Construction in a cost crunch
Construction inflation averaged 8 % per year from 2020–2024, doubling project budgets and delaying housing starts. Labour shortages—81,000 vacancies in 2025—compound the strain.
| Metric | 2019 | 2024 | 2025 (Q1) | Source |
|---|---|---|---|---|
| Avg. build cost index (2019 = 100) | 100 | 142 | 148 | Statistics Canada 18-10-0278 |
| Vacant construction jobs | 50 000 | 77 000 | 81 000 | BuildForce Canada |
| Modular/off-site adoption % | 8 % | 13 % | 16 % | CMHC Innovation Survey 2025 |
Automation edge
Robotics, modular manufacturing, and digital twins can reduce project time by 25 % and cost overruns by 10 %. Several provinces now fast-track modular approvals.
What leaders can do
- Invest in prefab capacity within regional industrial parks.
- Adopt BIM + AI scheduling to minimize idle time.
- Cross-train trades for digital-equipment operation.
- Leverage green tax credits for low-carbon materials.
Arcus Insight: Productivity in construction is the low-hanging fruit of Canadian growth. Every 1 % gain equals $1.4 billion in GDP.