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What Mark Carney’s election win means for Canada’s construction industry

CIOB
What Mark Carney’s election win means for Canada’s construction industry

 

Article submitted by the CIOB

As the world’s largest professional body for construction management and leadership, the Chartered Institute of Building (CIOB) will closely monitor how Canada’s construction industry evolves under the newly elected Prime Minister Mark Carney and his Liberal government.

That is the shared view of Rami Daniel MCIOB, CIOB Americas hub vice-chair, and Eddie Tuttle, the institute’s director of policy, external affairs and research.

Rami Daniel
Rami Daniel

The Carney government’s ambitious housing and infrastructure agenda brings welcome opportunities for growth in the construction sector, but Rami and Eddie both stressed we must face the reality of such ambitious plans. Their shared view is that ambition without workforce capacity is just a promise waiting to underdeliver.

Carney’s pledge to double Canada’s housing production to 500,000 units per year could transform the built environment. 

But Canada has averaged just over 227,000 homes annually over the past decade. Hitting 500,000 isn’t just ambitious, it’s an entirely new operational reality for the industry. That means the scale of the planned transformation could push an already-stretched workforce to a breaking point unless addressed strategically.

Eddie Tuttle
Eddie Tuttle

Both Eddie and Rami agree one of the biggest risks to Carney’s housing plans is the shortage of labour across the country – an issue we have seen in many other areas across the globe. The current shortage of skilled trades and construction professionals is well-documented and ramping up housing output to this extent without addressing the labour crisis would be counterintuitive.

Carney’s campaign outlined plans to expand immigration to include more skilled tradespeople and streamline apprenticeship pathways. One solution the CIOB supports is establishing a national construction workforce task force, bringing together federal, provincial, territorial, municipal and industry stakeholders to match labour supply with construction demand.

Another potential route towards success could be through improving apprenticeship pathways, Rami says. While it will take time to develop, Rami suggests the federal government can play a strategic role by tying infrastructure funding to workforce development goals, encouraging provinces to reintroduce and modernize skilled trades education in secondary schools. 

Carney stated his intent to reform the National Building Code (NBC) to fast-track modular housing. Rami sees this as a “game-changing opportunity,” but one that requires collaboration from all levels of Government across Canada. 

If implemented effectively, modernized building codes could reduce construction timelines, cut costs and help Canada hit housing targets faster.

Beyond increasing housing supply, Carney has committed to a significant public transit expansion, energy efficiency retrofitting and green building initiatives. The CIOB sees this as an encouraging direction as continued investment in transit, schools and community spaces creates opportunities for construction workers across many disciplines. That said, however, the accelerated development must not compromise build quality or sustainability. As Rami says, “we can be fast, but we have to be smart.”

Rami also suggests a collaborative, cross-party support would support achieving housing objectives, taking inspiration from practical policy ideas from across the political spectrum to encourage housing development at both the municipal and provincial levels. This could include offering targeted tax incentives and reducing development charges to jumpstart stalled housing projects. In Ontario, for instance, housing starts are currently at historic lows, a situation that could trigger another severe shortage in four to five years as the market recovers.

In essence, while the construction industry in Canada is on the brink of exciting and transformative growth, policy goals require achievable strategies and the right number of skilled workers to deliver them.

Canada’s construction sector needs policy-makers to focus on developing and delivering achievable programs that support the construction industry’s capacity to deliver on such ambitious plans. This includes investment in recruiting and training workers and retaining those already working within the industry. All levels of government should also focus on bringing in talent into their ranks who can help them learn from the private sector and improve medium and long-term planning, Rami believes.

The CIOB will continue to advocate for these principles on behalf of its members in Canada and the wider world.

As Eddie puts it, “this is a once-in-a-generation opportunity to reshape the built environment in Canada – but it has to start with people, skills, and support.”

Anyone interested in joining the CIOB can contact Sereena Kang at skang@ciob.org. Send Industry Perspectives Op-Ed comments and column ideas to editor@dailycommercialnews.com.

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