⛵ Smooth sailing

Together with

Good morning! Say cheese! After six weeks of using an unmanned mobile radar unit, more than 14,000 tickets were issued to drivers speeding through a construction zone on Winnipeg’s Perimeter Highway. Police say the massive volume of tickets shows more enforcement is needed to keep workers safe.

⏰ Today’s read: 5 minutes

MARKETS

*Stock data as of last market close; currency, oil and crypto data as of 2 pm ET May 20th, 2024.

Economy: Canada's inflation rate is expected to have fallen in April, but the Bank of Canada is still unsure about cutting interest rates in June. Economists are divided on the decision with some believing the slowdown in inflation justifies a rate cut while others say the central bank needs more data to be convinced. They say today’s inflation report will be crucial for the Bank of Canada's decision.

THE BIG STORY

Construction productivity is lagging

Are we building all the housing that we can? The federal government plans to create 3.87 million new homes by 2031, but research shows we are far behind where we need to be when it comes to housing starts. 

Not keeping pace: According to the Canadian Mortgage Housing Corporation (CMHC), with the current resources, we should be able to achieve 400,000 new homes each year. But even with a record-high 650,000 construction workers in 2023, Canada's housing production of 240,267 units fell well short of that. 

Faster in the past: We seem to be getting worse rather than better. Experts found that from 1999 to 2004, workers per housing starts were much lower than current numbers, implying that productivity was higher 20 to 25 years ago. Other data backs this up and it’s not just construction. Overall, Canada’s workforce has become less productive than the U.S., France, Germany, United Kingdom, the Euro area average, Australia, and Italy.

Bottlenecks: CMHC says the data suggests red tape and onerous regulations are clogging things up. They also argued that the industry is highly fragmented. Across Canada, nearly 69% of construction businesses have less than 5 employees. Only one has more than 500 employees. Other researchers also argued slow innovation, a decline in innovation diffusion and a decline in resource allocation were to blame. 

How to fix it: Consolidation can help generate economies of scale, making the math work better to build affordable housing and enabling some production savings to be passed on. When it comes to regulations, the federal government is already making progress by holding onto housing funds unless cities take bold action to cut red tape. 

NEED TO KNOW

The week's headlines

🏗️ The Canadian government is acquiring the historic Quebec Bridge from CN Rail for $1. This deal ends decades of debate about the bridge's future. To ensure the bridge's longevity, the government will invest $1 billion over 25 years on repairs, repainting, and general maintenance. This project aims to extend the bridge's lifespan for several decades.

🚘 Asahi Kasei Corp., will invest $1.6 billion to build a plant in Port Colborne, Ont. that will produce battery separators, a critical component for electric vehicles. This plant will contribute to Honda's electric vehicle supply chain in the province, as Honda recently announced a $15-billion project to build an electric vehicle battery plant and retool its Alliston facility for electric vehicle production. The Asahi Kasei plant is expected to be operational by 2027.

🏠 Calgary City Council has approved zoning changes allowing for denser housing options in most neighbourhoods. The move is part of a national trend driven by federal funding that aims to increase housing supply and affordability. While some experts see it as a positive step, concerns remain about its effectiveness as a complete solution.

EVENTS

‘Construction’s Most Influential’ in Calgary

What a week! We capped off our inaugural Construction’s Most Influential People program with a sold-out event in downtown Calgary. The event, which featured a panel of some of our winners, was generously supported by our sponsors, including ICBA Alberta, Sherwin-Williams, Clark Builders, Alltrade Industrial Contractors Inc., SiteMax Systems Inc., A Few Good Lads, SitePartners, VAULT & SALUS. From all of us at SiteNews, thanks for coming out. We can’t wait to bring the construction community together for our next event.

PROJECT SPOTLIGHT

Smooth sailing

The 65,000-square-foot, $45-million Canadian Canoe Museum is officially open. Its striking design was shaped by Peterborough’s Unity Design Studio. They explained that the form and technology of the canoe have shaped the project’s architecture. Unity partnered with Chandos and delivered the building through an integrated project delivery model.

PROJECT UPDATES

Rezoning approved for Clark Drive site

Funding brings new pump tracks, dog parks to Chilliwack

Below-market homes underway in Port Moody

RFQ issued for new Ontario Science Centre at Ontario Place

40-Storey tower could replace gas station

WHAT WE’RE TALKING ABOUT

READ: 🏆Top 40 Under 40 nominations are now open

PHOTOS: 🎨Burnaby launches mobile arts studio project

WATCH: 🌧️Homes that can withstand 200+ mph winds

PHOTOS: 🌳 ‘Tree house’ but its not the kind you’re thinking of

READ: 🏗️ Ancient iron tower’s metallurgical mystery solved

TOP CONSTRUCTION JOBS

🔥 Check out all roles up for grabs right now at SiteNews Jobs or put your job post in front of tens of thousands of construction professionals here. Hurry up before our free trial ends!

Struggling to fill a role? send us an email at [email protected] to connect with one of our specialized recruitment experts.

ADVERTISE WITH SITENEWS

Get your message and brand in front of Canada’s construction leaders and decision-makers by advertising in our newsletter. Learn how to partner with us here.

Here’s to a great rest of the week!