The future of trade for Canada remains up in the air as the country’s biggest trading partner has imposed tariffs on what we export to the United States.
Many in the heavy construction industry may view this as a doomsday scenario for the Canadian economy. However, there are others within the industry who see this as an opportunity for Canada to wake up and do business differently.
Two-thirds of Canada’s national income comes from trade. With a vast land mass, Canada has had to rely on stable infrastructure to get its goods to market. This is a challenge, especially when it comes to getting goods out of remote areas within the country. Taking goods from the Canadian north to markets in the south and beyond requires a high level of co-ordination, relying on reliable infrastructure systems.
In 2010, Canada’s trade infrastructure was listed in the top 10 of all jurisdictions in the world. By the time 2019 came around, the country had dropped to 32nd place. Canada’s ability to be competitive drastically dropped during this period and requires a co-ordinated effort by sectors and government to get it back to where it was not that long ago.
Canada has not adequately co-ordinated between federal, provincial and municipal governments and the private sector to build a system of trade infrastructure that enables the economy to reach its full potential.
John Law, senior executive in residence with the Canada West Foundation and former Deputy Minister of Highways for Saskatchewan, was recently interviewed in the media on how it is necessary to build up our infrastructure to remain competitive in the world. Law stated in that interview, “If you can’t move it, you can’t sell it.”
Law also stated that there are three kinds of infrastructure projects. First is the “want” infrastructure, which includes hockey rinks, community centres and similar facilities. The second was the “need” infrastructure, which includes facilities such as hospitals and schools. The third and most important form of infrastructure build is trade and transportation. Trade and transportation infrastructure projects are the ones which help to pay for the “wants” and the “needs” by enabling the economy.
Law points out that Canada has not adequately co-ordinated between federal, provincial and municipal governments and the private sector to build a system of trade infrastructure that enables the economy to reach its full potential. Both the United Kingdom and Australia have created ways to help co-ordinate their long-term infrastructure planning to create a successful environment of trade.
We have to break the cycle of planning around elections to address our infrastructure needs. By planning long-term, we can identify the crucial projects that will help us as a province and a country meet the demands of our trading partners.
– Shantel Lipp, SHCA
Infrastructure Australia was established in 2008 to be the Australian Government’s independent adviser on nationally-significant infrastructure investment planning and project prioritization. Infrastructure Australia conducts independent analysis of all infrastructure needs which are then put on an infrastructure priority list. The United Kingdom has the Infrastructure and Projects Authority (IPA), which is classified as the government’s centre of expertise for infrastructure and major projects. The IPA works across government to support the successful delivery of all types of major infrastructure projects.
Both entities offer the government expert advice on the needs of infrastructure investment with the recommendations based on long-term needs that fall beyond the natural election cycles of the government of the day.
“This is something that is definitely needed here in Saskatchewan and here in Canada,” said Shantel Lipp, president of the Saskatchewan Heavy Construction Association. “We have to break the cycle of planning around elections to address our infrastructure needs. By planning long-term, we can identify the crucial projects that will help us as a province and a country meet the demands of our trading partners.”
If Canada is to explore new trading partners beyond the United States, then it must have the infrastructure backbone supported by long-term planning to meet the demands required by that diversity in trade.
Construction sector taking bold steps toward net-zero emissions
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With a growing need to combat climate change, Canada’s construction sector is embracing ambitious goals to lower its carbon emissions. This transformation isn’t merely a trend, but a necessary evolution toward sustainability. As construction stakeholders innovate and adapt, the role of government support is even more significant.
Rodrigue Gilbert
The shift toward sustainability
The Canadian Construction Association’s (CCA) Q4 2023 ICIC Construction Sector Quarterly Insights report observed that the industry is making significant gains in sustainability. Despite its history as a contributor to greenhouse gas emissions, the sector is swiftly embracing measures to curb its environmental impact. There has been a notable decrease in emissions intensity across various infrastructure assets, and investments in clean technologies and materials are rising.
Key players, from developers to contractors, are integrating sustainable strategies into their projects. Green building materials are being employed to not only reduce the emissions associated with construction, but also improve energy efficiency over the project’s entire life cycle. Renewable energy sources like solar panels and wind turbines are also increasingly being integrated into building designs. Moreover, the availability of AI and big data analytics will offer unprecedented opportunities to monitor building performance, providing insights that lead to more effective energy management strategies.
Government support: The catalyst for change
While industry leaders are driving change from within, the Canadian government plays a pivotal role in accelerating the transition to net-zero. Financial incentives are essential tools to encourage sustainable practices across the construction sector. Tax credits for green building certifications, grants for research and development of sustainable technologies and subsidies for energy-efficient retrofits are examples of the type of government interventions needed.
Sustainability is not just a goal; it is a necessity.
Updated building codes and regulatory standards that mandate higher energy efficiency and stricter emissions targets for new construction and renovations are crucial. By setting clear and ambitious benchmarks, the government can ensure that the entire industry moves toward a sustainable future collectively. These standards not only guide current projects, but also inspire innovation in building design and construction methods.
Challenges and opportunities
Despite progress, challenges remain. The upfront costs of sustainable building practices and materials can be higher, posing a barrier to widespread adoption particularly for the small and medium-sized construction company.
The construction industry requires financial support and incentives to offset these initial investments. The timing is also ripe to update outdated procurement strategies. Engaging with contractors earlier and moving away from the lowest bid model will encourage the use of new processes, better practices, alternative energy and more sustainable materials. Moreover, the industry needs a long-term plan for infrastructure investment – one that will provide confidence to CCA members to invest in new technology, convert to low carbon materials and hire and train staff.
CCA released an update to its 2021 Strength, resilience, sustainability white paper in September. This broader report highlights the progress made by industry, explores the linkages between climate risk and infrastructure decisions and discusses the path forward in confronting the climate crisis. It also serves as a springboard for discussions with government on the need for greater investment and supportive policies to not only achieve net zero objectives, but also protect Canadians and the infrastructure they depend on daily from the escalating threats of extreme climate events.
Looking ahead
Sustainability is not just a goal; it is a necessity. Industry leaders are already demonstrating their commitment through innovative practices and technologies. Continued collaboration with the federal government will accelerate this transformation. By aligning policies with ambitious climate targets and providing the necessary financial incentives and regulatory frameworks, the government can empower the industry to achieve net-zero emissions.
Stay in touch!
Count on CCA to be a collaborative partner to the SHCA, providing helpful tools, sharing best practices across the country and being a voice with the federal government.
Football fans know that the view of the game is much different up in the stands compared to what you can see on the sidelines of the field.
Football coaches know this even better. The value of having an eye in the sky to have a view of the entire field can be exactly what some coaches need to figure out a way for their team to win. Having someone in the booth to call plays based on that vantage point can make a big difference in the outcome of their team’s game.
Getting a different view of the field can be advantageous when running a business, too, but that can be easier said than done. Running a business can take up so much time and attention, and it can be hard to find the occasions and resources to get an accurate perspective about what is happening beyond the business.
However, it is crucial for the success of the business to pop your head up, look around and observe, to get a view of what is happening on the field. Seeing beyond what is immediately going on can give the perspective a business owner needs to find solutions to overcome current challenges and recognize issues that are on the way.
The easiest way to get an in-depth view beyond the day-to-day activities of a business is to be a member of an industry association, such as the SHCA. An industry association has a view of the broader industry and more, and is set up to share that outlook with members to help them be more successful.
Industry associations provide important context to their members who are trying to understand and cope with the forces and challenges each of them encounters in business. Those forces and challenges could be understanding evolving customer interests, navigating human resources and labour issues, securing valuable partnerships or any one of the many complex and evolving situations a member might find themselves in.
Getting a team on the field
SHCA members run businesses that are about more than building roads and infrastructure. These businesses contribute to building the economy. Collectively, the businesses that make up the heavy construction industry add more than $6 billion to Saskatchewan’s gross domestic product, supporting tens of thousands of jobs and providing $1.5 billion of income.
These figures come from the most recent economic impact analysis that was done by Praxis for the SHCA. Research like this benefits the industry and members by establishing the scale and significance of the work they are doing.
Collectively, the businesses that make up the heavy construction industry add more than $6 billion to Saskatchewan’s gross domestic product, supporting tens of thousands of jobs and providing $1.5 billion of income.
Research lends added credibility to members’ interests and experiences, but it also serves customers of the industry by helping them better understand it and the businesses that form it. Other research, such as collecting and analyzing data that can help the industry come up with answers and propose influential solutions for major economic challenges, is also important.
Having access to the major leagues is possible through a membership with the SHCA. Becoming an SHCA member automatically provides an integrated membership to the WCR&HCA as well as the Canadian Construction Association (CCA), both of whom were a part the Shovel Worthy report and advocacy.
Getting in the game
The Shovel Worthy report was developed to get it in front of and be seriously considered by the federal and provincial governments as a plan for how Canada can return to its place in the top 10 of global trade infrastructure rankings, which is needed to restore the confidence of Canada’s trade customers.
Getting in the game and playing the best game possible is more likely when one deeply understands the sport. All governments have competing interests and concerns that must be addressed, as well as their own policy priorities. They have a process for advancing priorities and those who can best engage in the process will have their voices heard. Those who choose not to engage will have no say in decisions that could fundamentally impact their ability to do their job.
Photo courtesy of SHCA
There is more success to be found playing as a team than going solo. The SHCA brings a voice on behalf of its members to key stakeholders and decision-makers. The association advocates on behalf of members who in turn benefit when their businesses grow.
The SHCA has also been on the board of the Saskatchewan Common Ground Alliance, where the association joins the ranks of the major Crowns as well as major mining and development companies. The SHCA also participated on the board of directors for the Saskatchewan Center of Excellence of Transportation and Innovation at the University of Saskatchewan. Once a year, the SHCA also meets with the federal members of parliament to talk about the importance of infrastructure on a national level.
Learning the sport
There are also opportunities for players to learn to play at a higher level and find more opportunities to put points on the board. Each player in the game is going to perform better when they dedicate themselves to learning the sport. This begins with knowing the most current information and status of government regulations, specifications and legislative changes affecting the industry.
The SHCA provides all current members with updates with the most recent information available. Delivered daily are e-news and tender information notifications. These notifications include information about the association events, news updates and technical notices for all members.
Strong players know who is who and what is what when it comes to their sport. The SHCA produces a popular rental rate guide, which is the definitive reference tool used by both the user and purchasers of SHCA’s members’ services. This guide can be accessed electronically, which makes it even more useful. While it comes out annually, the SHCA knows people are using it daily to inform and connect them to the people and services they require.
At least five times a year, members are invited to gather and network with others in the industry. At these events, such as the annual general meeting and the new Infrastructure Summit, speakers share valuable knowledge and viewpoints that will help members as they consider and conduct their own business. Each year, the calibre of speakers and events keep increasing.
Think BIG also continues to be a great tool for getting the industry’s messages out to the people and government. Through this publication, the SHCA promotes their vision, mandates and services, providing members with information related to what’s happening not only in Saskatchewan, but around the world.
Between Think BIG issues, the association’s social media accounts keep members and the public up to date about the latest industry developments. Follow SHCA’s Facebook and LinkedIn accounts to be notified about training opportunities and events, and see the industry and the people working in it celebrated.
Being a member also provides access to networking opportunities. At least five times a year, members are invited to gather and network with others in the industry. At these events, such as the annual general meeting and the new Infrastructure Summit, speakers share valuable knowledge and viewpoints that will help members as they consider and conduct their business. Each year, the calibre of speakers and events keep increasing.
It is important to consider who else attends these events. The SHCA has formal opportunities to listen to and be heard from, such as the panel of guests hosted from SaskBuilds, Priority Sask and the Ministry of Highways at SHCA’s 2024 spring meeting to talk about capital budget planning and procurement.
There are informal opportunities as well. Governments and key stakeholder groups often have their representatives attend SHCA events, such as the annual industry summit, giving members an opportunity to meet and casually discuss their interests.
Developing players
High-performing players also need to be strongly skilled and well-conditioned. That is where education and training come into the picture in helping members become high performers. The SHCA works with those who develop and provide education and training opportunities, so members and their employees have the skills and knowledge they need to be at the top of their game.
For example, the SHCA collaborates with the Asphalt Institute, which provides full days of training, such as the paving inspector certification session. Ministry of Highways officials have attended those sessions to explain why the ministry is making such training a mandatory requirement for paving crews working on their projects.
Think BIG also continues to be a great tool for getting the industry’s messages out to the people and government. Through this publication, the SHCA promotes their vision, mandates and services, providing members with information related to what’s happening not only in Saskatchewan, but around the world.
Watch SHCA’s social media to learn of upcoming opportunities to participate in training sessions. In June, SHCA’s sessions provided information and insight into procurement and contracting, contract law and risk management as well as Construction 101, which is training for introducing people interested in construction to the industry.
The SHCA also shared and supported opportunities for longer training courses to qualify people for careers in the industry. For example, there is the 36-week Heavy Equipment & Truck & Transport Technician Certificate program available through Southeast College in Estevan, which gives participants basic training in two high-demand mechanical trades at the same time as a heavy-duty equipment technician or transport mechanic.
To continue to develop players, coaches must keep adding people to the roster. They must send the message to those not yet in the game that they would enjoy playing and be welcomed onto the team. The SHCA actively encourages people to consider careers in the industry, working to demonstrate that heavy construction is a viable option for women, new Canadians and others who may wonder if they are a fit.
Practice how you play: how members can get make the most of their membership
How you practice is how you play. Approaching practice as an opportunity to strategically develop technically, mentally and socially will prepare SHCA members to play a stronger game. The benefits and resources offered by the SHCA empower members to stay competitive, adapt to industry changes and thrive in their market.
Those who are in business know they must invest money, time and energy to give the business the best chance at success. Investing time and effort to participate in what the association has to offer will also return a result.
There are many functions and services provided to the membership. Several have already been described, but another to take note of is SHCA’s affinity program. There are several opportunities for members to benefit from discounts on office supplies, work site supplies, shipping services, tires, and access to communication services and meeting facilities.
However, for the association to be as strong as it can be, members need to be active, engaged and involved. It takes a strong team to come together to bring forward ideas and information to formulate plans and put them into action. It requires people showing up in person to engage with one another to build the relationships needed to advance the industry’s interests.
Spotlighting current and potential issues in the industry
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With an ongoing national housing crisis, the government’s prioritization of a low-carbon economy and the mounting workforce shortage, Canada’s construction industry is in the spotlight.
Representing more than 18,000 member firms, the Canadian Construction Association (CCA) is capitalizing on the political attention to advocate for strategic investment and policies that will support rather than hinder efforts to build a stronger Canada.
Next steps for the National Infrastructure Assessment
Investment in corresponding infrastructure for every new home built
A long-term plan to fill the gap in trade-enabling infrastructure
Modernization of procurement strategies to support shared risk
Meaningful collaboration with provinces, municipalities and industry
Estimates by the Federation of Canadian Municipalities indicate that each new housing unit requires $107,000 in public infrastructure investment, which means an additional $128 billion is needed to build, support and connect these homes to essential housing-enabling infrastructure. This represents a major shortfall in investment. The focus on measures to ease lending for homebuying and rezoning may only serve to exacerbate demand in the long-term with no real vision on how to increase supply.
Rodrigue Gilbert
CCA voiced these concerns at its Meech Lake meeting in May. This meeting is a chance for industry experts from across Canada to connect with senior federal government officials to discuss critical issues affecting the industry. By working together with the Government of Canada, the construction industry can continue building resilient and sustainable infrastructure for the benefit of all Canadians.
The second of these biannual meetings is scheduled for the fall to provide another touchpoint ahead of CCA’s annual Hill Day in November. Last year’s Hill Day was CCA’s most successful yet, with close to 100 industry experts meeting with parliamentarians from all parties and regions to champion construction, and reaffirm the value of the industry to Canada’s economic growth.
Awareness to action: construction’s progress on net zero objectives
CCA released an update to its 2021 Strength, resilience, sustainability white paper in June. This broader report highlights the progress made by industry, explores the links between climate risk and infrastructure decisions and discusses the path forward in confronting the climate crisis. It also serves as a springboard for discussions with government on the need for greater investment and supportive policies to not only achieve net zero objectives, but also protect Canadians and the infrastructure they depend on daily from the escalating threats of extreme climate events.
CCA’s recently published ICIC Construction Sector Quarterly Insights Report observed that the industry is making significant gains in sustainability practices. Despite its history as a contributor to greenhouse gas emissions, the sector is swiftly embracing measures to curb its environmental impact. There has been a notable decrease in emissions intensity across various infrastructure assets, and investments in clean technologies and materials are rising.
Continued work on trade-enabling infrastructure
The industry is gaining traction in its pursuit of a trade-enabling infrastructure investment strategy. Canada’s premiers called on the federal government to convene a First Ministers’ meeting dedicated to discussing the priorities of a strategic trade corridor infrastructure federal program, and its link to Canada’s economic growth and competitiveness.
With an estimated 300,000 workers set to retire in the next decade and increasing construction demands, there is a real need to partner with the federal government on workforce development strategies. While progress has been made, there’s still much work to be done.
CCA achieved some headway with the federal government on rebuilding Canada’s workforce through immigration reform. Immigration targets were increased, and a new process was announced under the Express Entry program to welcome skilled newcomers with work experience in occupations considered a priority in Canada, including construction.
However, ongoing dialogue will continue as the government needs to create a more supportive environment to alleviate the labour choke points. This includes changing an outdated immigration point system and working with provinces to ensure better skills matching.
Stay in touch!
Count on CCA to be a collaborative partner to the SHCA, providing helpful tools, sharing best practices across the country and being a voice with the federal government.
It would be hard for any Canadian to not notice the conversation around housing construction. Cities in our province, like every other province in the country, have seen their populations grow while the growth of housing stock has not kept up with demand. The need for housing in Canada has been a major concern over the last few years, with report after report coming out about this challenge.
Like many in Saskatchewan’s heavy construction industry, I am paying attention to this topic because this issue is about more than residential construction. The infrastructure necessary for this housing will be built by our industry because our members build more than roads.
Major projects are underway in Saskatchewan cities to address the underground infrastructure before revitalizing the surface infrastructure. The Saskatchewan Heavy Construction Association (SHCA) is there to support the heavy construction companies working on those projects. Municipal leaders in our province are describing the strain they are under as they are asked to make decisions around upgrading infrastructure in their communities and securing the necessary funding to complete these projects.
As our cities grow, we are seeing councils having to make decisions about updating aging infrastructure while also looking at expanding that infrastructure to ensure all residents receive the municipal services they require at their homes and businesses. Councils also face conflicting perspectives when it comes to infill construction, with some pushing to build multi-unit developments in existing neighbourhoods where there already is infrastructure, while others resist such changes to their neighbourhoods.
The push for infill housing is led by the federal government, which is offering cities tens of millions of dollars through its $6 billion Canada Housing Infrastructure Fund. Of this, $1 billion is being distributed to cities for urgent infrastructure needs such as improving wastewater, stormwater and solid waste systems.
To many Canadians, that $1 billion sounds like a lot of money, but when you look at Regina as an example, it puts that amount into context. In early July, Mayor Sandra Masters said the city’s infrastructure has been “chronically underfunded” as council considered the Water Network Expansion, a critical project already underway to build a new pump station, plus two additional storage reservoirs that are necessary to supply water to Regina’s growing east end. Masters says Regina has “a billion-dollar infrastructure problem.”
A recent report by the Canadian Urban Institute plainly states that a plan to build homes must also factor in the need for water, wastewater, roads, transit, power-distribution infrastructure and more. In the introduction of A Jump Start: Providing Infrastructure for More Housing, the report makes it clear why we can’t discuss one without the other. “Bluntly speaking, any new housing needs toilets and tap-water,” the report states.
This report says that in fast-growing parts of Canada, the cost of providing a full range of infrastructure likely exceeds $100,000 per home over time. It also says that the cost of infrastructure to serve 5.8 million new homes in Canada over the next decade exceeds anything existing municipal fiscal arrangements could support. Municipal governments receive less than 10 cents of each tax dollar collected in Canada, the report says, while municipalities own and operate most of the public infrastructure. That is why all three levels of government have a history of sharing the cost of this infrastructure through capital grants or lending programs.
The SHCA maintains excellent relations and access to all levels of government. We are in regular communication with MPs, MLAs, ministers, mayors and councillors to put forward our members’ interests. We maintain these relationships not just to bring forward concerns. We also offer solutions to elected officials and bureaucrats. Our members have very valuable insights into the projects these governments undertake, and we offer recommendations on how to be more efficient and effective in these projects.
Being an SHCA member is the most effective way for a heavy construction company to be heard by all three levels of government. SHCA members do so without the risk of standing alone as they deliver what can sometimes be difficult messages to deliver. The message coming from industry – as opposed to a single company – can have more impact.
There are some difficult days ahead for these governments who are being asked to deliver more to taxpayers who are not agreeable to paying more. The Canadian Urban Institute recommends four measures to help municipalities pay for this necessary infrastructure. The first is moving from pre-payment to secured payment for infrastructure over its useful life. The second is ensuring all beneficiaries contribute to infrastructure’s cost over time. The third is reducing municipalities’ infrastructure financial risks and limitations by using innovative financial models and private capital. The fourth and final recommendation is to tailor infrastructure financing models to the fiscal risks and realities of Canada’s small, rural and remote municipalities.
Knowing what other organizations are proposing to the government that can potentially impact our industry is also important. This helps the SHCA keep members informed, but it also allows us to find opportunities to build relationships with organizations to present a united front on issues we have in common.
We saw this with the Western Canada Roadbuilders and Heavy Construction Association (WCR&HCA) working with the Canada West Foundation and the Canadian Construction Association to get the Shovel Worthy report in front of and seriously considered by governments. SHCA members are automatically also members of the WCR&HCA and the Canadian Construction Association, who collaborated with the Business Council of Canada and the Canadian Chamber of Commerce to advocate for a nation-building strategy that would invest in Canada’s trade corridors to enable and harness trade-based economic growth.
I look forward to hearing from all SHCA members about the different types of projects you work on in various parts of our province. I want to understand the challenges and successes you are experiencing so we as an association can support your needs and interests because it is likely your company is not alone in its experience. When it comes to municipal infrastructure, I will continue to maintain my connections and keep listening to the conversation out there so I can advocate to the best of my ability on your behalf.
There’s a shortage of skilled workers in Canada. A shrinking talent pool, lack of quality skills training programs and youth reluctant to enter the skilled trades are some of the factors creating a shortfall with no end in sight.
Canada West Foundation (CWF) proposes an innovative solution to help employers build the workforce they need now and in the future. Our latest What Now? brief, Rapid Employee Upskilling and Reskilling, provides principles upon which to build on-the-job skills training programs that meet the needs and interests of employers and job seekers.
