by SHCA SHCA

Canadian Construction Association Applauds Federal Budget’s Significant Infrastructure Investments, Calls for Co-ordinated Workforce Strategy

Canadian Construction Association

The Canadian Construction Association (CCA) welcomes the federal budget, which puts construction at the heart of Canada’s economic strategy through investments in infrastructure, defence and housing. These measures are critical to supporting the businesses and people who build the homes, transportation networks and other projects Canadians rely on every day.

CCA commends the government’s significant $115 billion investment in infrastructure, including $51 billion for local infrastructure such as housing and transportation, which will support communities across Canada and enable the ambitious homebuilding agenda.

“Canada has underinvested in critical infrastructure for decades,” said Rodrigue Gilbert, president of CCA. “These investments reflect the essential role of housing-enabling infrastructure in addressing the national housing shortage and committing substantial resources to these projects.” CCA also welcomes investment for the Major Projects Office, and the recognition within the budget that “for too long, the construction of major infrastructure in Canada has been stalled by arduous, inefficient approval processes.”

While the budget marks an important step toward recognizing construction’s role in Canada’s economy, CCA continues to call for a co-ordinated national workforce strategy, one that connects immigration, apprenticeships, upskilling and the destigmatization of careers in the skilled trades. “The construction sector employs 1.6 million Canadians and contributes $165 billion to Canada’s GDP, yet we continue to face significant labour shortages,” said Gilbert. “Without a long-term, co-ordinated workforce strategy, any ambitious construction agenda will stall.”

The government’s investment in foreign credential recognition is also important. However, CCA cautions that it is too narrowly focused on unionized programs. “Union training programs play an important role in building Canada’s workforce, but we must ensure equitable access to training and credential recognition for all workers, including the 70 per cent of Canada’s construction workforce that is non-unionized,” said Gilbert. “If we want to build more homes and infrastructure faster, we need investments that don’t leave the majority of workers behind.”

Finally, CCA supports the government’s ambition to strengthen domestic industry, but procurement policies must not unintentionally restrict the construction supply chain. Canada’s builders depend on a reliable flow of materials and components. Continued dialogue with the construction sector is critical to ensuring that domestic sourcing policies strengthen rather than constrain Canada’s ability to build.

“We look forward to working with the federal government to ensure domestic sourcing policies strengthen – not constrain – Canada’s construction capacity,” said Gilbert. “When [the] government and industry work together, we can deliver more skilled workers, modern infrastructure and stronger communities. Together, we build Canada.”

by Rodrigue Gilbert Rodrigue Gilbert

Building a Sustainable Future

Construction sector taking bold steps toward net-zero emissions

smshoot/123RF

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.

Rod Gilbert
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.

Canadian Construction Association

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. 

Stay in the loop by subscribing to CCA’s newsletter at bit.ly/ccasubscribe, by following @ConstructionCAN on X or by looking up the Canadian Construction Association on LinkedIn.

Mobile phone
by Rodrigue Gilbert Rodrigue Gilbert

Canada’s Construction Sector Rallies for Reform

Spotlighting current and potential issues in the industry

Mobile phone
prykhodov/123RF

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.

Building beyond housing: CCA’s advocacy push

While Canada’s Housing Plan formed the centrepiece of the 2024 Federal Budget, the industry was left disappointed by several significant missed opportunities, including:

  • 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.

Rod Gilbert
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.

CCA continues to work with its partners, including the Canada West Foundation and the Western Canada Roadbuilders and Heavy Construction Association, and is championing a long-term planning and investment strategy that prioritizes nation-building infrastructure.

Rebuilding Canada’s construction workforce

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.

Canadian Construction Association

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. 

Stay in the loop by subscribing to CCA’s newsletter at bit.ly/ccasubscribe, by following @ConstructionCAN on X or by looking up the Canadian Construction Association on LinkedIn.

Rows of colourful toy houses
by SHCA SHCA

Industry Calls for Meaningful Investment as Housing Takes Centre Stage in Budget 2024

Rows of colourful toy houses
marcbruxelle/123rf

The federal government’s housing strategy is a long-awaited step forward to build more homes, but significantly more investment is needed to address critical infrastructure needs and the housing crisis, says Canada’s construction industry.

The federal government’s plan announced in this budget, as well as actions taken through the 2023 Fall Economic Statement, promises at least 1.2 million more homes for Canadians, on top of what the industry was planning to build. Yet, with estimates by the Federation of Canadian Municipalities showing that each new housing unit requires $107,000 in public infrastructure investment, an additional $128 billion is needed to build, support and connect these homes to essential housing-enabling infrastructure. This is a major shortfall in the investment needed. Moreover, the focus on measures to ease lending for homebuying and rezoning may only serve to exacerbate demand in the long-term with no real long-term vision on how to increase supply. 

“Budget 2024 sets a bold objective to help Canadians buy homes but misses the mark on delivering sufficient investment and a plan to ensure a steady flow of funds to address our nation’s infrastructure challenges,” said Mary Van Buren, president of the Canadian Construction Association (CCA).

“While we acknowledge some initiatives, such as funding for creating affordable apartments, training and recruiting more workers, and upgrading water and wastewater systems, the conditions attached and lack of strategic vision are concerning.”

With growing demands to not only build more homes but also the inevitable requirement for the necessary housing-enabling infrastructure to connect these homes to the services they need, CCA says the urgency to collaborate with provinces, municipalities and the industry is more pressing than ever.

“We need investments in infrastructure that are made based on the real needs of Canadians – projects that are shovel-worthy rather than just shovel-ready,” said Van Buren. “This visionary and consultative approach is what Canadians deserve.”

Canada’s construction industry underscores the urgent need for the federal government to implement policies and incentives that support not only housing construction and related essential infrastructure, including trade-enabling infrastructure, but also investment and help bypass construction’s boom and bust cycle. This includes programs to build the workforce needed and construction projects that share risk so that innovation and investment is encouraged, not hampered.

CCA calls for a shift in federal strategy when it comes to infrastructure investment and housing affordability – one that aligns all orders of government and equips the construction industry with a supportive policy environment. Canada’s construction industry stands ready to collaborate with all levels of government and stakeholders to address these critical challenges and build a better future for all Canadians.

Story #2: Construction Industry Condemns Environment Minister’s Lack of Support for Canada’s Road Infrastructure
by SHCA SHCA

Construction Industry Condemns Environment Minister’s Lack of Support for Canada’s Road Infrastructure

Canada’s construction industry is demanding clarity from Prime Minister Justin Trudeau on future investment in new road infrastructure after comments made in February by Environment Minister Steven Guilbeault.

While Guilbeault explained that support to provinces for maintenance will continue, he also said existing road infrastructure “is perfectly adequate to respond to the needs we have.”

Canada is dealing with an acute housing crisis. The government is asking our industry to build 5.8 million new homes but is overlooking the investment needed to support these homes and communities.

A report by the Federation of Canadian Municipalities estimates that it will require $107,000 in public investments per new housing unit. This amounts to a total of $620 billion in public funding needed – an additional $375 billion beyond the current planned budget.

“These new communities need new roads. People need to be connected to their jobs, their schools, and their hospitals,” said Mary Van Buren, president of the Canadian Construction Association. “A growing population has growing demands. We not only need the road networks to support their movement; we also need to shore up our trade infrastructure, which includes roads, bridges and highways.”

Canada has been under-investing in trade-enabling infrastructure for 15 years, as evidenced by the drop from 10th to 32nd in terms of the World Economic Forum’s global trade infrastructure ranking. Without continued investment in critical infrastructure, as recommended by the National Supply Chain Task Force, including trade-enabling infrastructure, Canada will fail to harness trade with its international partners for its economic success.

Canada needs the federal government to partner with industry and work with municipal and provincial governments to build a strong foundation for a stronger country.

For more information, read CCA’s recommendations to government in advance of its 2024 Federal Budget.

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