RC108 SeptOct2023 - Magazine - Page 13
CONSTRUCTION 4.0
An in-depth look at technology adoption
in Canada’s construction industry
by Jordan Thomson
PMG IN CANADA in collaboration with the Canadian
Construction Association (CCA) surveyed construction companies across Canada in 2020 and
presented a Digital Maturity Assessment Tool to
help advance the industry’s digital transformation.
In 2023, KPMG relaunched an updated version of
the survey, interviewing 275 Canadian companies to gauge
the progress that the industry has made in adopting new
technologies and transforming the way their
organizations operate. The survey’s respondents represented all facets of the Canadian
construction industry including owners, general contractors, suppliers, subcontractors,
17%
engineers, and architects.
When KPMG conducted its 2020 survey,
digital and technological maturity in the
35%
construction industry was “fairly low”.
The 2023 survey reveals the industry has
made headway but more needs to be done.
COVID-19 hastened their digital journeys:
Over two thirds (67 per cent) of respondents
say the pandemic spurred new investment in
new technologies for their business.
K
Investing in New Technologies
12%
13%
31%
35%
16%
37%
40%
38%
32%
30%
Industry Outlook
The industry has tremendous growth
potential across the industrial, commercial,
institutional, and civil construction sectors
in part fueled by housing demand, govern11%
10%
7%
ment investments in infrastructure, and the
transition to the green economy. However,
Corporate
Project
Project
the industry is divided in its outlook for
operations
management
execution
the next five years despite the anticipated
& back office
need. While 42 percent of respondents are
significantly or somewhat more optimistic
about the sector’s five-year outlook, a third
are significantly or somewhat more pessimistic. Owners
and suppliers have a more optimistic view of the future
than general contractors, subcontractors, and consultants
(architects, engineers, etc.) The high level of optimism
with owners is important to note, as they represent the
first link in the construction value chain. Their optimism
suggests continued investment in projects will flow to the
rest of the industry.
In the near term, the construction industry is buckling
in for a possible recession. Over two-thirds (67 per cent) of
construction companies expect an economic downturn in
the next 12 months. Nearly seven in 10 respondents who
expect a recession are currently either accelerating their
digital transformation strategies or staying the course on
their digitalization timetables. Fewer than a third (31 per
cent) are pausing or reprioritizing their digital plans largeJordan Thomson is
ly to cut their operating expenses and alleviate economic
construction lead with
KPMG in Canada.
stresses.
RENEWCANADA.NET
Great
extent
Considerable
extent
Moderate
extent
8%
Little
extent
Bid
development
SEPTEMBER/OCTOBER 2023 – RENEW CANADA 13
