KPMG in Canada’s recent survey on digital maturity in the construction industry has revealed that 90 percent believed new and advanced technologies – like artificial intelligence (AI), analytics, building information modelling (BIM), and digital twins – could improve efficiency and labour effectiveness.
This figure is up from 86 percent in 2023, according to KPMG LLP’s press release. KPMG added that 81 percent of Canadian construction leaders polled claimed that their company’s recent technological investments boosted productivity and efficiency.
KPMG said these technologies included:
- modular or prefabrication construction innovations seeking to streamline processes, limit waste, and hasten timelines by erecting buildings in controlled factory spaces and transferring them to construction sites for assembly
- robotics and automation, including robotic bricklaying and drones surveying the sites
- BIM aiming to improve stakeholder planning and collaboration by offering a digital project view covering the architectural design and necessary infrastructure, materials, and systems
“It is good to see that the sector is investing in the technologies that are desperately needed to address persistently poor productivity levels,” said Tom Rothfischer – KPMG in Canada’s partner and national industry leader for building, construction, and real estate – in the press release. “These investments are about to pay dividends and transform how we build in Canada.”
Survey results
According to KPMG, among the leaders of Canada’s construction companies surveyed:
- 87 percent said the construction industry would require new and advanced technologies to meet housing demands
- 84 percent sought to remove interprovincial trade barriers as swiftly as possible
- 78 percent thought procurement processes were changing to spur innovation and digital adoption
- 78 percent were suffering a shortage of skilled workers, compared with 90 percent in 2023
- 73 percent predicted it would be increasingly challenging to meet demand over the next five to 10 years, with retirement exceeding recruitment
- 70 percent believed the labour crunch was affecting their ability to bid on new projects or comply with project deadlines, compared with 86 percent in 2023
- 43 percent called their clients highly influential in their decision to rely on new technologies to adhere to project or contractual requirements
“Too often, the system prioritizes lowest price over long-term value, which prohibits investment in innovation,” said Rodrigue Gilbert, the Canadian Construction Association’s president, in the press release.
“If we want a modern, productive construction sector, governments must reform procurement to foster collaboration, ensure fair risk-sharing, and create the confidence companies need to invest and grow,” Gilbert added.
“The pressure is intensifying on the construction industry to do far more with less,” said Jordan Thomson, KPMG in Canada’s national sector leader for building and construction, in the press release.
“The industry is well aware of their labour conundrum, with eight in 10 companies still experiencing a shortage in skilled labour that’s affecting their ability to take on new work and complete current jobs,” Thomson added.
KPMG added that industry participants polled were prioritizing or exploring the following new technologies:
- innovations underpinning a demand-driven supply chain (56 percent)
- prefabrication and modularization (53 percent)
- AI and AI-driven software (53 percent)
- robotics, drones, or exoskeletons (40 percent)
“We’re seeing much more interest in tech adoption compared to where we were even two years ago,” Thomson said in KPMG’s press release. “However, the sector still has a long way to go to move the needle on productivity. Making a commitment to invest in technology is the first step.”
In reaching these findings on the construction sector’s digital maturity, KPMG surveyed 265 construction companies across Canada from Mar. 18 to Apr. 4, with the help of the Canadian Construction Association.