Despite a strong start to 2022 for the construction industry, challenges loomed large as the year progressed. Trends such as rising costs and a shortage of skilled labourers gave pause to the optimism felt at the start of 2022, and though 2023 is just a few weeks old, those challenges look to continue well into this year. Despite these concerns, challenges always present new opportunities, and there are certainly a number of positives in store for 2023 as well.
At WiseCap, we work to prepare you for these opportunities, offering financing solutions for businesses and individuals looking to meet their growth potential. We’ve compiled this outlook of anticipated trends for the construction industry this year. Let’s take a look at what 2023 has in store for the industry.
Continued Labour Shortage
Numbers released by the Canadian Construction Association suggest that over 20% of the national construction workforce will retire within the next decade, while the industry continues to struggle with recruiting the next generation of workers to take their place. These challenges are not unique to the industry and indeed are felt by most other sectors of the economy. In this case, a shortage of workers has made skilled labour more in demand, creating additional costs and competition.
Jurisdictions across the country are taking steps to bridge the gap and get more young Canadians interested in skilled labour. In 2022, the feral government invested $21,000,000 towards construction apprenticeships in British Columbia alone. The province of Ontario, meanwhile, has expanded construction learning initiatives for students from K-12, while also investing in free boot camps that provide valuable firsthand experience in the industry. These initiatives will help replenish the workforce going forward, but in the short term, labour shortages will continue to cause headaches for the industry.
Use of New Technology
Challenges like the high demand for labour are forcing industry players to adapt, and the use of digital technology is another tool being used to attract younger Canadians to the skilled labour workforce. Expanded use of technology is also presenting new opportunities for individuals and companies to lower costs and increase efficiencies. Virtual Reality and 3D Rendering technologies are having hugely positive impacts on construction, by identifying and correcting errors in a design well before any project breaks ground. Virtual reality has also provided new and improved abilities to conduct safety training and professional development within the workforce, by simulating all of the dangers of a job site without any of the risks.
Move Towards Sustainability
Along with using cutting-edge technology to improve the sustainability of businesses, there is also a renewed push toward environmental sustainability within the construction industry. In part, this has been spurred on by new regulations from all three levels of government, which are mandating more sustainable builds across the country, as well as legislating net-zero greenhouse gas emissions targets for all new builds in Toronto, Montreal, and Vancouver by the end of the decade. Efforts are also ramping up to divert construction waste from landfills across the nation, with research suggesting that reclaimed materials can be re-sold to offset the costs of deconstruction rather than simple demolition. With environmental sustainability increasingly becoming a priority, we can expect a focus on waste reduction and the use of low-carbon building materials within the industry.
How WiseCap Can Help
Though there are still big obstacles to overcome in 2023, there is also plenty to look forward to in the construction industry outlook. From equipment refinancing to commercial truck loans, our WiseCap experts will work with you to get the deal that makes the most sense for your specific needs and objectives. WiseCap works alongside its clients, helping businesses and individuals across Canada to finance their futures. Please get in touch to learn more about how we can help you and your business flourish in 2023.