Ontario Construction News staff writer
The Canadian construction industry is experiencing growth, but skills and labour shortages are still a key challenge, according to a new report.
The report, published by the Royal Institution of Chartered Surveyors (RISC)/Canadian Institute of Quantity Surveyors (CIQS), found that the Construction Activity Index rose to +24 in the first quarter of 2024, up from +12 in the fourth quarter of 2023.
The net balance for the private residential sector increased from -10 per cent to 18 per cent, while the net balance for non-residential construction rose from -3 per cent to 7 per cent.
The report said that although infrastructure remains the strongest performing sub-sector in terms of net balance, the recent high of 41 per cent in the second quarter of 2023 was more modest.
It said that the growth in private residential construction reflects an increase in expectations for the future, but noted that skills and labour shortages are still a key challenge to the industry.
CIQS CEO Sheila Lennon said in statement last Friday that the recent growth in residential construction reflects an increase in expectations for the future, but noted that skills and labour shortages are still a key challenge to the industry.
She said: “According to a report issued by CMHC in September of 2023, close to 3.5 million housing units need to be built by 2030 for Canada ‘to restore affordability’.
“This positive outlook on residential construction echoes a Bank of Canada press release from April 10, 2024, which stated that the Canadian economy has seen growth as of late and ‘residential investment is strengthening.’
“However, the industry is still facing a number of challenges, including skills and labour shortages. The government needs to take action to address these challenges in order to ensure that the construction industry can continue to grow and meet the needs of the Canadian economy.”