RC105 MarApr2023 - Magazine - Page 8
2023 OUTLOOK
THOUGHT LEADERSHIP
BUILDING
TOWARD THE FUTURE
The construction industry is making plans to
succeed in 2023 by Simon J. Fenn
F YOU’RE A BUILDER OR A CONTRACTOR, it may seem
like the cards are stacked against you.
Inflation. Rising interest rates. Runaway
prices. Worker shortages. Ongoing supply
chain delays. Stricter health and safety
fines and penalties.
Yet there is a way out. Construction firms
and contractors that take active steps to
address these well-known challenges will
strengthen profitability, vitality, and resilience. These firms will attract new workers
and carefully adopt technological solutions
to solve problems by relying on experts to
guide them.
Construction companies that succeed in
2023 will be supported in other ways too,
I
Simon J. Fenn, CIP, is senior
vice president at global
insurance brokerage
Hub International.
8
RENEW CANADA – MARCH/APRIL 2023
with a well-developed risk management and
insurance strategy protecting the bottom
line and a focus on employees that considers
onboarding processes, training, and benefits.
Profitability
With all signs pointing toward a construction
slowdown, it’s clear the industry will be
facing challenges in 2023. Interestingly, the
biggest threat is now from rising inflation, of
which rising material costs from the supply
chain crisis form a major component as do
rising labour costs. Experts hope to curb
that; the Bank of Canada raised interest rates
again at the end of January, which now sit at
the highest level since 2007.
The price of some materials continues to
increase, but the price of lumber finally began to ease, falling nearly 70 per cent in the
third quarter of 2022 from its peak in May
2021. Ongoing materials shortages continue,
throwing off schedules and budgets. Many
NATURAL RESOURCES – LiDAR technology
in natural resources Complex projects
can benefit from the adoption of LiDAR
technology, allowing for greater efficiency,
improved stakeholder communication, and
clear cost savings.
NET-ZERO – Addressing net-zero targets
on Public Private Partnership contracts
With Canada’s emissions targets and netzero commitments fast approaching, it is
important for P3 contracts to evolve and
consider greenhouse gas emissions. The
next generation of P3 projects will need
to look at the procurement process with
consideration given to carbon expectations,
commitments, and opportunities to
accommodate innovative solutions.
PROJECT CONTROLS – Achieving an
integrated approach to new contracting
models Canada’s projects have become
increasingly complex. Collaborative
contracting allows for a closer relationship
by building a ‘team’ with a shared culture,
risk profile and open book policy, but to
be successful a single source of truth is
needed. Project controls fills this void by
providing accurate information in a way that
is organized and insightful. This information
helps guide the project strategy and risk
management for the life of the project.
RENEWCANADA.NET
CALGARY MUNICIPAL LAND CORPORATION
With all signs pointing toward a construction slowdown, it’s clear the industry will be facing challenges in 2023.
According to Turner & Townsend’s
2023 Annual Canada Market
Intelligence Report, the construction
industry continues to adapt in
a time of change, particularly
in three very different areas:
