Innovation deficit threatens construction industry B

.C. has emerged as the bright spot in Canada’s economy. Building on strong performance over the last two years, B.C. is predicted to lead all provinces in 2016 with impressive gross-domestic-product and employment growth. The construction industry is playing a key role in driving this economic activity and job creation.

The importance of the construction industry to our economy cannot be overstated. This multibilliondollar industry generates eight per cent of the province’s wealth and employs more than 200,000 workers, making it one of B.C.’s largest employers.

It is also one of the world’s oldest industries. For millennia, knowledge has been handed down from master to apprentice in the age-old tradition of craft. It is large, slow moving and wary of change.

However, unprecedented economic, demographic and technological pressures are profoundly affecting the construction industry. Costs are escalating. People, raw materials, land, energy and water are not the infinite resources they once were. Twenty five years from now, we will be expected to deliver projects that perform better (for example, be carbon neutral or close to it) while using substantially less labour and materials.

Without putting too fine a point on it, we need to embrace construction innovation because “business as usual” doesn’t cut it any longer.

So what exactly does construction innovation mean? Simply, it’s the successful introduction of new technologies and processes. That will require private and public investment in research and development, education and equipment so that our industry can respond to future opportunities and challenges.

Businesses that invest in innovation will improve their productivity, their resiliency to challenging market forces and enhance the quality and performance of their projects. Governments that embrace innovation will squeeze the most value from every taxpayer dollar spent. It’s a scenario that ultimately benefits our economy, our communities and our families.

Without innovation, we will see valued-added work and jobs lost to other regions and countries, and we will see more out-of-market players reaping the rewards.

All that being said, our industry has been innovating. B.C. has established itself on the world stage as a leader in green building techniques and wood technology. LEED Canada started in B.C. and we are the first to build Passive House projects. We are also the first to build tall wood structures.

We’re demonstrating that we have the capabilities and confidence to manage market dynamics, be they demand-supply challenges or labour shortages.

In the face of these obstacles, our people are developing innovative project delivery methods, policies and processes. And many of B.C.’s tech darlings, such as BuiltSpace, Pulse Energy, MultiVista, Optigo, and dPoint, market into the construction industry. The industry is becoming increasingly sophisticated to an extent that may surprise many.

But it hasn’t been enough. The federal and B.C. governments’ lack of investment in innovation has been well documented by the Conference Board of Canada and others. Industry has also failed to step up.

According to StatsCan using 2012 data, Canadian construction companies invest just one-tenth of a penny for every $1 contributed to GDP in research and development — the lowest of Canada’s major industry sectors. Government and business need to come together now to talk seriously about investment in construction innovation, otherwise we risk being left behind.

Construction innovation can touch all facets of what we do, from design and construction processes to products and technologies. While it has the power to be incredibly disruptive, innovation can also help us learn from the small creative solutions we deploy every day.

The result will be greater resiliency and profitability for construction businesses and the communities that support them — because the benefits to society will outweigh those afforded to individual businesses.

It will take a clear vision, a willingness to work together, commitment and money. Innovation is fundamental to the future success of this vital industry. Let’s start the conversation now.