How Digital Technology Can Solve the Labor Shortage in the Canadian Construction Industry

2023-06-06 23:23:00

The increased use of digital tools like robots and drones can help companies save time and money, reduce waste and improve worker safety, according to Tom Rothfischer, partner and national leader for building, real estate and construction at KPMG Canada. (Photo: The Canadian Press)

Toronto — Nearly nine in ten construction companies say they are facing a shortage of labor or trades, which affects their ability to bid on projects and meet deadlines in a context of demand unprecedented.

The industry widely sees digital technology as a solution to these shortages, according to a survey of 275 construction companies, released Tuesday by KPMG Canada.

“We’re hearing across the industry that there are labor shortages,” said Tom Rothfischer, partner and national leader for building, real estate and construction at KPMG Canada.

Technology is not something they historically had a lot of time for, in my experience, and seeing this recalibration was a real eye-opener for us, and that eye-opener is welcome.”

Survey respondents said the Canadian construction industry has been slow to embrace new digital technologies, with nearly three-quarters believing the sector lags behind other countries when it comes to adoption of digital technology, but the pandemic has intensified the sector’s need for adaptation.

According to Rothfischer, the increased use of digital tools such as robots and drones can help companies save time and money, reduce waste and improve worker safety.

About 46% of companies said they plan to spend more than 11% of their business operating budget on technology and digital transformation, while a third anticipate they will spend between 6% and 10%.

Canadian Construction Association (CCA) President Mary Van Buren noted that the cost of implementing new technologies has been a barrier for some companies in recent years.

“Profit margins are slim in construction, especially for small and medium-sized contractors, which makes it increasingly difficult to adopt innovations within their businesses,” Van Buren said in a statement.

“That’s why CCA continues to work with federal departments to modernize their procurement processes to foster innovation by supporting risk sharing.”

Robots to maximize resources

Senior Director of Infrastructure Consulting at KPMG in Canada, Jordan Thomson, discussed technologies used in the manufacturing sector such as 3D printing, which has been adapted for the construction industry to pour concrete and build complex steel, as well as drone surveying, which can help contractors plan jobs, measure quantities, and monitor job progress quickly and accurately.

Ms Van Buren also pointed to the increased use of exoskeletons, which she called “assistive devices”.

“You can imagine that when you work overhead a lot, your arms and shoulders get tired. These exoskeletons relieve some of that pressure,” she explained.

“So we’re seeing all kinds of new assistive devices coming out as well, which should help workers be able to work more productively and hopefully bring other workers into our industry.”

Other examples include robots that can lay bricks and fix steel rebar. According to Thomson, contractors were increasingly using Boston Dynamics’ mobile robotic dog, known as Spot, which is able to navigate terrain to automate routine inspections and gather data.

“They use it to free up a field engineer to do more value-added activities,” Thomson explained. It’s a very simple thing. It’s inexpensive and reduces fatigue.

But that doesn’t mean robots are ready to take over human jobs en masse, he added.

“I don’t think it’s regarding replacing people. I think it’s a matter of empowering the people we have and doing more with less,” said Thomson.

“There’s so much work that some projects can’t be done because there just aren’t enough people to do it.”

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