During the run up in construction from 2001 to 2008, the industry faced a growing shortage of skilled workers. This became most acute in mid-2008, when there were more than 130,000 workers in the construction industry in the Lower Mainland of British Columbia.
However, with the financial meltdown in October 2008, the construction industry was hit hard as building permit activity plunged almost 50 per cent and the number of people working in the industry dropped by 25 per cent over a six-month period.
Needless to say, there has been little discussion about skills shortages over the last few years as the industry struggled to recover. What has to be remembered, though, is the recession only masked the underlying problem.
The Construction Sector Council (CSC) prepares annual forecasts for labour in every region of B.C. In its 2012 report, the CSC stated: “The construction labour force requirements will rise by an estimated 11,000 between 2012 and 2020, in response to expansion demand. Rising expansion demand will coincide with an increase in replacement demand related to the expected retirement of 33,200 workers. An estimated 24,400 new entrants are (expected) to be available to fill the overall increase in labour requirements. From this perspective, across the decade, the local construction workforce will need to attract 20,000 new workers from outside the industry to meet total labour requirements.”
In addition to the demand for workers in B.C., the industry will be competing with every other region in Canada to attract and retain skilled workers since Canada is now recognized as one of the most attractive construction markets in the world. The lure of lucrative work in the Alberta oil sands is already causing B.C. skilled workers to relocate.
The issue of a pending skilled workers’ shortage is probably the single biggest challenge facing the industry. With strong signs of a recovery, contractors have to be more focused than ever on attracting, training and retaining the workforce they require to meet the increased demand.
The industry must engage in the following activities to address this issue:
- The industry must once again foray into schools to convince students that young people can have a rich and rewarding career in the trades, and to encourage them to pursue trades training. The industry must work closely with the school system to provide the resources and opportunities it needs to get young people interested in becoming carpenters, electricians or other trades people.
- The industry has to be prepared to work with trades training institutions to ensure they have the resources and the curriculum continues to reflect the real life demands of the construction industry. The industry must constantly examine its training resources to ensure it remains relevant and efficient, and it is funded at appropriate levels to provide the required skilled workers.
- The industry needs to embrace the commitment to innovation, experimentation and “industrialization” if it is to meet the challenges that lie ahead. The prudent contractor will be looking for ways in which it can substitute machinery for workers and ensuring workers are fully trained on these devices. The industry will need to ensure trainers are up-to-date with new technology and students have every opportunity to become fully familiar with changing technologies.
Finally, the industry must be prepared to look to other countries for skilled workers.
Keith Sashaw is president of the Vancouver Regional Construction Association.