Canada Pushes for Digital Transformation in Infrastructure
Canada's infrastructure sector is moving to adopt digital twins and integrated data environments to manage large-scale projects, according to a new white paper published by the Future of Infrastructure Group and Arup. The initiative aims to reduce significant cost overruns and delivery delays by leveraging data-driven project management techniques.
- Research indicates that using digital twins throughout the planning, delivery, and operational phases of an infrastructure project can enhance capital and operational efficiency by 20–30 percent. This is achieved by providing real-time data that helps to minimize errors, optimize resource allocation, and reduce material waste. - The Eglinton Crosstown West Extension project in Toronto is a current example of a digital twin pilot program in Canadian infrastructure. In partnership with Infrastructure Ontario and Metrolinx, the project's digital twin is already improving efficiency by anticipating on-site conflicts before they happen. Other notable Canadian digital twin initiatives include Vancouver's YVR International Airport, the Canada Line (Metro Vancouver), and various smart city projects in Montreal. - A primary driver for this digital shift is the prevalence of project delays and cost overruns. In Canada, the leading cause for claims and disputes on construction projects is a change in scope, impacting nearly 33% of projects. Other significant factors include incorrect design, unforeseen physical conditions, and deficiencies in workmanship. - For a business student, transferable skills for a construction management role include financial management, strategic planning, organizational leadership, and budgeting. Entry-level positions that often serve as a gateway into the field include "Project Coordinator," "Field/Office Coordinator," and "Assistant Supervisor," which prioritize these skills alongside a strong interest in the industry. - The B2B sales cycle in construction often involves selling equipment, materials, or software-as-a-service (SaaS) to contractors and development firms. Success in this area requires a consultative approach, a strong understanding of project lifecycles, and the ability to identify and solve customer pain points related to budget, timelines, and resource management. - Major Canadian construction firms are actively investing in digital technologies. PCL Construction, for example, focuses on digital innovation and modular building, while AtkinsRéalis (formerly SNC-Lavalin) delivers engineering, procurement, and construction management for large-scale infrastructure projects. - While Canada is increasing its adoption of digital twins, with at least 21 currently in development or live, it is playing catch-up to other nations. For comparison, Finland mandated the use of Building Information Modelling (BIM), a foundational technology for digital twins, back in 2007. The province of Quebec was the first in Canada to require BIM on public projects in 2021. - Digitalization addresses the industry's productivity lag; while other sectors have seen steady growth, construction has averaged just 0.4% annual productivity growth, with recent figures falling below 1997 levels. A KPMG study revealed that 87% of Canadian construction leaders believe technologies like AI, BIM, and digital twins are essential to meet evolving demands.
