Canada\u2019s construction industry is embracing technology at a faster rate than ever \u2013 but the urgency is clear: labour shortages, project backlogs and national infrastructure demands are pushing firms to digitally transform, according to the 2025 KPMG-CCA digital maturity report.<\/em><\/h3>\n![\"-\"](\"https:\/\/www.on-sitemag.com\/wp-content\/uploads\/2025\/11\/KPMG.jpg\")
<\/p>\nImage courtesy of KPMG.<\/p>\n<\/div>\n
Canada\u2019s construction industry, which averaged a 0.4% productivity gain per year until 2023, is under growing strain as demand surges for housing, infrastructure and public works.<\/p>\n
In the report\u2019s 2025 survey of 265 construction firms nationwide (including general contractors, engineering firms, subcontractors, suppliers and institutional owners) the sector confirmed a sharp labour crunch: 78% of respondents report current skilled-labour shortages \u2013 slightly down from 90% in 2023, but still \u201cincredibly high.\u201d<\/p>\n
Moreover, 70% say the shortage is affecting their ability to bid on new work or complete existing projects on time.<\/p>\n
At the same time, 73% expect demand to become even harder to meet over the next 5 to 10 years as retirements outpace recruitment.<\/p>\n
As a result, Canadian contractors must \u201cdo more with less.\u201d But the report finds many are finding a solution in technology.<\/p>\n
Technology adoption gains momentum<\/strong><\/h4>\nA standout finding: 90% of construction leaders surveyed said technologies such as AI, analytics, BIM (Building Information Modelling) and digital twins can significantly boost efficiency and workforce effectiveness, up from 86% in 2023.<\/p>\n
Even more, 81% of respondents report that their recent technology investments are already improving labour productivity and efficiency.<\/p>\n
When asked about priorities, more than half (56%) identified technologies that support a demand-driven supply chain as their top focus, reflecting concerns about material availability and supply delays.<\/p>\n
Other commonly prioritized technologies include prefabrication and modular construction (53%), AI and AI-driven software (53%), and \u2013 for a smaller group \u2013 robotics, drones or exoskeletons (40%) to support on-site productivity and safety.<\/p>\n
According to the report, these technologies are not just incremental add-ons \u2013 they\u2019re starting to transform how projects are designed, planned, procured and executed, with digital tools helping extend labour capacity, streamline supply chains and reduce reliance on overtaxed human resources.<\/p>\n
Procurement, clients and the push for innovation<\/strong><\/h4>\nInterestingly, 78% of respondents indicated that procurement processes are beginning to change \u2013 evolving to encourage innovation and digital adoption. And 43% said client demands (project owners, institutional clients, public agencies) are \u201chighly influential\u201d in their decision to adopt new technologies.<\/p>\n
That shift is significant: historically, the lowest-bid procurement model has discouraged long-term investment in technology. As procurement evolves, firms may finally find the confidence to invest.<\/p>\n
Why this matters for contractors <\/strong><\/h4>\nFor contractors facing a shrinking skilled-labour pool but growing workload, technology is becoming less of a luxury and more of a necessity.<\/p>\n
Prefabrication, modularization, AI-driven planning, supply-chain analytics, digital twins \u2013 these tools help firms meet deadlines, reduce waste and cope with workforce pressures.<\/p>\n
As procurement and clients demand more value \u2013 not just the lowest bid \u2013 early tech adopters may secure a competitive edge.<\/p>\n
Investing now may pay off in labour savings, improved efficiency, reduced rework and better project delivery.<\/p>\n
The bottom line<\/strong><\/h4>\nThe 2025 KPMG\u2013CCA digital maturity report shows Canadian construction firms are no longer treating technology as optional. With mounting labour shortages, growing demand for housing and infrastructure, and a shifting procurement landscape, many contractors are embracing digital tools, and seeing real benefits.<\/p>\n
Still, challenges remain. Adoption is uneven, and long-term productivity gains require disciplined integration, training, and cultural change. For firms ready to adapt, though, the time to invest in digital maturity \u2013 from AI to modular construction \u2013 is now.<\/p>\n
To download the full report, click here<\/a>.<\/p>\nTo view On-Site\u2019s on-demand webinar featuring Jordan Thomson, Managing Director in KPMG\u2019s Global Infrastructure Advisory group, and Kenny Leon, Vice-President of Marketing Innovation and Industry Collaboration at the Canadian Construction Association (CCA), click here<\/a>.<\/p>\n<\/div>\n
<\/p>\nImage courtesy of KPMG.<\/p>\n<\/div>\n
Canada\u2019s construction industry, which averaged a 0.4% productivity gain per year until 2023, is under growing strain as demand surges for housing, infrastructure and public works.<\/p>\n
In the report\u2019s 2025 survey of 265 construction firms nationwide (including general contractors, engineering firms, subcontractors, suppliers and institutional owners) the sector confirmed a sharp labour crunch: 78% of respondents report current skilled-labour shortages \u2013 slightly down from 90% in 2023, but still \u201cincredibly high.\u201d<\/p>\n
Moreover, 70% say the shortage is affecting their ability to bid on new work or complete existing projects on time.<\/p>\n
At the same time, 73% expect demand to become even harder to meet over the next 5 to 10 years as retirements outpace recruitment.<\/p>\n
As a result, Canadian contractors must \u201cdo more with less.\u201d But the report finds many are finding a solution in technology.<\/p>\n
Technology adoption gains momentum<\/strong><\/h4>\nA standout finding: 90% of construction leaders surveyed said technologies such as AI, analytics, BIM (Building Information Modelling) and digital twins can significantly boost efficiency and workforce effectiveness, up from 86% in 2023.<\/p>\n
Even more, 81% of respondents report that their recent technology investments are already improving labour productivity and efficiency.<\/p>\n
When asked about priorities, more than half (56%) identified technologies that support a demand-driven supply chain as their top focus, reflecting concerns about material availability and supply delays.<\/p>\n
Other commonly prioritized technologies include prefabrication and modular construction (53%), AI and AI-driven software (53%), and \u2013 for a smaller group \u2013 robotics, drones or exoskeletons (40%) to support on-site productivity and safety.<\/p>\n
According to the report, these technologies are not just incremental add-ons \u2013 they\u2019re starting to transform how projects are designed, planned, procured and executed, with digital tools helping extend labour capacity, streamline supply chains and reduce reliance on overtaxed human resources.<\/p>\n
Procurement, clients and the push for innovation<\/strong><\/h4>\nInterestingly, 78% of respondents indicated that procurement processes are beginning to change \u2013 evolving to encourage innovation and digital adoption. And 43% said client demands (project owners, institutional clients, public agencies) are \u201chighly influential\u201d in their decision to adopt new technologies.<\/p>\n
That shift is significant: historically, the lowest-bid procurement model has discouraged long-term investment in technology. As procurement evolves, firms may finally find the confidence to invest.<\/p>\n
Why this matters for contractors <\/strong><\/h4>\nFor contractors facing a shrinking skilled-labour pool but growing workload, technology is becoming less of a luxury and more of a necessity.<\/p>\n
Prefabrication, modularization, AI-driven planning, supply-chain analytics, digital twins \u2013 these tools help firms meet deadlines, reduce waste and cope with workforce pressures.<\/p>\n
As procurement and clients demand more value \u2013 not just the lowest bid \u2013 early tech adopters may secure a competitive edge.<\/p>\n
Investing now may pay off in labour savings, improved efficiency, reduced rework and better project delivery.<\/p>\n
The bottom line<\/strong><\/h4>\nThe 2025 KPMG\u2013CCA digital maturity report shows Canadian construction firms are no longer treating technology as optional. With mounting labour shortages, growing demand for housing and infrastructure, and a shifting procurement landscape, many contractors are embracing digital tools, and seeing real benefits.<\/p>\n
Still, challenges remain. Adoption is uneven, and long-term productivity gains require disciplined integration, training, and cultural change. For firms ready to adapt, though, the time to invest in digital maturity \u2013 from AI to modular construction \u2013 is now.<\/p>\n
To download the full report, click here<\/a>.<\/p>\nTo view On-Site\u2019s on-demand webinar featuring Jordan Thomson, Managing Director in KPMG\u2019s Global Infrastructure Advisory group, and Kenny Leon, Vice-President of Marketing Innovation and Industry Collaboration at the Canadian Construction Association (CCA), click here<\/a>.<\/p>\n<\/div>\n
Interestingly, 78% of respondents indicated that procurement processes are beginning to change \u2013 evolving to encourage innovation and digital adoption. And 43% said client demands (project owners, institutional clients, public agencies) are \u201chighly influential\u201d in their decision to adopt new technologies.<\/p>\n
That shift is significant: historically, the lowest-bid procurement model has discouraged long-term investment in technology. As procurement evolves, firms may finally find the confidence to invest.<\/p>\n
Why this matters for contractors <\/strong><\/h4>\nFor contractors facing a shrinking skilled-labour pool but growing workload, technology is becoming less of a luxury and more of a necessity.<\/p>\n
Prefabrication, modularization, AI-driven planning, supply-chain analytics, digital twins \u2013 these tools help firms meet deadlines, reduce waste and cope with workforce pressures.<\/p>\n
As procurement and clients demand more value \u2013 not just the lowest bid \u2013 early tech adopters may secure a competitive edge.<\/p>\n
Investing now may pay off in labour savings, improved efficiency, reduced rework and better project delivery.<\/p>\n
The bottom line<\/strong><\/h4>\nThe 2025 KPMG\u2013CCA digital maturity report shows Canadian construction firms are no longer treating technology as optional. With mounting labour shortages, growing demand for housing and infrastructure, and a shifting procurement landscape, many contractors are embracing digital tools, and seeing real benefits.<\/p>\n
Still, challenges remain. Adoption is uneven, and long-term productivity gains require disciplined integration, training, and cultural change. For firms ready to adapt, though, the time to invest in digital maturity \u2013 from AI to modular construction \u2013 is now.<\/p>\n
To download the full report, click here<\/a>.<\/p>\nTo view On-Site\u2019s on-demand webinar featuring Jordan Thomson, Managing Director in KPMG\u2019s Global Infrastructure Advisory group, and Kenny Leon, Vice-President of Marketing Innovation and Industry Collaboration at the Canadian Construction Association (CCA), click here<\/a>.<\/p>\n<\/div>\n
The 2025 KPMG\u2013CCA digital maturity report shows Canadian construction firms are no longer treating technology as optional. With mounting labour shortages, growing demand for housing and infrastructure, and a shifting procurement landscape, many contractors are embracing digital tools, and seeing real benefits.<\/p>\n
Still, challenges remain. Adoption is uneven, and long-term productivity gains require disciplined integration, training, and cultural change. For firms ready to adapt, though, the time to invest in digital maturity \u2013 from AI to modular construction \u2013 is now.<\/p>\n
To download the full report, click here<\/a>.<\/p>\n To view On-Site\u2019s on-demand webinar featuring Jordan Thomson, Managing Director in KPMG\u2019s Global Infrastructure Advisory group, and Kenny Leon, Vice-President of Marketing Innovation and Industry Collaboration at the Canadian Construction Association (CCA), click here<\/a>.<\/p>\n<\/div>\n