MABA09_2nd by Catharine Snell

2009

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2009

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VOLUME 11, NO. 1

Publisher: Robert Phillips

MESSAGES

Editor: Cadence Hays Project Manager: Alana Place Account Executives: Ralph Herzberg (Book Leader), Bill Biber, Brenda Ezinicki, Meaghen Foden, Brian Hoover, Wayne Jury, Cheryll Oland Marketing: Patti Callahan Layout & Design: Catharine Snell Advertising Art: Reanne Dawson Official Publication of MCA - British Columbia 223-3989 Henning Drive Burnaby, BC V5C 6N5 Email: danat@mcabc.org; dsavoie@mcabc.org Website: www.mcabc.org MCA - Alberta 204-2725 12th St. NE Calgary, AB T2E 7J2 Email: hans@mcaalberta.com Website: www.mcaalberta.com MCA - Saskatchewan 105-2750 Faithfull Avenue Saskatoon, SK S7K 6M6 Email: mcask@sasktel.net Website: www.mca-sask.com MCA - Manitoba 1-860 Bradford Street Winnipeg, MB R3H 0N5 Email: mcam@mts.net Website: www.mca-mb.com

MCA CANADA CHAIRMAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 MCA ALBERTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 MCA BRITISH COLUMBIA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 MCA MANITOBA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 MCA SASKATCHEWAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 UPDATES

Alberta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Manitoba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Saskatchewan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21 23 25 27

SPECIAL FEATURE

The State of the Economy The construction and mechanical contractor industries are buckling their seatbelts to prepare for a bumpy ride. That’s not to say all news is full of doom and gloom. By Jeffrey Reed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

FEATURES

Training for the New Economy The mechanical contractors associations throughout western Canada are active in promoting skilled trades as a means to better the industry and the economy. By Jeffrey Reed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

An Inside View: The Economy-Contractor Connection As the contractors have stated themselves, it’s wait-and-see.

By Jeffrey Reed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Keen on Green: Geothermal Heating in Canada More and more, individuals and organizations are realizing that the old ways of heating our homes and businesses cannot be sustained, and that alternatives that are cheap, sustainable and environmentally-friendly must be explored. By Craig Lawrence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Construction Sector Council Data Using a made-in-Canada approach that partners business and labour, the CSC works to provide the information and knowledge tools you need to make informed and strategic decisions.

By Jeffrey Reed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 INDEX TO ADVERTISERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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PUBLISHED APRIL 2009/MAB-A0009/8872

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Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

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Message from MCA Canada Chairman

Bob Hoare

t’s only human nature to take certain things for granted. Take your national association, the Mechanical Contractors Association of Canada, for example. It’s there. It’s around. It does “stuff”. But what? One doesn’t fully comprehend the “breadth and depth” of the Association and its activities until you get around to writing one of these reports. That’s when you start thinking “Wow! Do we really do all of that?” I accepted the Chairmanship of MCA Canada this past September on the occasion of MCAC’s National Conference combined with the World Plumbing Conference and the CIPHEXWEST tradeshow in Calgary, Alberta. In January, 2009 we held our winter mid-year national meetings in the nation’s capital, Ottawa, Ontario. Both of these occasions (Calgary conference/Ottawa meetings) served to set the stage for the ongoing and future activities of MCA Canada, some of which are highlighted below:

CANADIAN MECHANICAL CONTRACTING EDUCATION FOUNDATION (CMCEF):

Management education courses continue to be a popular service provided to the industry by MCA Canada’s education subsidiary organization: Canadian Mechanical Contracting Education Foundation. The Foundation’s courses and programs are well attended and many times sold out. The Project Management course, Commissioning seminar, Dispatchers program, Proactive Service workshop, Project Management essentials, Claims Avoidance and Profit Increases are just a few of the popular educational offerings. Introduction to Estimating is being explored and a brand new Supervisory course will be available sometime this coming fall. Fundraising continues to be a priority with the Foundation. Without the proper financial resources, the delivery of top-quality management education programs to Canada’s construction industry would be in jeopardy. Those interested in making a contribution are urged to contact CMCEF.

BUILDING COMMISSIONING:

As reported a year ago, MCA Canada successfully raised the funds necessary to start the development of a national standard for building commissioning. Since then, the Canadian Standards Association (CSA) Z320 Building Commissioning Technical Committee has met on several occasions and progress is on target. Substantial completion is expected this coming October with a public review in January, 2010, balloting for formal approval in May, 2010 with the final edit in June of the same year and with final publication scheduled for September, 2010. This will be followed by an electronic version of the standard (including application tools), education delivery and a certification process.

NATIONAL TRADE CONTRACTORS COALITION OF CANADA (NTCCC):

As of the date of writing this report, the NTCCC comprises eight (8) trade associations including: Mechanical Contractors Association of Canada, Canadian Electrical Contractors Association, Canadian Automatic Sprinkler Association, Canadian Masonry Contractors Association, Thermal Insulation Association of Canada, Ontario Sheet Metal and Air Handling Group, Canadian Roofing

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

FEDERAL GOVERNMENT OF CANADA:

Contractors Association, and the Heating Refrigeration Air-Conditioning Contractors (of Canada). The NTCCC meets several times a year and concentrates on several important issues such as enhancing and broadening industry relations with organizations like the Construction Sector Council, Canadian Apprenticeship Forum and the Trade Contractors Council of the Canadian Construction Association. In addition, the NTCCC concentrates its efforts on the “Ways and Means” of getting the message across on the importance of using standard contract documents and getting paid promptly for work performed. As a consequence, the NTCCC has developed a “getting paid” DVD for industry-wide use and has also developed a guide to the CCA Stipulated Price Sub Contract Form written in user-friendly language. The NTCCC is also planning for “A Day on Parliament Hill” this spring with a view to introducing trade contractor associations to Members of Parliament.

MCA Canada has an ongoing relationship with representatives of the federal government on a myriad of issues that have an affect on (or may potentially affect) our membership. From time to time, MCA Canada has a joint meeting with the federal government the most recent being January 26, 2009 on the occasion of the national Board of Directors meetings in Ottawa, Ontario. Federal Departments/Agencies re– presented at that meeting included: Public Works and Government Services Canada, Human Resources and Skills Development Canada, Treasury Board Canada, Employment Insurance Commission (employers), and Defence Construction Canada. Items addressed included Treasury Board Canada’s Task Force on Security Screening of Individuals, an update on the Employment Insurance Program, Proposed Amendments to Chapter 7 (Labour Mobility) to the Agreement on Internal Trade (AIT), Federal Use of Bid

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MECHANICAL SERVICE CONTRACTORS OF CANADA (MSCC):

For MCA Canada’s service contractor members, you will be excited with the latest initiatives of the MSCC. It continues to grow its membership, expand its services and hone in on its priorities. Provincial MCA’s either have established or are in the process of establishing provincial service committees, which will prove to be a vital component of long-term success of MCA Canada’s service contractors division. Membership recruitment strategies are being developed and will soon be initiated. New educational programs designed specifically for the service contractor have been launched and are being widely received. And the development of a National Certification Program is well underway and is intended to elevate MSCC contractors from the competition. It will demonstrate a level of professionalism and technical skills that is recognized across the country. Are we excited? You bet! We could continue listing the many activities/services of MCA Canada, but due to the space limitations of this report, I chose to highlight a few of the issues I thought may be of interest. If you would like to hear more, please do not hesitate to contact the MCA Canada national office in Ottawa. Or, simply register for your provincial MCA conference this year. I plan on attending all of the Western MCA conferences and look forward, with enthusiasm, to meeting as many MCA members as possible. One last thing. As previously mentioned, our most recent annual national conference was held in the West, specifically Calgary, Alberta. For those of you who attended, I think you will attest that it was a great event enjoyed by all! Our next conference takes us out of country to beautiful San Francisco, California, September 26-29, 2009. This too will be a grand event and both my wife Inge and I hope to see you there. ■ Respectfully Submitted, Robert (Bob) Hoare Chairman, MCA Canada

Mechanical Contractors2/2/09 Associations of Alberta, B.C., Manitoba & Saskatchewan 2009 9:16:21 PM

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Message from Alberta

I GEORGE DOTY PRESIDENT

HANS TIEDEMANN EXECUTIVE DIRECTOR

n May of 2008, the Annual General Meeting was held in conjunction with a great conference in Jasper. At that AGM I was privileged to obtain the membership support to become your new President and receive the President gavel from Ken Manweiler of Kam Mechanical, Edmonton who had served our Association for two one year terms. I also look forward to serving the members of our Association as your President. No doubt the highlight of my term will be the enjoyment and satisfaction that I received from seeing that we had a very successful combined 2008 World Plumbing Council and MCA Canada conference held in Calgary, Sept. 24 - 27. Although the Canadian dollarâ&#x20AC;&#x2122;s unbelievable rise above the US dollar and the additional airline fuel charges costs played havoc with less than expected registrations from other countries, we did end up with just over 600 participants at the conference, which had been planned by a partnership of MCA Alberta, MCA Canada and CIPH. The Calgary white cowboy hats and the rodeo put on especially for this conference were a hit and will be talked about for years. The CIPHEX WEST trade show also put on in conjunction with this conference was appreciated by all and well attended. Even though we did have a small membership growth in 2008, the mid-year overnight downturn in the economies of the world including Alberta has also affected our members to varying degrees. Although our membership still continues to be centered in the major cities, it continues to be our desire to obtain members from all parts of the province. Throughout the year our Association continued with its regular events of a Provincial Conference and AGM in Jasper, our Provincial Curling Bonspiel in Red Deer, our Provincial Golf Tournament in Sylvan Lake, our major Old Timer events in both Calgary and Edmonton, our regional golf tournaments, Lobsterfest in Calgary and River Queen cruise in Edmonton and of course our general membership meetings in both Calgary and Edmonton. Although it is our intention to hold similar events in 2009, it will be interesting to compare numbers with previous years. We actively participated in the promotion of our trades in attending the major career fairs in both Calgary and Edmonton as well as the Calgary Construction Association career fair and at a number of high schools throughout the province. Our MCA Alberta and some of our members participated in the provincial and national Skills events held in May 2008 in Calgary by providing manpower and sponsorships. Once again I look forward to the next international event being the 2009 WorldSkills in Calgary where once again your MCA of Alberta will have involvement. We continue to provide awards to top apprentices in our trades and of course also have the perpetual MCA scholarships available to both the individuals in the RAP program and regular apprenticeship programs. The Association has the privilege of having representation on various Construction Associations and committees, the Alberta Construction Safety Association, the Plumbing, Gas and Building Safety Codes Council committees, Local and Provincial Apprenticeship committees, Trustees on United Associations training facilities and even on various national committees. I am thankful for these many volunteers taking an active part in the protection and promotion of our trades on behalf of you and MCA of Alberta. As you can see by this report, in my short term as President, I have already witnessed many interesting occurrences that show the vibrancy of our Association. I look forward to a very interesting and no doubt challenging 2009. â&#x2013; Respectfully submitted, George Doty President, MCA Alberta

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

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Message from British Columbia

T ANDREW WONG PRESIDENT

DANA TAYLOR EXECUTIVE VICE PRESIDENT

he newly rebranded Mechanical Contractors Association of British Columbia welcomed 2008 with a new look and a stronger commitment to expanding and developing its membership services and roster. The board spent the majority of the year refining the association’s strategic plan, with a vision to become a stronger voice for the mechanical trades in British Columbia, while also establishing the MCABC brand through training and marketing programs. Additionally, there are also plans to strengthen our membership through growth and affiliations. The association is also working on a strategic marketing plan which expects to expand our current Internet and website capabilities in 2009. There are also initiatives to improve and redesign our current member communications with stronger newsletters, magazines and email communications. 2009 will also see the re-launching of our British Columbia Buyer’s Guide – the first one to be published since the early 1990s. The online interactive guide, and an eventual printed version, will provide a tremendous service to our members and should become the foundation of a great tool that should last for many years to come. MCABC has also created a new public relations system that will allow our messaging and media advisories to reach every radio, television and newspaper outlet in the province. We’re excited to use the new system, which has a mailing list twice the size of the one the provincial government uses. It’s a feature that should help the association get its voice stronger, as well as provide members with an exciting new tool to get their own messages out. MCABC is also making efforts to strengthen our ties with other associations to assist uniformity within our industry. Our efforts resulted in our first joint event with the Canadian Institute of Plumbing and Heating, an evening with Global Television medical advisor Dr. Art Hister, as well as many social functions with the Electrical Contractors Association of BC. On the administrative front, 2008 saw the introduction of our new dues structures, which we feel provide more fairness and even pricing among member classes. We also hired a new marketing/communications coordinator, Dan Savoie. In 2009, we are investigating several ways to convert our member database into a modern contact management system to act as a more efficient way to service our members. This coming year, we’re also going to take our new branding and create a corporate style guide to complement it. The 2009 Conference and Annual General Meeting are being held in Victoria on April 24 and 25 at the luxurious Westin Bear Mountain Spa and Resort. The spa is famous for its stunning Jack Nicklaus designed golf courses and world-class services. MCABC members will be some of the first people to play on the newly completed back 9 of the 18-hole Valley course. None of these great plans would be in place if it were not for the hard work and diligence of the MCABC board, volunteers, staff and all members who continue to support the association initiatives to better our construction industry. Without everyone’s commitment and devotion, MCABC would not be the strong and proud organization it is. My sincere thanks go out to my fellow board members, our hard working staff (Dana, Jane, Berry, Barbara and Dan), our volunteers at the numerous events we do each year, and especially our members. ■ Respectfully submitted, Andrew Wong President, MCA British Columbia

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

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Message from Manitoba

M BOB MODJESKI PRESIDENT

BETTY MCINERNEY EXECUTIVE DIRECTOR

anitoba’s economy grew by 3.0% in 2008, above the Canadian growth of 2.7%. The growth in the Manitoba economy was broadly based with particular strength in construction and wholesale and retail trade. Forecasters expected real growth to be 2.7%. In 2009, Manitoba’s economy is conservatively forecasted to grow by 2.6%. Manitoba is poised to deal with the economic downturn being experienced by much of Canada. There will be some sectors hit hard, but because of our diverse economy, we are expected to weather the storm fairly intact. I am delighted and honoured to have been elected President of the Mechanical Contractors Association of Manitoba Board of Directors last May, 2008. And believe me when I tell you that I had to hit the ground running right from the beginning. At our very first Board of Directors meeting in June, Fred Nicholson, our Executive Director for almost ten years, gave notice of his retirement in November! Jamie McNabb, Past President, now sits on the National Board of Directors for MCAC. Betty McInerney is our new Executive Director, having started with us in October. She was the Program Manager for Business and Trades at Red River College’s Continuing and Distance Education division. Betty was with the college for over 20 years. One of my first duties as President of the Board of Directors was to host the President’s Gala Dinner and Dance during our AGM last May. It was an outstanding success, with the largest ever sponsorship involvement from our members. I’m not sure how we’re going to top that one. Our golf tournament was rained out this past August, but that did not dampen our spirits. Everyone won a prize and enjoyed themselves immensely. Once again, contributions were made to the Canadian Mechanical Contractors Education Foundation and the Firefighter’s Burn Fund. We are busy planning our next AGM to be held at Elkhorn Resort in Clear Lake, Manitoba, May 21st to 23rd. Our theme this year is the Roaring 20’s! We’re also planning a barbeque and cowboy games, and we’re keeping our fingers crossed that we don’t get snow. Our members are still talking about golfing in the snow in May 2007 at Elkhorn Resort! We are working with the Winnipeg Construction Association and many other trade associations on a brand new Manitoba event: Construction Career Expo. This event is taking place May 12, 2009. The purpose of this exposition is to introduce 14-year-olds to the trades. Grade 9 is when these students have to start thinking about specific high school courses in order for them to be able to take their programs of choice once they have graduated from junior high. We are planning interactive displays where these students can practice a little hands-on, and hopefully get turned on by the trades. As always, educational programming and informational meetings are an important mandate of our Association. Dispatcher Training took place in November. Project Management Essentials for Contractors was sold out in March. We offered Computerized Estimating for Mechanical Contractors for the first time this April. How to Avoid Claims and Increase Profit will run in May. We invited Sandy Hopkins, CEO for Habitat for Humanity, to speak at our February dinner meeting. Habitat builds to Hydro Power Smart Gold and soon, to LEED silver or gold for residential buildings. These LEED standards are yet to be published, but Habitat Winnipeg is already planning to receive LEED’s designation. Habitat for Humanity Winnipeg is embarking on its newest project: the Greenest Affordable Housing Development in Canada. For more information on this project, check out their web site: http://www.habitat.mb.ca/. We are still in discussion with the City of Winnipeg regarding mechanical permits and licensing of mechanical contractors. It is not providing quite the clarity we had originally hoped for, but we expect that with the help of the Manitoba Association of Sheet Metal & Air Handling Contractors, we will find the clarity we need. Our main challenge this year is to increase our membership, particularly in the Mechanical Service Contractors category. Work has started on that end and we hope to see positive results over the next few months, once the contractors recognize the benefits they can receive from becoming members of our association. This year has proven challenging and interesting. I would like to wish Fred Nicholson all the very best in his retirement and we hope he comes back safely from the Amazon. Finally, I would like to thank the staff at MCAM for their help and guidance throughout the year. ■ Respectfully submitted, Bob Modjeski President, MCA Manitoba

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

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Message from Saskatchewan

H DAVE FLAMAND PRESIDENT

JUDY NAGUS EXECUTIVE DIRECTOR

ow are things going in Saskatchewan you ask? That’s a good question! We still seem to very busy in this province. By the looks of things the commercial sector will be extremely busy well into 2010. The housing sector appears headed for a slowdown but that could change by the end of 2009. The industrial sector is still quite strong, but the temporary layoffs at the Potash mines have some people wondering what will transpire there. Potash Corp of Saskatchewan has announced that they will forge ahead with all of their expansions. Agrium is also working on an expansion at their mine. There is even talk of a new potash mine being built by one of the major mining companies. BHP Billiton has recently taken up space in Saskatoon. Here’s hoping they continue to expand in a big way in the province. This all shows a lot of confidence in the future of that industry despite the temporary layoffs. I remain “cautiously optimistic” about our economy in Saskatchewan and anticipate another busy year in the Mechanical Industry in 2009. MCAS has held several programs to encourage entry into the trades (plumbing in particular); we have held pre-trade plumbing programs, aboriginal bridging programs, and most recently, we held the third Mechanical Industry Career Training (MCIT) program. This program takes candidates who want to work in the trades careers and who will benefit from this professionally-delivered industry orientation and career management process. They will find sustainable employment, through an increase in awareness, as well as essential skills, understanding of labour market requirements, research on educational and apprenticeship requirements, and employment observation and placements. The association also holds management and ongoing technical training for apprentices and journeymen, but we have found ourselves to be restricted with limited access to facilities and those facilities are quite often unsuitable. It was these restrictions and our ongoing and respectful relationship with SaskEnergy that lead to what I feel is a unique and exciting partnership opportunity. I am very pleased to announce that MCAS and SaskEnergy are building a joint training facility in Saskatoon to meet the training needs of their technicians and staff and our industry. This state of the art facility will have a large working lab, one large classroom adjacent to the lab and several small class and meeting rooms available for training. The classroom will have innovative technology suitable to all users and will help meet the demographic training challenges we face in this province. I believe it addresses the five futures (ahead, beyond, behind, around and beside) and opens the door to change and innovation, which are critical to the association’s future success. This facility will afford access to all industry contractors and affiliate members. We believe it will be well used by our affiliate members for product training and demonstrations. The facility should be ready by September 2009! We all recognize that even if the construction economy does slow down, we remain facing an aging workforce, and new and emerging technologies. Apprenticeship is responsible for 20% of the training that takes place in a classroom on a limited schedule according to an established curriculum. Employers are responsible for the other 80% of on-the-job training and continuing education. I am pleased that MCAS can fulfill membership wants with this training facility. We hope our members will make the clear link between how their own business needs and priorities align with the leadership of the association. I am encouraged with our increased membership and ongoing valuable provincial program’s like the SaskEnergy Network, Commercial Boiler program, Group benefits, Retirement Benefits, scholarships and access to the increasing number of national products and services offered. I also believe we have a large role to play in the new Service Contractors group (MSCC). We have established a service committee in Saskatchewan to ensure national programs meet our member’s needs and are accessible to service contractors in Saskatchewan. It seems Saskatchewan contractors are overwhelmed with the Licensing & Inspection processes that can build barriers to business growth instead of increasing growth and competitiveness. With this said, in 2008 MCAS organized with several industry stakeholders and the Mechanical Industry Regulatory Review Committee to lobby for change to the existing regulatory and licensing process in Saskatchewan. One specific request was made to place Gas & Electrical Licensing and Inspections under one department. To this point presentations have been made to various ministers of government and Enterprise Saskatchewan, which approved our initial presentation to be studied by The Environmental ResultsBased Regulations; a body designed to deal with regulatory reviews. This committee examines

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

regulations from the existing “command and control” regulatory model towards a more results-based regulatory model. We are pleased to have made such good progress in one year and will continue to press for changes. This committee also held several Easy-to-use, and reliable solutions to everyday meetings with (CAPP) Canadian Association of Petroleum Producers to meet situations from a trusted source since 1964. their request of a Petroleum Industry Restricted License. This license would Flexible Couplings afford the Petroleum Industry in SasThere is a Fernco Coupling for every katchewan to work legally on unmanned pipe material and size combination. sites. I am pleased to announce that Licensing has accepted our request for a Core through it & connect to it. restricted license, a curriculum has been identified and approved, and we are examining various training avenues. The annual MCAS/CIPH Conference attendance continues to increase in numConcrete & Manholes Corrugated bers and affords both the association members an opportunity for Industry business and fun. We welcome members to our next conference May 28th & 29th, 5000 Series Strong 2009 in Cochin, North-Battleford. I am Back (RC) Couplings pleased that MCAS will also play host SDR-35 Clay to the MCAC Western meeting in beautiResistance to heavy earth loads and ful Waskesiu, Elk Ridge Lodge, June 4th, shear forces, while providing improved • Meets ASTM C 923 2009. pipe alignment. • Easy identification - Grey for Sch. 40 We continue with our annual bonpipe inlet, Green for SDR-35 pipe inlet spiel, north and south golf tournaments • Nut and Bolt Clamps • Can handle up to 7 degrees of deflection and appreciate the support we receive • Molded-In Bushings for these events. • Creates a water tight compression seal • .012”Stainless Steel It seems like yesterday when I started • No need to excavate the entire line Shield in the position of President of MCAS • Available in 4”, 6”and 8”sizes and my term is near the end. It has been a very rewarding experience. I have Order the industry standard TODAY! enjoyed working with Judy Nagus and the entire board of MCAS, and look forward to continuing to work with everyone for the next two years in my next position as National Director for MCAS. I wish the best of luck to Allan Awrey who will be the next President of MCAS. (519) 332-6711 • www.ferncoconnectors.ca I look forward to working closely with Allan. It is a great time to work and live in Saskatchewan. Our future is bright. 417536_Fernco.indd 1 1/29/09 2:51:12 PM Enjoy the fast approaching spring and the warm wonderful summer to follow. Enjoy today! I leave with you with one last thought: “Each morning when I open my eyes I say to myself: I, not events, have the power to make me happy or unhappy today. I can choose which it shall be. Yesterday is dead, Canadian Trade Services Ltd. tomorrow hasn’t arrived yet. I have just one day, today, and I’m going to be happy in it.” The Flange Adapter People - Groucho Marx ■

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Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009 2/9/09 11:00:40 PM

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Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009 418149_Bradford.indd 1

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UPDATES from Alberta

CALENDAR OF E VENTS

he economic storm wreaking havoc around the globe didn’t spare Alberta. Early in the New Year, newspapers ran stories composed of lists of oilsands projects that had been shelved or deferred. Statistics Canada reported that employment in Alberta declined in December by 15,800 from 2.034 million to 2.019 million and that the construction sector led the decline. There’s no question the economic downturn has sent a chill throughout Alberta’s construction industry. But insiders say Alberta’s construction industry has already weathered a few storms and learned a number of lessons. “We have gone through recessions in the past,” says Ken Gibson, Executive Director of Alberta Construction Association (ACA). “In the ’80s and ’90s, we had 10 to 15 years where we had lost people in the trades and in the supervisory occupation that we’re still feeling today.” He adds: “A lot of people in the industry are saying, ‘Let’s not make the mistake that we got into a downturn and it’s going to be really prolonged and forget about continuing to develop our local workforce or our avenues into sources of skilled workers in Canada and beyond.” Neil Tidsbury, President of Construction Labour Relations - Alberta, shares a similar concern. “We have been

General Meeting January 14, 2009 Ramada Edmonton Inn Edmonton, AB MCA Provincial 59th Annual Bonspiel January 20 – February 1, 2009 Red Deer Curling Club Red Deer, AB General Meeting February 11, 2009 Danish Canadian Club Calgary, AB Combined MCA/ASHRAE March 18, 2009 U of A Faculty Club Edmonton, AB Foothills Conference Trade Show April 15 – 17, 2009 Mayfield Inn Edmonton, AB General Meeting April 15, 2009 Danish Canadian Club Calgary, AB

tremendously successful in bringing apprentices into the industry. There are more than 70,000 apprentices in Alberta now,” he explains. “I think the third and fourth year students are going to do all right, but the real challenge is going to be maintaining the first and second years,” says Tidsbury. “That’s going to require people to accept that they have to invest in maintaining this capacity.” Gibson agrees. He says the key to successful construction companies is the quality of the workforce and the expertise in the management. “Hopefully everyone will focus on preserving and strengthening skills sets,” Gibson says. He hastens to add: “It will be a challenge in a downturn, but these downturns don’t last forever and you want to be in a position to thrive in the good times.” Another issue that concerns Gibson is potential cuts to the provincial infrastructure budget. “We’ve always had a provincial government that offered great support. They’ve invested in infrastructure on a per capita basis far above anywhere in Canada,” he says. He recollects the period following 9/11 when oil prices took a downturn. “We went through major shock where we went from a $3 billion infrastructure and transportation annual budget down to $1 billion,” he reflects. “So the

MCA Annual Conference Golf/ Annual Meeting May 7 – 10, 2009 Rimrock Inn Banff, AB General Meeting May 13, 2009 Ramada Inn/Edmonton Inn Edmonton, AB Skills Alberta Provincial Competition May 13 – 14, 2009 Northlands Agricom Edmonton, AB May 8, 2009 (11:30 a.m.) Banff Springs Golf Course Banff, AB (Provincial Conference Registrants Only)

Lobsterfest May 20, 2009 Al Azhar Temple Calgary, AB World Skills 2009 International Competition September 1 – 6, 2009 Stampede Grounds Calgary, AB

2009 GOLF E VENTS

June 10, 2009 (12:00 noon) Turner Valley Golf & Country Club Turner Valley, AB

June 24, 2009 (8:00 a.m.) May 28, 2009 (10:30 a.m.) Sturgeon Golf & Lethbridge Henderson Country Club Lake Golf Club Edmonton, AB Lethbridge, AB

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

July 2, 2009 (1:30 p.m.) Highwood Golf & Country Club High River, AB

July 29, 2009 (12:00 noon) McKenzie Golf Course Calgary, AB Sept. 9, 2009 (10:00 a.m.) Sylvan Lake (Provincial) (Separate notice will be sent for this game)

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industry had been gearing up, hiring people, investing in equipment and systems then found this dramatic reduction.” That’s when a number of construction associations, including ACA, presented to the Financial Management Commission and made the case for some stability and predictability on the capital spending front. The Government of Alberta responded and increased the capital account and the multi-year flexibility the account created. Gibson points out that since 2003, every three-year capital plan dramatically increased investment so that it currently sits at $6 billion. “But headlines are coming out now where the premier is speculating about going back to the cuts of the early ‘90s and dipping into the Sustainability Fund,” says Gibson. “If that persists, I think there’s a potential source of concern: what they planned to do on the infrastructure front, they may not be able to do with traditional financing.” That’s where a P-3 might work; however, because the province has only done a handful of P-3s, ACA partnered up with other industry groups to get leaders together to discuss the lessons gleaned from what has been the P-3 experience to date. Gibson reports that 130 industry leaders and Infrastructure Minister Hayden attended a meeting in January where “lively discussion ensued.” Recommendations are currently under development. There are other initiatives underway. For instance, according to Tidsbury, the projects that will be revived will follow a cost-containment schedule as opposed to “get to the product as fast as you can.” Says Tidsbury: “That’s going to require a fundamentally different approach to negotiating and performing the work for industrial and commercial projects.” For example, over the last decade, major projects have had to schedule overtime in order to attract workers, but under the cost-containment basis that’s not a viable way of proceeding with the project. “So we’re going to see a variety of schedules that are geared much more to higher productivity while on the job and ensuring sufficient downtime so people’s productivity doesn’t decline over time,” explains Tidsbury. He adds the key for mechanical contractors is going to be finding ways to maintain their capacity in what’s going to be a much more intensely competitive environment. “We’ve gone through a period now where customers were competing for the contractors’ attention. Now the contractors will be competing for the customers’ attention.” Gibson concurs. “We’ve heard from contractors who say they’re already competing against quite a few more bidders.” It’s all part of weathering the storm. Another challenge Gibson identifies is continuing to build green. “The economic slowdown may have focused people’s priorities on other areas, but I think there’s a strong societal expectation around improved environmental sustainability,” he says. He adds that we will see a plan from government and industry coming out for consultation in 2009 and 2010. “We’ll probably have to take account of what’s going on in the marketplace, but it won’t come to a dead stop by any stretch.” ■

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

UPDATES from British Columbia

driver was not so much those sales, but the residential construction boom that ensued. Between 2004 and 2008 capital expenditures on housing swelled from about $10 billion to $14.7 billion, an amount equivalent to more than 2% of B.C.’s GDP. Those heady days are done and today’s psychology is retrenchment in spending overall, and in particular housing. This is going to have a substantial impact on employment through lower residential construction. Some reports show B.C. housing starts in 2009 will be almost half of the levels in 2007 and 2008. That translates into about 3.5% of B.C.’s GDP, a huge hit to the provincial economy. If the drop in housing starts translates one for one into employment losses, we could be looking at 100,000 job losses in the province (total construction employment in 2008 was 220,000, and while not all of this is in housing, the trends elsewhere are much the same), almost doubling the

ranks of the unemployed. This is not inconsistent with the recent trends reported earlier. In December 2007, the value of B.C. issued building permits was just over $1 billion. In December 2008, that number dropped to $358 million, a collapse of 65%. Most of those building permits stayed in the $900 million range for most of 2008 and have dropped off the cliff only in the past three months. Thus there are many projects that are underway, although some may be cancelled or delayed. On the flipside, the provincial government’s Major Projects Inventory, issued in September, shows an overblown optimistic gain with construction projects across B.C. creasing for the 21st consecutive quarter. A total of 863 major capital projects, worth an estimated $174.7 billion, are planned or underway - an increase of 30 per cent in estimated value from this time last year. Again some have scaled this forecasted work back to $115 billion or so,

Introduction to Commissioning 101 Friday, April 17, 2009 Vancouver, BC

Western Regional Meeting of MCAs Wednesday, June 3, 2009 Waskesiu, SK

Second Annual MCABC North Island Golf Tournament Thursday, April 23, 2009 Nanoose Bay, BC

MCABC Vancouver Golf Tournament Friday, June 12, 2009 Vancouver, BC

MCABC Conference & AGM Friday, April 24, 2009 to Saturday, April 25, 2009 Victoria, BC MCABC Fraser Valley Golf Tournament Friday, May 29, 2009 Abbotsford, BC

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

MCABC Night Vancouver Canadians Baseball Home Opener Friday, July 10, 2009 Vancouver, BC MCA Canada Conference Saturday, September 26, 2009 to Tuesday, September 29, 2009 San Francisco, CA

CALENDAR OF E VENTS

welve months ago when the 2008 British Columbia update report was being prepared for the Journal, there was an enthusiastic look into the future, with a booming economy and vibrant construction industry. And justifiably so, but…what a difference a year can make. Companies that were forecasting three years of advanced bookings are now vying for contracts with as many as 16 competitors. While the economy in B.C. may not be in as obvious turmoil as some other provinces in the country, there is a cautious tension as construction projects are being planned and executed throughout the province. One of the major stimulants for B.C.’s construction industry has been the 2010 Olympic Winter Games, being held in Vancouver and Whistler in February. While hundreds of millions of dollars have, and are, being spent to build or repair bridges, roads, arenas and Olympic facilities over the past few years leading up to this event, 2009 will generally register a low mark on the economic activity scale. Unemployment in B.C. has risen to its highest level in almost two years, according to Statistics Canada figures released in November. The numbers show 8,300 jobs disappeared in B.C. in October, pushing the jobless rate up half a percentage point to 5.1 per cent. Some economists are predicting rates another 2 percentage points higher before this cycle is complete (Jock Finlayson – BC Business Council). Nevertheless, the province’s unemployment rate was more than a full percentage point lower than the national average, which climbed onetenth of a point to 6.2 per cent. Housing has been one of the major drivers of the B.C. economy in recent years. Low interest rates led to rising home prices and a psychology of “must get in before being locked out forever” attitude; leading a housing bubble that had everyone in town swapping jawdropping stories of bidding wars and outrageous prices paid. The economic

it still represents a considerable investment in construction. The total capital cost of all major projects currently under construction in British Columbia is estimated at $62.5 billion. The provincial government is conceding defeat to the crumbling world economy, announcing it will break its own balanced-budget law and bring in a planned deficit for the next two years. The budget is expected to create jobs and stimulate the economy while boosting spending on health, education and services for children and families. B.C. has identified $2 billion worth of infrastructure projects that might be accelerated over the next three years and has submitted proposals for nearly 400 projects to the federal government for cost-sharing. A further $10.6 billion in approved capital projects are scheduled for construction in the next three years and an additional $1.4 billion worth of local infrastructure projects will also be built. This represents a total of $14 billion in new and ongoing public capital construction and an anticipated 88,000 jobs throughout the province. Our mechanical contractors are gearing up for the topsy-turvy economy with hopes that the planned government infrastructure can lead them through the recession. ■

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UNITED ASSOCIATION of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada 1904-2004

Ken Jones BUSINESS MANAGER/FINANCIAL SECRETARY

Arnie DeRoode BUSINESS AGENT LOCAL 496 5649 BURBANK ROAD S.E. CALGARY, ALBERTA T2H 1Z5 E-MAIL: kjones@local496.ca

BUS: 252-1166 FAX: 252-4591 JOB LINE: 531-0910

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009 365176_UA_Local496.indd 1 3/11/08 11:03:10 AM

UPDATES from Manitoba

Energy Code for Buildings (1997) by January 1, 2009. • Include acceptance testing for code compliance in the Manitoba Amendments to the Model National Energy Code for Buildings (1997). • Support and participate in a national initiative to help update the Model National Energy Code for Buildings. • Broadly communicate the Energy Code Advisory Committee recommendations. • Undertake a public review of the Committee’s recommendations. • Provide information resources, and support education and technical resources, to help build industry capacity. • Establish a process for energy code compliance. • Regularly review and update the Manitoba Amendments to the energy code. • Evaluate the energy code to assess impacts and progress. The Energy Code Advisory Committee is recommending Manitoba adopt the Model National Energy Code for Buildings (1997), with amendments prescribing a 25% improvement in energy efficiency above the current model code. The amendments are necessary because the model code has not been updated since first published in 1997 and does not reflect new building technologies, new design and construction practices, current energy prices and construction costs, or concerns about greenhouse gas emissions. The Committee is recommending the design and construction of buildings with better and more energy efficient components, such as greater insulation, high-performance windows, and efficient lighting. The recommendations will improve occupant comfort and have little or no impact on building owners and designers already designing buildings with these better technologies. The Province has already acted on a number of these recommendations. It is now mandatory for new buildings that receive public funds to meet internationally recognized Leadership in Energy and Environmental Design (LEED) green building rating system

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

Mechanical system in Red River College’s HETC; Contractor - Westwood Mechanical; Photo courtesy of Bockstael Construction: “Working as a team to get the job done, on time and within budget.”

CMCEF Course: Computerized Mechanical Estimating April 27 – May 1, 2009 Manitoba Construction Career Expo May 12, 2009 Red River Exhibition Park Winnipeg, MB

Annual General Meeting May 22 & 23, 2009 Elkhorn Lodge Clear Lake, MB

Seminar: How to Avoid Claims and Increase Profits May 28, 2009 MCAM Boardroom Winnipeg, MB

MCAM Golf Tournament August 20, 2009

CALENDAR OF E VENTS

t isn’t easy being green, but Manitoba is getting greener every year… Manitoba is a leader in establishing energy efficiency requirements for new houses, but there are currently no energy efficiency requirements for commercial buildings, other than new construction or renovations funded by the Province of Manitoba. The Mechanical Contractors Association of Manitoba, along with Building Energy Management Manitoba, Building Owners and Managers Association of Manitoba (BOMA) and Manitoba Building Officials Association, expressed support for the adoption, development, and potential implementation of an energy code for new commercial construction in Manitoba. The Manitoba Energy Code Advisory Committee was struck and is made up of 15 people from a broad cross section of the Manitoba commercial building industry. The committee made 17 recommendations: • Adopt an energy code for all new commercial construction in Manitoba. • Adopt the Model National Energy Code for Buildings. • Adopt the Model National Energy Code for Buildings as a regulation under The Buildings and Mobile Homes Act by January 1, 2009. • Amend The Energy Act to provide support for adopting the Model National Energy Code for Buildings under The Buildings and Mobile Homes Act. • Adopt the energy code within the context of a complete market transformation approach. • Appoint a representative of a Manitoba organization with a focus on energy efficiency to the Manitoba Building Standards Board. • Establish a multi-stakeholder Energy Code Task Group of the Manitoba Building Standards Board, with Secretariat support provided by Manitoba Energy, Science and Technology. • Commission a series of studies to better understand market impacts. • Develop and adopt Manitoba Amendments to the Model National

Breezy Bend Country Club Winnipeg, MB

MCAC Annual National Convention September 26 – 29, 2009 San Francisco, California

Pioneer Night October 15, 2009 Norwood Hotel Winnipeg, MB

Today’s Journeypeople

The Manitoba Building Standards Board wants to ensure that whatever changes are proposed make sense to Manitoba.

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Silver certification or better. (Source: Building Energy, Building Leadership Report of the Manitoba Energy Conservation Advisory Committee). One shining example of just how successful energy efficiency can be is our brand new world-class Manitoba Alberta’s apprenticeship and industry training Hydro office tower. Although some system has always produced highly-qualiﬁed, Hydro staff have already relocated certiﬁed tradespeople who can compete with to their new digs, construction is still the world’s best. under way on the top 7 floors. It is The key to this success is the demonstrated expected to be completed by April, commitment of Alberta employers, just like you. 2009. The building takes up an entire When you hire and train apprentices, you are city block and features 22 stories. It has developing the skilled workforce needed for the continued growth of your business and a geothermal heating system, a solar your community. chimney, a living “green” roof and superior indoor air and light quality. It Investing in apprenticeship training today will ensure a steady supply of highly-skilled also features a six-story water feature tradespeople in the future. composed of 280 Mylar strips, each six millimeters wide! (Source: Winnipeg Construction Association Upword Invest in your people, your magazine, Quarter 1, 2009). business, your future. Another example is Red River College’s Heavy Equipment Transportation Centre (HETC). They’ve applied for the (LEED) green building rating Visit www.tradesecrets.gov.ab.ca or call and ask for system Silver certification. This buildthe apprenticeship & industry training office nearest you. ing is also the first Gold Seal Designated project in Manitoba. Although there are students currently training in Proud supporter of the building, it is still under construction and will officially open in September. The new HETC building offers a $SSUHQWLFHVKLS DQG ,QGXVWU\ 7UDLQLQJ %RDUG number of features including open and flexible lab space, energy saving innovations, modern classrooms, spacious shop spaces and drive-through 415702_ABapprenticeship.indd 1 1/14/09 7:16:12 PM bays to accommodate larger vehicles. (Source: Winnipeg Construction Association Upword magazine, Quarter 2, 2008 edition). The Energy Code Advisory Committee recommendations make energy sense with respect to emissions reduction and energy and water conservation. This will affect Manitoba building Committed to Quality, Safety & Education construction standards by 2010. The Manitoba Building Standards Board Phone (780) 452-7080 Fax (780) 452-1291 wants to ensure that whatever changes 16214 - 118th Avenue, Edmonton, Alberta are proposed make sense to Manitoba. Consultations are expected to be comBusiness Manager - Larry Matychuk pleted by September, 2009. ■

PLUMBERS & PIPEFITTERS UNION Local 488

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

UPDATES from Saskatchewan

MCAS Residential/Commercial Network Members Report

capita basis, Saskatchewan leads the country in program participation with 7.2% (over 25,000) of homeowners having the pre-retrofit evaluation completed. The Canadian average is 2.5%. The top three SEGH retrofits completed are draft proofing, upgrading heating equipment and adding insulation. Customers continue to finance their natural gas solutions through residential Network Members. Over $3 million dollars for the purchase and installation of natural gas appliances was financed through Network Members in 2008. Just over $80 million has been financed through SaskEnergy Network Members in the past 10 years. Participating Network Members, together with SaskEnergy and SaskPower, offered a prime rate loan program again in 2008. For a limited time customers could receive a prime rate loan (oac) on an ENERGY STAR qualified furnace with a high efficiency DC variable-speed motor through a participating Network Member.

To help reinforcing the importance of furnace maintenance Network Members partnered with SaskEnergy to offer customers $10 off between February and April when they book either a Network Home Heating Tune-Up or SaskEnergy Home Check-Up. Over 15,000 customers have completed a Home Tune-Up through a participating Network Member since the program was introduced. SaskEnergy offered a limited time $15 programmable thermostat rebate and encouraged customers to have their programmable thermostat professionally installed by a SaskEnergy

Joint MCAS & CIPH Provincial Conference May 28 & 29, 2009 Jackfish Lodge North Battleford, SK MCAS Annual Meeting May 29, 2009 Jackfish Lodge North Battleford, SK MCA Saskatchewan Hosts MCA Canada Western Meeting June 4, 2009 Elk Ridge Resort Waskesiu Lake, SK MCAS Southern Golf Tournament June 11, 2009 Deer Valley Golf Course Regina, SK

CALENDAR OF E VENTS

008 was a year to commemorate! The SaskEnergy Residential Natural Gas Network celebrated a decade of success in Saskatchewan. A well attended celebration was held in Saskatoon on April 25th marking this milestone. It was a jam packed day with speakers, information and entertainment, along with time to visit and renew acquaintances. Forty-seven Network Members were recognized for celebrating 10 years of excellence. Throughout the year 128 Network Members located in 55 communities worked to educate homeowners on the importance of making energy efficiency upgrades in their home. Network Members play an important role in the Saskatchewan EnerGuide for Houses (SEGH) program assisting homeowners with upgrading their heating equipment to an ENERGY STAR qualified furnace, entitling the homeowner to receive a combined grant of up to $1,000 through the provincial and federal programs. On a per

Ron Young Memorial Golf Tournament June 25, 2009 Moon Lake Golf Course Saskatoon, SK

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

Network Member. The Energy Efficient Rebate for New Homes also provides a rebate for homeowners who build or purchase a newly constructed ENERGY STAR qualified, R-2000 certified or has an EnerGuide rating of 80 or above. Rebates are available to homeowners who install qualifying natural gas appliances such as a natural gas clothes dryer, barbecues, cooktop and range - install one qualifying natural gas appliance and receive $100, and install two or more qualifying appliances and receive a $250 rebate. The SaskEnergy Share the Warmth™ Home Energy Improvement Program this year assisted 507 low income households in 10 communities. Households were educated on and benefited from home energy efficiency improvements. Thank you to those Network Members who volunteered to help install programmable thermostats! There have been many changes over the past 10 years and many initiatives undertaken. It is thanks to such a strong partnership with MCAS that we celebrated the Network’s 10th

anniversary in 2008 – a great achievement! We are honoured to work with each of you to help make natural gas options available to the people of Saskatchewan and look forward to our continued success in the years to come.

Since the program launched in July, 36 applications have been approved as of December 31, 2008 with a total estimated equipment and work value of just over $4.2 million. For a typical case, the incentive covers an average of 20% of the total project costs. On average, each customer will receive an incentive of just over $10,000. MCAS and SaskEnergy partnered to deliver a Commercial Boiler training program in 2008. Two sessions were held in April – one in Saskatoon and one in Regina. Both sessions were well attended and provided an excellent learning opportunity for participants. Based on the success of these sessions, similar training will be delivered in 2009. It has been a busy year for all! As we move into 2009, the focus will continue to be on providing energy efficiency solutions to assist Saskatchewan businesses helping them to reduce their energy consumption, increase their competitiveness and make their buildings more healthy and comfortable while contributing to a cleaner environment for all. ■

COMMERCIAL NETWORK MEMBERS REPORT

Commercial Network Members offer Saskatchewan business owners information on energy efficiency initiatives available and assistance in accessing federal programs and funding. As well, Members offer commercial equipment leasing, providing a viable fi nancing alternative particularly in today’s economic times. The Commercial Boiler Program was re-introduced July 2008 and runs until November 30, 2009. The program continues to encourage the use of high-efficiency natural gas hydronic space-heating systems in commercial new construction and retrofits and is delivered through Commercial Network Members only.

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State of the Econom

The By Jeffrey Reed

he general consensus amongst business in Canada is that the current recession represents the most dire economic climate since the Great Depression of the 1930s. Despite the fact in early 2009, the mechanical contracting industry was taking a waitand-see attitude towards the future, there have been signs everywhere that point to a long recovery.

That’s not to say all news is full of doom and gloom. The Conservatives’ $40-billion Canadian Economic Plan, designed to produce close to 200,000 jobs by the end of 2010, does provide hope for better times. Stimulus from other levels of government, too, aim to boost the economy through growth. But there is no denying that Canada is in for a rough ride before the worst of the recession eases into a period of recovery. It could come as

early as 2010, according to the Bank of Canada. In mid-February, the Bank’s Governor, Mark Carney, shed some light on the current economic crisis. “What began last autumn as a relatively controlled slowdown has become a sudden, synchronized and deep global recession,” said Carney. He said Canada’s economy has been severely impacted in large because of strong ties to its trading relationship with the U.S., where the global recession originated. Many economists believe that U.S. President Barack Obama’s $819 billion US stimulus package will help jump start the Canadian economy, because of our strong ties. On paper, it all proves to be a logical conclusion. But today, with perhaps the most fierce portion of the economic storm not yet at our doorsteps, the construction industry and the

mechanical contractors sector are buckling their seatbelts to prepare for a bumpy ride.

SUPPLY AND DEMAND RULES

Andrew Wong, president of the Mechanical Contractors Association of B.C. (MCABC), and vice president/ construction manager with Alpha Mechanical Contracting Ltd. in Port Coquitlam, says there are signs that a “major recession” has engulfed Canada. And along with this new set of rules come the rules of supply and demand. “There are a lot more bidders on projects, and less supply,” Wong explains. “Supply and demand has come back in play. Residential and industrial are really taking a hit, so many players have come back into the commercial sector. There appears to be a lack of projects available, and twice as many contractors looking at them.” This ratio attached to supply and demand raises a red flag for project owners, according to Wong, who says it’s caveat emptor from this point forward. “We are seeing that the qualification levels of many contractors are not being questioned, because the owners can now get many more prices on a job without qualifying a lot of bidders. They know the marketplace is improving, from an owner’s standpoint. Prices are more competitive. But they are not qualifying bidders. I think this will eventually run them into trouble, if they get the wrong contractor on board. It could be a panic stricken market,” says Wong.

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

omy In Saskatchewan, where business is expected to lead the country for a second consecutive year in 2009, an optimistic yet cautious perspective has been adopted by business leaders, according to Michael Fougere, president of the Saskatchewan Construction Association in Regina. “Obviously, there is reduced growth, but the fundamentals of our economy appear to be fine,” adds Fougere. “We are seeing rapid injection of infrastructure money. We see the prime of the pump – the injection of capital heavily into the market so we can see it grow. And all of our mechanical industry people are optimistic. So while we are feeling the effects of the global meltdown, we are seeing less of it here.” British Columbia, which until recently was in the midst of a building boom, has also seen construction decline, but they too remain cautiously optimistic.

“The fact is that we still have a lot of construction going on here in BC,” noted Michael Geoghegan government relations consultant for the Mechanical Contractors Association of BC. “What’s drying up private construction is not demand but access to financing. Once the banking mess is sorted out I expect markets to rebound sharply,” said Geoghegan. “Furthermore,” he added, “we have numerous construction projects associated with the 2010 Winter Olympic Games which are keeping local construction companies busy.” “Here in BC there is also a growing awareness of the need to expand and upgrade many communities’ sewer and water infrastructure. As long as there is well co-ordinated financing amongst the three levels of government the current recession actually provides an opportunity for local communities to finally get going with some long overdue ‘pipe wrench ready’ projects,” said Geoghegan.

BUDGET AND REACTION

Here is a breakdown listing some of the major components of the $40-billion Canadian Economic Plan:

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

• Two years, $4 billion, Infrastructure Stimulus Fund for infrastructure renewal; $2 billion, two years, direct, low-cost loans to municipalities for residential-related infrastructure i.e. sewer, water lines; • Two years, $1 billion, funding for Employment Insurance training program; • $1 billion-plus, five years, Green Infrastructure Fund for sustainable energy projects; • $515 million, two years, ready-to-go First Nations projects; • $500 million, two years, construction and renovation, community recreation facilities. In total, the federal budget involves $12 billion for infrastructure investment. Michael Atkinson, president of the Canadian Construction Association (CCA), says the budget gets a thumbs up for providing important stimulus. “We have both an infrastructure and economic crisis – the time is right to accelerate the long overdue modernization of Canada’s crumbling infrastructure in a way that will create jobs, stimulate economic recovery and better our communities while

providing Canadian taxpayers with the best bang for their stimulus buck,” says Atkinson. “CCA believes investing in the modernization of Canada’s aging infrastructure is paramount. Not only will investing in infrastructure create immediate improvements and jobs today, but it will create better roads, bridges and overpasses, safer drinking water and cleaner sewage treatment facilities, as well as modern hospitals, schools, colleges and universities, all of which are critical in today’s economy to attracting new businesses and jobs to Canada,” Atkinson says. However, reaction from western Canada’s construction has been mixed. “For every $1 billion worth of construction spending, you create 20,000 jobs both direct and indirect,” said Philip Hochstein, president of the Independent Contractors and Business Association (ICBA) of B.C. “When combined with municipal and provincial spending, we are talking about thousands of jobs. This represents a lot of jobs for an industry that is feeling the pain of a recession.” But Mark Olsen, business manager of the Construction and Specialized Workers Union in B.C. stated, “This is a disappointing budget, as far as construction work in B.C. is concerned. We expected a much larger budget and more specified projects.” Gil McGowan, president of the Alberta Federation of Labour said, “There is a tremendous need to improve infrastructure, but whether this is enough to stimulate the economy can be debated. However, any extra contribution the federal government can bring is welcome.”

BUSINESS AS USUAL?

Mechanical contractors in western Canada have admitted to seeing the signs of a worsening economy, yet it’s the unknown that they fear – an unknown future economic climate. Yet, speak with Neil Tidsbury, president of Construction Labour Relations (CLR) Alberta, and you hear a completely different story about the state of current conditions. “It’s not business as usual,” says Tidsbury. “There is a great deal of capacity that had been built and dedicated to specific projects, and that capacity has been idled. So the contractors are under huge pressure to either deploy or dismantle that excess capacity.

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Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009 2/24/09 5:11:02 PM

“Competition is intensifying and there are demands from owners for cost containment, even in respect to contracts that are ongoing,” says Tidsbury. “We’ve gone, in a very short time, from a schedule driven focus, where the whip has been put to the contractors and to the unions to deliver workers ... to a thoroughly cost containment focus. Projects that had been even at the point of letters of intent and exchange of contracts are now back in negotiations at the supplier level, the contractor level. In our world, it is not business as usual.” Brad Diggens, president of MJS Mechanical in Calgary, concurs with Tidsbury regarding a different mindset with day-to-day business operations. Diggens agrees with the Bank of Canada’s projection that the economy could rebound as quickly as 2010. However, he says even then times will be tougher than the salad days recently enjoyed by Canadian contractors. “We are spending more time and energy chasing down the moneys that are owed to us. This appears to be due to the financial withdrawals being instigated by the lending institutions on the various projects,” says Diggens. “We are still very busy on the projects we have on the go, but we have also seen some of the projects disappear due to the financial institutions tightening up their lending. “Manpower issues have lessened somewhat,” says Diggens. “It’s a lot easier to find quality personnel then it was during the ‘boom.’ “These are certainly challenging times,” noted consultant Mike Geoghegan, “but labour costs, the costs of steel, the costs of concrete and even the cost of land is going to decline. Inevitably demand will pick up and with all three levels of government putting billions of dollars into infrastructure spending that means the construction industry has an opportunity to retain and train a new generation of skilled workers. This way when the next building boom hits both at the community and industry level we will be much better prepared than we were during the last one,” said Geoghegan. With a slumping economy comes news that spending on oil sands has been cut in half. The majority of expansion projects not underway at Fort McMurray and area have been shelved. Layoffs and budget cuts are the new order of the day.

The current slump follows many years of a boom – expansions and record profits – for Canada’s energy sector. The global recession, concurrent with a drop in energy prices, has many analysts speaking of financial disaster. Although he doesn’t use the word, disaster, to define the economy, Tidsbury doesn’t hold back when outlining the state of the construction industry in Alberta. “There are a number of indicators that say it is not business as usual. The provincial government and

stakeholders just held their annual buyer-seller conference. At previous conferences, they have been roughly 50-50 purchasers-suppliers. This year was closer to less than 5 per cent purchasers, 95 per cent suppliers,” says Tidsbury.

CONSTRUCTION: NEVER A DULL MOMENT

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improved profits. One thing is for sure, according to Diggens: when you work in the mechanical trades industry, there is never a dull moment, as is the case during the current recession. “Whether it’s extremely busy, moderate or slow, construction is always interesting. When it’s extremely busy, it’s easy to pick up lots of work, but you cannot find the manpower to complete all of the work, so you have to tread softly and make sure you don’t overextend yourself,” says Diggens. “When it’s slow, there are lots of personnel to be had, but not lots of work. As exciting a time as it has been, it’s good to slow down a little so we can all weed out the undesirables and lesser qualified,” Diggens adds. Wong says now is also a good time to reassess what your association is doing for its members. In the case of B.C., there are a number of initiatives underway to better serve its mechanical contractors. “We have a new private benefits partner for our members, to help people stay competitive, and have a custom benefits program that is written and tailored to their companies,” explains Wong. “I’m also looking at education programs that will help our members get through what we are expecting to be a tough 12 to 24 months.” MCABC is also involved with joint ventures with the Electrical Contractors Association of B.C. (ECABC).

Stimulus projects, like B.C.’s approximate $14-billion infrastructure project plan over three years, will counter recessionary times. “We’re seeing a lot of manpower available,” says Wong. “We’ve gone from one year ago having no manpower available, to having a surplus of apprentices and journeymen. And I can see tough times ahead. We have to extend apprenticeship by a couple of years.” In Saskatchewan, Fougere sees good times ahead, despite what he calls a global meltdown. “Our industry people say we have grown our capacity over the last few years by about 30 per cent. Understand, the economy continues to roll on. With the meltdown, we are still anticipating there will be some significant expenditures. Our companies are hiring people from outside of the province, and within the province. I think we are seen as a bit of a safe haven by some investors right now, given what is happening to the rest of the world,” says Fougere.

WHAT DOES THE FUTURE HOLD?

In late February, Canada Mortgage and Housing Corporation (CMHC) forecasted residential construction would stumble by 24 per cent in 2009. CMHC projects 160,250 starts for 2009, down from 211,056 units in 2008. “The economic turndown will result in a decrease in demand for home ownership,” said Bob Dugan, CMHC’s chief economist. Also in late February, the Conference Board of Canada said its survey found that projected pay raises for non-union workers in December and January fell by a percentage point, to 2.9 per cent. There are some positive signs. Inflation is expected to reach only 0.7 per cent in 2009. Stimulus projects, like B.C.’s approximate $14-billion infrastructure project plan over three years, will counter recessionary times. And endeavours like the Mechanical Contractors Association of Canada’s new strategic plan will go a long way in increasing federal government relations, increased industry liaison, and added education. It is quite clear that no one is untouched by the global recession. Mechanical contractors find themselves in tough times along with the rest of the construction industry, which now must find a way to fight back with a myriad of projects which, combined, may help contractors discover there is, indeed, light at the end of the tunnel. ■

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Training for the New Economy By Jeffrey Reed

ccording to the recent Statistics Canadaâ&#x20AC;&#x2122;s Labour Force Survey, the vast majority of workers aged 15-24 who lost their jobs in 2008 had only a high school diploma, or less. That may not be a surprise, but consider that 55 per cent of full-time employees who did lose their jobs in December 2008 were amongst that age bracket, and the argument for skilled training becomes that much more important. In December 2008, Stats Can reported that just over 70,000 full-time jobs disappeared across Canada â&#x20AC;&#x201C; the biggest one-month decline since June 2006. Many workers are returning to school in order to prepare for the future. Concurrently,

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employers are preparing for better times by carefully balancing their journeypeople-apprentices ratio, while keeping an eye on the bottom line. The recent federal budget hopes to create jobs in its stimulus of the overall economy. The federal government is investing more than $500 million over the next two years in Apprenticeship Job Creation Tax Credit, and a $2,000 Apprenticeship Incentive Grant – a $40 million-per-year program. According to Finance Minister Jim Flaherty, implementing this long-term strategy – one which acknowledges there is a shortage of skilled labour – demonstrates an aggressive response to the global recession. It’s going to take a combined effort amongst industry, government and educators to see Canadian contractors successfully weather the economic storm which many believe has yet to reveal its worst side. Brian Bickley, chair of the Alberta Apprenticeship and Industry Training Board (AIT), says employers are now recognizing a change in their day-to-day operations, and they are seeing more people available for fewer jobs. Hence, the laws of supply and demand kick in, seeing employers acting more carefully in their hiring practices. “Some employers are adapting better than others,” says Bickley. “One thing (they are dealing with) is maximizing the ratio of apprentices to journeypeople, getting a good spread so you will have people coming up through the system. You don’t want all first-year or final-period (apprentices).” According to Bickley, in the long term employers will be short of skilled workers. He cites an aging workforce, plus the fact it takes five years to produce a journeyperson. Brickley says Canadian employers have been through dips in the economy during past recessions, and have weathered the storm intact. However, he says it is important for employers to keep in mind that five years is a long time, and that keeping as many apprenticeships on board “as is practical” is a key to future success. George Gritziotis, executive director of the Construction Sector Council (CSC), applauds the federal government’s Apprenticeship Incentive Grant, and Apprenticeship Job Creation Tax Credit. He says it keeps the construction industry busy, and allows for training workers. However, Gritziotis cautions, lack of skilled workers and associated issues can result. “The problem is that when we hit peak, we can’t find workers and end up with lower productivity and safety issues. In this budget, the completion grant for apprenticeships and the push to create work through infrastructure projects will allow us to keep training programs going. Training will allow for retention,” says Gritziotis.

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

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In 2008, the CSC forged a partnership with the Association of Canadian Community Colleges (ACCC) in an effort to train skilled workers. The CSC’s 2007 Labour Information Program discovered that 152,000 skilled workers will retire over the next decade. The new partnership with the ACCC sees an exchange of data and information which Gritziotis says an important part of the future of the construction industry. “CSC has the data that shows what training is needed, when and where. (We) can make that training a reality. And together we will work on marketing,” Gritziotis says. In British Columbia the Mechanical Contractors Association played a key role several years ago in convincing the provincial government to implement an Apprenticeship Training Tax Credit (ATTC). Leading that effort was Michael Geoghegan of Michael Geoghegan Consulting. “The ATTC has encouraged more companies to go to the time, trouble and expense of properly training apprentices,” noted Geoghegan. The mechanical contractors associations throughout western Canada are active in promoting skilled trades as a means to better the industry and the economy. For example, the Canadian Mechanical Contracting Education Foundation has a full inventory of training opportunities for workers in the pipe trades. It’s updated continually, and contains more than 2,000 items. Data is collected from community colleges, individual contributions by National Pipe Trades Human Resources Committee (NPTHRC) committee members, the Commission de la Construction due Quebec (CCQ), as well as from private trainers. The NPTHRC was established as a joint employer/ employee group, as an outcome of the 1997 Pipe Trades National Human Resources Needs Analysis report. NPTHRC established linkages of industry partners to encourage, facilitate and promote industry change based on the report’s recommendations. The Government of Alberta and the AIT continue to maintain their support for Alberta’s apprenticeship and industry training system. The government continually works with post-secondary institutions to increase their capacity for more apprentices, in order to help address the demand for skilled tradespeople. The Alberta government and AIT point out, apprentices spend approximately 80 per cent of their time with an employer gaining on-the-job training and work experience, and 20 per cent of their time attending technical training at a college or technical institute. Clearly, this represents a huge investment by both the apprentices and the employers, but important all the same during even the best of economic times. In addition to the federal government’s $500 million investment in apprenticeship training, there are other programs aiming to boost the skilled tradespeople population – critical during this recession. The Registered Apprenticeship Program (RAP) allows high school students to participate in apprenticeship while they are still attending high school. The Aboriginal Communication Strategy includes the development of promotional materials to increase awareness amongst Aboriginal youth that there are careers available in trades. APAP – Apprenticeship Preparation for Aboriginal People – is an essential skills program in the pilot stage which stakeholders hope will address the needs of

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Aboriginal people who desire to participate in an apprenticeship program. Careers: The Next Generation is an industry-led privatepublic partnership that encourages students to consider all of their career options, and get on-the-job experience. Careers acts as a catalyst in bringing together parents, teachers, government and industry to invest in the workplace of the future. In terms of scholarships, industry, for example, has just invested an additional $800,000 in the AIT Family of Scholarships to increase the number of scholarships. Recently, 280 Apprenticeship and Industry Training scholarships, and 425 RAP scholarships were awarded. Approximately 20 per cent of the Apprenticeship and Industry Training scholarships were awarded to apprentices in the pipe trades.

RED SEAL THREATENED?

The Red Seal Program was established to provide greater mobility across Canada for skilled workers. Apprentices who have completed their training, and certified journeypersons, can obtain a Red Seal endorsement on their Certificates of Qualification and Apprenticeship by successfully completing an Interprovincial Standards Examination. The Red Seal Program encourages standardization of provincial and territorial apprenticeship training and certification programs, and allows qualified tradespersons to practice the trade in any province or territory in Canada where the trade is designated without having to write further examinations. Currently, there are 49 trades included. Provinces and territories are permitted to designate trades and develop apprenticeship programs for their own requirements, hence there are more than 300 apprenticeship programs available. According to Bickley, there are some issues with the Red Seal Program, now that additional programs have been implemented. On April 28, 2006, Alberta and British Columbia signed an agreement to remove barriers to trade, investment and labour mobility between the two provinces. The agreement, the British Columbia-Alberta Trade, Investment, and Labour Mobility Agreement (TILMA) creates the second-largest economic region in Canada. TILMA gives businesses and workers seamless access to a large range of opportunities in areas including energy, transportation, agriculture and investment. As well, it heightens the ability of workers to move from one province to the other, streamlining business registration and reporting requirements. “Whenever and wherever you can remove interprovincial trade barriers that is a very good thing economically,” said Michael Geoghegan, government relations consultant to the Mechanical Contractors Association of BC. “The key is to ensure that we are adopting standards which not only promote labour mobility but a high quality of training.” “The way mobility has (progressed), you have Red Seal, which allows you to move across Canada. Now, with the Agreement on Internal Trade, and TILMA, (there) won’t be a requirement to have a Red Seal. If you have a trade certificate, issued by a jurisdiction, it is good anywhere in Canada. Now people may not see the same need to have a Red Seal. “We will continue to market the Red Seal as very desirable,” says Bickley, “and employers still have the choice of requiring or requesting it, but it won’t be mandatory.”

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Bickley uses as an example a worker who has a trade certificate from Nova Scotia, which would be honoured in Alberta. He or she may ask, “Why get a Red Seal?” Says Brickley, “We’ve invested nearly 50 years in developing and promoting the Red Seal, and it is accepted across Canada. Now I think the (issue) is, people may not see the importance of having it.”

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SASKATCHEWAN PERSPECTIVE

In Saskatchewan, apprenticeship is thriving, according to the Saskatchewan Apprenticeship and Trade Certification Commission. CEO Joe Black says the Commission has charted a 50-per-cent increase over the past three years, in terms of the number of registered apprentices. And for 200809, training seats have been increased by 900. “It has created a need to identify more training seats,” says Black. “Nine hundred is a very significant number. It has been supported very well by the provincial government. It required another $3.5 million to do this. “I think two things are happening in Saskatchewan,” Black explains. “The economy has been robust, which is leading new players into the game. We can’t have an apprentice unless an employer hires them and trains them through the apprenticeship program. So we’re getting new employers stepping forward. “The other thing happening is people who are in and around the fringe of the system have come forward to get registered. In June 2008 we were up 50 per cent over June 2005. Our numbers are remaining strong. It’s continuing strong,” he says. According to Black, one of the difficulties is filling those additional 900 seats. He says this is because “people are employed at $40 or $50 an hour, they don’t want to go on employment insurance to come and take technical training.” Even with the strong demand for apprenticeship training, there is no waiting list to register apprentices, Black adds. He says capacity is an issue, and becoming more of an issue. But there is no waiting list to register apprentices. With the current economy only adding to the issues of training and retaining skilled workers, one thing is for certain: now is the time for investing in the future. “Trades training is the key to the future of the industry, to the future of our economy,” says Gritziotis.” ■ Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009 369297_Thermotec.indd

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An Inside View: The Economy-Contractor Connection

By Jeffrey Reed

echanical contractors big and small across western Canada are in unfamiliar territory. In fact, challenging economic times are without parallel, when you consider the history of most mechanical contractors across Canada. And with the unfamiliar comes the uncertain – uncertainty over the short-term future of the construction industry, and the well-being of individual contracting companies. Perhaps in late February economic indicators finally hit home hard in

western Canada, when Alberta’s government predicted 15,000 job losses and a provincial deficit of more than $1 billion – the first in 15 years. “Many Albertans will have a tough year ahead,” Finance Minister Iris Evans predicted in late February. She said when numbers were looked at more closely, about 50 job losses per day were already hitting the Alberta economy. Of course, Alberta represents just one piece of the western Canada puzzle, yet it does tell the tale of the current economic climate from Vancouver

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

to Winnipeg. And when you look even closer at the grassroots level, and consider how large and small mechanical contractors are coping with a changing economy, a clearer view of the economy reveals just how challenging times are for business operators in Canada – in particular, those tied to all construction sectors. Most contractors spoken to state, while late-2008 and early-2009 saw business as usual, there were some strong signals of a worsening economy. According to Tim Padfield, president of 41

Medicine Hat-based Pad-Car Mechanical, and past president of the Medicine Hat Construction Association, the first to see any good or bad times on the horizon are the consultants. “The architects and the engineers are the tell tale sign, to give you a clearer picture of what’s coming. They see it a long time before we do,” says Padfield, “and they are certainly seeing the impact (of bad times) right now. So that means it’s coming.” However, Padfield says even the consultants’ crystal ball doesn’t tell the entire story. He cites infrastructure spending as another element in the big picture of construction activity. The 2009 federal budget included a $12-billion infrastructure investment boost. Said federal finance minister Jim Flaherty, “We will create jobs for Canadians now, while providing the infrastructure Canada needs to grow in the

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years to come. To make the money flow, we will need the continued cooperation of the provinces and the municipalities.” Yet, a $34-billion deficit for the next fiscal year, followed by a $30-billion deficit in 2010, exposes another side to domestic economic struggles. Enormous numbers like those may be hard to grasp by some, but talk to any mechanical contractor and you get a real sense of how recessionary times are affecting the little guy. Padfield says despite the fact he and his fellow contractors are currently “full steam ahead” with business operations, tougher times do lie ahead. “Residential is the first to be hit, and commercial because of the largerscale projects,” says Padfield. “Newer projects are not coming out at the scale they were before, but no one has been affected as of yet because there is so much on the books. “We’ve seen layoffs all around us. There’s a forecast of uncertainty,” says Padfield. “Everybody is in a wait-and-see mode. I’m hearing similar things from association members all around me. People are busy, but concerned, so they are proceeding with caution.” Dave Flamand of Peak Mechanical in Saskatoon concurs with Padfield’s “proceed with caution” analogy. According to Flamand, diversity is helping Peak Mechanical weather the economic storm.

“In our market, we need to do everything. We’re in residential, commercial, industrial and institutional. Homebuilding is a small part of our business, and it is falling by the wayside. I’m trying to figure things out. I don’t have a real feel of what is going to happen,” admits Peak. Padfield, too, says it’s time to look at other markets. “I think what we’re going to see is a shift in the type of work that we’re doing,” says Padfield. “We might see a little bit more on the renovation side of buildings, as opposed to complete new projects. So, people who thought they would go to a bigger shop, or brand new shop, now might actually put an addition onto an existing shop, or a substantial renovation.” Flamand is optimistic that in his market, there will not be a full-blown recession of the worst kind. However, he cautions, that may change. And he’s already seeing signs of what may be down the road for mechanical contractors. For example, he says one job has been cancelled after it was about 80 per cent complete, because owners had to cut costs and they therefore stopped the project entirely. “I’m sure there are other stories like that out there, too,” says Flamand. Adds Padfield, “Some of the school boards are trying to get projects fast tracked. While that is happening, I am seeing some projects that were previously shelved, now re-tendered, in anticipation that they may be getting a better price. Because now, commodities are coming down, and hopefully the workforce will be more competitive.” Whether it’s lumber in the residential sector, concrete, steel or asphalt in non-residential, Canadian construction material costs slowly began to lower in mid-February. However, in terms of residential construction, times are tough. Home affordability, in particular in western Canada, has taken a turn for the worse percentage wise. And with the U.S. demand for Canadian manufacturing exports grinding to a halt, the economy has been spiralling downwards in early 2009. Doug Christie of Christie Mechanical in Regina believes any infrastructure spending by different levels of government will aid in the recovery from today’s challenging economic times, but like Padfield and Flamand he says it may be too early to tell just

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009 2/22/09 7:44:27 PM

The Canadian Construction Association has given the 2009 federal budget high marks for providing much needed stimulus to the flagging Canadian economy through investments in traditional infrastructure, college infrastructure and green technologies. how bad times will get for mechanical contractors. “The short answer is, we have not been affected thus far. None of our contracts have been affected to date. My bread and butter is institutional, and most of it is funded by public money. I know there have been some private projects affected. But I think the province’s plan to get some of the (infrastructure) initiatives going, while some other projects are waiting to be launched, will help,” says Christie. Yet with a new economy ruling Canadian business, Christie says it has made him much more cautious when choosing whom to do business with, since it is impossible to always tell who is affected and who is not affected by the recession. “You don’t know how solid anyone is anymore,” Christie says. “You don’t know how they are being affected by others. They could be owned by another company who is losing their shirt somewhere. That’s always an issue. In a market like ours, we have to be a little bit more aware of what is going on with our suppliers and vendors.” Canyon Plumbing, Calgary’s largest residential plumbing contractor, is

another company which has re-evaluated its business operations in order to adapt to current economic times. With production housing the mainstay of its operations, with a service, renovation and heating side to daily contracts, Canyon is taking a hard look at renovation work for future business, according to company president Alex Chupik. “New home sales have dropped. We saw that coming. Our custom homes division hasn’t slowed down at all, and our service and renovation has not missed a beat,” explains Chupik. “What we have been doing, and had planned to do, is turn more of our attention to the renovation side – smaller jobs. There’s a pent up demand for that. “We feel, cautiously optimistic, that we will have a slower year,” adds Chupik, “but during this time we will do a lot of miscellaneous things, including hot water heating. We do feel that housing will slowly come back – but not as great as it has been in recent years. We’re looking at light commercial, too.” As well, Canyon is further exploring the green market, with products such as high efficiency boilers, and low

flush toilets, for example. Chupik says, “We’ve made a lot of headway with things like this, and there is increased interest in them.” For mechanical contractors in western Canada, the big question is, just how bad will the economy get before it gets better? It’s a question Perry Snedden of Neepawa Plumbing & Heating in Neepawa, Manitoba has asked himself, although he reports it is currently business as usual. “Most of our jobs are tendered,” explains Snedden. “A lot of our work is bid spec tender. A lot of it is public money. But are they going to have the funds they need to continue? That is the question.” Snedden says like many contractors, Neepawa Plumbing & Heating is digging in its heels, and has no intention of cutting back on staff. He says the company, which tackles commercial and institutional work, takes great pride in its care of its employees. In fact, that is why the company has one eye on the present, and one eye on future business. The Canadian Construction Association has given the 2009 federal budget high marks for providing much needed stimulus to the flagging Canadian economy through investments in traditional infrastructure, college infrastructure and green technologies. And with residential construction down but renovation spending up, will all of these factors combine to help mechanical contractors stay afloat? As the contractors have stated themselves, it’s wait and see. ■

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Keen on

Green: Geothermal Heating in Canada

hile daily discussions of the uncertain economy unfold, there is one industry topic that seems to be consistently clear: Geothermal technology is becoming a mainstream competitor to conventional heating and cooling systems.

On the surface (pun intended), geothermal seems to be the sensible and obvious solution. There’s no doubt that our planet is a very effective heating device. Less than 5 metres below the surface of the earth, the temperature remains constant – about 10 degrees Celsius. Through a system of ground loops, heat pumps, and a distribution system, geothermal provides relatively clean, sustainable, and inexpensive energy for customers ranging from homeowners to large businesses.

From a consumer’s point of view, geothermal makes a lot of sense. After an initial significant financial outlay to install the system, geothermal heating – as it doesn’t require fuel – has low operating costs, (at a minimum, suppliers recommend annual inspections, routine checks to ensure vents are clear, and monthly filter changes), and as the heat that’s provided is essentially free, a geothermal system could pay for itself – in energy savings – in about seven to ten years. Electricity is required to run the heat pump, but if you’re living in an area with abundant and cheap hydroelectric, these costs can be quite reasonable.

(NRCan), under its ecoENERGY Retrofit Program offers a service whereby an assessment is done of homeowners’ current energy efficiency, and based on that assessment offers a varying degree of monetary incentives for different improvements to a home’s energy efficiency. After the assessment, a checklist of suggested improvements to the home’s energy efficiency is provided to the homeowner, who then has 18 months to complete the suggested work. If the homeowner replaces an existing heating system with a geothermal heat pump, the homeowner is entitled to a $3,500 grant. The maximum grant available through this program is $5,000. Provinces have followed suit. For the most part, the western Canadian provinces have implemented grant programs to encourage the installation of geothermal systems.1 The amount of grant varies, as do the requirements for eligibility. The following was taken from the NextEnergy website (www.nextenergy.ca). NextEnergy is an Ontario-based leader in the manufacture and distribution of geothermal systems. • In British Columbia, the government announced its LiveSmart BC Efficiency Incentive Program in May 2008. The $60 million was designed to provide a “single access point for provincial, utility and federal incentives.” British Columbians can

By Craig Lawrence

take advantage of up to $1,250 in provincial grants for the installation of a geothermal system. • Saskatchewan’s residents can take advantage of one of the more generous incentive programs among the

PROVINCIAL GOVERNMENTS ON-BOARD WITH GEOTHERMAL Because of its low ongoing cost, and its environmental benefits, governments have been keen to push geothermal installation. Natural Resources Canada

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

western provinces. Providing the system being replaced is the primary heating system and consists of wood, electrical, oil, or propane and that the electricity required to run the geothermal system is supplied by an on-site source, the Government of Saskatchewan will provide a grant of $3,500. • Depending on whether the geothermal installation is going into a new home or is part of a “geo retrofit,” the Manitoba Government has varying levels of incentive - and different means of providing the incentives. For new home installations, the Government will provide a $1,000 grant and a $2,000 tax credit. If a homeowner retrofits an existing system, the Government will provide a $2,100 tax credit. When these incentives are combined with the federal grant of $3,500, the incentives are substantial. And, as more and more people are going geothermal, the incentives appear to be doing their intended job.

THE MECHANICS OF GEOTHERMAL

According to Doug Nelson, (P. Geol.) co-owner of Edmonton’s Earthnet Geothermal Ltd., geothermal heat is essentially solar heat. “The top 500 feet of the earth’s crust absorb a lot of the sun’s energy. Ground source heat pumps use this energy to heat buildings,” he says. “There are two basic types of geothermal heat. High-temperature geothermal produces power from heat associated with volcanic activity or hot springs, for example, and low-temperature geothermal uses ground source heat pumps so the heat required for a home can be accessed just a few feet from the earth’s surface.”

In terms of how long a geothermal system takes to install, Earthnet’s Doug Nelson says, depending on the jurisdiction, a typical retrofit installation requires 3 to 5 days to drill and grout the holes, another day or two for the tie-in, and then 2 to 4 days to complete the inside installation. “But with a retrofit installation, there are variables unique to each house. Whether the existing system is in the centre of the house, against an outside wall, and so on,” he adds. An average size crew consists of 2 or 3 workers.

TRAINING PROVIDED BY THE CANADIAN GEOEXCHANGE COALITION

According to Deborah Holmberg of Winnipeg Geothermal, training for geothermal installation is provided on a provincial basis – through the various provincial geothermal associations - using materials and courses provided by the Canadian GeoExchange Coalition. “Using the CGC model means that the same training standard is being maintained across the country,” she says. “Obviously different parts of the country have different requirements with regards to installation techniques, and the benefit of having the CGC providing training is that these different

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installation scenarios are more easily addressed.” The CGC offers a variety of courses and programs on all the many aspects of geothermal installation. Offering courses for Driller’s, Installer’s, Residential Designers, and Commercial Designers, the successful completion of one of these courses is required to obtain a professional accreditation in the geothermal industry. The need to coalesce the various provincial and regional geothermal associations arose out of the recent and intense attention paid to geothermal technology. This is a growing industry. More and more, individuals and organizations are realizing that the old ways of heating our homes and businesses cannot be sustained, and that alternatives that are cheap, sustainable and environmentally-friendly must be explored. Ironically, as attempts to find those alternatives became more and more grandiose and expensive, the most promising answer to the puzzle has been literally right under our nose all along. ■

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Construction Sector Council Tools & Trends

erhaps as a testament to its strength and credibility, the 2001-created Construction Sector Council (CSC) remains as flexible and adaptable as the ever-changing economy. In fact, the Ottawa-based CSC largely exists in order to benefit the construction industry as it adapts to market changes and prepares for a brighter future. The CSC has made some great strides in its early stages, and there are many more endeavours ready to come to fruition in the near future. A national organization committed to the development of a highly-skilled workforce, the CSC is financed by both government and industry in Canada. It’s a partnership between labour and business, including the National Construction Labour Relations Alliance, the Building and Construction Trades Department and its affiliates, and the Canadian Construction Association. According to Rosemary Sparks, CSC Senior Director of Planning and Development, while there is much work to be done in order to meet the demands of its mandate, the council has been hugely successful from coast to coast over the past year – even in times of economic uncertainty. Yet, that is one reason the CSC exists: to help stakeholders develop a highly-skilled workforce no matter what challenges they may face. “Our forecasting data has real traction in the industry now,” says Sparks of the combination of a number of initiatives aiming to bring up-to-date trends and statistics to the construction industry through a Labour Market Information (LMI) program. As part of the overall LMI initiative, the Construction Forecasts Data and web site, www.constructionforecasts.ca , are proving invaluable in helping boost the strength of Canadian construction. “I think we’re seeing incredible use of the data by some governments, construction owners, contractors and labour groups,” explains Sparks. “All parts of the construction industry seem to be using the data. Training providers are using it, too, to help understand where they need to be putting their efforts.” The CSC is heavily structured in order to run efficiently and concurrent with existing trends in construction. It is governed by a board of directors who speak on behalf of both union and non-union members, and includes more than 40 national and provincial construction groups. Dayto-day operations are run by staff at the national office, where a myriad of initiatives have been launched – and with more soon ready to benefit all members as they face uncertain economic times.

By Jeffrey Reed “This has been a real challenging year, given the downturn in the economy,” says Sparks. “Everything is changing at such a rapid pace. Almost daily, projects have been delayed or cancelled. We hear about employment – or unemployment – of construction workers, depending on the trades involved and the location. So, producing our forecasts has really been a bit of a moving target this year.” However, the CSC retains its four key priorities: LMI; Technology at Work; Career Awareness Programs; and

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

Standards and Skills Development. Each province has its own LMI committee, and Sparks says the CSC relies heavily on each provincial group to help collect data and finalize reports on the economy and its affect on construction. This spring, the CSC’s fifth edition of, Construction Looking Forward, will be released to CSC participants and all construction industry stakeholders. The detailed forecast of labour market trends will cover the period from 2009 to 2017, and will posted at the Construction Forecasts Data web site. Sparks says this time around, the CSC is again focusing on a number of market trends, including research on labour productivity. Four universities have joined forces with the council in order to study this area and product a benchmark report. Also, the CSC is taking a good hard look at the government stimulus package and how it will affect infrastructure, and concurrently the construction industry. Industry leaders will offer their opinions on how the stimulus package will affect the pulse of the industry with respect to infrastructure spending and development, and related labour issues. During 2008, a number of news releases were presented by the CSC in order to reflect the climate of the Canadian construction industry. Although times have changed even as of late due to the challenging economy, the releases did offer stakeholders an opportunity to closely examine the state of the industry. In June 2008, the CSC reported via its Construction Looking Forward forecast that Manitoba’s construction industry employs almost 22,000 workers. As many as 6,000 new workers are required to keep pace with new projects. Another 4,500 workers are needed to replace retiring baby boomers between now and 2016. “We need to recruit and train workers in every sector,” said David Martin, Executive Director of the Manitoba Building and Construction Trades Council. “The challenge now is to make sure apprenticeship and other training programs meet the demand for skilled workers. Many colleges are rising to the challenge with more innovative methods to deliver skills training.” Also in June, CSC reported that since 2001, Saskatchewan’s construction workforce has grown twice as fast as the overall provincial labour force at 11 per cent. Over the next few years, construction employment will increase by 14 per cent or 3,800 workers. Still another 4,000 workers will be required between now and 2016 to keep pace with retiring baby boomers. And also in June, CSC reported that 26,500 new workers will be required from now until 2016 to replace retiring baby boomers in B.C. Another 21,000 workers will be needed to keep pace with new projects in that province. “Convincing those on the verge of retirement to stay on longer will help,” said Manley McLachlan, President of the BC Construction Association. “We also need to increase the number of immigrants, temporary foreign workers and more aggressively recruit youth, women and Aboriginals to keep projects on schedule.” Again, the economy has changed, but the underlying issues remain. The CSC is helping to meet these challenges with additional endeavours, including new courses for its e-learning offerings. In addition to the four courses currently offered, three more courses will join the e-learning program, including: an introductory course to estimating; 48

a course on first level supervisor; and a course on national construction safety awareness. As well, the CSC will soon release a new mentoring program. Tools and materials will be made available as resources for those who wish to implement their own mentoring initiative. “The idea is to improve the transfer of knowledge between the experienced tradesperson and either apprentices or other new workers not in the apprenticeship system. We’re trying to formalize the mentoring approach to ensure good transfer of skills and knowledge,” says Sparks. Given that the CSC was formally established in 2001, it has a lot to be proud of in the way it delivers upon its promise to help better the construction industry in Canada. And with initiatives such as the aforementioned ready to be launched to all stakeholders, it appears that the CSC has become a trail blazer in terms of aiding the construction industry in its effort to develop a highly-skilled workforce. ■

Mechanical Contractors Associations of Alberta, B.C., Manitoba & Saskatchewan 2009

INDEX to Advertisers ACCOMMODATIONS Portage Hospitality Corp (Super 8 Motel) .................. 14 Super 8 Meadow Lake ............................................. 14 Super 8 Moose Jaw ................................................. 14 Super 8 Motels Regina ............................................. 14 Super 8 Motels Saskatoon ....................................... 14 Super 8 Prince Albert ............................................... 14 ASSOCIATIONS Manitoba Building & Constuction Trades Council ...................................................... 6 BATHROOM ACCESSORIES Cascade Faucets Inc. ............................................... 24 BATHROOM/KITCHEN FIXTURES Cascade Faucets Inc. ............................................... 24 CIRCULATORS & PUMPS Wilo Canada Inc. ...................................................... 10 CONSTRUCTION SAFETY Saskatchewan Construction Safety Assoc. ............... 40 CONSTRUCTION SERVICES Empire Iron Works Ltd ............................................. 22

CONSTRUCTION SOFTWARE Maestro Technologies .............................................. 43

HVAC PARTS SUPPLIERS Inventex ................................................................... 34

CONTINUING EDUCATION AB Apprenticeship and Industry Training .................. 26 Apprenticeship MB Competitiveness, Training &Trade ................................................... 44

HVAC SUPPLIERS Sexauer ................................................................... 37

CONTROLS Pacific Controls ........................................................ 38

HYDRONIC HEATING HPS Controls Ltd...................................................... 34 Triple H Hydronic Inc. ................................................. 8

COPPER FITTINGS Canadian Trade Services Ltd .................................... 18

HYDRONIC HEATING PRODUCTS Caleffi North America............................................... 46

FLUID PRODUCTS EMCO Ltd. ................................................................. 3 GRAVITY DRAINAGE PRODUCTS Canplas Industries, Ltd............................................. 33 HEATING PRODUCTS & INDUSTRIAL EQUIPMENT Thermolec ............................................................... 39 HEATING, VENTILATING & AIR CONDITIONING MANUFACTURERS Brant Steel Products ................................................ 24 Kehoe Equipment Ltd. .............................................. 28

INDUSTRIAL PIPES & FITTINGS TS & M Supply ......................................................... 49 INSURANCE Federated Insurance ................................................ 16 INTERNATIONAL PROJECT MANAGEMENT Altec International .................................................... 50 MECHANICAL SYSTEMS Gravelle Systems, Ltd............................................... 40

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MECHANICAL CONTRACTORS ABCO Supply & Service Ltd...................................... 46 Derksen Plumbing & Heating (1984) Ltd. .................. 49 Interwest Mechanical Limited ................................... 38 Ron’s Plumbing & Heating Ltd .............................. 49 NATURAL GAS Saskenergy Incorporated.......................................... 36 PIPE FABRICATION WestLake Industries Inc. ..................outside back cover PIPE HANGERS E. Myatt & Company Inc. .......................................... 28 PIPE REPAIR Fernco Connectors Ltd. - Canada ............................. 18 PIPE SUPPORTS L.E. Taylor Associates Ltd. ....................................... 50 PIPE TRADE ASSOCIATIONS Sask Provincial Pipetrades Association ..................... 19 PLASMA CUTTING Shop Data Systems, Inc. .......................................... 29 PLUMBING & HEATING SUPPLIES B.A.Robinson ........................................................... 32 Johnson Plumbing & Heating Ltd.............................. 28 Sexauer ................................................................... 37 PLUMBING SUPPLIES Bibby-Ste-Croix ....................................................... 12 POWER TOOL SUPPLIERS Dewalt/Black & Decker Canada Inc.................................... inside front cover

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SHEET METAL ASSOCIATIONS Sheet Metal Association of Alberta ........................... 49 SHOWER SYSTEMS Cascade Faucets Inc. ............................................... 24 SOFTWARE - ESTIMATING Accubid Systems ....................................................... 4 SOFTWARE CAD/CAM Shop Data Systems, Inc. .......................................... 29 SOLAR HEATING SYSTEMS Solarcrest Energy Inc. .............................................. 22

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STAINLESS STEEL SINKS Cascade Faucets Inc. ............................................... 24 Novanni Stainless Inc. .............................................. 42 TESTING SYSTEMS - INLINE Sioux Chief Manufacturing Co. ................................. 29 UNIONS Building Trades of Alberta ........................................ 36 8:06:55 PM Int’l Brotherhood of Boilermakers ............................. 20 Plumbers & Pipefitters Union .................................... 26 Sheet Metal Workers International Association Local #296 ......................................................... 24 UA Local #170 ......................................................... 22 UA Local 496........................................................... 24 UA United Association Canadian Office ............................inside back cover United ASSOC Journeyman/ App Lu 254 ................ 44 VALVES & ACCESSORIES Fabco Plastics Ltd. ................................................... 37 Mainline Backflow Products ..................................... 39 Watts Industries (Canada) Inc. .................................. 40 WATER HEATERS Bradford White Canada Inc....................................... 19 Giant Inc. ................................................................... 9 Rinnai ...................................................................... 44

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