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The perception productivity of the Canadian construction industry isn’t up to snuff might not be true, says a professor in the civil and engineering department at the University of Waterloo.

Carl Haas, a university research chair at the school, told a housing summit hosted by the the view of the industry has been skewed by the fact the tax burden and cost of construction materials have risen substantially.

That narrative has led people to think the industry is lagging, he says, despite the fact companies are investing substantial amounts in equipment and technology to make a difference.

“Depending on how you look at it, construction productivity is actually improving in many ways and technology is making a positive difference in that regard,” he said in a presentation at the summit. “We have to challenge the productivity stagnation narrative. I’m just not sure it’s actually the case.”

The summit featured a roster of prominent construction industry experts, professionals and stakeholders discussing fixes to the housing supply crisis. Haas, who specializes in construction productivity, modularization, supply chain management and digitalization in the built environment, focused on how automation and robotics can be used to improve productivity.

He says it is challenging to measure true productivity as many measurements fail to take into account the value associated with the fact buildings erected today have a longer useful life and are more energy efficient compared to structures built years ago.

He also argues if the high cost of construction materials was taken out of the equation, productivity would improve.

Figures he presented showed over the past 70 years, the ��������ion Price Indicator in the U.S. has increased at a much higher rate than the inflation index for the economy as a whole which, over a period of time, makes it appear that productivity has declined.

To get a more accurate picture, he suggested removing the costs for labour, materials and overhead from the equation.

The fact structures are now designed to last and be useful for longer periods of time also adds to the productivity levels of the industry, he says.

“If you buy a home or building, the biggest cost is energy, and that cost is also declining because we’re making them more efficient to heat and to cool and to light.”

Taxes, fees and levies on new homes, which account for 36 per cent of the purchase price of a new home in Ontario – 16-per-cent higher than in 2021 – also add to negative perceptions, he says.

“It looks like the price of a new home, which is what we’re measuring in that price index, has really been increasing because of taxes and fees. That may be a little bit unfair because there’s nothing that construction is doing to create that problem.”

Upon closer inspection, Hass suggests the industry has actually improved productivity over the last several decades.

Robotics and automation, meanwhile, are having a profound impact, with one of the most notable advancements being the prefabrication, he says.

A survey by KPMG indicated 90 per cent of respondents – up from 86 per cent in 2023 — agree better tools, such as artificial intelligence, analytics, Building Information Modeling and digital twins, can boost efficiency and labour effectiveness in the construction industry.

Ontario has had some successes in innovation, says Haas, with the Element 5 mass timber production line in St. Thomas and a couple of precast concrete plants that produce products for residential buildings.

Robotic masonry is also making some inroads, he says, while 3D printing is catching on and seems to have a lot of potential and the pace of change with humanoid robots is massive as they could be used in future in construction to fetch materials and work with the trades on sites.

He noted over the years technology has had a major impact on construction. For example, in the 1950s, productivity was improved 400 per cent in a short period of time when hydraulic power was introduced for heavy equipment, and in the 2000s innovations such as GPS receivers on blades of earthmoving equipment improved productivity by about 50 per cent.

Haas and his team recently did a report for the National Research Council that delved deeper into the background of productivity in construction to better understand the roles automation and robotics play in productivity gains, and what needs to be done to increase their adoption.

The report noted productivity in Canada’s construction industry must be improved sustainably to address urgent threats to the nation’s well being.

“Automation and robotics play a key role in construction productivity gains,” the authors wrote. “Prioritizing resource allocation requires a construction automation and robotics R&D roadmap that focuses on higher technology readiness levels. Just as the threat is urgent, the solutions must be addressed urgently.”