📈 Productive

Together with

Good morning! 🔥 Concordia’s Next-Generation Cities Institute (NGCI) has developed a new tool to help Montrealers transition to low-carbon home heating. Chauffermieux.com is a free, bilingual platform that provides residents with personalized, cost-effective energy retrofit recommendations in under two minutes.

⏰ Today’s read: 5 minutes

MARKETS

Economy: U.S. President Donald Trump has threatened to impose a 35% tariff on Canadian goods starting August 1 unless Canada increases domestic manufacturing in the U.S., escalating trade tensions amid ongoing negotiations with Prime Minister Mark Carney. The move, tied to Trump’s claims—disputed by data—that fentanyl is flowing from Canada into the U.S., follows existing tariffs on Canadian goods and could further strain economic relations.

NEED TO KNOW

The week's headlines

🏠 Affordable housing: The federal and Alberta governments are investing $203 million to build over 2,300 affordable housing units across the province through the Affordable Housing Partnership Program. The funding, part of the National Housing Strategy, will support 25 projects in cities like Calgary and Edmonton as well as smaller communities, focusing on mixed-income developments, office-to-residential conversions, and supportive housing for vulnerable populations.

💰 New rules: Canada’s procurement watchdog is calling for sweeping reforms to the federal contracting system, warning it is plagued by decades-old issues and lacks clear accountability. In a new report, Procurement Ombud Alexander Jeglic recommends the creation of a chief procurement officer (CPO) to oversee all government purchasing, streamline processes, and close accountability gaps. He also urged the development of a unified procurement rulebook.

🏠 Decelerated: Toronto risks losing nearly $30 million in federal housing funding after city council voted to limit sixplex construction, despite it being a key condition of its $118-million annual agreement with Ottawa under the Housing Accelerator Fund. On June 25, council approved fourplexes citywide but restricted sixplexes to select wards, deviating from the citywide zoning changes the federal government had requested. 

🏗️ Safety first: The Manitoba government is committing over $189 million to infrastructure improvements in western Manitoba, targeting 18 projects that include highway resurfacing, bridge repairs, and culvert replacements. Key upgrades involve over 115 kilometres of highway rehabilitation—such as on PTH 5, PTH 10, and PR 270—as well as structural work at Spruce Woods Provincial Park and near Holland. All projects are scheduled to begin by 2026.

TOGETHER WITH 720 MODULAR

Building modular history in PEI

In Charlottetown, PEI, construction is underway on Canada's largest modular apartment complex—a two-building, 145-unit project led by 720 Modular for the Province of Prince Edward Island. Designed to address housing needs quickly and affordably, the project highlights the advantages of modular construction, including faster timelines, cost certainty, and collaborative local partnerships. We spoke with industry veterans Troy Ferguson and Craig Mitchell about how they are using the project to pass on expertise and demonstrate mid-rise modular housing.

THE BIG STORY

Doing more: Wage increases depend on productivity

New research shows that if Canada wants to increase worker compensation, then increases in

labour productivity growth must be the policy focus for all governments. But that’s easier said than done for builders. 

No growth: Canada’s construction sector is one of the country’s largest contributors to GDP—but over the past four decades, it’s had zero productivity growth, dragging down national economic performance and limiting wage gains.

What's holding it back: Experts say labour shortages, low tech adoption, and lack of process integration are all culprits. But one major root cause highlighted recently by the CCA is procurement. They argue that procurement still too often prioritizes lowest cost over long-term value, which discourages investment in innovation. 

How to fix it: Experts suggest revamping procurement to long-term value-based contracts, and encouraging early contractor involvement and risk-sharing. Scaling up tech, expanding factory-based modular projects and closing the skills gap should also be priorities.

The bottom line: Construction productivity isn’t just an industry issue—it’s an economic anchor. Without change, housing costs stay high, GDP growth stalls, and Canadians face stagnant wages. But we aren’t in the dark. The data shows what can be done to improve. 

“The sector still has a long way to go to move the needle on productivity,” said Jordan Thomson, National Sector Leader, Building and construction, KPMG in Canada. "Making a commitment to invest in technology is the first step.”

PROJECT SPOTLIGHT

Health boost

Construction is advancing on North America’s first un-encapsulated mass timber hospital in Prince Edward County, with locally and provincially sourced timber now arriving on site. The hospital’s design incorporates Canadian-manufactured mass timber beams, columns, and slabs, aiming to reduce its carbon footprint and achieve net-zero emissions. Celebrated by local leaders and project partners, the build emphasizes sustainability, fire safety, and a calming environment for patients. Major construction milestones, including the timber frame and a new helipad, are expected in the coming weeks.

PROJECT UPDATES

$27.5M Bear Creek Stadium officially opens

Officials ponder Mackay Bridge replacement

Hydro-Québec suspends work at Gull Island

Windsor unveils new multi-purpose City Hall Square

WHAT WE’RE TALKING ABOUT

🚢 READ: N.S. boatbuilders carve out niche markets

🌿 VIDEO: Is the climate transition a massive business opportunity? 

🎗️ READ: A memorial garden honours crane collapse victims

🚨 READ: Surrey continues ‘zero tolerance’ crackdown on illegal construction

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Here’s to a great rest of the week!

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