Building Excellence Winter 2023 by NextHome

T H E O F F I C I A L M AG A Z I N E O F T H E C A N A D I A N H O M E B U I L D E R S ’ A S S O C I AT I O N

WINTER 2023

Opportunities in...

Modular

construction

P LU S

ol s o T p o T • Besesrvtice n ew i c le s veh

Big Blo ck Cons truction Saskato on, Sask .

WHAT’S REALLY GOING ON WITH CANADA’S HOUSING STARTS

Solving

Skilled Trades shortage THE

Canadian Publications Mail Agreement # 43643067

BUILD SAFE, COMFORTABLE AND HEALTHY LIVING SPACES. What is Radon? The Silent Killer. Radon is a radioactive gas that is odourless, colourless, and tasteless. It is produced by the breakdown of uranium found in sediment (soil), rocks, and water. When radon is released into the atmosphere it gets diluted and poses negligible risk to human health. However, if radon accumulates in an enclosed space, such as a home, it can concentrate and pose a serious health risk.

Abatement System Components: ƍ *3%190%6® 2+<Ʀ 'SHI&SVH® Extruded 4SP]WX]VIRI 6MKMH -RWYPEXMSR7 • Owens Corning® .SMRX7IEP6® Tape • Owens Corning® 4VS4MRO 'SQJSVX7IEPƦ +YR *SEQ SV 'SHI 'SQTPMERX *PI\MFPI 7IEPERX

Introducing Owens Corning® FOAMULAR® NGX™ RadonBARRIER™ Radon Abatement System ƍ 3RP] ''1' GIVXMƼIH <47 W]WXIQ WSPYXMSR - CCMC Report 14349-R1 • No polyethylene required2 • Add more comfort and safety with a radon-free ƼRMWLIH FEWIQIRX ƍ 4VSZMHI E LIEPXLMIV IRZMVSRQIRX3 ƍ < KVIEXIV TIVJSVQERGI XLER QMP TSP]4 ƍ 7OMPPIH XVEHIW RSX VIUYMVIH ƍ 0IWW I\TIRWMZI XLER 74*5 and easier XS MRWXEPP XLER )476 • Can be installed year round and in the coldest of temperatures To learn more about Owens Corning® FOAMULAR® NGX™ RadonBARRIER™ Abatement System, visit radonbarrier.ca. 8,) 4-2/ 4%28,)6Ʀ k Ɓ 1IXVS +SPH[]R 1E]IV 7XYHMSW -RG %PP 6MKLXW 6IWIVZIH 8LI GSPSYV 4-2/ MW E VIKMWXIVIH XVEHIQEVO SJ 3[IRW 'SVRMRK k 3[IRW 'SVRMRK %PP 6MKLXW 6IWIVZIH 1 3RP] ''1' GIVXMƼIH 6EHSR %FEXIQIRX 7]WXIQ WSPYXMSR [MXL <47 ''1' 6ITSVX 6 2Verify local applicable building codes. 3Compared to Radon exposure. 4NRCAN Radon Abatement Test Report No. % 3GXSFIV 3[IRW 'SVRMRK *3%190%6® 2+<Ʀ 'SHI&SVH® with taped or sealed joints MW < KVIEXIV XLER QMP TSP]IXL]PIRI EW E VEHSR FEVVMIV QEXIVMEP 5Elimination of poly. 6&YMPHIV *MIPH 8IWX Quebec. 7*3%190%6® 2+<Ʀ ' GER EPWS FI YWIH

FOAMULAR® NGX™

TRAINING THAT DELIVERS CONCRETE RESULTS Continuing Education at George Brown College Discover our courses and programs in construction, estimating, quantity surveying and Ontario’s Building Code. Taught by industry professionals using the latest tools and standards, our courses provide you with the skills to succeed. Develop your knowledge with our series of Canadian Institute of Quantity Surveyors (CIQS) accredited courses. Expand your career potential by completing a program and achieving a credential from George Brown College. Learn from home with our online courses. Programs Autodesk AutoCAD Professional Program Autodesk AutoCAD User Program Autodesk Revit for Architecture User Program Building Ofﬁcials Fundamentals Program Construction Estimating Program Construction Project Management Program Construction Superintendent Program Electrical Estimating Program Mechanical Estimating Program Revit for MEP Program

Education That Fits You With online classes starting throughout the year, we make it simple to ﬁt learning into your schedule. Select individual courses best suited to your interests, or register for those courses that make up a certiﬁcate or designation requirement. You can work toward a program at your own pace – you register (and pay) on a course-bycourse basis.

We also offer Canadian Construction Association (CCA) Gold Seal credit courses that you can apply towards your Gold Seal Certified (GSC) designation. You’ll also find a wide variety of online courses covering Ontario’s Building Code. Plus, once you have completed at least one Building Code course, you will be eligible for a free one-year student membership with the Ontario Building Officials Association (OBOA).

coned.georgebrown.ca/construction Register now! For more information, contact us at cetechnology@georgebrown.ca.

WINTER 2023 ¨gZ͕̣ H ' ̡

̞̟

BE Your Best ̥ P RESIDENT’S MESSAGE SUE WASTELL

̞̣

Advancing member priorities

̞̝

C EO’S MESSAGE KEVIN LEE

̞̥

Big wins

̞̟

WINTER 2023

ECONOMICS Not good under the hood – what’s really going on with Canada’s housing starts

M EMBER PROFILE Triple M Housing – high-quality, high-volume builder set on making modular mainstream

BY THE NUMBERS Reaching Canadians on housing supply – CHBA’s municipal supply campaign

̟̟

RENOVATORS’ CORNER Renovator support and resources – get excited about what’s coming up in 2024

̡̟

̡̟ ̠̝

Features ̡̟

MODULAR HOMES Modular-built productivity – improvements are a core component of CHBA’s Sector Transition Strategy

̠̝

̡̠ ̞̥

T H E O F F I C I A L M AG A Z I N E O F T H E C A N A D I A N H O M E B U I L D E R S ’ A S S O C I AT I O N

WINTER 2023

Opportunities in...

Modular

construction

WHAT’S REALLY GOING ON WITH CANADA’S HOUSING STARTS

NEW TRUCKS AND VANS

Solving

Service vehicle shopping in the pre-EV era – there’s still plenty of ICE around

̠̥

Canadian Publications Mail Agreement # 43643067

TOP NEW TOOLS

INSIDER INFO Timber rising: How wood can spur Canada’s Green building drive

̡̣

DEVELOPERS’ CORNER Removal of GST on purpose-built rental addresses long-standing barrier

̡̥

THE Skilled Trades shortage

BIG BLOCK CONSTRUCTION SASKATOON, SASK.

Our annual collection of the most innovative new hand and power tools to help get the job done faster and safer

̡̟

new icles veh

Big Blo ck Const ruction Saskatoo n, Sask.

SKILLED TRADES Canada must rely on immigration to help address the skilled trades shortages

̡̠

PLUS

ols Top To • t Bes service

̠̥

FEATURED COMPANIES Suppliers & Vendors

̢̝

THE GIVING BACK PAGE Community Spirit

BUILDINGEXCELLENCE.CA

¨gZ ` ' ̣͖ a ` ' ̡

WINTER 2023

DIRECTOR, MARKETING AND COMMUNICATIONS Natasha Rombough

COMMUNICATIONS AND SOCIAL MEDIA OFFICER Emily Fielden

CEO Kevin Lee

MANAGER CUSTOMER SALES/SERVICE Marilyn Watling

EDITOR Wayne Karl wayne.karl@nexthome.ca

SALES & MARKETING COORDINATORS Gary Chilvers, Vi Nguyen

EXECUTIVE MEDIA CONSULTANTS Jacky Hill Michael Rosset

HOME SHOW MANAGER & NEWSPAPER CIRCULATION – GTA Josh Rosset

SENIOR VP, SALES NEXTHOME Hope McLarnon 416.708.7987 hope.mclarnon@nexthome.ca DIRECTOR OF SALES, ONTARIO, NEXTHOME Natalie Chin 1.877.532.2582, natalie.chin@nexthome.ca

Published by

ACCOUNTING INQUIRIES accountingteam@nexthome.ca

nexthome.ca

DIRECTOR OF PRINT MEDIA Lauren Reid–Sachs

SENIOR MEDIA CONSULTANT Amanda Bell 1.866.532.2588, amanda.bell@nexthome.ca

VP PRODUCTION — GTA Lisa Kelly

MANAGER, CLIENT RELATIONS Sonia Presotto sonia.presotto@nexthome.ca

Published 4 times a year by NextHome, on behalf of the Canadian Home Builders’ Association (CHBA), all rights reserved. No part of this publication may be reproduced in any form without written permission. Building Excellence, NextHome, and the Canadian Home Builders’ Association (CHBA) are not responsible for any claims or promises in any advertisement, nor for any unsolicited material sent to the magazine. Canadian Publications Mail Agreement # 40065416

DISTRIBUTION distributionteam@nexthome.ca

VP MARKETING — GTA Leanne Speers

PRODUCTION MANAGER — GTA Yvonne Poon GRAPHIC DESIGNER & ASSISTANT MANAGER Alicesa Pullan GRAPHIC DESIGNER & PRE-PRESS COORDINATOR Hannah Yarkony GRAPHIC DESIGNER Mike Terentiev

O F F I C I A L M E D I A PA R T N E R S : Y

BUILDINGEXCELLENCE.CA

MARKETING AND COMMUNICATIONS OFFICER Chloe Perreault

Advertising Call 1.866.532.2588 ext. 1 for rates and information. Fax: 1.888.861.5038 Copyright 2023 All rights reserved. All copyright and other intellectual property rights in the contents hereof are the property of NextHome, and not that of the individual client. The customer has purchased the right of reproduction in NextHome and does not have the right to reproduce the ad or photo in any other place or publication without the previous written consent of NextHome. 6GTOU CPF +PFGOPKƂECVKQP Advertisers and contributors: NextHome is not responsible for typographical errors, mistakes, or misprints. By approving your content and/or submitting content for circulation, advertisers and contributors agree to indemnify and hold harmless NextHome and its parent company from any claims, liabilities, losses, and expenses (including legal fees) arising out of or in connection with the content provided, including but not limited to any claims of copyright infringement, unauthorized reproduction, or inaccuracies in the content. Advertisers acknowledge that they have the necessary rights, permissions, and licenses to provide the content for circulation, and they bear full responsibility for the content’s accuracy, legality, and compliance with applicable laws upon approval. Contributors acknowledge NextHome reserves the right to omit and modify their submissions at the publisher’s discretion.

P R E S I D E N T ’S m e s s a g e

ADVANCING MEMBER PRIORITIES HOW THE ASSOCIATION IS WORKING ON YOUR BEHALF BY SUE WASTELL, CHBA PRESIDENT

t’s been a busy fall. I’m lucky to have had the opportunity to travel coast-to-coast from Newfoundland to Regina to Whistler to hear from members across the country. In September, I travelled to Kamloops to attend CHBA Central Interior (CHBA-CI)’s AGM. I had the opportunity to tour CHBA-CI’s Training House and meet with Thompson Rivers University trades students working on the project. As our industry faces chronic labour shortages now and into the future, encouraging careers in residential construction is a key priority of the association – it was great to witness first-hand the work CHBA-CI is doing to get young people into the trades. Later, I attended BILD Alberta’s Conference, Ontario HBA’s AGM, Regina and Region HBA’s AGM, and Manitoba HBA’s Annual Housing Forum. At these large provincial gatherings, I shared the state of our industry from a national perspective and delved into our association’s key policy asks on national model codes that the provinces are moving to harmonize, and which CHBA is working on in consultation with provincial HBAs. These important codes-related discussions were continued during CHBA’s

WINTER 2023

National Committee and Council meetings in Ottawa, where provincial representatives from across the country discussed proposed changes for alterations to existing buildings, prescriptive methods for energy tiers, greenhouse gas emissions, airtightness, accessibility and more. Codes have an immense impact on our businesses, and there’s a deluge of very technical work going on at the national level of CHBA, in collaboration with provincial HBAs, to get codes harmonization right. CHBA maintains that changes in codes must not exacerbate affordability challenges as they continue to evolve to address climate change and other issues. I also visited eight local HBAs across Canada, including some smaller regions. I visited with members of Lanark Leeds HBA, Haldimand and Norfolk HBA, Brantford HBA, Greater Dufferin HBA, and CHBA Sea to Sky, listening to how your challenges differ from those working in urban areas and shared how new federal policies – which came to fruition through extensive association advocacy – will benefit members in smaller communities. These policies include the removal of GST on purpose-built rental, which smaller municipalities are also in desperate need of, and the Housing Accelerator Fund (HAF) stream specifically dedicated to small communities with less than 10,000 people. While members have specific needs in different regions, the overarching message I received during our productive conversations was the same: Removing the barriers to getting more housing supply built – to help restore affordability – must be the number one

priority on government agendas across the country. Thankfully, it seems to have received at least some of the traction it deserves, and that’s largely due to the work of the association at all levels. Notably, there has been some good uptake of the HAF in the last few months, with funding announcements kicking off in my hometown of London, and further across the country from Halifax to Kelowna. And very importantly, the Minister getting municipalities to either improve their plans for supply, or else not receive funding. I look forward to more announcements in the coming months. I always take my learnings from meetings with all of you back to Ottawa in October. CHBA was invited to address the House of Commons Finance Committee, and CHBA CEO Kevin Lee and I spoke about the key priorities for our industry to get housing affordability and supply back on track. We are seeing take-up on many of our recommendations and expect more to come. I’m lucky to have met so many of you at your local events, and I look forward to meeting more of you as my presidency continues. The boots-on-the-ground experiences you share with me are invaluable for those working for you at national. As I always say, making use of the association’s meetings, conferences and other networking opportunities is a huge advantage of membership that gets you dialed in to the many ways the association is working on your behalf. Let’s encourage more members to get involved, so that we can strengthen our collective voice and secure more great policy wins for our industry.

BUILDINGEXCELLENCE.CA

The Home Construction Regulatory Authority licenses new home builders and sellers in Ontario. If you plan to build or sell a new home, you must be licensed – it’s the law!

hcraontario.ca/licensing

C EO ’S m e s s a g e

BIG WINS GOVERNMENT FULFILLS CHBA ASKS TO SUPPORT OUR INDUSTRY BY KEVIN LEE, CHBA CEO

HBA’s call for federal leadership to remove the barriers to getting more homes built has gained significant traction in recent months. In mid-September, the federal government revealed that it will remove GST on new purpose-built rental (PBR). The welcome exemption fulfills a long-standing ask by CHBA, which was a focus during CHBA’s Day on the Hill that earned plenty of media traction over the summer. Through the spring and summer, CHBA brought the issue and recommendations to Sean Fraser, the newly appointed Minister of Housing, Infrastructure and Communities, as well as the Minister of Finance’s office, CMHC, Finance Canada, and Infrastructure Canada, leading to this successful outcome. Read more on this in the Developers’ Corner article in this issue (page 48). The federal government’s Fall Economic Statement (FES) also delivered on some of CHBA’s key asks. After numerous meetings with the Canada Revenue Agency (CRA) and the Finance Minister’s office, the government signaled its intention to make changes to the Underused Housing Tax (UHT), noting that it will accept feedback through a consultation process. Given the challenges the UHT poses

WINTER 2023

for members, CHBA will continue to push for an industry exclusion from the UHT filing through the consultation. The government also unveiled plans to establish the Department of Housing, Infrastructure and Communities, which will function as the federal lead for improving housing outcomes tied to enhancing public infrastructure. This has been a recommendation of CHBA in the past, given that there has been no official housing department to date, and CMHC has reported through a variety of ministers with broad portfolios. At CHBA’s national Committee and Council meetings in October, industry productivity was discussed at length, including CHBA’s Sector Transition Strategy which has factory-built construction playing a key role in meeting Canada’s housing supply targets amid labour shortage challenges. CHBA has had discussions on the strategy with Minister Fraser, his staff, CMHC and other government officials, advising on the support needed for industry to make the transition. With the federal Housing Accelerator Fund (HAF) monies now rolling out, municipalities have rightly been front-and-centre on the housing supply and affordability stage. CHBA helped inform the design of the HAF, which financially incents cities to address housing supply and affordability issues. So far, funding has been announced for several municipalities, each of which plans to prioritize improving approval timelines, addressing NIMBYism, and pre-zoning for gentle densification. While these actions are on the right track, more efforts are needed to boost supply and improve affordability – and your association is at the forefront of these important conversations at all three levels of government.

Federally, CHBA remains regularly engaged with officials at the Bank of Canada, as well as various government agencies, leveraging data from CHBA’s Housing Market Index (HMI) to establish a clear relationship between high interest rates and housing affordability. The results from CHBA’s Q3 HMI, published in early November, show that builder confidence has hit the lows seen in the first quarter of 2023 after the 2022 barrage of interest rate hikes resulted in sales traffic evaporating. At a time when Canada needs to build 5.8 million homes over the next decade to close the current housing supply gap, 65 per cent of CHBA’s HMI survey panel said interest rates are causing them to build fewer units, and a very concerning 37 per cent stated they have now cancelled projects, which is up from 26 per cent in Q2 2023. See more on the 2023 Q3 HMI on page 18. CHBA has a broad swath of recommendations to help turn the tides on this. Additionally, with 20 per cent of the industry set to retire in the coming decade, and 44 per cent of HMI respondents indicating that lack of labour is hindering their ability to build more homes, immigration is vital to filling the shortfalls of the residential construction labour force. Various federal immigration measures have been put forth, including changes to the Express Entry system that now prioritizes skilled workers, and a recent immigration plan that will now consider housing and infrastructure when setting future immigration targets. CHBA continues to be in dialogue with the office of the Minister of Immigration, Refugees and Citizenship, and other associated ministers, to advocate for a greater focus on the residential construction industry’s labour force needs.

BUILDINGEXCELLENCE.CA

WE’RE COMMITTED TO CHBA Work with a dedicated agent and risk management team that understands the construction industry and are committed to helping you protect your business.

Learn more at federated.ca

Federated Insurance Company of Canada is the insurer of Federated Insurance policies. Federated and Federated Insurance are registered trademarks of Federated Mutual Insurance Company. Used under license. [3706-030 ed01E | 05-2023]

M E M B E R p ro f i l e

TRIPLE M HOUSING A HIGH-QUALITY AND HIGH-VOLUME FACTORY HOMEBUILDER SET ON MAKING MODULAR MAINSTREAM

FA S T FA C T S Company Name: Triple M Housing Ltd. Head Office: Lethbridge, Alta. Number of Full-Time Employees: 350 Projects per year: 500-700 homes/year

BY NATASHA ROMBOUGH, DIRECTOR OF MARKETING AND COMMUNICATIONS, CHBA

f you’ve ever been curious about what the inside of a modular factory looks like, Rick Weste, president and CEO of Triple M Housing Ltd., would be a great tour guide. When he’s not out bow hunting (he’s a national archery champion), hiking or volunteering his time with CHBA, Weste is hard at work at Triple M, which he likes to think the 3 M’s of as standing for Making Modular Mainstream. Weste started with the company in 1996. From software consultant to sales and marketing, legal and human resources, and overseeing production, he worked his way up and learned how to successfully run a modular factory. Triple M mainly builds high-quality, single-family homes. The company can also build attached homes, and is currently

WINTER 2023

constructing 14 schools for remote areas in Manitoba. At an average of 3000 sq. ft., the schools are similar in size to a larger singlefamily home.

AN ESTABLISHED COMPANY Triple M has been operating in Lethbridge since 1981, though has gone through a few name changes and sales in that time. In fact, the company was sold to ATCO last year, though Weste says not much has or will change in the day-to-day for those working at Triple M. There are many long-term employees, including several who have been with the company for more than 40 years. Weste says that people stay because they like their

coworkers and the great working conditions. Employment is stable, wages and benefits are competitive, and the hours are good. That employment stability makes modular construction factories desirable employers within the industry. Another positive is the use of automation and machinery. “When we hire someone, we put them through physical testing because we want to understand what they’re capable of, where their restrictions are, what their capabilities could be, and where they can work,” Weste says. The factory process is set up to minimize stress on the body as much as possible. Construction materials are positioned as though they’re at ground level; a forklift would raise shingles up to the roof, for

BUILDINGEXCELLENCE.CA

Triple M team celebrates 25,000 homes.

example, so someone shingling the roof would have easy access to them. Safety is also a major priority, with a focus on accident prevention measures. For example, scaffolding systems are put in place between the houses so that when several homes are being worked on at one time, workers can walk on the scaffolds between the houses and onto the roofs without risking a fall. The company has held a “Certificate of Recognition” in the Partnership for Injury Reduction program in Alberta since its inception. Triple M is proud that it is currently approaching three years without a lost time accident, and has an excellent total recordable injury rate (TRIR). These measures can also help make the work more accessible and appealing to those who are not traditionally employed in residential construction. Weste says that approximately 18 per cent of Triple M’s employees are women, which is higher than the estimated Canadian average. The work is still physical – it’s far from a desk job – but it’s more accessible, which has the added benefit of people staying in physical jobs longer.

Modular construction is also a great place for new Canadians to find meaningful work. Immigration will need to play a major role in replacing workers in residential construction as they retire over the next 10 years, and the factory setting can help create the sense of community many immigrants desire. At Triple M, 27 per cent of workers speak English as a second language, and there are currently 25 languages spoken in the factory.

WORKING WITH A MODULAR FACTORY Triple M builds between 500 and 700 homes each year in its more than 190,000-sq.-ft., state-of-the-art facility. In total, the company has constructed more than 28,000 homes. To build that many, efficiencies are key and turnaround times are blazing. “If you order a house from us today, we will take eight weeks to finalize the design and get the materials ordered, and then it takes us two weeks to build the home and have it ready to ship,” Weste says. The homes arrive fully finished at their destination, and the time it takes to install them depends on site specifics, such as

whether the unit is going on a basement, blocking or piles. If the services are ready and it’s a simple installation, the home could be ready to live in within days. If it’s a more complex site and there are several modules that need to come together with connection details, and drywall finishing is required, it may take up to six weeks. For developers, bringing in modular construction can mean completing your developments much faster with the same number of people, Weste explains. Given the labour shortages in the industry, and Canada’s housing shortage, modular-built construction is one of the solutions our country needs. Another positive of modular construction is how well they’re built to withstand transportation. Triple M invests in quality materials and products, and construction is done in its climate-controlled factory that is inspected by third party agencies. The strength of its wall systems allows the company to provide an industry-leading 20-year structural warranty. And the building processes makes for tight, energy efficient homes.

Coming CHBA Events FEB. 6, 2024

MARCH 2024

MAY 6-10, 2024

JUNE 11-12, 2024

CHBA Day on the Hill Ottawa

Finalists Announced for CHBA National Awards for Housing Excellence

CHBA Home Building Week in Canada Saint John, NB

CHBA Net Zero Leadership Summit Vancouver

BUILDINGEXCELLENCE.CA

WINTER 2023

M E M B E R p ro f i l e

ASSOCIATION INVOLVEMENT Triple M has long been a member of its local association of BILD Lethbridge, and Weste remembers participating in the Home and Garden Show and Parade of Homes as a way to get Triple M’s modular homes in front of the public. He says that people who attended both events were surprised to see the same home in two different locations – first in a parking lot, and then six weeks later on a basement and surrounded by a landscaped lot. “People were going through the home the second time saying they found it really familiar and couldn’t believe it was the same house.” In addition to being active with BILD Lethbridge, Triple M was also a member of the Canadian Manufactured Housing Institute (CMHI), and Weste served as its president from 2015 to 2017. At the time, CMHI and the Canadian Home Builders’ Association (CHBA) worked closely together on several mutual priorities, and even shared office space. With the goal of support the increasing role of factory-built modular construction in the homebuilding industry, CMHI and MHI Canada

WINTER 2023

joined forces to create the CHBA Modular Construction Council, which still exists today and is as important as ever. Weste served as the Council’s first Chair. “I planned on being Chair for two years and then fading into the background,” he recalls, shaking his head. Instead, Weste went on to chair CHBA’s Technical Research Committee for three years (a term made longer than usual due to the pandemic), and then was appointed to the CHBA National Board of Directors, a position he currently holds. His extensive involvement at the national level over the years resulted in Weste being awarded the CHBA’s most prestigious accolade of Member of the Year in 2022.

WHAT’S NEXT FOR TRIPLE M The company already ships homes into all of western Canada, the Northwest Territories and

Nunavut, and as far east as Manitoba, but at the Manitoba-Ontario border things get complicated. Weste would love to bring Triple M to builders in Ontario, but hasn’t yet found a way to make it work due to complicated and expensive transportation. In the meantime, the company is looking to expand more into purpose-built rentals. “I think there’s going to be a huge change coming in the way that municipalities here in Alberta are going to be approving housing,” Weste predicts. Indeed, many municipalities across the country are getting more creative in their pursuit of creating more housing supply to tackle affordability. One thing is clear: Our industry needs to increase its productivity in the coming years to help meet Canada’s housing demand, and modular factories such as Triple M are ready to lead the charge.

BUILDINGEXCELLENCE.CA

)7"$ Ŕ 8BUFS )FBUFST Ŕ 8BUFS 1VSJţDBUJPO Ŕ 4NBSU )PNF Ŕ &W $IBSHFST

" QSPHSBN GPS CVJMEFST BOE EFWFMPQFST BJNFE BU IFMQJOH ZPV CVJME NPSF FOFSHZ FťDJFOU FOWJSPONFOUBMMZ GSJFOEMZ IPNFT 866-764-8131

® “Reliance”, “Reliance Home Comfort and the Reliance Home Comfort logo are registered trademarks of Reliance Comfort Partnership

BY T H E n u m b e rs

REACHING CANADIANS ON HOUSING SUPPLY CHBA’S MUNICIPAL SUPPLY CAMPAIGN BY NATASHA ROMBOUGH, DIRECTOR OF MARKETING AND COMMUNICATIONS, CHBA

ousing is a major concern of governments these days, particularly Canada’s chronic lack of housing supply. But it a took a lot of advocacy from CHBA at all three levels to help draw the link between deteriorating housing affordability and a shortage of supply. In the 2022 Federal Budget, the government finally acknowledged that Canada doesn’t have enough homes, and they stated that we’ll need to build at least 5.8 million new homes by 2031 to make up the deficit. Given that municipalities and their processes are a big barrier to getting more supply, the federal government developed a Housing Accelerator Fund (HAF). The HAF is a $4-billion investment to incent municipalities to change their processes to grow the annual housing supply in the country’s largest cities every year, with a target of building 100,000 more new middle-

class homes by 2024-25 than would normally be built. The HAF was structured as an application-based fund for municipalities. To be eligible, cities needed to show how they would grow housing supply faster than their historical average by speeding up approval times, tackling NIMBYism, encouraging public transit-oriented development, reducing red tape and more. But while the federal government had gotten on board with the need for more supply, in the early days of the HAF announcement there remained resistance from many municipalities who did not believe that supply was a critical issue or linked to affordability. And as the keepers of the city keys, without support from municipalities, nothing will get done.

2.87 Million

~47,800

7.5

CLICKS TO LANDING PAGES

AVERAGE VIEWS PER PERSON

AD IMPRESSIONS

A DIGITAL PUBLIC-AWARENESS CAMPAIGN To help support uptake of the HAF and impress upon municipalities the importance of market-rate housing supply in their communities, CHBA worked with local associations

Analytics from CHBA’s social media campaign.

WINTER 2023

BUILDINGEXCELLENCE.CA

2.45M IMPRESSIONS

across the country to execute a digital municipal supply campaign. We know that municipalities are heavily influenced by their constituents. Therefore, to help to convince municipalities to act on the lack of supply, we also needed to convince the public that increasing supply is in their community’s best interests. CHBA created four different videos – two short and two long, all under a minute – that tapped into Canadians’ worries about housing: Skyrocketing rent prices, not being able to buy a first home, having to leave to city to afford a home and the impact that unaffordable housing has on the greater community. The videos finished by saying that municipalities have a key role in making more homes of all types available. Along with verbal messaging, the videos made effective use of on-screen captions to help punctuate key points and were shown with varying ad copy. The videos were promoted on social media and via Google ads from May-June 2023 to coincide with the coming launch of the HAF application portal for municipalities. They were shown to likely homebuyers and homebuyingage individuals in each local area, as well as people who are engaged with municipal politics/city hall activities, media and municipal decision-makers. Each ad drove traffic to website landing pages where visitors could read

BUILDINGEXCELLENCE.CA

more about how housing supply impacts their community and how municipalities can help. The social media campaign ran on Facebook and Instagram. It performed very well, garnering 2.87 million ad impressions, nearly 47,800 clicks to website landing pages. Since it takes several times for ads messaging to resonate, the ad was shown to the target audience several times over the campaign’s duration, and each person viewed the ads an average of 7.5 times. To reach people who may not have social media, ads running the non-skippable shorter (15 second) video were also shown on Google and YouTube across the country targeting the same type of audience. The goal of non-skippable ads is for the entire messaging to be heard; driving people to the website was a secondary objective. Interestingly, the ads targeting parameters meant it was shown to the 65+ age group the most, followed by 55 to 64, then 35 to 44. The best timing for the ad was from 7 pm to midnight. CHBA shared these results with local and provincial executive officers and HBA staff from across the country, many of whom used the campaign assets either within their own locally-targeted campaigned coordinated by the national level of the association, or organically on their own social media platforms and websites.

23.3K LINK CLICKS Results from CHBA’s Google and YouTube ads campaign.

Take-up of the HAF At the time of publishing of this article, more than 500 municipalities have submitted applications to the HAF. Several municipalities have already been approved for funding, including London, Halifax, Kelowna and Hamilton. The federal government appears to be sticking to its goal of funding only municipalities that are truly planning on changes to fast-track housing and are negotiating applications to improve them with municipalities that haven’t quite hit the mark. CHBA continues to advocate for more housing supply in its meetings with government officials.

WINTER 2023

ECO N O M I CS

NOT GOOD UNDER THE HOOD WHAT’S REALLY GOING ON WITH CANADA’S HOUSING STARTS BY EVAN ANDRADE, CHBA ECONOMIST

o far through 2023, headline housing starts using seasonally adjusted rates have been stronger than anticipated – under much higher interest rates. However, data from the Canada Mortgage and Housing Corporation (CMHC) shows that housing starts for the year to date (to October) in Canadian centres with a population of more than 10,000 people is down seven per cent compared to last year. Looking into the breakdown, this has been driven by the 28 per cent drop in single-detached housing starts across the country. The drop in year-to-date housing starts relative to last year reflects CHBA’s Housing Market Index (HMI), though is somewhat muted compared to the dire industry

WINTER 2023

sentiment. However, the extremely low builder sentiment in the HMI is indeed reflective of the drop in single-detached starts. The HMI readings for single- and multi-family builders, CHBA’s in-house measure of builder sentiment on selling conditions, plummeted throughout 2022 and reached a record low in the fourth quarter of 2022. Throughout 2023, HMI readings have remained unambiguously negative with respect to builders’ opinions on selling conditions. Five consecutive quarters where both HMIs expressed downbeat builder sentiment implies a downtrend in national housing starts. So far, multi-family housing starts have performed above expectations but for reasons related to how quickly financial conditions changed.

WHAT’S REALLY HAPPENING Digging below the headline, housing starts numbers – which are especially better than looking at CMHC’s seasonally adjusted rates, which can be misleading – we find that apartment dwelling starts, concentrated in Canada’s largest cities, are what is providing support for the overall housing start numbers being more buoyant than expected. For example, Chart 1 uses data from Canada’s six largest cities over the first six months of the year. Starts in apartment dwellings were up 68 per cent over the same period in 2022 in Vancouver, up 58 per cent in Toronto, and up 38 per cent in Ottawa. Across all dwelling types in cities such as Calgary, Edmonton and Montreal, starts were down and offset the

BUILDINGEXCELLENCE.CA

CHART 1: PERCENT CHANGE IN LARGE URBAN STARTS BETWEEN 2022 AND 2023 Vancouver

large gains seen in the Toronto and Vancouver apartment starts. This can be explained by the longer pre-construction timelines of highrise condominium towers that would have been committed to in 2022 or even earlier, when builders had better lending conditions and still ample demand. As these prior project commitments work through monthly tallies of new housing starts, we expect total housing starts to begin trending downward more severely. Housing starts are only part of the story surrounding the challenges that home construction is facing, as homes still need to be completed in a timely manner. Home construction activity is measured through real investment in building construction. This is an estimate of the value of the work done on new homes, as well as renovations, by using building permits, starts and completions data. This estimate of investment is converted into “real” terms by using the Building Construction Price Index (BCPI) to account for price growth over time that contractors face. This converts the nominal investment to its value in 2012 dollars. Since the end of 2019, the BCPI has risen 56 per cent, reflecting the rapid growth in materials and trades wages. Chart 2 shows that historically stable level of real total residential investment has fallen precipitously since mid-2022 and has hovered around $6.4 billion

Calgary Edmonton Toronto Ottawa Montreal Total -60

-40

-20

per month through the third quarter of 2023. This is the lowest investment level seen since the data began in 2010 – excluding the pandemic’s onset in April 2020. This is particularly concerning despite the steady overall housing starts we have seen so far this year. The drop in real home construction investment underscores that home builders and renovators are facing challenges that are slow to improve. While it is true that slowing homebuyer demand is influencing builders to step back, we know that total housing starts have yet to fully reflect this slowdown. Like homebuyers, high interest rates restrict builders’ access to capital and increase the carrying cost of the debt they already have. This causes them to be more risk adverse

12 10 Billions of 2012$

8 6 4 2

20 23

20 22

20 21

20 20

20 19

20 18

20 17

20 16

20 15

20 14

20 13

20 12

20 11

20 10

Q Total starts from Jan. to June Q Apartment starts from Jan. to June

CHART 2: REAL MONTHLY INVESTMENT IN RESIDENTIAL CONSTRUCTION

Q Total residential investment Q Single dwelling investment Q Multiple dwelling investment

BUILDINGEXCELLENCE.CA

about both future and current projects underway. CHBA’s latest HMI survey found that as a result of high interest rates, 65 per cent of builders have built fewer units and 37 per cent have canceled projects. This means that scaling back the size of developments is currently commonplace. Furthermore, builders continue to face challenges with accessing trades. The HMI found that 46 per cent of builders characterized access to trades as difficult, while 40 per cent also stated that trades access is a significant source of construction delays. While the circumstances of individual builders still vary greatly, difficulties maintaining timely access to the required labour is a challenge felt by builders from coast to coast. Stimulating private sector home construction, through broad changes in government policy, is the only option Canada has to improve the demand-supply balance of housing markets across the country. If no changes are made, Canada will continue to see housing starts far below what is required, resulting a widening housing supply gap and a continuation of unaffordable housing. CHBA continues to advocate for the end to interest rate hikes and for housing policies across all levels of government to work in unison to support more housing supply. It is imperative that we reverse the downtrend residential construction activity and start making sustainable progress towards the government’s own target of building 5.8 million homes by 2030.

WINTER 2023

S P O N S O R E D CO N T E N T

OWENS CORNING A CULTURE OF INNOVATION AND RESPECT

Owens Corning’s Valleyfield Plant in Quebec

ithout necessarily knowing it, Owens Corning is widely recognized. The company manufactures fibreglass insulation, shingles and roofing accessories, as well as mineral wool and extruded polystyrene rigid insulation, installed in a significant number of buildings and homes from coast to coast. A look back at 80 years of innovation and environmental awareness by an industrial giant easily recognizable by its mascot, the Pink Panther. It was in 1938, exactly 85 years ago, that Owens Corning invented FIBERGLAS insulation. This thermal and noise-absorbing insulation changed the construction industry and increased the energy efficiency of buildings, thus increasing the comfort of their occupants.

“ Owens Corning is committed to continually providing sustainable building materials and building enclosures that mutually ÙäĢäƈő ÚĩĢőŅÁÚőĩŅŉ͖ ÙŖĆěàäŅŉ͖ ÁĢà ĩūĢäŅŉ͕ Long live the ÚĩġłÁĢű͕”

WINTER 2023

A Fortune 500 company for the past 66 years, Owens Corning employs 19,000 peoplee in 31 countries. Innovation is at the heart of its business. So much so that the company helped design the beta fabrics used in the Apollo spacesuits in the 1960s and 1970s. In Canada, Owens Corning has two plants that manufacture PINK FIBERGLAS insulation, one in Toronto, and one in Edmonton. It also operates a plant that manufactures FOAMULAR extruded polystyrene rigid insulation in Valleyfield, Que. In Guelph, Ont., Owens Corning owns one of 32 Owens Corning composite plants located in the world. Thanks to its composite materials division, Owens Corning is a global pioneer and leader in the production of fibreglass reinforcement, and non-woven and specialty composite materials, with a long-standing focus on product innovation with a customer-centric approach. The Owens Corning Science and Technology Center, located in Granville, Ohio, is where many research and development activities are conducted, and where the company’s researchers and scientists continually strive to provide promising and innovative, sustainable building materials and solutions for the North American market. In January 2021, Owens Corning (NYSE: OC) announced a new product line: FOAMULAR

Owens Corning’s Scarborough Plant in Ontario

NGX (Next Generation Extruded). The proprietary blowing agent in this new line of extruded polystyrene (XPS) foam products delivers a 90-per-cent reduction in global warming potential (GWP) without sacrificing product performance1. And more recently, Owens Corning launched PINK NEXT GEN FIBERGLAS Insulation. It’s not just the next generation of PINK insulation – it’s the new standard. And the right choice for safety, precision, comfort and sustainability. Owens Corning is committed to continually providing sustainable building materials and building enclosures that mutually benefit contractors, builders, and owners. Long live the company. For more information about complete enclosure solutions for all your building construction projects, reach out to the Canadian Building Science Team at owenscorning.ca.

BUILDINGEXCELLENCE.CA

Join us at #BUILDEXVancouver February 14 & 15, 2024 Vancouver Convention Centre West www.buildexvancouver.com

R E N OVATO R S’ c o r n e r

RENOVATORS’ FORUM (VIRTUAL)

RENOVATOR SUPPORT AND RESOURCES

FEBRUARY

GET EXCITED ABOUT WHAT’S COMING UP IN 2024

BY SARAH CARON, DIRECTOR OF RENOVATION SERVICES, CHBA

enovators are a core group within CHBA’s membership. There are more than 1,000 renovator companies and nearly as many trade contractors in the association from coast to coast. At the national level, CHBA is your voice with the federal government, doing critical advocacy work to help your business. And we’re always looking for ways to help members’ businesses achieve greater success. Renovators have identified education and building code training as the most important areas where CHBA can help. In partnership with local HBAs, CHBA is currently offering energy efficiency training to renovators via the Local Energy Efficiency Partnerships (LEEP) and Net Zero initiatives, such as the Towards Net Zero Renovations Bootcamps. In addition, the

NATIONAL BUILDING CODES

Adaptiv Home Renovation Course was developed by CHBA to address accessibility and aging-in-place within the Canadian context.

QUARTERLY WEBINAR SERIES CHBA is launching a quarterly webinar series in 2024. These free, one-hour webinars will focus on specific topics of widespread interest by renovators. The webinars will feature subject matter experts and include a one-page resource when possible. The topics will be updated annually.

There are many HBAs offering high quality training to their members. Some of these courses are offered in-house, while others are

Q3 Q4

TAX INCENTIVES & REBATES

WINTER 2023

Energy efficiency • Accessibility and aging-in-place • Incentives or tax credits for homeowners • Contracts

HBA TRAINING HUB

CONTRACTS

TOPICS IDENTIFIED AS HIGHEST P R I O R I T Y:

MARKETING STRATEGIES

available through a third-party provider. Many of these courses match the skills identified by renovators as important to their business, such as project management, accounting and customer service. In 2024, CHBA will take a more active role in connecting renovators to the training available across the country. This will include highlighting the various courses available on the CHBA website, in CHBA’s Renovator Review newsletter (which is emailed every two months to renovator and trade contractor members), and within CHBA’s Building Excellence magazine.

INFORMATION SHARING AND NETWORKING Renovators have identified the need for information sharing and opportunities for networking. CHBA’s Canadian Renovators’

BUILDINGEXCELLENCE.CA

CRC MEETING @ CHBA HOME BUILDING WEEK IN CANADA

APRIL

CRC-MC MEETING (VIRTUAL) JUNE

MAY

CRC-MC MEETING (VIRTUAL)

OCTOBER SEPTEMBER

RENOVATORS’ FORUM (VIRTUAL)

Council (CRC) provides a formal conduit between CHBA and the provincial HBAs to address renovators’ needs. There is also an opportunity to increase engagement and input from renovators at the local level.

RENOVATORS’ FORUM In 2024, CHBA will invite the Chairs of all HBA Renovators’ Councils (or a local renovator representative if there is no council) to participate in a renovators’ forum. This group, along with the CRC and Local/ Provincial Executive Officers, will meet virtually two times a year to discuss a variety of topics to inform CRC and CHBA priorities for renovators.

CRC-MC MEETING (VIRTUAL)

DECEMBER/JANUARY

CRC MEETING @ CHBA FALL MEETINGS

ONLINE MESSAGING PLATFORM In an effort to boost even more engagement from renovators across the country, CHBA will launch an online messaging platform as part of the revamped CHBA website coming in 2024. This will allow renovators to chat, ask questions, and solicit business advice from their peers anywhere in the country. The goal is to tap into the collective knowledge of the industry to find solutions for immediate business or technical issues. How can CHBA support your renovation business? Reach out to Sarah Caron (sarah.caron@chba.ca), Director of Renovation Services with your suggestions.

“ We’re always looking for ways to help members’ businesses achieve greater success”

MODULAR homes

Horse Dance Lodge

Modular-built

productivity IMPROVEMENTS TO PRODUCTIVITY ARE A CORE COMPONENT OF CHBA’S SECTOR TRANSITION STRATEGY BY NATASHA ROMBOUGH, DIRECTOR, MARKETING AND COMMUNICATIONS, CHBA

f there’s one challenge that has been constant for Canada’s residential construction industry in recent years, it’s reliable access to skilled tradespeople. And with baby boomers retiring – BuildForce Canada says we can expect 20 per cent of our labour force to retire, with 40 per cent reaching 55-plus, in the

WINTER 2023

coming decade – the difficulties will only increase. Add in Canada’s housing shortage and the need to double housing starts over the next decade to somehow produce 5.8 million new homes, plus the federal government’s commitment to achieving net-zero emissions by 2050 (which will require

extensive renovations of existing homes), and the situation is unmanageable. Immigration has a role to play in augmenting the industry, and it will take smart immigration policies to make sure labour shortages in residential construction are addressed. Our industry offers a pathway to successful careers

BUILDINGEXCELLENCE.CA

Representatives from Big Block, Silver Sage Housing Corporation, File Hills Qu’Appelle Tribal Council, Regina Treaty / Status Indian Services, Government of Saskatchewan, and City of Regina.

for immigrants, but we need to target the right entrants with the right competencies, transferrable experience, and desire to build a career in the industry. During CHBA’s Day on the Hill in May, Housing Minister Sean Fraser spoke of changes coming to Canada’s immigration, which will be an important change for the sector, and CHBA is seeking still more improvements to help ensure we get the workers we need. (See more about immigration’s role in solving the skilled trades shortage on page 30). But the reality is that Canada will be hard-pressed to make up the skilled trades gap, even with improved immigration. What we need is an industry transition that

BUILDINGEXCELLENCE.CA

approaches homebuilding in ways that allows our sector to become more productive. The solution to improved productivity is factory-built construction, including panelization and modular construction – this is not a new concept, but to get there will require new and innovative supportive government policy.

FACTORY-BUILT SOLUTIONS In modular construction, the home is built in one or more three-dimensional modules in a factory and then shipped to the site. Panelized

systems – where two-dimensional wall and floor panels are pre-built in factories and shipped to site – are also an option for making use of factory-built construction. Both approaches can be used for small homes to large homes to multi-family buildings. Factory construction offers many benefits and opportunities. It’s more efficient from a time and material perspective, which gives it an edge over on-site construction. It’s also shown to create less greenhouse gas emissions and construction waste.

WINTER 2023

TOP BENEFITS OF FA C T O R Y- B U I LT CONSTRUCTION • Faster construction with fewer delays • Year-round work with limited weather issues • More energy efficient and less waste • Increased output with less labour • Easier to get labour (fewer barriers to entry, appealing conditions, good for immigration, including temporary foreign workers)

According to CHBA’s Housing Market Index (HMI), nearly 30 per cent of respondents used some form of factory-built components (such as modules and wall panels) in the last year, and 90 per cent are considering using them in the next one to three years. Clearly, builders are seeing the advantages of the reduction in on-site construction time and reduced labour requirements. We need to lean into adopting more factory-built solutions, but there are challenges to overcome to do so.

FACTORY-BUILT CHALLENGES There are already many modular housing and panelization factories across the country, but to transition the industry to making more use

WINTER 2023

Inside the Grandeur Housing factory.

of the solutions and the added productivity they offer, we’ll need to make use of and expand the capacity of existing factories and add more factories moving forward. That’s easier said than done. The ebbs and flows of demand for housing can impact companies’ ability to sustain the necessary throughput to warrant factory development and/or expansion. There is a substantial capital cost investment required to set up a factory, with high overhead, and even more to maximize productivity through advanced automation, which means there can be substantial risk in market slowdowns. Factories require a steady workforce and consistent demand/throughput, and carry high overhead, which makes them not as flexible during boom-bust cycles as site-built

construction. Some financial institutions still aren’t well-versed in financing flexibility for the modular construction process, and there are other systemic barriers as well.

TRANSITIONING THE SECTOR CHBA’s Sector Transition Strategy provides the government with concrete steps it can take to help to address Canada’s housing crisis and improve housing affordability through the increased productivity of factory-built solutions. The Strategy was developed with input and feedback from members from across the country via CHBA’s national committees and councils. CHBA’s Modular Construction Council, which is made up of representatives from many of Canada’s current factories, outlined key elements for this transition of the sector during a strategic planning session in the spring of 2023, including identifying many of the benefits and barriers to such a transition. The Strategy was further refined at CHBA’s fall meetings. Since then, CHBA has presented it extensively to government officials, including in discussions with Sean Fraser, the federal minister for housing. The Strategy outlines four needed systemic changes: Change to the financial system to enable Canadians to buy their first homes and to enable investment in purpose-built rental, both in turn enabling more housing starts; change to policies that allow for fast-tracking of development and lower construction costs;

BUILDINGEXCELLENCE.CA

Horse Dance Lodge modules being craned and installed on the site.

change to the labour system to provide enough workers; and change to productivity, which will require substantial capital investment that must be incented and de-risked. This latter section on productivity is elaborated on extensively, offering concrete recommendations for government policy and programming to see it come to fruition. The fact of the matter is that to increase productivity to increase housing supply and affordability, which is the core of the transition strategy, the government needs to support investment in factory-built construction with the same urgency and approach as they are focusing on Canada’s clean economy plan. CHBA’s Strategy explains how.

BUILDINGEXCELLENCE.CA

EXAMPLE OF SUCCESS: RAPID HOUSING PROJECT IN REGINA A great example of modular productivity is the construction of Horse Dance Lodge in Regina. The three-story, 29-unit assisted-living residential building was completed by CHBA members Big Block Construction and modular factory Grandeur Housing, along with many other collaborators, including project owners Silver Sage Housing Corp., which provide and

promote high-quality social housing for First Nations people living in the Regina area. The project was part of Canada Mortgage and Housing Corporation’s (CMHC’s) Rapid Housing Initiative (RHI). Launched in 2020, the RHI provides finding to facilitate the rapid construction of new housing and the acquisition of existing buildings for the purpose of rehabilitation or conversion to permanent affordable housing units.

WINTER 2023

Image: David T. Fortin Architect

Horse Dance Lodge was successfully completed on time and on budget, going from foundation to handover in five months. Big Block and Grandeur Housing have been working together for more than 10 years and have honed a great working rhythm. CEO Alex Miller says he hopes that learnings from successful RHI projects are unpacked so that they can be scaled and applied across the country. “If we take less of a shotgun approach to these projects and instead make sure that we dive in and scale the elements that are working, that’s what’s going to help solve the housing shortage problem,” Miller says. The project wasn’t without its challenges, though. To meet project construction timelines, the modules were craned into place on April 12 and 13, 2023. But some approvals were only confirmed on March 28. How was that possible? Risk. To ensure the project was complete on time and on budget, construction in the factory was started before all items were

finalized, which caused a lot of added stress in addition to risk. It took 142 days to build the entire 20,000-sq.-ft. structure in a factory. It took longer just to review and approve the permits. “Sharing risk is one thing,” says Miller, “but taking unnecessary risk is something we all have to pay attention to because it’s critical to all housing projects.” Miller sees the systemic problems within the residential construction industry as opportunities to improve and get more houses built faster and more cost-effec-

tively. “This project was craned into place in one-and-a-half days. Our current single craning crew can crane 5000 units a year. Imagine if we could solve some of the systemic problems? We have the answer to the housing shortage right in front of us.” The Rapid Housing case study of Horse Dance Lodge was the subject of a recent webinar in CHBA’s “Working with Modular” webinar series. You can watch the webinar at chba.ca/modular#modular-series.

BUILDINGEXCELLENCE.CA

HOME BUILDING WEEK IN CANADA

May 6-10, 2024 Saint John, New Brunswick Connect with your peers from across the country. Find out what’s driving the residential construction industry at the premier national home building event of the year!

For Industry Leaders. CHBA National Committee and Council Meetings + CHBA National Conference

chba.ca/homebuildingweek

S K I L L E D t ra d e s

SOLVING SKILLED TRADES SHORTAGES CANADA NEEDS TO RELY ON IMMIGRATION TO HELP ADDRESS SKILLED TRADES SHORTAGES ACROSS THE COUNTRY BY LEAH NORD, SENIOR DIRECTOR, OPERATIONS, CHBA

e have a skilled labour shortage in Canada. The federal government has stated that we need to build 5.8 million homes over the next decade to address housing affordability and chronic lack of supply, which is double the housing starts annually we’d normally have. Yet, according to BuildForce Canada, 20 per cent of workers are going to retire within ten years, and nearly 40 per cent will be over the age of 55. We need more than 100,000 workers to replenish the retirees to maintain the status quo, but we don’t have the projected domestic workforce capacity to do so, let alone to double housing starts, or to meet the increasing demand for renovations and retrofits. Additionally, with government’s ambitious immigration targets and the upsurge of temporary residents, there will be even further pressures on the Canadian housing market. In response, there has been some push back in some circles to Canada’s immigration numbers. This pushback is misplaced: Immigration isn’t the issue, housing supply is. And to increase housing supply, Canada is going to need new Canadians to help us build those homes.

WINTER 2023

PROMOTING CAREERS IN SKILLED TRADES CHBA’s first pillar to address labour shortages in the residential construction industry is to attract and retain more Canadians. Collectively, we need to promote skilled trades and the residential construction sector to Canadians – including non-traditional talent pipelines (youth, women, minorities, second career and veterans) – as an enviable employment option. We also need to focus on retention and promotion within the industry, and to invest in training and upskilling to support individuals through their careers.

IMMIGRATION Secondly, we need to increase immigration specifically for residential construction. Historically, Canada’s tradition has been to accept immigrants with higher education and professional degrees, rather than skilled trades. In 2022, the Government of Canada introduced a six category TEER system (Training, Education, Experience and Responsibilities) for all occupations in Canada. The current immigration system for economic immigrants (roughly 60 per cent of

C A N A D A’ S I M M I G R AT I O N T E E R SYSTEM TEER 0 = Management • TEER 1 = University Degree • TEER 2 = College Diploma or 2+ years apprenticeship training • TEER 3 = College Diploma or <2 years apprenticeship • TEER 4 = Secondary School Diploma • TEER 5 = No formal education immigrants coming into Canada) leans heavily into TEER 0, 1 & 2, sometimes dipping into TEER 3. In May 2023, the government of Canada introduced an innovative initiative into the immigration selection process for economic immigrations (known as Express Entry): For the first time, there will be a categorybased selection process for priority jobs in high-demand sectors, including the building trades.

BUILDINGEXCELLENCE.CA

The federal government identified 10 priority construction industry occupations. Plumbers, machine fitters, millwrights and welders fall into TEER 2 and residential/ commercial installers and servicers are TEER 3 occupations. The latter includes eavestrough installers, exterior cladders, irrigation technicians and window installers. This new initiative is definitely a step forward, and CHBA has welcomed this shift. However, further focus needs to be placed on the residential construction sector specifically. CHBA is advising government that in addition to those already on the government list (carpenters, electricians), priority professions include framers, installers, plasterers and finishers. And one of the most in-demand needs are for general labourers and trades helpers, which are in TEER 5. Residential construction offers a pathway to successful careers for immigrants, but we need to target the right entrants with the right competencies, transferrable experience and desire to build a career in the sector. Applicants don’t need extensive qualifications in these lower TEERs, but they do need affinity to this kind of work and language proficiency, and from there can grow into valuable skilled workers for the sector. But a new approach brings several new questions. How do we assess competency in non-credentialled professions for entry to

BUILDINGEXCELLENCE.CA

“ To increase housing supply, Canada is going to need new Canadians to help us build those homes.”

Canada? How can we have confidence that these new Canadians are qualified, with language proficiency for health and safety? How do we job match and best facilitate labour market integration? CHBA is engaged with the government with recommendations to answer all of these questions, and as a willing partner to help ensure this can happen successfully.

TEMPORARY FOREIGN WORKERS CHBA also knows that the Temporary Foreign Worker Program (TFWP) needs to be modernized to allow greater use by the residential construction sector. Outside of our members involved in factory-built systems, few of our members who build onsite use the program. Small companies, which are common in our industry, don’t have the awareness or capacity to navigate the lengthy, costly, cumbersome TFWP process. The federal government will need to improve the timelines and approval processes, better adjust permit requirements to respond to the cyclical nature of our industry, consider pathways to permanent residency, and even possibly focus on target countries. All of this requires a different, concerted and collaborative effort among all levels of government, industry representatives, companies, communities and individuals. The task is monumental, but not insurmountable. It’s an exciting opportunity and CHBA is working to have the next generations of Canadians effectively help tackle our housing affordability crisis.

WINTER 2023

S P O N S O R E D CO N T E N T

IDS TORONTO SET FOR 25TH ANNUAL EVENT JAN. 18 TO 21, 2024

nterior Design Show Toronto, presented by Miele, is back Jan. 18 to 21, 2024 at the Toronto Convention Centre, for its 25th year. IDS celebrates and promotes the best in global and Canadian design, from emerging designers to legacy brands. It is a platform to launch never-before-seen products and design solutions for the future. On the show floor, besides the 250-plus exhibitors showcasing their latest products, you can also experience unique designed spaces. One feature is The Future Neighbourhood, designed to inspire and simulate conversation. Six design teams – including Interior Architects (IA), Noam Hazan, Safoura Zahedi, a collaboration between SDI Design and Q4 Architects, SVN, and Syllable Design – explore how interior design will continue to adapt and shape our lives. The inspiration for this feature is the city of Toronto. Visitors will walk down a central “street” then enter each installation, experiencing design solutions to a problem, including the housing crisis, aging in place and the introduction of technology into different interiors. Near the entrance to the show floor, attendees can visit Select – an exclusive and invite-only furniture feature that will display some of the trendiest and noteworthy premium furniture pieces on the market. Then there’s Modern Prefab, an exhibit of modern prefabricated buildings. As homes become a mixture of life, work and everything in between, people are looking for new ways to expand their space. These new structures offer unique solutions to add modern luxury and functionality to open spaces.

WINTER 2023

Favourite ite exhibits, Studio North and Prototype, support emerging Canadian designers by displaying their work on the show floor in The District. The main stage keynote program, included with a show pass, is a forum to discuss the latest issues in the interior design industry, as well as a look forward at how the innovations of today will tackle problems and create solutions for the future. Speakers rs include famous Canadian and internationall names in interior design and architecture, such as Lynda Reeves, founder of House & Home Magazine. The biggest design show in Canada gets ts started with an opening night kick-off partyy on Jan. 18 at 7 pm. Celebrate design as the trade floor transforms into a unique party experience with three DJs and performances es from Canada’s Drag Race alumni, Miss Moço o and Tynomi Banks, on the main stage.

For more information and to get tickets, visit idstoronto.ca.

BUILDINGEXCELLENCE.CA

N E W T R U C K S a n d VA N S

SERVICE VEHICLE SHOPPING IN THE PRE-EV ERA LOOKING FOR A NEW PICKUP OR PANEL VAN IN THE PRE-EV ERA? THERE’S STILL PLENTY OF ICE AROUND

The New Tacoma he 2024 Tacoma has a new look. Toyota Canada says the mediumsized pickup has been redesigned. The V6 is gone, replaced by two turbocharged four-cylinder engines. One of them is a hybrid, the iForce Max that churns out 326 hp and 465 lbs-ft. of torque. The ICE Taco turns out 278 hp and 317 lbs-ft. of torque. Towing capacity is 6,500 lbs. Payload is 1,709 lbs. Toyota Canada says the new Taco will be offered in numerous grades and configurations for its new generation, and two cab styles with either a five- or six-ft. bed, a four-door Double Cab and a new two-door XtraCab with what the automaker calls “clever storage features behind the front two seats.” XtraCab is all about maximum utility and comes with seating for two, a functional rear cabin storage area, and a six-ft. bed. The automaker says the new Taco has no rear doors and no rear seats, but makes the most of its cabin with all kinds of additional storage options. Lockable storage on the rear floor is useful for storing things like small packs, toolboxes. A lockable storage on the back panel can hold items such as tools. Quick access to rear storage is aided by a long-slide driver’s seat with slide memory. Additionally, the passenger seat can fold flat for use as a workspace. Comes with a water bottle holder. There’s an eight-in. touch screen and a 14-in. available. There’s a shelf on the instrument panel. You can put your phone there. Standard on all grades is a Smart Key System with push-button start.

WINTER 2023

Interior 2024 Tacoma

SAFETY SYSTEMS ARE STANDARD All 2024 Tacoma models come standard with Toyota Safety Sense 3.0, Toyota’s suite of active safety. The automaker explains that these enhancements are made possible by system sensors with improved detection capability as for example, the Pre-Collision System with Pedestrian Detection. Sticker shock? At time of writing in late November, Toyota Canada had not disclosed any pricing. But the 2023 model starts at slightly more than $44,300.

BUILDINGEXCELLENCE.CA

RAM 1500 for 2024 he 2024 Ram 1500 comes in a Quad Cab with a six-ft.-four-in. bed, or in a Crew Cab with a five-ft.-seven-in. bed or six-ft.-four-in. bed. The Quad Cab measures 228.9 inches. The Crew Cab with the shorter bed runs 232.9 inches. The Crew Cab with the longer bed is 241.8 in. long. The optional RamBox adds a pair of locking and drainable storage boxes on both sides of the bed. Other bed options include a spray-in bedliner, bed extender, upper adjustable tie-downs and deployable bed step. Also available is a multi-function tailgate that’s split vertically. It can be opened barn-door style. Towing and payload depend on the truck’s layout, as well as the trim and options, so be sure you match the truck you want to buy with what you need it to do. Overall, the Quad Cab has a maximum towing capacity of 7,500 lbs and payload of 2,300 lbs with the V6, and 12,750 lbs towing and 1,940 lbs payload with the V8. The Crew Cab can tow up to 7,550 lbs and has a 2,030-lb payload with the V6 and a 11,540 lbs of towing power. The V8 has a 1,860-lb payload. The TRX can tow up to 8,100 lbs and has a payload capacity of 1,310 lbs. In case you have some enviro concerns but aren’t interested in going full EV, there’s a RAM eTorque mild hybrid in a V6 (standard) or a V8. Although it’s not brand new for 2024, it’s worth a looksee. The eTorque’s 48-volt mild hybrid system adds up to 130 lb.-ft of torque for increased low-speed acceleration, especially good when towing or hauling a heavy load. The eTorque comes standard with the 3.6L Pentastar V6 engine and is available with the 5.7L HEMI V8 engine. The eTorque is a juggler: When its electric engine – the 48-volt – is on, the gas-powered is off. When you brake, the energy expended goes to the electric engine to add to its range. While all this is going on, the gas-powered engine waits patiently for its turn to run the eTorque3. Max towing muscle for the eTorque3 is 12,749.33 lbs. The Ram 1500 features up to 12,750 lbs. of towing capability and 2,300 lbs. of payload. The Ram’s safety and security systems include Adaptive Cruise Control, Forward Collision Warning, Blind-spot Monitoring, 360 Degree Surround View System and Ready Alert Braking. They’re options. The automaker says the 2024 1500’s easy handling is accomplished with a link-coil rear suspension system with active-level, four-corner air suspension with adaptive damping. These features are segment-exclusive, the company says. Ram 1500 Tradesman Warlock for 2024 has off-road features, including an electronic rear-locking differential, skid plates, one-in., raised ride height, 33-in. Goodyear Wrangler DuraTrac tires, and Bilstein front and rear performance tuned-shock absorbers. They are all standard equipment.

BUILDINGEXCELLENCE.CA

2024 Ram 1500 Tradesman

All 2024 Ram 1500s now include a Tailgate Ajar warning lamp as standard equipment. On offer is the RamBox Cargo Management System which helps keep your valuables and tools safe and secure. Lockable, drainable with LED lighting and a 115 volt power outlet, the System can be locked and unlocked remotely with your key fob.

THE COST OF DRIVING RAM TOUGH The 2024 Ram 1500 starts at $51,820 for the quad cab in Tradesman trim 4x2 and rises to $59,320 for the Big Horn trim in 4x2. It’s $53,520 for the base Tradesman 4x2, and $57,520 in 4x4 rising to the Limited 4x4 at $85,820 to the TRX at $119,670. The Final Edition with all the bells and whistles will set you back $150,270. At the upper end, the Limited 4x4 starts at $85,820. If you want to go all-out, the TRX starts at $119,670, while opting for the Final Edition will set you back $150,270. Add to this, there’s a delivery charge of $2,095 for all the 1500 line except the TRx. That charge is $2,795. Prices may vary as to province and dealer may sell for less. Should you go for a test drive, take along your accountant. That goes for any make and model – pickup or panel van.

WINTER 2023

Ford F-150 interior

F150 still Ford tough and smart he Blue Oval’s big seller gets some add-ons for the 2024 edition. The turbo-charged 2.7 litre EcoBoost is the standard engine. It churns out 325 hp and 400 lbs-ft. of torque. Still on tap are the 3.5-litre EcoBoost, 3.5-litre PowerBoost hybrid and a 5.0-litre V8 engine.

Ford F-150 tailgate

gerber-ca.com

Take it all in

NEW TRIBUNE™ FAUCET COLLECTION

Tribune™ 6" Square Single Function Showerhead, Tub & Shower Trim Kit, Satin Black, 1.75 gpm Sirius® Bath Accessories: Satin Black 24" Towel Bar, Paper Holder, Double Robe Hook

D501070BSTC

D446132BS, D446136BS, D446137BS

Tribune™ Two Handle Widespread Satin Black Bathroom Faucet D304170BS

Viper® 1.28 gpf 12" Rough-In Two-Piece Elongated ErgoHeight™ Toilet

The hybrid’s battery offers ProPower technology you can use to power your tools and other equipment. There’s a new tailgate available. It fits all three of the F150’s box lengths. It opens from left to right in three positions – 37, 70 and 100 degrees. The Blue Oval folks say the new tailgate makes it easier to load the bed and provides better access to its contents when a trailer is hitched to the truck. The F150 still tows up to 13,500 lbs. Ford boasts that’s top of the segment. The 2024 goes on sale in early 2024. The tailgate won’t be available until the spring. AWD is available on all models.

THE COST OF BEING FORD TOUGH

GWS31518

Western Canada’s premier plumbing, heating, and electrical wholesaler

The XL 4x2 regular cab model starts at $49,655. The STX 4x4 Super Cab starts at $62,740. A Lariat model costs $80,495. The Platinum model will set you back at least $100,750. And the Raptor starts at $108,895.

bartlegibson.com

BUILDINGEXCELLENCE.CA

Right: 2024 Ford Transit Below: Chevy Express

The Big and Little Boxes THE BIG BOX The 2024 Ford Transit Cargo Van is a solid entry in the large cargo van category. Horsepower runs from 275 to 310 depending on which one of the 38 van trims you’re after. All are rear-wheel drive. Seats two. MSRPs run from $56,395 to $76,000. All Transits have V6 engines. All run on Flex fuel as well as regular gas. Flex fuel is made of corn. If your local gas station doesn’t sell Fex fuel, no matter, your Transit will run on regular gas. Coming in the summer of 2024 is a hybrid engine and a wide range of safety devices, such as lane keeping, adaptive cruise control and automatic emergency braking. Keep in mind: Anything the Transit you’re looking for lacks, an upfitter may be able to add. So, take time to sit down with your dealer and see what the upfitter can do for you.

THE NOT SO SMALL BOXES The 2024 Chevy Express Cargo Van comes in two models, the 2500 and 3500. The 2500 can haul up to 8,600 lbs and tow up to 3,234 lbs. The 3500 can haul up to 9,900 lbs and tow up to 4,192 lbs. The standard engine is the 4.3L V6. It generates 276 horsepower and 298 lb.-ft. of torque. It’s paired with an eight-speed transmission. The 3500 comes with a 6.6L V8. It churns out 401 horsepower and 464 lb-ft. of torque. Max trailering weight is 10,000 lb. Comes with an eight-speed transmission. Rear swing-out doors are standard. Rear swing-out hinged cargo doors and cargo doors are available. Want more? Speak to the upfitter. They may be able to help you. Standard safety devices include rear vision camera, tire pressure monitoring. Rear-park assist, side blind zone alert, lane departure warning and forward collision alert are available. Starts at $49,324.

MADE

NEW!

TRMB

10oz TRIMBONE™ TITANIUM HAMMER DESIGNED FOR FINISH. 45% LESS WEIGHT • COMPACT D-FACE • REPLACEABLE GRIP AND FACE • 180º SIDE NAIL PULLER - PULLS UP TO 16D NAILS WITH EASE

CARPENTER SQUARES STSQ7-L

STSQ4

STSQ7

More Layout Notches. Build & Level Faster.

ENTER TO WIN A STILETTO® PREMIUM PRIZE PACK

500+

VA L U E

buildingexcellence.ca/ stiletto-contest/

BUILDINGEXCELLENCE.CA @StilettoTools |

@Stiletto_Tools | Stiletto.com

TO P N E W To o l s

Tool talk

BY JAMES POLLARD

IT’S OUR ANNUAL COLLECTION OF THE MOST INNOVATIVE NEW HAND AND POWER TOOLS ON THE MARKET TO HELP YOU GET THE JOB DONE FASTER AND SAFER

MAKITA 80-VOLT CONCRETE SAW

SKIL MULTIVOLT FOUR-IN. CLAMP FAN MODEL: FN0400D-00 We all know that the snow will eventually go away, and when the heat returns, you’ll be glad you added this portable, clamping fan to your collection. Powered by Skil’s 12- or 20-volt batteries, it puts out 200 CFM, shoots out breezes of 11 mph (18 kph) and runs up to 14 hours on one charge. At less than $60, it’s easy to add comfort to your day. skil.com

MODEL: CE001GL401 Makita now has a line of 80-volt cordless tools that are powered by two of its 40-volt batteries. One is this 15-in. wet/dry power cutter. It’s packed with a number of tech features to protect the tool and its user, including a current limiter to accidental overloads from damaging the motor and a kickback sensor that automatically shuts it down. The kit comes with four batteries and a charger, or it’s available as a bare tool. makita.ca

BUILDINGEXCELLENCE.CA

DEWALT 60-VOLT SINGLE STAGE SNOWBLOWER MODEL: DCSNP2142 ‘Tis the season to have to deal with last night’s snowfall before you can start the day’s job. Make light work of the task with DeWalt’s new 60-volt snowblower. With a seven-in. steel auger to break down wet or compact snow, the unit can clear 16 parking spots on one charge and throw the snow up to 40 ft. away. There’s an LED dashboard where you can select Eco Mode for longer battery life and a Max Power Mode for moving wet, heavy snow. dewalt.ca

MILWAUKEE 18-VOLT HALF-IN. HAMMER DRILL/DRIVER MODEL: 2704-22 Milwaukee’s latest half-in. hammer drill has landed on many “best of” lists, and the manufacturer itself pulls no punches claiming it to be “the most powerful 18-volt cordless drill on the market… and the most compact drill in its class.” The company backs that up with stats such as delivering up to 1,200 in. – pounds of torque and up to 2,000 RPM, making fast work of your drilling or driving jobs. The kit comes with a battery and charger, or it’s available as a bare tool. milwaukeetool.ca

FESTOOL 36-VOLT CORDLESS TABLE SAW CSC SYS 50 Festool claims that with its 36-volt cordless table saw, you’ll be able to “produce shop-quality cuts on the jobsite.” This is achieved via digital adjustments that are accurate to within 1/256th of an inch. Make crosscuts up to 17-3/4 in. wide, 11-in.-wide rip cuts in stock up to 1 7/8 in. high, and bevels from -2 degrees to 47. It also connects to the company’s Systainer storage system. festoolcanada.com

RYOBI 1,800-WATT POWER STATION MODEL: RYI818BG Our jobsites are increasingly becoming portable, high-tech offices and we have an ever-growing need to charge batteries, phones and laptops. This award-winning 1,800-watt charging station is powered by up to eight 18-volt batteries. With that much charge in place, it can power a full-size fridge for up to 28 hours – or all your daily jobsite needs. There’s an LED screen and Bluetooth connectivity to monitor charge levels. It can also connect to a portable solar panel for charging, and can be used indoors or outdoors. ryobitools.ca bitools.ca

DEWALT 60-VOLT CORDLESS HEX BREAKER HAMMER MODEL: DCH966Z Breaking concrete doesn’t have to be backbreaking work, if you have the right tool for the job. DeWalt’s 41-pound breaker delivers up to 41 joules of impact energy, for fast and efficient concrete chipping, channel cutting, and slab demolition. It can connect wirelessly to DeWalt’s lineup of vacuums and dust collectors, and has built-in anti-vibration for user safety and comfort. dewalt.ca

WINTER 2023

WERA NINE-PIECE L-KEY SET MODEL: 3950/9 While you probably refer to these tools as “Allen” keys, that’s a now-ubiquitous brand name (such as Kleenex for tissue or Band-Aid for a bandage). Wera, wisely, uses the generic term L-key for its stainless steel and corrosion-resistant BlackLaser sets. These durable tools are colour-coded to help you easily spot the one you’re looking for. The coloured sleeves also improve grip, particularly with the smaller keys. Available in metric and imperial in varying sizes, all sets come in a carrying case. weratools.com

BESSEY ROTATING TRIGGER CLAMP MODEL: EHKL360 Have you ever found yourself in the frustrating situation of trying to unsuccessfully get a clamp in place in tight quarters? Bessy’s patent-pending clamp will help you get past that hurdle with a handle that rotates 360 degrees around the rail. You can also rotate the handle out of the way for scenarios where you’re need multiple clamps in sequence. Available in five sizes ranging from six to 36 in. besseytools.com

Customer service 101 LEAVE YOUR JOBSITE CLEAN AND YOUR CUSTOMERS HAPPY BY PACKING THIS CLEANING KIT. • Ditch the dusty, oil-stained drop sheets for some rubberized mats that roll up for easy storage. • At the end of the day sweep up nails, screws and other bits of metal debris with a magnetic broom. • You can never have too many clean rags to wipe up spills and catch drips. Watch for them to go on sale and stock up.

BUILDINGEXCELLENCE.CA

MEMBERSHIP MAKES A DIFFERENCE

MAKE THE MOST OF YOUR CHBA MEMBERSHIP Save big with

Access

Be alerted to

Get discounted

CHBA’s National

webinars and

critical federal

prices on

Advantages

professional

and national

instructional

program

development

industry issues

manuals

opportunities

Free access

Win big

Discounted

Stay informed

to CHBA’s

with CHBA’s

events,

with regular

Homebuyer

National

like NAHB’s

e-newsletters

Preferences

Awards for

International

Study and

Housing

Builders’ Show

Results

Excellence

As a CHBA member, you have free access to all of these member services. And so does anyone else working in your organization. So spread the word!

WWW.CHBA.CA YOUR MEMBER SERVICES HUB Don’t have access yet? Request via communications@chba.ca

I N S I D E R i n fo

TIMBER RISING:

HOW WOOD CAN SPUR CANADA’S GREEN BUILDING DRIVE BY MYHA TRUONG-REGAN, HEAD OF CLIMATE RESEARCH, RBC CLIMATE ACTION INSTITUTE

hile towering steel-and-concrete structures once symbolized economic growth, they are now emblematic of the climate challenge that needs to be scaled. The extensive use of carbon-intensive cement, steel and aluminum in buildings has made it the third most emissions generating sector in Canada, accounting for 92 MT of CO2e, or 13 per cent of all emissions in 2022. Rising populations and a rush to develop multi-storey concrete buildings to address a housing supply crisis could make it harder to rein in emissions. Canada can tap into its rich forestry resources to create a global market for large beams, panels and posts made of engineered wood, that can potentially replace concrete and steel or dramatically cut their use – and their associated emissions.

WINTER 2023

Change is already on the way. The rise of mass timber structures dotting Canada – 661 completed and growing – suggests we may be on the cusp of the next wave of sustainable buildings: Made with low-carbon mass timber and assembled like an Ikea wardrobe to help bring down emissions.

THE 9MT EMISSIONS IMPERATIVE Concrete and steel’s emissions profile is six and five times greater than wood, respectively. Within the context of buildings and embodied emissions, concrete, steel and aluminum account for six per cent of Canada’s total emissions or 41 MT of greenhouse gas emissions, in 2022. In multi-storey buildings, the floor system accounts for 50 per cent of a building’s embodied emissions that reside in materials

that are considered especially challenging to decarbonize. Given the emissions profile of a building’s floor system, much of current decarbonization efforts have focused on this structural building element. Multi-storey buildings constructed with a mass timber floor system can reduce their average emissions by 27 per cent for the floor system, and 12 to 25 per cent for the entire building structure, according to builders with extensive experience working with mass timber. Indeed, the sector could cut 5.5 MT in emissions by 2030 if a third of all new apartments and condos and all new office towers, in major urban centres, were constructed using mass timber. Emissions could decline a further 3 MT if all future apartments and condos were construct-

BUILDINGEXCELLENCE.CA

Source: Natural Resources Canada’s Mass Timber database, 2022

BRITISH COLUMBIA AND QUEBEC SPEARHEADING CANADA’S TIMBER DRIVE Completed mass timber projects by province

YUKON 0.3% 2 projects

NUNAVUT

NORTHWEST TERRITORIES

0.2% 1 project

NEWFOUNDLAND AND LABRADOR 0.8% 5 projects

BRITISH COLUMBIA 42% 257 projects

ALBERTA

MANITOBA

9% 57 projects

0.2% 1 project

QUEBEC

PRINCE EDWARD ISLAND

30% 184 projects

0.2% 1 project

ONTARIO

SASKATCHEWAN

15% 90 projects

0.3% 2 projects

NOVA SCOTA NEW BRUNSWICK

1% 6 projects

0.2% 1 project

ed using a mass timber floor system and domestic manufacturing capacity was not a constraining factor. These emission savings demonstrate that small efforts, such as changing one element of a building’s structure, can lead to significant emissions savings, even though the size of the gains may pale in comparison to other purely technology-based solutions, such as heat pumps or electric vehicles.

CANADA’S OPPORTUNITY TO DOMINATE GLOBAL MASS TIMBER MARKET Mass timber accounted for one per cent of all building construction materials in North America last year. The global mass timber market reached $1.6 billion in 2022 and is forecast to rise to $1.9 billion this year. The market is estimated to reach $4.9 billion by

12-25% Drop in builidng emissions if developers swap concrete & steel with mass timber

BUILDINGEXCELLENCE.CA

2030 if global demand continues to grow at an annual rate of 14.5 per cent. Canada’s share of the global mass timber market is $379 million in 2023. And it’s growing, with an additional $649 million expected to be added to the country’s economic output from the production of mass timber, under a scenario where there’s no new manufacturing capacity by 2030. Increased production capacity and efforts by Canada to capture 25 per cent of the global mass timber market could see economic output surpass $1.2 billion by 2030. We expect the sector’s job growth to triple by 2030, to a high of 12,150 jobs across manufacturing, technology, forestry, design and engineering, if future demand materializes. Some of these jobs are anticipated to flow to Indigenous peoples as the employment

6% Concrere, steel and aluminum’s contriubtion to Canada’s emissions

catchment areas of logging sites, sawmills and mass timber manufacturing facilities often encompass their communities.

BARRIERS TO CANADA’S MASS TIMBER AND CLIMATE AMBITIONS The rising number of mass timber projects underway in Canada is a testament to the building sector’s green ambitions. But fundamental challenges are preventing market participants from raising their ambitions at a pace necessary to reach Canada’s climate goals. Insurance underwriting has emerged as the most difficult challenge for both building construction and occupancy insurance. Presently, each building requires a bespoke policy, which significantly adds to a project’s final cost, and is ultimately passed down to the end buyer.

10% Decline in building sector emissions due to widespread use of mass timber

WINTER 2023

“ ġÁěě äƅĩŅőŉ͖ ŉŖÚĂ Áŉ ÚĂÁĢúĆĢú ĩĢä äěäġäĢő ĩù Á ÙŖĆěàĆĢú΃ŉ ŉőŅŖÚőŖŅä͖ ÚÁĢ ěäÁà őĩ ŉĆúĢĆƈÚÁĢő äġĆŉŉĆĩĢŉ ŉÁŪĆĢúŉ͕” Construction insurance premiums for a mass timber building can be up to 10 times the costs of a similar building constructed with steel and concrete. This layer of cost erodes the competitiveness of buildings featuring mass timber and hampers its widespread use in residential, commercial and institutional buildings. Exacerbating the situation is the small and niche market for mass timber. The lack of actuarial data has meant that insurance companies typically insure mass timber buildings to the closest approximate building structure archetype – a wooden frame house constructed with two-by-four lumber. A second structural issue is a mismatch between the location of mass timber production and demand for the material.

WINTER 2023

Some industry estimates suggest that 62 per cent of capacity and 22 per cent of demand is concentrated in western Canada, but 78 per cent of demand and 38 per cent of capacity is concentrated in eastern Canada. One of the biggest impediments for manufacturers in scaling their operations is the cost of acquiring specialized mass timber machinery and technology, which is produced by only a handful of European-based manufacturers. High cost of manufacturing equipment is also preventing new players from entering the mass timber business. The capital required to set up a manufacturing facility, with 50,000 m2 capacity, is estimated to cost $200 million, with the bulk of the costs attributable to machinery.

Canada’s sawmills are also dominated by players that produce “dimension lumber,” rather than mass timber “feedstock,” leading to shortages of the building material.

RECOMMENDATIONS Canada has an opportunity to play a leading role in the global mass timber movement if it adopts the following recommendations: Standardize insurance underwriting to lower costs. Standardizing insurance fire risks for mass timber buildings, during building construction and occupancy, will lower insurance premiums and overall costs for builders and building owners. Continue funding capital expenditure grants. Federal and provincial grants have played a pivotal role in lowering machinery costs and enabling additional manufacturing capacity, either from existing manufacturers or new entrants. Continuing these programs would ensure supply can keep pace with double digit growth in domestic and international demand.

BUILDINGEXCELLENCE.CA

T H E O F F I C I A L M AG A Z I N E O F T H E C A N A D I A N H O M E B U I L D E R S ’ A S S O C I AT I O N

WINTER 2022

Watermark Custom Built Homes, Kamloops, BC.

Modular Solutions

PL US

T OP N EW S L TOO ̟̝̟̟ for

FINDING

Skilled TRADES

Best New

Trucks Vans

Industry News. Trends. Advice.

Get our magazine delivered to your inbox.

Building Excellence The “must read” journal and online portal covering the homebuilding, renovation, and residential development industry in Canada

Got a story to tell? Email our editor Wayne Karl wayne.karl@nexthome.ca

Receive every edition of the official magazine of the Canadian Home Builders’ Association To get the latest builder news, deals and offers, sign up to our e-newsletters!

To get started visit: nexthome.ca/newsletter

D E V E LO P E R S’ c o r n e r

REMOVAL OF GST ON PURPOSE-BUILT RENTAL ADDRESSES LONG-STANDING BARRIER MAJOR WIN FOR CHBA DEVELOPERS BUT ADVOCACY WILL CONTINUE BY NICOLE STORESHAW, DIRECTOR, GOVERNMENT RELATIONS, CHBA

fter years of consistent advocacy from the Association and our members, the federal government announced the removal of the Goods and Services Tax (GST) on purposebuilt rental (PBR) projects as of Sept. 14, 2023. This measure will go a long way to improving the viability of PBR, an important part of the housing continuum. Even before the onset of higher interest rates, the previous business model for PBR simply did not make financial sense compared to condominium projects. “High interest rates have further eroded the practicality of purpose-built rental projects, shelving much needed new housing supply. The elimination of the GST should help get those projects back on track,” says CHBA CEO Kevin Lee. “This is something that has been so important to our developer members that CHBA made it a key feature of our Day on the Hill in May, as well as in our pre-budget submission. We are very pleased that the federal government has removed a large barrier that contributed to supply challenges.” With the elimination of the GST on PBR at the federal level, it will now be very important that provincial governments follow suit with their own taxes on PBR. Currently, Ontario and Quebec are the provinces that provide partial rebates for new rental developments. Also very critical is the need for municipalities to reduce their development taxes, not only on PBR but on all housing.

NEXT STEPS While the home development industry is pleased to see the removal of the GST, the sector is disappointed that the government’s announcement did not include projects already underway when the announcement

WINTER 2023

was made. By not applying this to PRB projects currently under construction, it puts those projects under risk of potentially being converted into for-sale condominium business plans mid-construction because of the current high interest rate environment. In other instances, construction has started and then stopped given the pressure from costs and interest rates. A project could be idle for a long period, converted to condominiums/strata, or the site sold. If the removal of the GST is only applied to apartments that have not commenced construction, this new policy will take at least two to three years to take effect given the slow building permit processes in major urban centres across Canada. This does not include planning approval, which adds more time. Construction schedules for rental apartments are also typically one to two years.

To ensure these projects get delivered as rental buildings, CHBA is urging the government to revise the language of the effective date to include PBR projects currently under construction. This will go a long way to getting more PBR projects completed as soon as possible. The federal government’s announcement on the removal of the GST on PBR has now been drafted into legislation referred to as Bill C-56, An Act to Amend the Excise Tax Act and the Competition Act. The Bill is currently working its way through the House of Commons and will need to go through several steps before it becomes law. CHBA will continue to engage with federal policymakers to encourage necessary changes to the legislation, and the following regulations, to ensure a strong policy that contributes to the building of much-needed purpose-built rental projects.

BUILDINGEXCELLENCE.CA

F E AT U R E D c o m p a n i e s

STYROFOAM BRAND XPS INSULATION

EV SMART BREAKER CHARGERS

KNOWING YOUR BUSINESS MATTERS

Rooted in sustainable technology, Styrofoam Brand XPS Insulation is now even more sustainable with a low GWP formulation – and a new grey color – offering a 94 per cent reduction in embodied carbon without compromising on performance.

The future of transport is electric. Enter Green Motion EV smart breaker chargers – fast AC charging, powered by smart breakers. Eaton chargers deliver real-time energy insights and enable integration with on-site renewable and energy storage systems to advance smart and sustainable energy systems to power today and tomorrow.

No two businesses are alike, so we take the time to get to know yours. With a dedicated Federated agent and risk management team on your side, you always get personalized service, trusted advice, and tailored protection.

DUPONT dupont.ca

EATON eatoncanada.ca

FEDERATED INSURANCE federated.ca

GEORGE BROWN COLLEGE’S SCHOOL OF CONTINUING EDUCATION

LICENSING ONTARIO’S HOME BUILDERS AND SELLERS

HUMM

Companies working in the building sector strive to be leading edge. The programs offered by the School of Continuing Education at George Brown College provide students with the skills to succeed in this increasingly complex industry. Taught by professionals using the latest tools and standards, courses are available online, evenings and weekends. GEORGE BROWN COLLEGE coned.georgebrown.ca/construction

Anyone building or selling a new home in Ontario must be licensed by the Home Construction Regulatory Authority — it’s the law! Learn more about how we protect consumers and enhance Ontario’s homebuilding industry.

WINTER 2023

HOME CONSTRUCTION REGULATORY AUTHORITY hcraontario.ca

At humm, we provide flexible financing for ecommerce and in-store purchases, up to $30,000. Our completely digital financing option brings a unique blend of benefits designed to propel business growth.

HUMM shophumm.com

BUILDINGEXCELLENCE.CA

F E AT U R E D c o m p a n i e s

JWC8500 SERIES WINDOW

YOUR BUSINESS, YOUR FUTURE. OUR FOCUS

MANAGED DECOR INFRASTRUCTURE FOR BUILDERS Accelerate your sales and selections program with My Design Studio’s AI-driven visualizer platform and Decor Management expertise. Increase your profitability. Simplify your processes. Learn more at my-designstudio.com.

JELD-WEN jeld-wen.ca

No one can predict the future of the real estate and construction sector, but you can prepare your business for the best possible outcomes, while capitalizing on opportunities. MNP’s proven track record in this industry ensures you get the innovative business strategies, efficient operations and a tax plan that takes you from where you are to where you want to be. MNP mnp.ca

SUSTAINABLE BUILDING MATERIALS

RELIANCE HOME COMFORT

Owens Corning, a global leader in sustainable building materials, offers integrated solutions in Composites, Insulation, and Roofing. With 19,000 employees across 31 countries, we create value for customers while fostering sustainable communities through material innovation.

For over 60 years, Reliance has been providing builders with essential equipment: HVAC, indoor air quality, water systems, smart home technology, and new EV charging solutions. Our specialized team ensures personalized service from construction to homeowner support post move in.

GRANDVIEW MULTI-SLIDE PATIO DOOR SYSTEM

OWENS CORNING CANADA owenscorning.ca

RELIANCE HOME COMFORT reliancebuilderprogram.com

Embrace the future with JELD-WEN of Canada’s most energy-efficient window. JELD-WEN of Canada proudly presents the innovative JWC8500 series window, meticulously engineered to exceed customer expectations with the perfect blend of style, performance and energy savings.

BUILDINGEXCELLENCE.CA

MY DESIGN STUDIO my-designstudio.com

Westeck’s GrandView Multi-slide patio door system offers the ultimate experience for clients to create and enjoy unique indoor/ outdoor living spaces while providing yearround comfort with high thermal performance. To find out more, call Westeck today or visit the website.

WESTECK westeckwindows.com

WINTER 2023

T H E G I V I N G BAC K PAG E

COMMUNITY SPIRIT C

anadian Home Builders’ Association (CHBA) members have been building, developing, and renovating Canadian homes for generations. We are sharing the extraordinary contributions CHBA members make in their communities every day through our ongoing #CdnBuilt for Generations campaign. Here are a few recent stories. To read more stories follow our hashtag or visit blog.chba.ca/category/giving-back.

CHBA Edmonton Region members complete two-day renovation of Uncles & Aunts at Large facility Members of CHBA Edmonton Region (CHBA-ER) came together to give back to their community by partnering with local charity Uncles & Aunts at Large Edmonton Area Society. The agency, which offers companionship, mentorship, and friendly support for parents and youth from single-parent families in need, desperately required their facility renovated. To ensure the families and youth could access safe and accessible programming, members completed a two-day renovation of the agency’s facilities. This included renovations to the basement kitchen, creating food-safe storage, bathroom upgrades, replacing the exterior fence, adding storage to the reception area, and a fresh coat of paint inside and out. The upgrades, which were essential for improving the building’s accessibility and functionality, demonstrates CHBA-ER members’ commitment to building a better future for those in need in their community.

Fusion Homes donates $60k to Guelph Children’s Foundation food program Fusion Homes demonstrated a deep commitment to its community, with a generous gift aimed at providing essential food security to families in need this holiday season. With rising food costs and financial challenges for many families in the Guelph and Wellington regions, Fusion Homes donated $60,000 to the Children’s Foundation Adopt-A-Family program. The program, which connects donors with families in need of support during the holiday season, saw the funds contribute to grocery gift cards for 600 families throughout Guelph and Wellington. “We are profoundly grateful for Fusion Homes’ commitment to our community,” says Karyn Kirkwood, executive director of the Children’s Foundation. “Fusion Homes’ remarkable gift is truly inspiring, and their generosity will bring hope and joy home for the holidays for hundreds of families.”

CHBA BC and CHBA-VI member provide tools to set up carpentry program at local secondary school With labour shortages rampant in the residential construction sector and retirements slated to rise over the coming decade, members are recognizing the need to encourage youth to consider a rewarding career in the skilled trades. Thorough CHBA BC’s Workforce Development Program, CHBA BC teamed up with CHBA Vancouver Island (VI) member Slegg Building Materials to help inspire the next generation of skilled trades in Qualicum Beach. Facing budget restrictions, Kawlikum Secondary School required new tools to expand its existing joinery program to include carpentry – without them, the expansion wouldn’t be able to move forward. CHBA BC, with support from Slegg Building Materials, stepped up to donate almost $3,000 worth of tools to the secondary school, allowing the program to move forward and encouraging students with an interest in carpentry to pursue a career in the field.

WINTER 2023

BUILDINGEXCELLENCE.CA

The Home Construction Regulatory Authority licenses new home builders and sellers in Ontario. If you plan to build or sell a new home, you must be licensed – it’s the law!

hcraontario.ca/licensing

Your business. Your future. Our focus. No one can predict the future of the real estate and construction sector, but you can prepare your business for the best possible outcomes, while capitalizing on opportunities. MNP’s proven track record in this industry ensures you get the innovative business strategies, efﬁcient operations and a tax plan that takes you from where you are to where you want to be.

MNP.ca

We’re finding low-carbon We’re finding low-carbon energy in unlikely places We’re finding low-carbon energy in unlikely places energy in unlikely places

Like biogas captured from compost to create Renewable Natural Gas1 (RNG). It’s a low-carbon energy2 that can be used in homes and businesses across the province—and we’re adding more to to ourcreate supplyRenewable every year. Like biogas captured from compost Natural Gas1 (RNG). that can beprovide used in RNG homes businesses across the to It’s low-carbon energy2system Ouranatural gas delivery can to and buildings and developments 1 Like biogas captured from compost to create Renewable Natural Gas (RNG). province—and we’re gas adding more toThis our means supply buildings every year. reduce greenhouse emissions. can meet strict emissions 2 It’s a low-carbon energy that can be used in homes and businesses across the guidelines expensive upgrades or retrofits. Our naturalwithout gas delivery system can provide RNG to buildings and developments to province—and we’re adding more to our supply every year. reduce emissions. This means buildings can meet strict emissions Find outgreenhouse more aboutgas RNG at fortisbc.com/rngbuild. Connect with us @fortisbc Our natural gas delivery system can provide RNG to buildings and developments to guidelines without expensive upgrades or retrofits. reduce greenhouse gas emissions. This means buildings can meet strict emissions Find out more about RNG at fortisbc.com/rngbuild. Connect with us @fortisbc guidelines without expensive upgrades or retrofits.

1 Renewable Natural Gas is produced in a different manner than conventional natural gas. It’s derived from biogas, which is produced from decomposing organic waste from landfills, agricultural waste and wastewater from treatment facilities. The biogas is captured and cleaned to create Renewable Natural Gas (also called biomethane). 2When compared to the lifecycle carbon intensity of conventional natural gas. The burner tip carbon intensity of FortisBC’s current RNG portfolio is 0.29 gCO2e/MJ. FortisBC’s current RNG portfolio lifecycle emissions are negative 22 gCO2e/MJ. This is below B.C.’s low carbon threshold for lifecycle carbon intensity of 36.4 gCO2e/MJ as set out in the 2021 B.C. Hydrogen Strategy. 1 Renewable Gas isname produced in a under different manner conventional natural gas. It’s derived from biogas, which is produced from decomposing organic waste from landfills, agricultural waste FortisBC usesNatural the FortisBC and logo license fromthan Fortis Inc. (23-026.20 06/2023) and wastewater from treatment facilities. The biogas is captured and cleaned to create Renewable Natural Gas (also called biomethane). 2When compared to the lifecycle carbon intensity of conventional natural gas. The burner tip carbon intensity of FortisBC’s current RNG portfolio is 0.29 gCO2e/MJ. FortisBC’s current RNG portfolio lifecycle emissions are negative 22 gCO2e/MJ. This is below B.C.’s low carbon threshold for lifecycle carbon intensity of 36.4 gCO2e/MJ as set out in the 2021 B.C. Hydrogen Strategy. 1 Renewable Natural Gas is produced in a different manner than conventional natural gas. It’s derived from biogas, which is produced from decomposing organic waste from landfills, agricultural waste FortisBC uses the FortisBC name and logo under license is from Fortis and Inc. (23-026.20 06/2023) and wastewater from treatment facilities. The biogas captured cleaned to create Renewable Natural Gas (also called biomethane). 2When compared to the lifecycle carbon intensity of conventional natural gas. The burner tip carbon intensity of FortisBC’s current RNG portfolio is 0.29 gCO2e/MJ. FortisBC’s current RNG portfolio lifecycle emissions are negative 22 gCO2e/MJ. This is below B.C.’s low carbon threshold for lifecycle carbon intensity of 36.4 gCO2e/MJ as set out in the 2021 B.C. Hydrogen Strategy.

Find out more about RNG at fortisbc.com/rngbuild.

FortisBC uses the FortisBC name and logo under license from Fortis Inc. (23-026.20 06/2023)

Connect with us @fortisbc

We’ve got We’ve got

G I B BIG

When it comes to building high-performance, energy-efficient homes that are attractive to When it comes to building high-performance, energy-efficient homes that are attractive to potential buyers, we’re with you every step of the way. And we have thousands of dollars in potential buyers, we’re with you every step of the way. And we have thousands of dollars in rebates available* on either home performance or high-efficiency water heaters—plus appliances— rebates available* on either home performance or high-efficiency water heaters—plus appliances— to make it even easier for you. to make it even easier for you.

To online Toqualify qualifyfor forthis thisyear’s year’s big big rebates, rebates, pre-register pre-register online by byDecember December31, 31, 2023. 2023. Contact area, Contactthe theFortisBC FortisBCenergy energy solutions solutions manager manager in in your your area, ororvisit visitfortisbc.com/newhomerebate. fortisbc.com/newhomerebate.

*Full terms and conditions apply, available atatfortisbc.com/newhomerebate. *Full terms and conditions apply, available fortisbc.com/newhomerebate. FortisBC Inc. and FortisBC Energy Inc. of Fortis Fortis Inc. Inc. FortisBC FortisBCuses usesthe theFortisBC FortisBCname nameand andlogo logounder underlicense licensefrom from Fortis Inc. FortisBC Inc. and FortisBC Energy Inc.dodobusiness businessasasFortisBC. FortisBC.The Thecompanies companiesare areindirect, indirect, wholly wholly owned owned subsidiaries subsidiaries of Fortis Inc. (23-138.5 (23-138.507/2023) 07/2023)