These sectors are currently at a turning point. There has been investment on modernisation and on renewable energy which led to growth. However, these industries face challeges that require leadership. Specialists of executive search companies are extremely important here to help these sectors to evolve through the selection of right leaders.
Current State of Canada’s Infrastructure and Energy Sectors
Both sectors are seeing strong government investment. In 2021, Canada spent a considerable amount on transportation and energy infrastructure. At the same time, the nation is advocating for clean energy aiming at 90 percent of the electricity it generates from renewable sources by the year 2030.
Infrastructure Development
Canada’s infrastructure is aging and needs upgrades to meet the demands of a growing population. The Investing in Canada Plan includes .7 billion for public transportation alone, but delays and labor shortages are slowing progress.
Energy Sector Transformation
Canada’s energy industry is shifting towards renewables like wind, solar, and hydropower. Even tough, the oil and gas sector remains a significant part of the economy, contributing 5% to the GDP in 2022, theres a need of Leaders to manage the balance between economic stability and the transition to sustainable practices.
Key Challenges for the EPC Sector
- Talent Shortages: A growing skills gap is a major issue. BuildForce Canada reports that the country will need 260,000 new construction workers by 2029 to meet demand. In the energy sector, finding leaders skilled in renewable technologies is becoming increasingly difficult.
- Regulatory and Environmental Pressures: Environmental regulations are tightening. Infrastructure projects and pwer companies must now adhere to strict sustainability guidelines. Leaders with expertise in ESG (Environmental, Social, and Governance) strategies are in high demand.
- Supply Chain and Inflation Issues: Global disruptions and rising inflation have hit both sectors hard. Construction costs rose by more than 20% in 2022, putting additional pressure on leaders to optimize costs while maintaining efficiency.
Opportunities in these sectors:
- Investment in Automation and AI: The global automation market is set to grow, with a projected CAGR of 9.2%, reaching 6 billion by 2028. Canadian companies need leaders who can leverage these technologies to improve efficiency.
- Reshoring and Domestic Manufacturing: The pandemic disrupted global supply chains, prompting Canadian companies to bring production back home. Leaders must be adept at managing complex operations and reducing dependency on foreign suppliers.
- Green Expansion: Canada is aiming for net-zero emissions by 2050. Leaders with experience in green manufacturing and sustainability will play a crucial role in achieving these goals. The Canadian Renewable Energy Association projects a 22% increase in renewable energy capacity by 2030.
The Role of Executive Search in Infrastructure and Energy
Executive search firms are vital in addressing the unique leadership challenges in these sectors:
- Filling Leadership Gaps: With talent shortages, companies need experienced leaders to manage operational and technological challenges. Executive search firms have access to both local and global talent pools.
- Leading Innovation: As industries shift to AI and renewable energy, executive search firms can identify leaders who are equipped to drive technological change.
- Global Talent Access: These sectors are global in nature, and Canadian firms need to look beyond borders for the right talent. Executive search firms can help source international leaders.
- Cultural Fit: Finding leaders who align with a company’s vision and culture is critical for long-term success. Executive search firms ensure candidates are not only skilled but also fit the organization.
Conclusion:
Canada’s infrastructure and energy sectors are evolving rapidly. While challenges like talent shortages, rising costs, and regulatory pressures loom, there are opportunities in green energy, automation, and domestic manufacturing.
The success of these industries will largely depend on the leadership at the helm, and executive search firms are crucial in helping businesses find the right individuals to lead through these transitions. Click here to get in contact with us.
