite a lot in the years ahead. The scenario is worrying as many people rely on the industry for employment and there could be significant economic repercussions.
The report, titled Housing Market Outlooks in Ontario, was prepared for RESCON by a Toronto-based economic research firm led by Will Dunning who has been analyzing housing markets for more than 40 years for clients in the private, public and not-for-profit sectors. It provides an overview of the housing market and develops forecasts covering 2024 to 2028 for Ontario, as well as municipalities in the Census Metropolitan Areas of Toronto, Hamilton and Oshawa.
The report provides two sets of scenarios. In both, a further weakening of employment and new housing starts continues well into 2025, followed by a slow recovery of the economy and housing activity during 2026 to 2028. By the end of 2028, conditions will not have fully recovered.
We need to reduce the bureaucracy associated with getting new homes built. If we don’t take these steps the consequences could be catastrophic for our industry and the economy.
Richard Lyall, President, RESCON
“The findings of this report are particularly worrisome for builders as they point to a weakening residential construction market at the very time we need to build more housing,” explains RESCON president Richard Lyall. “Equally concerning, the outlook envisions a scenario whereby reduction in residential construction employment and job losses in associated industries could become a second substantive issue weighing on the broader economy.
“With a critical need for new housing, it is imperative that all levels of government take immediate action to boost construction by lowering the taxes, fees and levies and reducing the red tape and bureaucracy which slows the industry and adds to the cost of housing. To spur the market, we need conditions that allow builders to build houses that people can afford. Otherwise, we may be in dire straits as new home construction stalls and unemployment in the industry rises.”
The report notes that housing price increases have largely been absorbed by hikes in land values and government-imposed costs such as development charges. Due to the higher costs, the viability of building new low-rise housing, in particular, does not make financial sense.
RESCON stated that removing government-imposed costs from the prices of new homes would impact prices. In the GTA, the average municipal charge for new homes is $164,920 – about $42,000 higher than in 2022. For apartments, the current figure is $122,387 – about $32,000 higher than in 2022. The costs of delays in approvals varies by municipality within the GTA from $2,672 to $5,576 per month. When applied to the typical delay period, it can add $43,000 to $90,000 per unit.
For new home sales to recover, the report notes that affordability needs to be returned to prior levels via a combination of interest rate decreases and reduction in government-imposed costs and land prices, although both scenarios seem unlikely to happen. The report cites other factors that need to be addressed, such as delays in land use approvals and infrastructure, the amount of developable land available for purchase by builders, and escalation of mortgage regulations which have reduced mortgage amounts that can be obtained by buyers.
“The bottom line is that all governments need to get their act together and work in unison to tackle the problems that are affecting construction of new homes,” adds Lyall. “Governments have made some inroads and the recent plan floated by the federal Conservatives to remove the sales taxes on new housing sold for under $1 million is a good start. We hope the province follows suit, and we need to reduce the bureaucracy associated with getting new homes built. If we don’t take these steps the consequences could be catastrophic for our industry and the economy.”
Key Takeaways:
The $495-million Stanley Park Water Supply Tunnel project will replace a 1930s-era water main nearing the end of its service life, ensuring the continued provision of high-quality drinking water for Metro Vancouver. The upgrade is also designed to enhance earthquake resilience and support future population growth.
A 1.4-kilometer-long tunnel will be constructed deep under Stanley Park, along with three vertical shafts at key locations (Burrard Inlet, a central service yard, and Chilco Street). Measures will be taken to minimize disruption, such as installing temporary pedestrian and cyclist paths and restoring construction sites to equal or better condition.
Construction is set to begin this month and is expected to continue through 2029.
The Whole Story:
Metro Vancouver will begin construction this month on the $495-million Stanley Park Water Supply Tunnel, a major project that will replace an aging piece of infrastructure and help maintain the regional district’s ability to reliably provide high-quality drinking water.
“The new Stanley Park Water Supply Tunnel will replace a water main that was built in the 1930s and is nearing the end of its service life, so it’s extremely important that we make this upgrade,” said Mike Hurley, Chair of Metro Vancouver’s Board of Directors. “This work is also part of Metro Vancouver’s push to ensure our drinking water infrastructure can better withstand strong earthquakes and accommodate future population growth.”
A new 1.4-kilometre-long water supply tunnel will be constructed deep under Stanley Park to replace a water main that was built in the 1930s. Two new valve chambers will control the flow of water through mains in the area.
To excavate the tunnel, install the water main, and build the valve chambers, three vertical shafts will be constructed in Stanley Park — one near Burrard Inlet, one in the middle of the park in a service yard, and one at Chilco Street.
Officials say the shaft locations, along with the tunnel alignment and construction process, were selected based on rigorous geotechnical, environmental, archaeological, technological, and traffic studies. Construction areas at all three shaft sites will be restored to equal or better condition.
The first six months of construction will see the three main sites fenced and cleared, and site offices will be built. At the centre shaft site, an abandoned building will be demolished and the yard entrance moved. At the Chilco shaft site, temporary pedestrian and cyclist paths will be installed to ensure park users can continue to use the area during construction, and a new accessible ramp will provide uninterrupted access to the community garden.
“The Stanley Park Water Supply Tunnel is critical to our drinking water system. We appreciate the public’s patience and understanding as construction gets underway,” said Malcolm Brodie, Chair of Metro Vancouver’s Water Committee. “We are taking great care to reduce the impacts that this work will have on neighbours and park visitors.”
Construction on the Stanley Park Water Supply Tunnel is expected to last through 2029.
Manitoba has introduced the “Housing Starts Here” online portal, streamlining the application process for a new $26-million capital grant program aimed at helping non-profits, Indigenous governments, and municipalities develop affordable housing.
The program allows for forgivable loans to repurpose or construct housing units and includes rent supplements and funding for support services, addressing housing affordability and the needs of those at risk of homelessness.
The Manitoba government increased the PDF to $5 million, providing non-profits with grants and loans to cover professional services and support projects from the proposal stage to financing, boosting the capacity to develop affordable housing.
The Whole Story:
The Manitoba government is making it easier for organizations to secure funding to build affordable housing so more Manitobans can find a home.
“Manitoba is growing, and the affordable housing challenge we face today calls for a fresh new approach and the ability to quickly respond to the needs of our partners in the non-profit housing sector including Indigenous governing bodies and municipalities,” said Housing, Addictions and Homelessness Minister Bernadette Smith. “By focusing on new investments and program enhancements, our government is accelerating the creation of more affordable housing options for Manitobans who need them.”
The new Housing Starts Here online portal is simplifying the application process for a new $26-million capital grant program for non-profit organizations, Indigenous governments and municipalities, which will support the development of 350 social housing units in 2024-25, noted the minister.
Through the new ongoing intake application portal, interested organizations can apply for forgivable loans to acquire existing buildings that could be renovated into new social housing units, renovate derelict stock or construct new units. The portal will also include applications for rent supplements to ensure rents remain low and funding for support services to ensure people experiencing or at risk of homelessness have access to the services they need to stay housed, the minister noted.
“The new portal, along with the increase in funding, will make it easier for non-profits such as Westminster Housing to meet the need for deeply affordable housing in our communities,” said Brian Pincott, chair, Westminster Housing Society. “This program not only provides more funding, but it facilitates processes that work for the housing providers, giving us the flexibility to take advantage of opportunities as they arise to help meet the growing need for safe, secure and affordable housing.”
In addition to the $26 million for Housing Starts Here portal, the province is also increasing the Proposal Development Fund (PDF) to $5 million for non-profit organizations to access capital grant funding. PDF loans assist organizations to engage professional services to help bring their affordable housing proposals to the financing stage. Grants of up to $250,000 will be available through the fund, which will also offer repayable loans of up to $50,000.
Key Takeaways:
The Site C project has successfully completed its reservoir filling, raising water levels by approximately 43 meters over 11 weeks.
BC Hydro has conducted over 1,000 inspections and collected over a million data points to ensure safety, with key structures like the dam, powerhouse, and spillways performing well.
Treaty 8 First Nations cultural monitors have observed the reservoir filling, and ongoing environmental monitoring will track the impact on wildlife and fish.
The Whole Story:
Reservoir filling for the Site C project has been safely completed after 11 weeks, with the water level at the dam site increasing by about 43 metres.
While reservoir filling is complete, BC Hydro continues to strongly urge the public to stay out of the reservoir area for at least the next year. This is due to potential hazards on the reservoir, such as the surrounding land continuing to stabilize, floating vegetation debris and ice.
BC Hydro says ithas conducted more than one thousand inspections and collected more than one million instrumentation readings to ensure the safe operation of the dam since reservoir filling began. Key project structures such as the earthfill dam, powerhouse, spillways and approach channel are performing well.
A timelapse video shows the reservoir filling. – BC Hydro
Slope stability instrumentation monitoring has been occurring daily, along with weekly visual inspections. Reservoir shoreline and slope changes have been within the expected range during filling. Engineers will continue with shoreline and slope stability monitoring over the operating life of Site C.
Since mid-August, cultural monitors from Treaty 8 First Nations have monitored the reservoir filling process throughout the reservoir area. Environmental monitoring, including of wildlife and fish, will continue during operations of the dam.
With the first generating unit on Site C now in operation, testing and commissioning work on the second generating unit continues. The Site C project remains on-track to have all six generating units in service by fall 2025.
Key Takeaways:
The Ontario government is progressing with the second phase of the Gardiner Expressway reconstruction ahead of schedule, driven by a $73 million investment and a 24/7 construction schedule. The full project is set to complete one year earlier than planned.
The project involves rehabilitating 700 meters of elevated roadway between Dufferin Street and Strachan Avenue, including structural reinforcement, new streetlights, and an upgraded traffic management system.
By accelerating the project, the government expects to save Ontario’s economy $273 million by reducing gridlock sooner, facilitating faster movement of people and goods across the province.
The Whole Story:
The Ontario government is marking the start of the second phase of construction on the Gardiner Expressway four months ahead of schedule. Officiacls say the early milestone is the result of the government’s $73 million investment in the project on the condition that construction work may be allowed to proceed 24/7.
“We’re making real progress on our government’s plan to fight gridlock and keep drivers moving,” said Prabmeet Sarkaria, Minister of Transportation. “Under the leadership of Premier Ford, we’re not only getting it done on the Gardiner Expressway, we’re also bringing common sense changes to bike lanes through new legislation and speeding up construction of priority highway projects like Highway 413, Bradford Bypass and the Garden City Skyway bridge, to help get drivers across the province out of gridlock.”
With two eastbound lanes on the Gardiner Expressway now rehabilitated and reopened, crews will begin the demolition and reconstruction of two centre lanes, before completing work on the remaining two westbound lanes. The full project is expected to be finished one year ahead of schedule and includes revitalizing 700 metres of elevated roadway from Dufferin Street to Strachan Avenue, reinforcing support structures, installing new streetlights and upgrading the traffic management system.
Once construction is complete, the 140,000 drivers who rely on the Gardiner every day will save up to 22 minutes per trip. Accelerating construction is expected to save Ontario’s economy $273 million by getting drivers and goods out of gridlock earlier than originally planned.
Key Takeaways:
The Ontario government is investing $3 million over three years in Helmets to Hardhats Canada to help 650 active and former Canadian Armed Forces members transition to civilian careers in the construction sector, addressing both veteran needs and a skilled labor shortage in Ontario.
The investment will allow Helmets to Hardhats Canada to expedite skills training and offer safety and specialized certifications for in-demand construction roles, with specific outreach for racialized and Indigenous veterans, as well as veterans with disabilities.
Including previous contributions, Ontario’s total support for Helmets to Hardhats exceeds $4.7 million, alongside the newly introduced Honouring Veterans Act, 2024, which emphasizes the province’s commitment to supporting veterans and commemorating their service.
The Whole Story:
The Ontario government is investing $3 million over three years in Helmets to Hardhats Canada to help 650 active and former Canadian Armed Forces (CAF) members transition to civilian life by training them for careers in Ontario’s construction sector.
Officials say this investment will help fill a gap in Ontario’s employment and training resources, while addressing the unique needs and experiences of our military veterans.
“We owe our veterans, who have put their lives on the line in defence of our freedom, safety and values, a debt that we can never fully repay,” said Premier Doug Ford. “Today’s announcement is just one way our government is working to give back, so veterans can transition from the armed forces to rewarding careers in the skilled trades with the support and training they need. This week, we also introduced the Honouring Veterans Act, 2024, to ensure we always remember the sacrifices made by our men and women in uniform.”
With this investment, Helmets to Hardhats Canada will be able to expand job-ready skills training to more veterans and accelerate their pathways from active military service to apprenticeships in construction by two to three months. Helmets to Hardhats Canada will also be able to deliver access to critical safety training and specialized certifications for in-demand careers and expand their outreach programs for racialized and Indigenous veterans and those with disabilities.
David Piccini, Minister of Labour, Immigration, Training and Skills Development, (left) meets with workers.
“We have a social contract with our military servicemen and women who protect our country and preserve our freedoms, which means we have a responsibility to ensure they have a civilian life to transition to when their service is complete,” said David Piccini, Minister of Labour, Immigration, Training and Skills Development. “With around 8,000 Canadian Armed Forces members released from service every year, our government is proud to work with Helmets to Hardhats and unions to deliver job-ready training to veterans that leverages their expertise and experience, and lands them in a new career. Because a career in construction is more than a paycheque – it offers a stable future and a community of workers who have your back.”
The government also supports Helmets to Hardhats Canada through Ontario’s Skills Development Fund Training Stream, investing over $915,000 to open new pathways to 105 participants into Ontario’s unionized construction sector and develop customized training for senior cadets. This brings Ontario’s total investment in Helmets to Hardhats Canada to over $4.7 million.
Key Takeaways:
Umicore has decided to continue the pause on its new battery materials plant in Ontario, prioritizing the maximization of capacity at existing facilities before expanding further.
Umicore has outlined significant cost-saving initiatives, including a potential impact on 260 positions across the company, workforce reductions in its China battery materials plant, and restructuring of R&D activities to enhance efficiency.
These measures are projected to save approximately $60 million annually by 2025.
The Whole Story:
Belgian materials technology company Umicore has announced a continued pause on the construction of its new battery materials plant in Loyalist, Ont. as part of an ongoing strategic review of its battery materials business. The decision comes as the company aims to maximize capacity utilization of existing plants before pursuing further expansion.
Strategic Realignment
Officials say the pause in construction was made in close alignment with Umicore’s customers. The company’s long-term supply agreement with AESC for high-nickel cathode active materials for the North American market will now be fulfilled from Umicore’s plant in Cheonan, Korea.
Umicore has not drawn on the incentives offered by the Canadian and Ontario governments for the Loyalist plant. Should construction resume in the future, the company will retain access to these incentives under the same conditions, including employment commitments.
Cost-Saving Measures
In addition to the construction pause, Umicore has unveiled details of its cost-saving initiatives:
Approximately 260 positions may be impacted across select parts of the organization
Workforce resizing in the Battery Materials production plant in Jiangmen, China
Downsizing of Group Corporate Functions
Restructuring of R&D activities for improved efficiency and customer focus
Transfer of Heavy-Duty Diesel R&D work to Hanau, Germany, and discontinuation of R&D activities in Hørsholm, Denmark.
These measures are expected to generate approximately $60 million in annualized savings by 2025.
Industry Challenges
Bart Sap, CEO of Umicore, acknowledged the challenging environment facing the company: “Umicore is navigating a complex transitioning of the automotive industry towards electric mobility. Serving our North American customers out of Korea is now clearly the most effective use of our assets.”
Umicore has begun consultations with trade unions and works councils representatives to ensure support for affected employees. In Belgium, where approximately 100 positions may be impacted, the company has initiated the information and consultation process in accordance with legal requirements.
The company’s decision to pause the Canadian plant construction and implement cost-saving measures reflects the broader challenges facing the electric vehicle (EV) industry. Earlier this year, Umicore had already lowered its 2024 outlook for the Battery Materials Business Group due to a sharp slowdown in EV demand growth.
Transformational health-care facilities dominated the 2024 National Awards for Innovation & Excellence in P3s today, with winners announced in Newfoundland and Labrador, Quebec and Ontario.
Presented by the Canadian Council for Public-Private Partnerships (CCPPP), the seven award winners also included an all-season highway in the Northwest Territories, a new courthouse in downtown Toronto and a school bundling project now serving 7,000 students in Alberta.
The winners were announced today at the P3 National Awards Gala Luncheon, held on the final day of P3 2024, Canada’s Infrastructure Conference.
“We had a tremendous group of 10 nominees this year, showcasing the vitality and variety of P3s delivering critical services to Canadians in communities across the country. In particular, the projects we celebrated this year showcase the long-term nature of P3 agreements and the strong spirit of partnership required to deliver quality services to our communities for decades,” said Brad Nicpon, Chair of the Awards Selection Committee and Partner, McCarthy Tétrault LLP.
“These project teams are collaborating together to find innovative ways of providing better care and experiences for patients, students and families, to reduce greenhouse gas emissions and lower ongoing operational costs, and in being more inclusive to welcome, represent and benefit Canada’s diverse communities.”
Created in 1998 by the Council, the awards celebrate and recognize Canada’s cutting-edge infrastructure projects involving public sector entities like governments and educational institutions partnering with the private sector.
Last year, the awards committee retooled the project award categories to better reflect the changing dynamics of Canada’s P3 infrastructure pipeline and to highlight the need to create better, more resilient and longer lasting infrastructure for our communities. This included added categories recognizing Environmental, Social and Governance (ESG) and P3 Service Delivery.
Here are this year’s winners:
Gold Award – P3 Design & Construction
Western Memorial Regional Hospital (Newfoundland and Labrador)
The new 600,000 sq. foot hospital, which opened to the public in spring 2024, has 164-bed acute beds and incorporates several new services, including state-of-the-art cancer treatment facilities so that cancer patients from remote and rural areas in the west of the province no longer need to travel to St. John’s for the care they need. The facility is also home to Canada’s largest geothermal system. The geothermal field is approximately 183 metres below the hospital’s parking lot and provides 100 per cent of the ground source geothermal heating for the hospital – the largest solution of its kind for a health-care facility in North America. The project uses a design-build-finance-maintain (DBFM) P3 model.
Partners: Government of Newfoundland and Labrador, Western Regional Health Authority and Corner Brook Health Partnership (Plenary Americas; PCL Constructors Canada Inc.; Marco Services Limited; B+H Architects; Parkin Architects Ltd.; and Johnson Controls)
Gold Award – P3 Service Delivery
Tłı̨chǫ All-Season Road (Northwest Territories)
The 96-kilometre highway, which opened to traffic in November 2021, connects the Tłı̨chǫ community of Whatì to the Northwest Territories’ all-weather Highway 3, located approximately 170 kilometres northwest of Yellowknife. The gravel highway replaced a seasonal winter road that was becoming increasingly difficult to construct and maintain due to climate change. The project includes one of the first ever equity investments in a P3 project by an Indigenous government in Canada. The project also implemented an innovative climate change risk sharing mechanism and was delivered on-budget and ahead of schedule, despite the challenges of the COVID-19 pandemic. Since opening, 100 per cent of the project’s operations and maintenance labour have been undertaken by Indigenous personnel. The project uses a design-build-finance-operate-maintain (DBFOM) P3 model.
Partners: Government of Northwest Territories and North Star Infrastructure GP (Kiewit Canada Development Corp. and Tłı̨chǫ Government)
Gold Award – P3 Service Delivery
Royal Ottawa Mental Health Centre – Ontario
The Royal was the first public hospital in Ontario to use the design-build-finance-maintain (DBFM) P3 model. The project marked a significant milestone in the evolution of a prestigious mental health care institution, ushering in a new era for a facility with roots dating back a century. This transformative redevelopment project created a state-of-the-art 188-bed facility, designed to meet the modern demands of mental health care and research. The site includes a three-storey building for both inpatient and outpatient services, a seven-storey research tower, a 200-seat auditorium, an education center, and a parking facility with more than 500 spaces. Now, in the 18th year of the operations phase of its 20.7-year P3 service contract, the Royal Ottawa Mental Health Centre stands out as a remarkable project for its facility management due to its exceptional integration of advanced health-care services with seamless operational management.
Partners: Royal Ottawa Healthcare Group and The Healthcare Infrastructure Company of Canda Inc. (EllisDon Capital; EllisDon Facilities Services; Parkin Architects Ltd. and Adamson Associates Architects; Brisbin Brook Beynon Architects Inc.; Carillion Canada, EllisDon Corp.; Borealis Infrastructure; Plenary Americas; and Fiera Infrastructure)
Gold Award – Environmental, Social and Governance (ESG)
McGill University Health Centre (MUHC), Glen site – Quebec
The MUHC is one of Canada’s largest hospitals. The campus-style teaching hospital/medical complex was formed through a merger of five teaching hospitals. The facility is now 10 years into its service delivery phase, which is in place under the design-build-finance-maintenance (DBFM) P3 agreement until 2044. MUHC generates savings of approximately $2.5 million a year because of energy efficiency measures implemented during construction. In fact, energy consumption is 35 per cent lower than the average Canadian hospital. The site is LEED Gold Certified for New Construction (2016) and LEED Gold Certified for Existing Buildings (2019). With a view to continuous improvement, the MUHC team and its partners are currently working to maintain the hospital’s LEED Gold certification at the next renewal, which is scheduled for later in 2024.
Partners: McGill University Health Centre and McGill Healthcare Infrastructure Group (AtkinsRéalis/BBGI, part of AtkinsRéalis Infrastructure Fund, and Innisfree)
Silver Award – P3 Transaction
CAMH Phase 1D Waverley House Secure Care & Recovery Project (Ontario)
This new facility, which started construction in March 2024, is continuing to deliver on CAMH’s mandate to change the way people with mental health needs are treated in Ontario, providing a design that is holistic with the neighbourhood and ensuring a dignified and compassionate place for people to come for help. The seven-storey 800,000 sq. foot building will include space for 214 core patient beds, with an additional 20 beds to help with provincial surge requirements, clinics for patients receiving care in the community, recovery-based therapeutic spaces, a secure outdoor space for treatment and underground parking. Enhanced collaboration allowed the project team to advance the design further than other design-build-finance (DBF) projects, resulting in greater certainty and more competitive pricing from the trade community.
Partners: Infrastructure Ontario, CAMH and PCL Partnerships (PCL Investments Inc., PCL Constructors Canada Inc., Diamond Schmitt Architects & Architectural Resources; Modern Niagara; Symtech; Smith + Andersen; Entuitive; and TD Securities)
Silver Award – P3 Design & Construction
P3 Schools Bundle #2 (P3SB2) – Alberta
The $300.3-million project is the first ever P3 schools bundle in Alberta comprised exclusively of high schools. The state-of-the-art schools, which opened earlier this fall, are serving almost 7,000 students in the municipalities of Blackfalds, Edmonton, Leduc and Langdon. In addition, using a design-build-finance-maintain P3 is saving an estimated $114.5 million over the 30-year life cycle of the project compared to a traditional build contract. The ability of the project to progress from procurement to financial close during the pandemic as well as deliver Value-for-Money for taxpayers showcases the benefits and value of a P3 bundling approach to delivering schools. The design-build-finance-maintenance (DBFM) project is notable for the early engagement with school jurisdictions enabling them to directly inform the design process. The uniqueness of each high school breaks the stereotype of P3s delivering “cookie cutter” facilities.
Partners: Alberta Infrastructure and Concert-Bird Partners (Bird Construction; Bird Capital; Wright Construction; Ainsworth; Concert Infrastructure; Manulife Financial; ATB Financial)
Award of Merit, Environmental, Social and Governance (ESG)
Ontario Court of Justice – Toronto
Ontario’s first high-rise courthouse, which opened in 2023 in Toronto’s downtown core, amalgamated six Ontario Court of Justice criminal courthouse locations in one new, accessible location. Along with its 63 courtrooms and 10 conference rooms, the 17-storey facility weaves Indigenous engagement and inclusion within the built environment and site. This is highlighted by two of the Gladue courtrooms, featuring circular tables built to reflect the collaborative nature of many Indigenous proceedings. The mechanical systems for these courtrooms also specially accommodate traditional smudging ceremonies. On the ground floor, there is also an Indigenous Learning Centre. The facility, which uses a design-build-finance-maintain (DBFM) P3 model, also offers a barrier-free environment that enables all visitors and occupants to travel throughout the building with ease. Accessibility features were informed by consultation with an Accessibility Advisory Group, and accessibility consultants Gensler and Human Space.
Partners: Infrastructure Ontario, Ontario Ministry of the Attorney General and EllisDon Infrastructure (EllisDon Capital Inc., EllisDon Design Build Inc., Renzo Piano Building Workshop, NORR Limited, EllisDon Facilities Services Inc. and SNC-Lavalin O&M Inc.)
Key Takeaways:
The Building Industry and Land Development Association (BILD) argues that Toronto’s current proposal to expand incentives for purpose-built rental housing is insufficient. They believe it won’t effectively jump-start the tens of thousands of stalled rental and condominium units, thereby failing to address the larger housing crisis.
BILD points out that the city’s plan is narrowly focused and primarily benefits city-led Housing Now projects or those receiving federal subsidies through programs like the Apartment Construction Loan Program. This means that the vast majority of private rental and condo projects—estimated between 29,000 to 37,000 units currently stalled—will not qualify for the proposed incentives.
BILD is urging the City of Toronto to collaborate with higher levels of government to develop a more comprehensive housing strategy. They emphasize the need to address the financial viability of sidelined housing projects to prevent a worsening housing shortage in the next 3-5 years and are willing to work with all parties to create the necessary housing solutions.
The Whole Story:
The Building Industry and Land Development Association (BILD) is calling for a more robust approach to address housing needs in Toronto.
The group made its case this week in a deputation before the City of Toronto’s Executive Committee, arguing that the City’s current proposal, “Expanding Incentives for Purpose-Built Rental Housing”, is too limited and will not jump start the tens of thousands of stalled new rental and condominium units currently sidelined. The group explained that the lack of a comprehensive solution is threatening the city’s pipeline of future housing supply and setting up conditions to make the housing crisis worse in the years ahead.
“While the current proposal acknowledges the challenges posed by rising cost to build, it represents a limited solution to a much larger problem,” said Dave Wilkes, President and CEO of BILD. “If the city’s own housing projects, built on city land, with federal subsidies cannot proceed without development charge and tax relief, it is no wonder that market units are struggling with costs to build, which is in turn acting as a barrier to adding the housing Toronto requires.”
BILD stated that the specifications of the proposed solution are narrowly defined and would only be applicable to the city’s own Housing Now projects or projects that have received a federal subsidy through its Apartment Construction Loan Program.
According to BILD, the vast majority of rental and condominium projects, including the 29,000-37,000 units that are currently stalled in the development pipeline, will not qualify. They believe that such a niche solution means that as the crop of new buildings currently under construction are completed, very little new residential construction activity will be able to commence, greatly diminishing new housing supply in the region over the next 3-5 years.
“Today’s costs to build are out of sync with the ability of the market to absorb. As a result, new rental projects can’t pencil and pre-construction sales for condominiums have plummeted to less than 25% of the 10-year average levels,” added Wilkes. “Housing starts are declining and without a comprehensive solution this slide will continue – putting Toronto on the cusp of a very large housing shortfall by 2027-2030.”
BILD is encouraging the city to urgently seek the involvement and assistance of higher levels of government to expand its solution and develop a comprehensive housing strategy that addresses the financial viability of the sidelined housing projects.
“There is a window to take action today and avert a housing crisis of tomorrow,” said Wilkes. “We stand ready to work with the City of Toronto to encourage all levels of government to come to the table and create the comprehensive housing package the City needs.”
Toronto’s plan is to unlock 20,000 new rental homes by 2030, including the immediate support of 7,000 new rental homes, comprising 5,600 purpose-built rental units and at least 1,400 affordable rental homes. To incentivize development, the city will introduce a 15% property tax reduction for new purpose-built rental projects over a 35-year period and defer development charges for eligible developments as long as they remain rental properties. These measures are estimated to represent a municipal investment of over $325 million.
Acknowledging the limitations of acting alone, the city is also calling on the provincial government to establish a $1 billion “Build More Homes Rebate” to cover development charges and provide further property tax reductions for an additional 10,400 purpose-built rental homes. The city is also requesting the federal government allocate $7.3 billion in low-cost financing to support the construction of these homes.
City officials stressed that without immediate and coordinated action from all levels of government, the housing shortage will worsen. They warned of increased housing instability, a deepening staffing crisis in essential services, and economic challenges as businesses struggle to attract the workforce needed to thrive.
Key Takeaways:
The proposed amendments will align prompt payment rules for all construction projects in Alberta, extending the 2021 Prompt Payment and Construction Lien Act (PPCLA) rules beyond private sector projects to include public projects.
The amendments introduce clear deadlines for payments and define “proper invoice” guidelines. This ensures timely payments from contractors to subcontractors and suppliers, fostering financial stability across all levels of construction projects.
The bill includes updates to the Condominium Property Act, such as creating a Condominium Dispute Resolution Tribunal, simplifying voting processes, and protecting against structural defects in new condos.
The Whole Story:
Alberta has tabled amendments to strengthen prompt payment for construction projects and improve governance in condominium communities
Amendments would result in all construction projects following the same set of prompt payment rules, which were established in legislation in 2021. Before now, Alberta’s government always prioritized prompt payment for government contracts, but the rules in the PPCLA only applied to private sector projects.
The Calgary Construction Association (CCA) stated that it is optimistic about the recently proposed amendments, saying the changes represent a promising step toward strengthening fairness and efficiency in Alberta’s construction sector.
In a press release the group said that the amendments introduce clearer definitions for payment deadlines and adjudication processes, fostering a smoother payment cycle across all project levels. Specifically the CCA noted that the revisions will enable prompt payment from contractors to subcontractors and suppliers, enhancing cash flow and stability throughout the industry. The CCA added that it is pleased to see the addition of “proper invoice” guidelines for public works projects, which sets a consistent and timely payment schedule, allowing contractors to focus on delivering high-quality work rather than navigating lengthy payment disputes.
The CCA stated that by committing to timely payments on public projects, Alberta is setting an example and fostering a more equitable construction landscape. They believe this shift signals a dedication to providing consistent and reliable payments, ensuring that the public sector maintains the same accountability expected in the private sector.
“Reliable, timely payments are essential to maintaining a thriving construction industry,” says Bill Black, President and CEO of the Calgary Construction Association. “These amendments signify Alberta’s commitment to supporting our construction workforce and ensuring they can focus on building the infrastructure that our province relies on.”
The changes also drew comment from the Edmonton Construction Association, which urged legislators to support them.
“Our industry is built on folks who honour their words. We committed to members that this issue would be a priority. The Government of Alberta committed the same to us, and it kept its promise. We’re grateful for the change, and we want to recognize all of those in government who listened to our concerns and proposals for solutions, including many members of Cabinet and senior civil servants,” said ECA President David Johnson. “This is a testament to the value of collaboration with government, and with our provincial association. These amendments are a critical step toward ensuring the Government of Alberta remains a preferred customer for our members, by ensuring equitable treatment for businesses and the skilled trades workers we rely on.”
Key Takeaways:
Canada’s economic activity growth slowed slightly by 0.01 per cent during the second quarter of 2024, with GDP increasing by 0.5%.
In August, inflation dropped to 2%, reaching the Bank of Canada’s target for the first time since 2021.
The industry contracted during the second quarter of the year, driven by another significant downturn in residential construction.
During the second quarter of 2024, the Industrial Product Price Index (IPPI) rose by 2.6%,while the Building Construction Price Index (BCPI) increased by 1.1%.
Even with a rising population, sector growth, and higher energy consumption, emissions per capita from energy and material use have declined. This reflects improved efficiency and the wider adoption of sustainable practices.
The Whole Story:
The Canadian Construction Association’s Fall 2024 Construction Quarterly report presented a nuanced outlook for the construction industry, shaped by a mix of economic moderation, material cost shifts, and significant policy developments. Key insights from the report revealed both growth areas and challenges, reflecting broader economic conditions and the sector’s adjustments to evolving market demands.
Economic Performance and Monetary Policy Shifts
Canada’s economy saw modest growth in the first half of 2024, with GDP increasing by 0.5% in the second quarter. This slight expansion has led to decreased inflation, reaching the Bank of Canada’s 2% target by August, prompting three successive interest rate cuts. The Bank of Canada’s overnight rate now stands at 4.25%, and further cuts are anticipated, potentially stimulating new investment across sectors, including construction.
Construction Sector Dynamics: Residential Weakness, Engineering Resilience
The construction industry contracted in the second quarter due to a significant downturn in residential construction, down 1.9%, while engineering construction saw a positive uptick, continuing its post-pandemic growth. Non-residential construction, on a 10-quarter streak of increased investment, grew 2.2%, supported by multi-residential developments and institutional projects. However, sectors such as commercial and industrial construction showed some declines.
Material Costs and Greenhouse Gas Emissions
Material costs have started to stabilize, with price indices reflecting lower increases than those during the pandemic. The Industrial Product Price Index rose by 2.6%, and the Building Construction Price Index saw a 1.1% increase, mainly driven by energy products and non-ferrous metals. Greenhouse gas emissions per capita in the construction sector have trended downward due to efficiency improvements and increased adoption of sustainable practices. However, sector-wide emissions rose with overall industry growth, particularly in energy use for transportation and heavy machinery.
Labour Market Pressures and Regional Variations
Labour conditions in the construction industry remain tight despite a slight employment dip in the second quarter. Approximately 18,400 jobs were lost, with Ontario seeing the largest reduction. Yet, provinces like Quebec and B.C. reported gains, showcasing regional employment disparities. The industry’s unemployment rate rose to 5.7% but remains below historical averages, underscoring steady demand for skilled labour amid continued infrastructure projects and multi-residential developments.
Looking Ahead: Economic and Policy Implications
The outlook for the remainder of 2024 is cautiously optimistic. As interest rates potentially decline further, borrowing conditions for construction projects could improve, fueling growth across multi-residential and non-residential construction. However, concerns over labour shortages and geopolitical uncertainties, particularly related to U.S.-Canada trade dynamics and international conflicts, present ongoing risks. Political developments, such as potential changes in Canada’s legislative landscape and the upcoming U.S. elections, may also influence construction supply chains and market stability.
The report suggests the construction industry is well-positioned to benefit from a stabilized economy and reduced borrowing costs, though challenges remain in meeting labour demands and managing cost pressures.
Quickly, an early payment solutions provider for the construction industry, has announced the launch of its integration with Sage, an accounting, financial, HR, and payroll technology company for small and mid-sized businesses. The integration is now available on the Sage Intacct Marketplace and enables construction businesses to automate early payments, streamline payables, and improve cash flow management.
Following its successful integration with Sage 300, Calgary-based Quickly is expanding its partnership with Sage, bringing its early payment platform to an even larger base of customers. According to Quickly, construction businesses can approve and schedule early payments to suppliers more efficiently, unlocking up to 2.5% in discounts while maintaining their usual payment terms by automating the payables process. Suppliers also gain faster access to funds, improving their cash flow and strengthening contractor relationships.
“Our integration with Sage brings even more value to construction businesses,” said Kyle Friedman, Co Founder & CEO of Quickly. “By simplifying payables and automating early payments, we’re helping general contractors improve their cash flow while supporting their suppliers with faster, more flexible payments.”
A screenshot shows Quickly’s digital platform. – Quickly
The integration syncs bill data between Sage and Quickly’s platform, allowing construction finance teams to manage early payments more efficiently while maintaining real-time visibility into cash flow. The solution also includes comprehensive reporting features, giving businesses the insights they need to optimize their financial operations.
Dennis Stejskal, Head of Strategy at Sage Construction & Real Estate, added: “Quickly streamlines efficiency by offering subcontractors faster payment options with no risk to general contractors. It’s a win-win, improving cash flow for subcontractors and boosting overall project success.”
The integration is now live on the Sage Intacct Marketplace and is available to construction businesses in the U.S. and Canada.
Last year Quickly announced it had raised $10 million in debt and equity during its seed financing round to expand its early payment platform. Led by Thin Air Labs with participation from Plug and Play and ATB Financial, the funding was intended to support Quickly’s U.S. expansion, recruiting, and continued product development.
Key Takeaways:
The BCCA’s Fall 2024 report highlights a 5% decrease in the value of proposed major infrastructure projects since Spring 2024 and nearly a 20% drop over the past five years.
The industry struggles with persistent workforce shortages, high labor costs, and payment uncertainties, which are exacerbating difficulties in meeting demand. The BCCA emphasizes the need for policies that support workforce development and establish payment certainty to stabilize the construction sector.
With commitments from political leaders during the recent election campaign, the BCCA urges them to deliver on promises to support the construction sector by facilitating infrastructure investments, improving project approval processes, and providing stronger industry support mechanisms.
The Whole Story:
Statistics in the BC Construction Association’s (BCCA) Fall 2024 Construction Industry Stat Pack demonstrate that while the value of existing projects continues to grow, the threat of poor industry support and declining investments in major projects is alarming.
The association noted that the industry faces intense pressure to meet the current demand due to persistent workforce shortages, high labour costs, and lack of payment certainty.
According to the BCCA, the issue facing the industry is two-pronged. Firstly, the construction industry seeks increased investments in major infrastructure projects. Since Spring 2024, the value of proposed major infrastructure projects has decreased in value by 5% and nearly 20% over the past five years, which makes the future of the industry look problematic as current major projects begin to wind down with no guarantee of being adequately replaced.
“British Columbia’s construction industry will be paramount to building our province’s critical infrastructure and alleviating the housing crisis,” said Chris Atchison, President of the BC Construction Association. “During the election campaign, B.C.’s political party leaders committed to supporting the construction industry. Now that the results have been finalized, we need the government and opposition caucuses to work together to implement policies geared towards payment certainty and workforce development to ensure the construction industry can meet the current and future demand to build BC better.”
Atchison noted that the province is in high demand for major infrastructure projects. Hospitals, schools, multi-unit housing, bridges, and supporting infrastructure across the province must be built. He believes the decreasing value of proposed construction projects suggests that the province is not invested in making these a reality.
The association stated that this decrease in investments is coupled with the concurrent need for more robust support mechanisms to ensure that said projects can be delivered. The underlying factors of payment uncertainty, workforce shortage, and high labour costs pose significant strains on the construction industry, which need to be addressed by political leaders.
The association conluded that despite the need for major infrastructure investments and commitments from every party in that regard during this recently completed election, British Columbians cannot wait and need our political leaders to work together to recommit advancing major projects, attracting external investment, and creating more favourable conditions for significant projects to get approved.
“With the election now behind us, it’s time to get B.C.’s political leaders back to the legislature and to work with industry on the pressing issues impacting construction and the building of B.C.,” said the association.
Construction is the No. 1 employer in B.C.’s goods sector.
B.C.’s construction industry accounts for 10% of the province’s GDP. A 16% increase over the past 5 years.
243,000 people rely directly on B.C.’s construction industry for a paycheque.
Number of workers in trades jobs: 167,300, an increase of 3,400 since Fall 2023 but still a 5-year trend decrease of 7%
The number of women in construction trades is 9,536 (5.7%), an increase of over 2,100 since Fall 2023 and a 5-year trend increase of nearly 15%.
Number of construction companies in B.C.: 28,065, an increase of over 200 since Fall 2023.
The average yearly wage of BC construction employees is $72,200 ($17.5B cumulative annual wage), a slight decrease since Spring 2024 but a 5-year trend increase of 17%.
Value of proposed construction projects in B.C.: $166 billion, a decrease of $4 billion since Spring 2024.
The estimated value of current major construction projects underway in B.C.: $170 billion, an increase of $10 billion since Spring 2024 and a 5-year trend increase of nearly 50%.
Number of construction jobs in B.C. that will be unfilled due to labour shortages by 2033: 6,600, an increase of 600 compared to 2032 forecasts made in Fall 2023.
