Resilient but Not Ready: Affordability, trade and workforce barriers limit Alberta’s retrofit supply chain

Author/Contributor: Pembina Institute 

Alberta Context: This report, produced in partnership with Alberta Ecotrust, shows that while Alberta’s retrofit supply chain is adaptable and resilient, it also faces challenges. Some barriers include high upfront costs for mechanical systems like heat pumps and recovery chillers, limited availability of materials due to lean manufacturing, and low inventory levels. 

Summary:

Through industry interviews, a sector survey, and market analysis, this research identifies key barriers within Alberta’s supply chains for both retrofitting and constructing high-performance multi-unit residential buildings. 

It also explores where key equipment, products, and materials are manufactured and the supply routes they take to reach Alberta. The analysis of the retrofit supply chain highlights pressures faced by market participants and reveals opportunities for domestic production. 

While Alberta’s retrofit industry has demonstrated adaptability and resiliency in navigating recent United States tariffs and supply disruptions, several challenges threaten progress:

  • Existing skills and labour gaps will deepen if the demand for retrofits accelerates.
  • Trade volatility with the United States has increased uncertainty, which drives up costs, and risks export losses or the relocation of Canadian manufacturers. 
  • Affordability issues for mechanical equipment like heat recovery chillers and heat pumps are limiting adoption. 
  • Lean manufacturing capacity, long lead times, limited disruption options, and low local inventories hold back enclosure system technologies such as insulation, wall recladding systems, and high-efficiency window walls.
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