Maintenance and Repairs

December 16, 2023 Published by Eastern Ontario Chapter - By Matt Michaluk

Construction in Crisis - Where has the skilled labour gone?

From the Volume 36 issue of the CCI Eastern Ontario Condo Contact Magazine

As winter approaches and Condominiums reflect on the past year, it is tempting to snuggle up by the fire and concentrate on keeping warm during the cold months, however, it is even more important than ever to look ahead towards the planning of future capital projects.

While the main reason to start planning earlier for your spring/summer capital projects has been the potential cost savings as contractors are inclined to pursue and price projects more aggressively earlier in the year, Condominiums need also to consider the impact caused by the decline in the construction labour force and in particular, skilled trades.

Many skilled workers are approaching retirement age, and the industry is grappling with the potential loss of invaluable experience and expertise. It is estimated that 300,000 construction workers are to retire in Canada in the next decade with more than 80,000 of those in Ontario alone, states a report from construction lobby group BuildForce Canada. This is further impacted by the lack of influx of younger workers into the industry which is not keeping pace with the rate of retirements, leading to a shortage of skilled labor.

The push for new homes to help restore housing affordability will provide additional strain on the availability of contractors causing further shortages.

The increasing shortage in the construction labour force and diminishing interest to pursue a career in the skilled trades by the next generation of workers will directly impact the volume of work that can be completed within a given timeframe and may also affect the quality of work as less experienced workers take on more responsibilities. These vacancies in the construction work force will also result in increased costs of projects.

The skill set of the construction labor is another critical factor influencing the volume and quality of work. Advancements in construction technology require workers to possess a broader range of skills, including proficiency in modern tools and the ability to adapt to evolving construction methods.

Training and education programs play a pivotal role in addressing skill gaps within the construction work force. Investing in training, apprenticeship programs, and continuing education opportunities can enhance the skills of workers, ensuring they are equipped to meet the demands of modern construction projects.

Federal and Provincial Governments are doing what they can to prevent a crisis in the construction industry, such as providing incentives to employees entering a skilled trade and to employers who offer apprenticeship programs, changing the rules around apprenticeships to make it easier to obtain a licence, while advertising and promoting skilled trades. Although these are steps in the right direction, it will take time to catch up to the needs of the industry. Collaboration between industry stakeholders, policymakers, and educational institutions is essential to increase enrolment in the skilled trades.

What does this mean for a Condominium planning a major capital project?

As Condominiums look ahead and start planning their next major capital project, they will need to consider the impact caused by labour shortages and a decline in the availability of skilled trades. These considerations include:

Increased project costs as contractors may be forced to pay more for the available skilled labour.

• Delayed start times due to contractor availability.
• Prolong construction schedules. Projects that may have been able to be completed over one or two years may take longer to complete.
• Quality of the work may suffer due to less qualified contractors performing the work.

The construction work force shortage is not something Condominiums can overlook. While policy makers and regulatory bodies are doing what they can to prevent the oncoming storm, it will take time to right the ship. With early proper planning and ensuring that Reserve Funds are adequately funded, Condominiums can manage some of the impacts when attempting to complete their capital projects; however, the future is unclear as the vacancies in the construction work force continue to increase.

By Matt Michaluk, P.Eng., Director of Engineering, Keller Engineering