Energized Career Path: More than half of global energy sector jobs align with emissions reduction.

SEEKING SKILLS

Energy Sector Workforce Evolves and Expands

JOBS RELATED to energy efficiency in buildings and industry accounted for about 16.5% of the global energy sector workforce prior to the COVID-19 pandemic, but conservation and demand management (CDM) is projected to create more employment and assume a larger share of overall economic activity in step with a heightened focus on reducing greenhouse gas (GHG) emissions. A new report from the International Energy Agency (IEA) is an inaugural effort to tally jobs linked to clean energy and energy efficiency, track their momentum and gain insight on emerging and long-term labour needs.

“With strategic foresight and commitment to achieving just and people-centred transitions, policy makers and industry decision-makers can provide the support workers need to transition out of declining industries and maximize opportunities for additional good quality jobs across different regions,” maintains IEA Executive Director, Fatih Birol, in the forward to the report.

As of 2019, the IEA estimates the energy sector employed about 65 million people worldwide, representing 2.5% of the global workers. That’s further categorized into three similar sized components:

• 21 million workers involved in obtaining or refining oil, natural gas, coal or bioenergy fuel supply;

• 20 million engaged in power generation, including construction and manufacture of related facilities and equipment, and transmission, distribution and storage activities; and

• 24 million focused on end uses, including design, development and manufacture of electric vehicles and energy-saving building technologies and appliances, and a range of professional services and skilled trades involved in energy management and retrofits.

“Roughly 65% of the energy sector workforce is connected to developing new energy infrastructure, while 35% are involved in operating and maintaining existing energy assets,” the report states. “Over 21 million energy sector employees work in manufacturing and approximately 15 million are in construction, making up 5 to 6% of their respective sectors. An estimated 14 million work in utilities and other professional services,”

Already, more than half of the jobs are aligned with reduced GHG emissions through renewable energy, electric vehicle production and pursuit of energy efficiency, and these activities are deemed to have the highest ongoing job creation potential. In 2021, global spending on energy efficiency, including building retrofits, green construction, appliances, vehicles and industrial equipment neared USD $330 billion, surpassing 2019 levels by 14%.

The IEA estimates governments worldwide have committed an extra USD $165 billion to energy efficiency programs since the COVID-19 pandemic began, including about CAD $6.3 billion for Canada’s commercial, residential and community sectors. More recently, the U.S. Inflation Reduction Act allocates more than

USD $8.5 billion to rebate homeowners for energy efficiency improvements and switching fossil fuel appliances for electric options, along with billions more in tax credits for qualifying energy investments in commercial and residential buildings and $200 million in training grants for retrofit workers.

RISING AND SLIPPING DEMAND Looking back to the 2019 stats, more than 18 million jobs tied to fossil fuel (coal, oil and gas) supply equate to 27.5% of the total energy workforce, but that ratio varies across global regions. In Europe, for example, more jobs are tied to electric vehicles (2.7 million) than any other subcategory, representing 36% of the estimated 7.5 million energy-related positions on the continent.

North America has the largest contingent of oil and gas workers (1.9 million) among seven regions analyzed, but also boasts 2 million jobs tied to energy management in buildings and industry. The total North American energy workforce is pegged at 7.9 million and is relatively evenly split among energy efficiency, oil and gas, power generation and electric vehicles, each with a share ranging from 25 to 22%. Meanwhile, coal and bioenergy each account for fewer than 1.5% of the energy-related jobs.

China is home to more than 29% of the global energy sector workforce, including about 35% of jobs tied to energy efficiency, 33% of jobs related to electric vehicles and 54% of jobs related to coal. Africa has the lowest quotient of global energy jobs — about 5.8% — with 1.6 million jobs or 42% of its energy workforce in oil and gas.

For 2022, the report cautions that about half of the year-over-year increase in energy spending is attributable to rising costs and doesn’t flow into labour demand. However, it estimates 1.3 million new positions were added to the global energy sector workforce over the course of 2020 and 2021, and projects a further 6% growth in employment this year.

Building retrofits are identified as a particularly labour-intensive endeavour that have also suffered from recent supply chain disruptions. The report notes a growing need for skilled workers, including administrators with the ability to assess others’ credentials.

“The lack of trained personnel can be detrimental to the quality of installations or retrofits and negatively affect the energy saving potential of an intervention. This makes training and vetting vendors a major challenge, and there is a growing focus for many efficiency programs to provide the appropriate skilling and certifications,” it advises.

Training will be a key element of enabling energy sector workforce growth given its higher ratio of technical and professional occupations. Currently, the study finds that 45% of energy workers can be classified as “high-skilled” versus about 25% of positions in the general economy, and it is projected to skew even more to high skills in the future.

Women present an underused pool of potential reinforcements. Current labour statistics, which define the energy sector more narrowly than the IEA’s scope, show women make up 16% of the workforce — far below their 39% representation in total employment.

“Clean energy start-ups show signs of change, with a greater share of women founders and inventors in clean energy, even if still far short of parity. This marks an opportunity for these growing segments to help increase female representation,” the IEA report submits. zz The complete text of the World Energy Employment Report can be found at www.iea.org/reports/world-energy-employment.

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IN 2016, NUMBERS NEVER LIE:

In 2016, I wrote an article for a wellknown property management company on what I believed the future held for the building restoration industry and its clients. It was my "best guess" after a 40year career, and now, after the last six years, my concerns have only multiplied. Six years ago, the future issues I predicted were on-site labour shortages, a major shift in overhead costs, and a trend of contractors not understanding the financial risks associated with the restoration Industry. All these issues BUT NOW, IT’S 2022 have added dimensions in 2022, and they have all been amplified by the pandemic, surging inflation, fast-rising interest rates, and supply chain issues causing delays and unprecedented price hikes in all sectors. Back then, I also thought uneducated contractors would still be prevalent. Now, I am happy to report that most contractors now understand that the restoration industry is not for the "financial faint of heart." However, for owners, property managers and condominium corporations, the days of getting a "cheap" price due to a financially uneducated contractor are over. During the pandemic, all companies focused on survival and were forced to be more attentive to finances. Due to the tightening of bonding and insurance requirements, banking facilities, and the rising complexity of the safety, labour, and tax laws, those companies had no choice but to get with the program as these issues have very real costs and have to be addressed in their pricing. In 2016, it was also easy to predict that there would be a labour shortage. At the time, I thought the labour shortage in the future would be for "on-site" skilled labour, but now we’re seeing increased demand for employees needed off-site or in the office. Project management, accounting, estimating, HR, and all administration positions have competition like never before. In the past, employees could double up on responsibilities to run a company. Now, the expertise needed in each position makes it near impossible for these responsibilities to be completed by one person. As companies have more inoffice employees, and are paying more for

those employees due to competition, the cost of overhead surges. This, again, adds to the overall costs of all projects. This, again, adds to the overall costs of all projects.

Of course, finding on-site skilled labour in construction is still Of course, finding on-site skilled labour in construction is still an issue today. That said, it is exacerbated in the restoration an issue today. That said, it is exacerbated in the restoration industry by the fact that many people may be skilled workers, but industry by the fact that many people may be skilled workers, but asking them to apply their skills on a swing stage 300 feet in the air is a non-starter for them. As a side note: 99 of 100 people who respond to a help wanted ad say "no" once they find out they will be working on the side of a building.

"TIME TO KNOW," NOT TIME TO "THINK YOU KNOW”

After 46 years (not 40) in the restoration ndustry, I'll give those predictions another shot!

For one, as we advance, I believe many people do not yet understand the speed and extent that costs are increasing and how it will affect contractors, owners, property managers and their clients. As front-end buyers, the restoration industry has seen increases in labour, materials, and supplies that are unprecedented. We have also seen what the result of competition has done to the labour pool, and why the supply chain issues are so costly. As a contractor, we have to adjust quickly to this reality and, at the same time, try to predict what all of this means to our future.

No doubt, economic headwinds will continue to impact the industry. The condominium sector may be the area that needs the most focus, specifically at the Board of Directors level. Although keeping costs under control should be top of mind for everyone, there is a big difference between controlling everyday costs and reducing funding in a reserve fund to control costs. Controlling the daily, monthly, and yearly costs of a building is important and always top of the list since we see them constantly. Yet, in the past 20 years, with inflation at 2% or less and low-interest rates, reserve funds could be set up quite easily for future costs.

This isn't the case anymore. Inflation isn't around 2%; it's 8% or more. And borrowing rates aren't 2%; they’re triple. There are dramatic price increases for "out of sight, out of mind" services that are not seen by most people in the general public. Since mid2021, we have witnessed supplier price increases of 8, 10, 30, and 50% overnight. projects are not keeping up with the reality of 2022. I fear that many condominium corporations don’t even realize they’re getting further and further behind the curve; and since major restoration projects happen infrequently, the realization will

Even some reserve funds that appear well-funded for future projects are not keeping up with the reality of 2022. I fear that many condominium corporations don’t even realize they’re getting further and further behind the curve; and since major restoration projects happen infrequently, the realization will come too late.

My concern is not a guess. Some reserve fund studies I've seen recently are based on 2% or 3% increases. While this would suffice in the past, any corporation with a reserve based on these numbers or had their studies completed before 2022 should have those studies updated to present conditions. Moreover, their board should scrutinize the results thoroughly for their corporation's long-term financial health.

As in 2016, my prediction is that many will ignore my advice and many will be fine. Even still, how much will it cost to take a good look? I predict - no, guarantee - the cost of being sure will be far less than being blindsided.

Scott Byberg is President of Dominion Caulking and Langstaff Restorations., where he has watched the industry evolve since joining it nearly 50 years ago. He and his team look forward to celebrating Dominion Caulking’s 100th anniversary in 2028.