< PreviousBUILDFORCE MAGAZINE // Fall 2025 11 We chose the theme of innovation and productivity for this issue of BUILDFORCE MAGAZINE for a very valid, very timely reason. Construction has never been asked to do more in less time in the face of highly complex, multi-faceted challenges. Our industry is being called upon to deliver millions of new homes and the infrastructure that supports these new builds. It is being asked to build hundreds of billions of dollars’ worth of commercial, institutional, and industrial projects across every region of the country. And it is doing so under the pressure of an aging and shrinking workforce, under the constraints of at-times rigid bureaucracy, and within the context of an uncertain economic outlook. The imperative for the industry to do more with less has never been greater. It must embrace productivity and innovation to move forward and thrive. You’ll hear a wide variety of perspectives on this theme across the articles in this issue. Some highlight the already-established role of technology in offices and job sites across the country, others call upon the need for changing attitudes and opinions across not just the contracting and design communities, but also among project owners. Still others look at the potential of productivity and innovation to help address at least some of the workforce gap that is likely to be created by the pending retirement of nearly 270,000 workers nationally by 2034. Two contributions, from members of our own BuildForce team, build on one another. Our senior economist and head of business intelligence Klayton Gonçalves considers ways in which construction companies can transform their own processes to better harness the intelligence and productivity that stands to be lost as aging workers retire and younger workers move in to replace them. Meanwhile, Shaily Allison, our manager of marketing and engagement, looks at strategies construction companies can adopt to make their workplaces more accommodating to new workers from Generation Z and, soon, Generation Alpha. Both groups appear naturally predisposed to work in construction, but, as Shaily says, “if the industry wants to keep their attention, it has to meet them where they are.” No matter their particular perspectives, each one of our contributors underlines the idea that the time is ripe for change in our industry. Construction is a significant contributor to Canada’s gross domestic product, and it is being asked almost every day to stretch its resources even further to build and maintain the infrastructure needed to sustain Canada’s high standard of living. It cannot continue to rely on the old ways of doing things that were considered tried and true even as recently as 30 years ago. As our Chair Warren Douglas suggests in his letter, BuildForce Canada has its own role to play in this process. Our annual labour market information reports forecast the likely workforce pressures across each province, and throughout the country. Although granular in nature, these outputs are not just data driven. They are reviewed by committees of local experts who comment specifically on the trends and pressures residents in their areas of the country are facing, and who challenge our economists to ensure the products we create are entirely reflective of local market conditions. In this sense, BuildForce’s products are key to helping construction understand the likely labour force pressures it will face in coming years, and to assess the extent to which new tools and new processes can be implemented to narrow pending workforce gaps, if not close them altogether. I invite you to read this issue of our magazine and to comment on it through our social media channels or to our team directly. I also invite you to subscribe to this magazine in its digital format, and to our monthly Labour Market Corner and Respectful Workplaces blogs, on our website at www.buildforce.ca. BILL FERREIRA Executive Director, BuildForce Canada THE TIME IS RIPE FOR CHANGE IN THE CONSTRUCTION INDUSTRY A MESSAGE FROM THE EXECUTIVE DIRECTOR OF BUILDFORCE CANADAADVERTORIAL14 www.buildforce.ca the most critical drivers of productivity loss is simply that the most productive workers are retiring faster than we can replace them? THE PRODUCTIVITY CHALLENGE Productivity in Canada’s construction industry – measured as output per hour worked – has been stagnant or declining for quite some time now. In 2023, the industry recorded its lowest level of labour productivity since 1998. According to Statistics Canada, labour productivity in the construction industry stood at an indexed value of 92.5 in the first quarter of 2025, well below most other industries. While manufacturing has embraced automation and professional services have digitized their workflows, much of construction remains labour-intensive. C anada’s construction industry is at a turning point. With project pipelines strong and investment steady, the next big challenge – and opportunity – lies in demographics. Across provinces, the construction industry has been increasingly feeling the effects of an aging workforce. More than one in five tradespeople is now over the age of 55. And as retirements mount, the industry risks losing one its most valuable assets: experienced labour. Retaining that experience is key to future success. Faced with declining productivity concerns, construction leaders, policymakers, and economists often look to technology and digitization to explain these shifts. But what if one of FEATURE Where have all the trades gone? By Klayton Gonçalves, BuildForce Canada As Canada’s construction industry navigates an historic retirement wave, it must redefine productivity not as a race against time, but as a strategy of preservation and renewal. BUILDFORCE MAGAZINE // Fall 2025 15 •Invest in mentorship. Pairing experienced workers with apprentices and new entrants fast- tracks knowledge transfer and builds morale. •Support longer careers. Mid- career workers can be trained into supervisory or specialist roles, preserving experience and improving leverage. •Embrace technology.Tools like augmented reality, digital twins, and prefabrication can help newer workers achieve higher performance sooner. Canada’s immigration system also holds untapped potential. Many newcomers arrive with years’ or even decades’ worth of experience in the trades. Yet their skills are too often underutilized due to credential recognition barriers and limited integration pathways. Streamlining assessments and expanding bridge training programs would allow the industry to access a broader, more experienced talent pool. RETHINKING PRODUCTIVITY Productivity isn’t just about speed, tools, or headcounts – it’s about experience, continuity, and knowledge transfer. As Canada’s construction industry navigates an historic retirement wave, we must redefine productivity not as a race against time but as a strategy of preservation and renewal. Elevating mentorship, prolonging careers, and designing smarter training pipelines will be key. If we build mentorship into our foundations, support tradespeople to extend their careers, and modernize how we train and work, Canada’s construction industry can not only meet today’s demands – it can exceed them. y Klayton Gonçalves is the senior economist and head of business intelligence with BuildForce Canada. He is at the forefront of producing BuildForce Canada’s annual labour market forecasts, producing insightful reports and delivering engaging presentations. In effect, the industry is not just losing headcount, it is losing institutional knowledge. Yet, within this challenge lies a real opportunity to rethink how the industry grows stronger. EXPERIENCE MATTERS In the construction industry, there is a well-established relationship between tenure and productivity. Workers with 10 or more years on the job typically deliver significantly higher output than new entrants. When these experienced workers retire, the impact is immediate. Apprentices and early-career workers can take years to reach similar efficiency – often requiring more than one new hire to match the output of a veteran journeyperson. This means productivity can decline even if the number of workers holds steady or grows. That’s what we’re seeing now: more people joining the industry, but output per worker falling. By many measures, including labour force growth and apprenticeship registrations and completions, the industry is making progress in attracting young people. But keeping pace with demand for new infrastructure and ongoing maintenance remains a challenge. Younger workers bring energy and fresh ideas, but it takes time and the right support for them to reach their full potential. To its credit, the industry isn’t standing still. Growth in apprenticeships and youth recruitment shows strong momentum. Now, the focus must shift to accelerating learning and closing the experience gap. BRIDGING THE PRODUCTIVITY GAP The good news? There is a clear path forward – one that strengthens productivity by elevating people, processes, and technology. First, labour force renewal must go beyond simply onboarding more workers. It requires a rethink of how skills are developed, transferred, and retained: This is especially true in the skilled trades: the seasoned electrician who diagnoses issues in minutes, the carpenter who understands structural layouts intuitively, the site supervisor who keeps multiple trades in sync. These workers are more than just employees. They are walking productivity multipliers. As many begin to exit the workforce, the industry’s focus must turn to preserving and passing on their expertise. With the Baby Boomers now aged between 61 and 81 years old, much of the exodus from the labour force is underway. The opportunity now lies in how effectively the industry responds. The labour force participation rate – defined as the share of the population employed or searching for work – among Canada’s population aged 55 years and older fell to 36% as of May 2025. This is from a peak of around 39% in between 2018 and 2019. That means out of the nearly 12.8 million non-institutionalized Canadians in this age group, 8.2 million are neither employed nor searching for work. A large portion is likely retired. Although participation among older workers rose from the late 1990s, it has crested and began to decline since 2019. This trend is even more pronounced in construction, where the physically demanding nature of the work contributes to earlier retirements. Replacing retiring workers – who take decades of experience with them – is a challenge BuildForce Canada has documented for years. And we’re not through the retirement wave yet. According to BuildForce’s latest Construction and Maintenance Looking Forward projections, about 269,000 tradespeople are expected to retire between 2025 and 2034, representing a loss of 21% of the current labour force. In some trades and provinces, the share of near-retirement workers is even higher. The Atlantic provinces, for instance, with their older populations, are facing extremely tight labour markets, with both residential and non-residential sectors struggling to keep pace with housing and infrastructure demand. 16 www.buildforce.ca T he recent passing of Bill C-5 marks a significant and hard-fought victory for skilled tradespeople across the country. It’s a game-changer for the future of Canadian infrastructure and economic development. Canada’s Building Trades Unions (CBTU) long advocated for practical measures to streamline project approvals and support the timely delivery of major infrastructure, clean energy, and resource developments. Bill C-5 does exactly that. It sets the stage for a more efficient and coordinated approach to getting nation-building projects off the ground. But passing the bill was only part of the battle. Thanks to focused advocacy from CBTU and others in the labour movement, Bill C-5 now includes a specific requirement to create good-paying, unionized jobs. This milestone ensures that workers have a seat at the table and are firmly embedded in the legislation that is shaping Canada’s economic future. It’s a transformative win for skilled tradespeople across the country, aligning faster project development with strong labour standards, good stable jobs, and resilient communities when public dollars are invested. This win wasn’t handed to us. It was the result of years of advocacy, strategic coordination, and the unified voice of organized labour. Our members, and unionized tradespeople across Canada, showed up. Their letter-writing campaigns and public outreach made it clear just how many workers support policies that put them first. This is a collective victory for all of Canada’s unionized skilled trades. REAL OPPORTUNITIES Our next step is to ensure the bill’s intent becomes reality. CBTU is committed to working with government, industry partners, FEATURE By Sean Strickland, Executive Director, Canada’s Building Trades Unions Bill C-5 is a win for the construction industry Bill C-5 is more than just legislation—it’s a landmark win for Canada’s skilled trades. By tying faster project approvals to strong labour standards and good union jobs, it’s paving the way for a stronger, more resilient future. Photos courtesy of Canada’s Building Trades Unions.BUILDFORCE MAGAZINE // Fall 2025 17 and other labour organizations to operationalize the creation of good construction jobs and ensure that these opportunities come with strong labour conditions, including prevailing wage requirements and mandatory apprenticeship hours. We must make sure legislative victories like this one results in real, on-the-ground opportunities for skilled trades workers and apprentices from coast to coast to coast. Across Canada, the impact of Bill C-5 is already taking shape. From LNG Canada Phase 2 and the Darlington New Nuclear Project to the Contrecœur Terminal Container Project, McIlvenna Bay Foran Copper Mine, and Red Chris Mine Expansion, skilled trades workers are central to building the projects that will define our country’s next generation. Faster project timelines backed by requirements for prevailing wage mean more jobs, more opportunities for apprentices, and stronger, more secure futures for workers and their families, no matter where they live. A great example of this potential is the recently celebrated milestone at the LNG Canada facility in Kitimat, B.C., which shipped its first cargo this summer. As the largest private-sector investment in Canadian history, LNG Canada is a shining example of what skilled tradespeople, including CBTU members, can accomplish when they bring their skill, professionalism, and dedication to a common goal. Thousands of unionized skilled tradespeople contributed their time and expertise to deliver a world-class facility that supports both economic growth and global emissions reductions. WE BUILT THAT To recognize that achievement and ensure the public and policymakers understand who builds Canada, CBTU launched a new campaign: “We Built That.” More than just a celebration, it’s a call to action. As governments consider approvals for major projects like LNG Canada Phase 2, or future renewable and infrastructure developments, we want to leave no doubt that unionized skilled trades a commitment to high labour standards, we now have an unprecedented opportunity to build a more resilient, inclusive, and sustainable economy. To members of Canada’s Building Trades Unions across the country: thank you. Your hard work, professionalism, and solidarity made victories like Bill C-5 and LNG Canada possible. We built that – and we’re just getting started. y Sean Strickland is the executive director of Canada’s Building Trades Unions. are ready, willing, and capable of delivering again and again. This campaign highlights the skill, pride, and dedication of Canada’s construction workforce. It tells the human stories behind the infrastructure – the apprentices who got their start on site, the journeypersons at the top of their game, and the communities lifted up by strong union jobs. These are the people building Canada’s future. With Bill C-5 in place, alongside strong public investment and 18 www.buildforce.ca O n October 10th, World Mental Health Day, you likely saw social media flooded with posts related to health and wellness undertaken by organizations. The ugly reality of mental health can be seen in the fact that 1 out of 5 Canadians reportedly suffers from a mental illness. At the same time, over 18% of Canadians aged 18 and above live with some form of mood and anxiety disorder. Understandably, mental health has become a topic of increasing relevance for workplaces, considering that the mental state of employees has a huge bearing on how they perform and engage at work. WHY MENTAL HEALTH MATTERS IN THE WORKPLACE Mental health issues in the workplace have emerged as the foremost concern worldwide. Estimates by the WHO project the economic burden of mental illness at US$$6.1 trillion by 2030 due to losses in human productivity. THE CONNECTION BETWEEN WORKPLACE CONDITIONS AND MENTAL HEALTH There is a close link between mental health and workplace productivity: poor mental health conditions – like In the context of the workplace, mental health risks can be seen in psychosocial terms. This means they may be related to the job’s content and schedule or the work environment’s specific attributes. A workplace defined by a business-first mindset exposes the employees to the risk of mental health issues that compromise the ability of employees to work to the best of their abilities. FEATURE The connection between mental health and workplace productivity By Michael Bach, IDEA consultant to BuildForce Canada A mentally healthy workforce is a productive workforce. Positive mental health enhances creativity, communication, and collaboration while reducing absenteeism; conversely, tight deadlines, excessive workloads, and lack of support can lead to burnout and low productivity. BUILDFORCE MAGAZINE // Fall 2025 19 of insomnia, fatigue, and anxiety, which impedes their performance. LONG-TERM BENEFITS FOR ORGANIZATIONS Good mental well-being can stimulate innovation by enhancing employees’ creative potential and, hence, their ability to generate new ideas. When employees are in a positive mental state, they are better able to communicate and trust each other, which fosters collaborative relationships. Extending mental health support to employees can also boost employee engagement and satisfaction, which can translate into higher retention rates, as indicated by a Gallup study where well-being and work-life balance were the second most common reasons for 28% of employees to leave their jobs. FINAL THOUGHTS A mentally healthy workforce is a productive workforce. Ultimately, it is the responsibility of organizations to prioritize employee mental health by taking relevant actions to create a supportive and mentally healthy workplace. This is necessary to create an enabling environment for all workers to participate and thrive actively in their respective roles. y Michael Bach is an author and speaker, a thought leader in inclusion, diversity, equity, and accessibility, and an IDEA consultant to BuildForce Canada. crucial to educate people on mental health as well as introduce relevant interventions to assist employees dealing with mental health symptoms. This may involve undertaking employee wellness campaigns that provide crucial mental health resources to employees through counseling, therapy, and mindfulness programs. This will not only help to normalize conversations around mental health, but also lead to healthy work conditions. THE COST OF IGNORING MENTAL HEALTH Overlooking mental health can prove to be counterproductive for long-term business growth. A workforce that is prone to mental health issues is unlikely to deliver on expectations and can incur significant business costs. In contrast to a leave for a physical illness, the costs are almost double in the case of leave stemming from a mental illness. Employees with depression are prone to higher rates of absenteeism. On a global level, it is estimated that depression causes employees to miss an average of about 27 to 31.4 days of work per year. Employees’ cognitive abilities are negatively impacted when they are stressed out or anxious. This not only results in reduced focus, but also hampers their ability to make rational decisions. Employees struggling with mental health exhibit higher instances depression, anxiety, or burnout – not only negatively impact mental well- being, but also affect performance. The results of a recent NAMI/Ipsos Workplace Mental Health Survey make it clear: over half of employees surveyed reported burnout at their jobs, while 37% conceded that mental health was a major barrier to their productivity. Several factors make the work environment unfavourable for an employee’s mental health, including excessive workloads, tight deadlines, and lack of management support that add to workplace stress, leading to higher rates of absenteeism and presenteeism, and low team morale and engagement. ADDRESSING MENTAL HEALTH FOR ENHANCED PRODUCTIVITY LEADERSHIP’S ROLE Managers act as a bridge between employees and the organization’s leadership and are well-positioned to foster a supportive work culture. They should be responsive to employees’ mental health issues through active listening, and implement workplace practices that reduce job stressors that lead to burnout. PROVISION OF SUPPORT AND RESOURCES Mental health issues are still considered a stigma, and it is Next >