Labour

Bridging the skills gap

The construction industry can’t just wait for the skilled labour shortage to resolve itself. The industry and government must act now.

Despite supply chain issues and rising costs of materials, construction demand is extremely high right now, and that demand is rising at a time when the shrinking pool of experienced workers is not keeping pace. We are in a labour crisis. The number of young people coming into construction careers combined with employee attrition means that the thousands of employees who do enter the construction industry each year are not enough to replace the number of baby boomers retiring. And those retirement figures are expected to increase even more in the next decade. If not addressed, this labour shortage could cause project delays, an increased risk of safety incidents due to the need to use inexperienced employees, and pressure on the already-thin margins and tight timelines that we operate on. Without a sufficient supply of labour through the post-pandemic boom in infrastructure spending and new builds, builders will struggle to meet client demand. The construction industry simply cannot afford to wait for the shortage to resolve itself. We must proactively build the pipeline that leads to more people in careers in our industry. At PCL Construction, we’ve been building our labour pipeline for a long time, and we encourage all companies in the construction sector to step up with ideas and programs that attract the people our industry needs — the skilled workers of the future. We know that to effectively build the pipeline from high school to a career in construction, we need to let students know that our industry offers rewarding careers. We start our pipeline as early as we can, making presentations to students long before they graduate, as well as right up to Grade 12. We have a Careers in Construction presentation that teaches children about apprenticeships, and we engage them via our virtual design and construction department. What student isn’t in awe after a virtual tour of one of our job sites? Many don’t know how digital our work has become, until we show them. We also support many post-secondary institutions. Our people sit on advisory boards for numerous college programs and professional associations, and we sponsor scholarships and awards, too. This further strengthens the skilled-labour pipeline in our communities. Since 2017, PCL has donated over $1 million to post-secondary institutions across Canada and the United States. This isn’t a cost. We view it as a great investment in our future, and the results of these outreach activities speak for themselves. Each year, PCL gives more than 500 interns from 94 colleges and universities real-world experience in the construction industry.

This year, 107 former students joined PCL full time, and we filled nearly 80 per cent of entry-level engineering positions with former students. With the right effort, positive results are possible.

Some governments are stepping up their game as well. For example, in Ontario the province is providing free training and paid apprenticeships to become electricians. But we need to work with government to ensure that we take them up on these programs and hire as many apprentices as is permitted to fill up every spot in these programs.

Incentives can also prevent attrition of young workers to other industries. The government of Nova Scotia, for example, eliminated the provincial portion of personal income tax on the first $50,000 of annual income for construction trade workers under 30. Initiatives like these provide stability and compensation, which encourages people to continue working in the trades. Imagine the impact of a nationwide tax exemption for all skilled labour, like the one implemented in Nova Scotia.

At PCL, our internal training regimen is also crucial to creating and retaining our own workforce. Investing in our workers through education, experience and exposure builds valuable skills and well-rounded employees. Plus, mentorship programs and learning tools are key catalysts for developing strong leaders.

Our in-house program has offered more than 2,000 custom-designed courses ranging from basic to expert learning. We also have a system in place to identify high-potential employees in the field, since accelerating field-leader development is vital to our company’s continued success.

Looking beyond our walls, immigration has helped us during previous worker shortages, but it works best with government support. We need the Canadian government to make good on its pledged Trusted Employer system to streamline the application process for companies hiring temporary foreign workers to fill positions that can’t be filled by Canadians.

Reducing red tape and allowing our industry to accelerate the hiring of skilled workers foreign for specific shortages will have positive implications for the building sector, as well as for the entire economy.

To make tangible improvements — to make a critical difference — we need construction industry stakeholders to do more. We need to do more. So, ask yourself what more your company can be doing.

The good news is that, with a few ideas and a plan, we can create sustainable solutions for the labour challenges we face today as we prepare for our industry’s future.

Balance & reach

Lifting materials safely and efficiently with mobile equipment.

BY NATE HENDLEY

Mobile lift equipment manufacturers have a slew of solutions, design innovations and tips to make lifting materials safer and more efficient in the face of uneven ground, poor visibility, overloading, wind conditions, and other challenges. For all these improvements, however,

OEMs that make wheel loaders, telehandlers, mobile cranes, and scissor lifts, say it’s still important not to ignore the human element. “Picking and moving objects creates risks on a site and you need to be trained in how to do that safely,” states Amalija

Kopac, product manager at Genie. “For telehandler operators, it’s also critical to understand how much your load weighs, where the centre of gravity for your load is, what areas of the load chart your job will operate in, and whether you have the right piece of equipment for the job.” To this end, many common safety solutions for lifting applications are intended to prevent dangerous situations caused by human error. Those errors can be as simple as using a bucket too big for the machine and overloading it, which Eric Yeomans, wheel loader product manager at Volvo Construction Equipment, explains can create a risk of the machine tipping over. Ignoring tire pressure on wheeled vehicles can also be disastrous, he says. 14 / JUNE 2022 “If there’s too low a tire pressure in one wheel, when you lift the bucket, the machine can then also tip over.”

As such, Volvo Construction Equipment provides its wheel loaders with tire pressure monitoring and on-board weighing systems. “You can set what the limit is, and if the operator is exceeding that, you get a warning,” states Yeomans.

Case Construction Equipment enhanced its G Series wheel loaders in 2021 for improved productivity and performance. The company offers a payload monitoring system that’s “integrated directly into the loader’s touchscreen display and provides detail such as bucket weight, pass counts, accumulated/ running weight and job tracking data,” says Andrew Dargatz, the company’s product manager. “This allows operators to precisely load each truck to reduce under/ overload situations.”

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These upgraded wheel loaders also feature a new touchscreen and adjustable electro-hydraulic controls with smooth, moderate, and aggressive settings.

These controls make it easier for operators “to adjust the responsiveness of the machine’s boom and bucket functions,” says Dargatz. “Smooth gives you the most control and deliberate movement. Moderate is the factory setting. It provides more of a standard responsiveness. Aggressive provides the most immediate response to joystick operation for operators that like to move aggressively.”

The machine’s aggressive setting also allows for fine bucket metering. “Operators can top off any load more accurately and finely with this capability,” he adds.

This spring, JLG released three new rotating telehandlers with a variety of hightech safety solutions: the R1370, R1385 and R11100.

An automatic attachment recognition feature identifies the attachment at the end of the boom then “selects the corresponding load capacity chart and LMIS settings for it,” explains Rogerio dos Santos, the company’s vice-president of engineering for telehandlers.

The LMIS, or load management information system, “visually indicates whether the load is compliant with the load capacity chart and prevents operations that violate the boundaries of that chart,” he continues.

JLG telehandlers also use a Load Stability Indicator (LSI), which works with LMIS to prevent overloads when the load nears maximum capacity.

As the name implies, the upper frame of a rotating telehandler, also called a rotary telehandler, can swivel 360 degrees. This attribute “improves both productivity and safety in congested jobsites,” says dos Santos. “A rotating telehandler can reach several places on

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the site without the need to drive and maneuver the machine like you have to do 2-in-1 WORK INDOORS AND OUTDOORS with a conventional telehandler.”

The R1370, R1385 and R11100 also have cylinder and chain-driven booms for increased reach and lift capacity. Maximum reach height ranges from 67 to 97 feet, with maximum lift capacity of 11,000 to 13,200 pounds. These telehandlers have automatic leveling systems for uneven ground. When activated, crane supports (outriggers) extend from the telehandler and are manually or automatically positioned to level the frame and secure the machine.

Genie’s rough-terrain scissor lifts have a similar set-up, with self-leveling hydraulic outriggers. “All four outriggers Sales are designed to deploy simultaneously to Service ensure the lift is level on uneven ground Parts before elevating the platform,” says Genie www.aherncanada.ca associate product manager Christian Dube.

These machines are also equipped with “active oscillating axles, which automatically sense the terrain and adjust the rear axle position based on ground conditions. Active oscillating axles combine with four-wheel drive and positive traction control to deliver superior performance on rough terrain,” adds Dube. Liebherr has a product that complements its existing line of Liebherr Telescopic Mobile (LTM) cranes. LTMs are all-terrain machines with sturdy chassis, and long, strong telescopic booms for operating at height that can handle rough ground. Dense, urban settings present other difficulties, however. Narrow streets and crowded worksites can make it difficult or impossible to evenly extend outriggers on a mobile crane. Reducing base support limits capacity, however.

Enter VarioBase, Liebherr’s variable

base support system. Using VarioBase, each outrigger can be individually extended to varying lengths for levelling purposes. Liebherr Computed Control (LICCON), the company’s crane control system, calculates maximum load capacities, continuously updating this data while the crane is in operation. LICCON also monitors the crane’s tipping point and centre of gravity

“VarioBase has really revolutionized the way mobile cranes can function and get into tight workspaces while maintaining the highest level of safety,” states Lee Spalding, sales representative for Liebherr-Canada. “Up to our LTM13006.2, all four outriggers can be placed at any arbitrary length.”

Liebherr has just launched VarioBase Plus, which offers enhanced rear outriggers. An updated control system called LICCON 3, will make its debut on the company’s LTM1110-5.2.

Pettibone also builds a unique telehandler, the Traverse T1056X. The T1056X has a traversing boom carriage that enables it to safely move a load while traveling horizontally. Operators can place a load at full lift height, without having to juggle multiple boom control functions.

“The Traverse enhances operator safety by reducing the number of times that the boom needs to telescope in or out. It also helps avoid the need to reposition the machine by driving it forward and back, which technically is not supposed to be done when operating a forklift,” explains Mitch Fedie, product manager with the company. “Essentially, the Traverse allows you to line up with the target landing and then perform minimal movements to the land the material load.”

The Traverse T1056X has a specified lift height of 56 feet, six inches. The traversing boom provides up to 70 inches of horizontal boom transfer, extending maximum forward reach of the machine to 45 feet, 10 inches. The maximum load capacity is 10,000 pounds.

Other OEMs have also been working on performance-enhancing boom innovations.

Released in early 2021, Genie’s GTH-1056 telehandler features a boom with a mid-pivot point and a single cylinder. “When combined with a wider, stiffer horsehead, this helps transfer loads efficiently in applications that impose high stress on the boom, such as pipe handling or suspended loads, contributing to a stronger boom and chassis design,” says Kopac.

The GTH-1056 also offers improved visibility for operators — a major plus for safety and performance alike.

“Visibility while operating a telehandler is of utmost importance for safe operation,” states Kopac. “We’ve designed our telehandlers for the best possible visibility: the ability to see all four tires as you maneuver the machine. Our GTH-1056, like our other telehandlers, is also equipped with different lighting options and backup rear proximity alarms, as well as telematics that enable remote monitoring.”

“Back-up cameras have become very popular, but it’s still important for the operator to be able to see firsthand when maneuvering,” adds Fedie of Pettibone. “The single lift cylinder [on the Traverse T1056X] certainly helps to provide better sight lines to the rear. Additionally, our side-mounted engine is positioned to allow good curbside visibility while still offering ample ground clearance.”

Liebherr has taken things a step further and offers protection against unseen hazards. The LICCON system contains pre-programmed wind charts, based on the company’s extensive research into the dangers wind poses to cranes.

“With the pre-programmed wind speed charts, all the operator has to do is set the LICCON system to that wind speed and the computer automatically reduces the load charts,” states Spalding. “Liebherr cranes also comply with the CSA Z150, a Canadian safety code on mobile cranes, which adds another layer of safety.”

Even with all their innovations, manufacturers still stress the importance of

PHOTO: COURTESY OF PETTIBONE

PHOTO: COURTESY OF GENIE

having operators who are fully versed on the proper use of mobile lift equipment.

“The most important best practice is to ensure that your telehandler and mobile elevated work platform operators have been properly trained by a qualified trainer using the most current training methods,” states Scott Owyen, director of training at Genie. “Invest in operator training. Everybody invests in equipment, but invest in operator training too,” adds Yeomans. To this end, Volvo offers operator coaching on its wheel loaders. This program provides unobtrusive feedback and data regarding idling, brake use, tonnage of materials moved, fuel use, A LONG WAY TOGETHER A LONG WAY TOGETHER A LONG WAY TOGETHER and other performance indicators. Volvo also makes Volvo Simulators. These devices consist of a seat, steering wheel, controls and a large screen. Volvo trainers take these simulators to client Lorem ipsum Lorem ipsumworksites and put operators through realistic construction site scenarios. It’s a convenient way to train employees without using fuel, or risking injuries or damage to a real vehicle.

Even trained mobile equipment operators need to remain vigilant, however, during lifting applications. “Always be aware of what you’re lifting—how much it weighs, WHEREVER YOU ARE, BKT IS WITH YOU and how far you’re extending the boom to land the load. Operators should consult the machine’s published load chart to ensure the lifted weight and intended reach are within the telehandler’s capability,” says Fedie, adding, “Be aware of your surroundings at WHEREVER YOU ARE, BKT IS WITH YOU WHEREVER YOU ARE, BKT IS WITH YOU BKT provides you tires that are sturdy and resistant, reliable and safe, able to combine comfort and high performance. BKT is with you, even when work gets tough. BKT provides you tires that are sturdy and resistant, reliable and safe, able to combine comfort and high performance. all times when operating the machine.” BKT provides you tires that are sturdy and resistant, reliable and safe, able to combine comfort and high performance. BKT is with you, even when work gets tough.

Nate Hendley is a freelance writer and author, and is a regular contributor to On-Site Magazine.

For info: Western Canada 604-701-9098 Eastern Canada 514-792-9220

Facing a CRA net-worth audit? Here’s what you need to know.

Tips for small businesses

The Canada Revenue Agency (CRA) has many tools at its disposal when searching for undeclared income. One of the most aggressive tactics the CRA uses is a net-worth (lifestyle) audit. This audit technique is often used in industries where cash transactions are common, such as the construction industry with small businesses like contractors or subcontractors. While this technique has been around for decades, its use has become more frequent in recent years.

“The trend is really towards this specific type of audit technique,” says Jeremie Beitel, Director for Farber Tax Law, a tax dispute resolution law firm serving clients across Canada with a team of tax lawyers and ex-CRA advisors. “What they’re looking for is, does something not quite match up? Are someone’s assets increasing or their expenditures higher than could be justified by their reported income?”

Beitel, who has more than a decade of experience practicing tax law, stresses that a business owner looking to protect themselves or prepare a defence against these types of audits needs to keep good records of all personal transactions. This is especially important for businesses operating in a targeted industry like construction.

“If you win money gambling, get an inheritance, or receive a loan, make sure those are all well documented. If not, you could risk these transactions later being viewed by the CRA as money received from a customer versus an actual gambling win, inheritance, or loan. So, if you make sure to document it at the time, you’ll be in a much better position if you’re audited,” he says.

To gain unique insights into the CRA, Farber Tax Law turns to its senior advisor James Bell, who worked for 22 years at the CRA. Through his extensive CRA expertise, Bell knows the best way for small businesses to help avoid one of the CRA’s most dreaded types of audits and what to do when facing one.

Bell says the most important thing to do if you have been targeted for an audit, or expect to be audited in the future, is to be proactive. The first step in being proactive is to hire a professional.

“This is not a do-it-yourself endeavour. If you’re going to be audited, this is not something you should be dealing directly with the auditor on. The stakes are too high. People do not know what the rules of the game are, and that’s a bad formula for doing anything,” he says. “You should be seeking professional advice.”

One area where business owners will often make a mistake when dealing with a net-worth audit from the CRA is by attempting to defend themselves with pre-existing accounting records.

“Once a net worth analysis has begun, your original accounting records, in terms of your general ledger, your financial statements, become largely irrelevant. They are important for characterizing specific transactions, but the mistake that a lot of taxpayers make early in a net-worth audit is when the CRA comes with their analysis, the taxpayer will resubmit the original ledgers and financial statements rather than responding to that analysis directly, which the CRA will ignore,” Beitel says. “So, it’s important to recognize the new terrain that you’re in once the net-worth audit has begun.”

Assets, liabilities, and expenditures

The CRA will often choose a three- to four-year period to review for a networth audit. It will be focused on three elements: assets, liabilities, and then expenditures.

“Firstly, they’re going to look and see what your assets at the start were, and at the end, and any increase, they’re going to say, ‘You must have had income. If you have a million dollars of new assets, for example, that money came from somewhere,’” Beitel says.

This process will be similar for when the CRA reviews a business owner’s liabilities.

“They’re going to look at how much you owed at the start and at the end. If you’ve paid off a million dollars of debt, again, there’s got to be a source for that money,” Beitel says. And then lastly, the CRA will look at a company’s expenditures over that period. “For example, if you have $200,000 of extra assets, you repaid $100,000 of debts and spent $200,000 on groceries and trips, they’re going to add that up and get $500,000 and ask you to explain.

And with that explanation you’ll need financial information that supports it,” Beitel says. “The first step is to go granularly through the schedules they prepared and identify which particular assets you do not own, or which ones you funded from, say, a gift from your parents. Which liability did you either not pay off, or perhaps, did the CRA miss a new liability? You really have to go point by point and defeat the net-worth analysis.” Farber Tax Law has worked with a host of clients to help them significantly reduce their overall payments owed from CRA net-worth analyses.

“The CRA will always start out extremely high because they don’t have much information. We often see a multi-million-dollar net-worth analysis, that with a steady and granular approach, we can reduce to a couple hundred thousand dollars, or $100,000, or $50,000,” Beitel says. “Whatever the actual amount of real income that the taxpayer may have not reported, or maybe they did report everything but the documentation is poor so they can’t quite prove everything, the CRA will always start out very high and will put the onus on the taxpayer to bring it back down to reality.”

Business owners should also retain bank and credit card statements and cancelled checks – not only business related, but also personal.

“Those are often documents that are, or can be, difficult to obtain later, especially years after the fact. So, those can just be saved to a Dropbox or any type of cloud service. Then, in the event that they’re ever audited, it’ll be much easier for them to identify transactions and explain what those transactions actually were,” Beitel says.

A very common issue that comes up is when people try to explain that money came from a personal loan and there’s never any documentation.

“If this did happen, have some documentation for these family loans or loans between friends. Have something, an affidavit or some kind of notarized statement at least,” Bell says. “Or, if it was a gift, who was the gift from? Have someone indicate that in writing because these are the common things we hear.”

Stay informed

Another important step in keeping proactive is to make sure you go over your income statement and balance sheet with your accountant every year.

“It can be very tempting to engage in willful blindness and be happy that your accountant is seemingly saving you a bunch of money, but you should go through and see whether the numbers are rational. You generally know how much money you made, how much money you might have lent the company,” Beitel says. “All the time I see people whose companies have reported losses for every year, or $5,000 or $10,000 a year of income, when they know that they made more money. And I think if they had taken the time to understand those numbers or to seek help to understand them at the time, they could have avoided a lot of penalties and pain later on.” When it comes to the CRA, claiming ignorance will not get you out of an audit. “A lot of people just say, ‘Listen, I’ve got an accountant that’s preparing this, I’ll just blame him. It’s his fault. I didn’t know what was going on. So, I’m somehow not culpable at all.’ Not true, James Bell that argument never washes. Senior Advisor, You’re responsible for what’s Farber Tax Law on your tax return,” Bell says. “You’re signing your tax return and you’re affirming that you knew, reviewed it, and you agree with what’s in it.”

Have more questions about net-worth audits? Farber Tax Law offers free, confidential consultations. Learn more at www.farbertax.com.