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Good morning! The ball has dropped. The champagne bottles have been recycled. It's no longer the new year. It's just the year. What will it bring? We went through our contact list and bugged every construction we could with one question: what will be the major forces at play in 2023? Read below to get our entire forecast.

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- Russell Hixson, editor

MARKETS

*Stock data as of last market close; currency, oil and crypto data as of 10:30PM ET Jan 9th.

Growth outlook: The International Monetary Fund is dimming the shine on its global growth forecast as the war in Ukraine drags on and living expenses remain high. Officials are now predicting that a third of the globe’s economy will contract this year. Global GDP growth is expected to slow to 2.7 per cent. The challenge of 2023 will be to fight inflation without over-tightening, said IMF officials.

THE BIG STORY

Feast or famine: experts weigh in on 2023

The past few years have been one surprise after another: a global pandemic, a Russian invasion, massive supply chain disruptions, heat domes, historic landslides. What does 2023 hold for the construction sector? We grabbed our contact list and asked construction leaders how they felt going into the new year.

Key takeways: 

• As no surprise, common issues like finding labour, long lead times on materials and material costs have become business as usual. Experts said they expect these issues to continue into 2023.

• Despite recession predictions, demand for construction, especially public infrastructure projects and industrial projects, remains extremely high. While there could be a slowdown in some specific corners, many builders are still working through their backlogs of work with more booked for 2023.

• Sustainability and ESG are front and centre. Green projects like solar farms, and electric vehicle factories are booming as the country intensifies its shift to electrification. More and more companies are transforming their business practices to be sustainable.

• BIM, VDM and other tools are introducing massive amounts of data in the industry that will continue to drive optimization, goal tracking and more.

What they are saying:

“You can’t really have a recession without significant unemployment. It’s as simple as that. And until we start to see significant unemployment, I don’t believe you will see any significant recession of any kind.” - Steve Robinson, owner of Pitt Meadows Plumbing and Mechanical

“Going into 2023, I think a lot of my concern on the engineering side is finding and retaining people. I think it is still a big concern for myself and my colleagues and people in the industry.” - Jesse Unke, vice president, COWI Canada

“2024 looks a bit concerning, but we are lucky to be in Vancouver as we have a bit of insulation here compared to the rest of North America. Everything is still firing on all cylinders for active construction. We are still building out a backlog from two, three, four years ago.” - Josef Geluch, president of Naikoon Contracting

For all our full 2023 forecast with all our interviews, check our deep dive.

NEED TO KNOW

The week's headlines

🇨🇦 Canadian employment is booming. The economy added 104,000 jobs in December. This is a far cry from the 5,000 that many financial analysts were predicting. This pushed the unemployment rate to 5 per cent from 5.1 per cent. Experts warned that the hot job market could cause interest rates to rise even further.

🧠 Researchers at MIT believe they have finally figured out why ancient concrete buildings like the Pantheon are still standing. They believe mineral features known as lime clasts give Roman concrete self-healing properties. Not bad for A.D. 128. Researchers are now using the research to create a more resilient concrete product.

🦺 A new report says ill-fitting construction gear could be dangerous. A survey of 3,000 women in construction, emergency services, healthcare, transportation, and natural resources showed 40 per cent believe they have received an injury incident related to uncomfortable gear. 50 percent of the respondents stated their PPE does not fit properly, 43 percent said it is uncomfortable to wear, and 38 percent said the women-specific PPE is inadequate.

⛑ York Developments and EllisDon are pledging to conduct an internal review after a partial floor collapse at a London, Ont. job site sent four workers to the hospital for minor injuries. The incident occurred during a concrete pour.

SPONSORED BY METRIC CIVIL

Metric measures a decade of growth

Metric started off as an idea between two childhood friends.

Now, ten years after launch, Marlon Hall and Chris Veenstra have grown Metric Civil Contractors into a major force in Western Canada; the company builds light and heavy civil infrastructure for public and private projects, including commercial, institutional, municipal as well as mining and forestry. Their team also worked non-stop on the front lines to help clear and repair B.C. roads and highways following historic flooding in 2021.

“We build everything from the ground down, the critical infrastructure that you don't see,” said Hall. “Our goal is to provide the best product for our customers without sacrificing safety, quality or schedule. We want to make sure we can deliver the best product available.”

While the company has grown, it has stuck by three core values.

Safety is our standard: Metric has worked to develop a prestigious COR-certified health and safety program to make sure workers and the public are protected.

Shaping communities: Many of its projects involve public infrastructure like schools or roads. They are also involved in supporting local sports teams, hospitals and charities.  

Made to measure: As Veenstra put it, Metric leverages technology and expertise to make sure tasks are done properly the first time.

How does one grow a civil contracting business from scratch to become a competitive force in the Western Canadian market? To mark its 10-year anniversary, next week Metric will share its journey with SiteNews and how it has been able to punch above its weight with a streamlined team.

PROJECT SPOTLIGHT

Canoe Museum begins voyage next summer

Float your boat: You’d be hard pressed to think of a project more Canadian than a canoe museum. The new facility will be located on the waterfront of Little Lake, in the heart of Peterborough, Ont. The five-acre site of the new museum will provide west-facing views of Little Lake, a connection to the Trans Canada Trail and will be surrounded by public parks. Lett Architects designed the two-storey, 65,000 square foot building. It will serve as home to the Museum’s collection and activities, helping to preserve history through the display, restoration, and appreciation of the canoe. Work is expected to wrap in 2024.

PROJECT UPDATES

Canada’s largest solar farm, Travers Solar, has reached substantial completion 

Two teams have been shortlisted to build Surrey Langley SkyTrain extension

A Massive solar wall is being installed at University of Calgary

Site C Dam is 70 per cent complete after busy construction year

Toronto Entertainment District towers reach height milestone

WHAT WE'RE TALKING ABOUT

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READ: ⚡ Electric cars could push parking structures to the limit

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🙏🏻 Thanks for reading!

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