SMART Remediation Toronto 2025 Economic Panel Recap: Industry Outlook, Challenges, and Diverging Perspectives
At the SMART Toronto 2025 Economic Panel, industry leaders gathered to discuss, debate and analyze current market conditions, sector-specific challenges, regulatory shifts, and workforce trends. The conversation was lively and highlighted both areas of agreement and significant differences in perspective, particularly on the pace of recovery, workforce dynamics, regulatory impact, and long-term economic growth.
SMART Remediation 2025 Economic Panel – (left to right) moderator Bruce Tunnicliffe (VEI Contracting) and panelists Paresh Patel (Pinchin), Nick Doucette (QM Environmental), Shannon Adams (Canderel Group) and Pete Craig (VEI Contracting)
Some panelists were cautiously optimistic about economic stabilization, while others—especially in residential development – warned that the worst is far from over. Additionally, disagreements surfaced around labor market expectations, municipal inefficiencies, and whether new regulations pose an industry burden or opportunity.
Here’s a detailed breakdown of the panel’s key insights, differing perspectives, and business implications for the coming years.
Post-Pandemic Market Conditions: Recovery or Continued Struggle?
The discussion began with an assessment of how different industries are emerging from the post-pandemic economic climate.
Credit: Mikal Skuterud, Professor of Economics, University of Waterloo
Most panelists agreed that 2022 saw a significant rebound as projects that were delayed in 2020 and 2021 finally moved forward. However, by 2023, rising interest rates and economic uncertainty slowed market activity, leading to a more cautious business environment.
“A lot of projects were backlogged in 2020 and 2021, so 2022 saw a major catch-up. But then interest rates started creeping up, and by 2023, we saw a slowdown.” – Paresh Patel, National Director – Remediation Services, Pinchin
While some panelists saw 2024 as a stabilization period, others were less convinced that the market had turned a corner.
“By late 2024, we are seeing optimism in the market, with clients re-engaging on investment and development opportunities. However, geopolitical and economic risks remain significant.” – Paresh Patel
In contrast, developers and residential construction leaders took a more pessimistic view, arguing that housing affordability, financing challenges, and approval delays are structural issues that won’t be resolved quickly.
“Current market conditions are a disaster.” – Shannon Adams, Senior Director, Project & Development Services at Canderel Group. She added: “All residential developers can corroborate sales have been slower than expected, and sites are facing challenges in attracting occupants.”
Diverging Outlooks for 2025-2026:
Optimistic View:
Economic stability by late 2024, followed by gradual recovery in 2025 and growth in 2026.
Pessimistic View:
Sustained housing downturn, affordability crisis, and limited construction recovery until 2027.
Sector-Specific Insights: Which Industries Are Holding Steady?
General Contracting and Infrastructure: Strong Backlogs, But Capacity Issues
Infrastructure and general contracting have been insulated from the worst economic downturns, primarily due to long-term project backlogs.
Credit: Waterfront Toronto
“We’ve had a strong backlog, primarily due to continued infrastructure spending. However, capacity constraints remain a challenge.” – Nick Doucette, VP, Special Projects & New Markets at QM Environmental
Mining and industrial projects were highlighted as growth areas, while commercial development remains sluggish.
“Mining activity has increased significantly in the last few months, whereas commercial construction has seen a more cautious approach.” – Nick Doucette
Despite overall stability in the sector, labor shortages and material costs remain major concerns.
Residential Development: Deep Market Contraction
Residential construction leaders painted a much bleaker picture, citing:
- Unprecedented affordability challenges due to high interest rates
- Development cost increases that exceed initial budgets
- Delays in municipal approvals, exacerbating financial strain
Credit: Canderel Residential
“Getting a project through approvals can take five to seven years. That timeline is unsustainable.” – Shannon Adams
Consulting and Environmental Services: Performance Varies by Sector
The consulting sector has experienced mixed results, with strong performance in industrial and infrastructure projects but weaker demand in real estate transactions and risk assessment work.
“If your firm is tied to real estate transactions, business has slowed significantly. However, industrial, mining, and federal-sector work has remained steady.” – Paresh Patel
Risk assessment demand has grown, but the market for remediation services has become more selective, as firms balance compliance costs with financial feasibility.
“More projects are requiring comprehensive risk assessments, which is impacting the volume and scope of remediation work.” – Pete Craig, Strategy and Operations Manager, VEI Contracting
Workforce Challenges: Attracting and Retaining Talent in a Changing Market
One of the most debated topics was the labor shortage across industries, particularly in trades, consulting, and construction management.
“There’s a growing vacuum below mid-level managers. New graduates have more lucrative options in tech and finance, making it harder to recruit talent into construction, consulting, and engineering.” – Paresh Patel
However, disagreements emerged on how industries should respond:
One perspective:
Companies must adjust to shifting labor expectations.
Counterpoint:
New hires must align with industry realities, rather than expect higher wages and immediate seniority.
“There’s an attitude gap. Many younger hires expect senior roles and high salaries immediately.” – Nick Doucette
An audience member pointed out: “Demographically, there are fewer young workers available, so naturally they can demand more.”
A key challenge remains bridging the generational divide in expectations. Some panelists advocated for stronger engagement with students, while others argued that broader industry perception needs improvement.
Regulatory Challenges and Development Delays
One area where near-universal frustration emerged was municipal approval delays and development fees.
Credit: Geopolitical Intelligence Services AG
“We are facing a regulatory bottleneck—approval timelines should be nine months, but in reality, they stretch to three years or more.” – Shannon Adams
Toronto was called out specifically for inefficiencies, though some pointed out that smaller municipalities process approvals faster.
“It’s different in smaller cities—municipalities that want development move much faster.” – Shannon Adams
Another point of contention was whether regulations help or hinder business:
One view:
Environmental regulations drive innovation and new opportunities
Counterpoint:
Regulations increase compliance costs, reducing project feasibility
“New regulations actually drive demand for specialized services—it’s a challenge, but also an opportunity.” – Pete Craig
External Market Risks: Elections, Tariffs, and Economic Disruptions
Credit: Canadian Chamber of Commerce
The panel acknowledged multiple external risks that could impact industries:
- Tariffs and Trade Policy – Potential cost escalations for materials and equipment.
- Interest Rates – Key determinant of construction and real estate viability.
- 2025 Elections (Canada and U.S.) – Policy changes could shift market conditions.
“A major recession or a shift in government priorities could completely change the long-term economics of our sector.” – Pete Craig
Key Takeaways for Business and Industry Leaders
Short-Term (2024-2025)
- Infrastructure, industrial, and mining remain stable.
- Residential development faces continued pressure.
- Workforce shortages persist across all sectors.
Mid-Term (2026-2027)
- Recovery expected in construction and real estate.
- Businesses that adapt hiring strategies will remain competitive.
- Municipal policy changes could improve project timelines.
“In times of uncertainty, businesses that focus on operational excellence and strategic adaptability will succeed.” – Pete Craig
Final Thoughts
The business environment remains highly dynamic, requiring proactive adaptation to workforce trends, regulatory shifts, and economic pressures. Organizations that strategize for the long term and maintain financial discipline will be best positioned for success.
How is your industry navigating these challenges? Are you seeing similar trends, or do you have a different outlook on what’s ahead for 2025 and beyond?