CONSTRUCTION’S DILEMMA

LOTS OF WORK. NOT ENOUGH WORKERS.

BY JOHN HARDY

It’s a high-stakes, cause-and-effect situation. It is no longer possible, likely or inevitable. It is serious. It is real. And it is happening now.

Despite plenty of residential, industrial, oilfield and high-rise commercial investment capital, Calgary builders, developers, and contractors confront an urgent dilemma: Lots of work, and not enough workers.

Construction insiders agree that money (investment) is not the problem. “Investment in residential construction has been on the rise since 2020,” notes the upbeat Bill Ferreira, executive director of BuildForce Canada, providing reliable labour market information, tools and resources for the construction industry.

“In part, it is due to the low-interest-rate environment. Between 2020 to 2021, investment increased by 16 per cent and then a further 13 per cent between 2021 and 2022. Non residential investment increased by 19 per cent between 2020 and 2021, and a further five per cent between 2021 and 2022.”

He cites the most recent BuildForce 2023–2032

Construction and Maintenance Looking Forward report, showing that Alberta housing starts increased from 24,023 to 31,935 between 2020 and 2021, and up to 36,544 in

2022. Housing under construction increased from 22,982 in 2020 to 28,503 in 2021, and then up to 35,537 in 2022. At the same time, industry completions were also increasing, rising from 25,734 in 2020, to 26,408 in 2021 and 29,837 in 2022.

The stats and trends highlight construction’s dilemma: it is not a lack of work or a lack of capital.

For several years, Calgary’s construction sector shruggedoff the storm clouds and insider warnings about a looming trades crunch. Now that it is here, it’s up to Calgary construction sector to deal with it!

Being I told you so’s is not what the Building Trades of Alberta (BTA) – which promotes the interests of the 18 Alberta local residential, commercial and industrial construction trade unions – wanted or intended. Regardless, BTA’s cautions have now taken on new meaning, and getting overdue attention.

“The current employment situation is increasing in Alberta, and it didn’t just happen overnight,” says Terry Parker, BTA’s executive director. “Pre-pandemic, since 2016, the work situation had already started to slow down. And during the pandemic, major projects slowed down substantially.

“The most impacted trades in the commercial and residential sector were carpenters, electricians, cement masons, sheet metal workers and others.”

Parker urges action and doing whatever it takes. “The BTA forecasts a robust construction industry throughout Alberta over the next decade. This is partially due to several large green field projects that will require tens of thousands of construction trades.

“But reality shows that a trade shortage will be a serious problem across North America over the next decade, even if only half of the scheduled projects get off the ground.”

BuildForce stats underscore the construction sector’s key challenge directly tied to demographics. Despite Alberta benefiting from a younger population, the share of workers 50-64 is a low 18 per cent. And experts warn that competition for skilled workers will intensify, as all sectors of the economy will be competing to attract younger workers.

PARKER URGES ACTION AND DOING WHATEVER IT TAKES. “THE BTA FORECASTS A ROBUST CONSTRUCTION INDUSTRY THROUGHOUT ALBERTA OVER THE NEXT DECADE. THIS IS PARTIALLY DUE TO SEVERAL LARGE GREEN FIELD PROJECTS THAT WILL REQUIRE TENS OF THOUSANDS OF CONSTRUCTION TRADES.

There is growing industry caution that Alberta must be proactive to ensure enough young people available to replace the older workers expected to retire over the next 15 or so years.

BTA’s Terry Parker points out some reasons for the trades crunch. “People that left the trades due to lack of work during the pandemic, and also the lack of work after several mega project completions in Alberta.