B.C. builders are struggling to cope with a labour market crunch as projects with a 2010 completion deadline ramp up this year.

Industry insiders say the construction labour market is tighter than it has been in several years and demand for skilled workers, managers and supervisors will grow even higher as 2010 approaches. Olympic projects are expected to be completed on time and on budget, but other jobs, which constitute most of the work, will face growing pressures.

"I would say that this is almost unprecedented in terms of the magnitude, the dollar volumes that we're seeing," says Keith Sashaw, president of the Vancouver Regional Construction Association (VRCA).

Sashaw says activity levels resemble those in around Expo '86, when a non-residential construction boom combined with a strong home-construction industry. But the number of people needed now is significantly higher.

Bayne Stanley, Business Edge
Vancouver Regional Construction Association president Keith Sashaw looks ahead to future.

"When you take a look at major projects, which are defined as projects over $40 million, we're looking at over $16-$18 billion between now and 2011," says Sashaw. "Certainly, the Olympics are a big part of it. I think it's the spark that generates a lot of interest, but out of that $16 billion, that's only $600 million."

The major projects include the Vancouver Convention and Exhibition Centre expansion, which has begun, the Sea-to-Sky Highway expansion, the Port of Vancouver's Deltaport expansion and upgrades at the University of British Columbia, Simon Fraser University and Vancouver airport.

Meanwhile, homebuilders are also expected to construct 30,000 units per year for the next few years.

David Podmore, president of Concert Properties, one of Vancouver's largest development companies, says larger projects such as the Richmond-Airport-Vancouver (RAV) rail-based rapid transit line will make it more difficult for his company and other residential developers to hire enough workers for smaller projects - which are significant, but small compared to the megaprojects.

The bigger jobs will guarantee employment for longer periods - three or four years in some cases.

Companies doing short-term work will face even more pressure. Podmore believes the industry will "rise to the occasion" but it still needs to do much more to make itself appealing to young people who are entering the workforce.

Most workers on Concert sites are in their early 50s, says Podmore, adding the average age has risen steadily over the past decade.

Concert participates in training programs with the British Columbia Institute of Technology (BCIT) and, in conjunction with about 20 companies in a program called Trades Discoveries, provides $1,000 bursaries to 70 apprentices in the final year of study and about 36 others who continue towards their red-seal journeyperson certification that is recognized as the industry standard across the country.

Podmore says the industry also has to do a better job of showing how important tradespeople are to the economy. Alberta, a province with a smaller population, produces an average of 40,000 journeypeople per year while B.C. only graduates 16,000 annually, he says.

"They're very essential to our economy," he says. "It's a very honourable and rewarding profession to be a carpenter or working in the construction industry."

A planner by profession, Podmore worked for eight years building oil pipelines, and says that early training has helped him advance.

Many other developers also started out as labourers, he adds.

"We've got to do a better job of telling the story about the opportunities in the trades," he says.

In the past year, says VRCA's Sashaw, the number of B.C. construction workers has increased to 165,000 from 120,000. In addition to carpenters, electricians and plumbers and other trades workers, industry leaders are "very concerned" about the availability of estimators, project managers and site superintendents who constitute the middle management ranks.

"We're facing some very real pressures in that (middle management) area as well, primarily because we're going to be losing a lot of those people to retirement," says Sashaw. "They're experienced people, they've come through the industry and they're at the point where many of them are going to be looking at retirement in the next 10 years."

An Olympic labour report by Vancouver consulting economist Roslyn Kunin estimates 10,000 trades workers and 10,000 middle managers will be needed for projects to be completed by 2010. But Sashaw believes those numbers are "a bit low in terms of the real need."

Sashaw says his group will utilize federal program to help reconcile supply with demand and make an accurate estimate of how many people are needed. By doing that, builders can pinpoint demand areas and show educators which training programs should be emphasized.

"The problem with construction is, until now, we really haven't done a very good job of looking at what the future demand will be for workers will be and reconciling that with who's in the system and who's coming into the system," says Sashaw.

Economist Kunin says the industry is already starting to face more demand for skilled workers - and higher costs.

"I see the situation as being fairly serious," she says.

She advises builders to develop good human resources programs that will attract, train and retain workers. By 2010, she notes, there'll be an even greater need for supervisors and managers than skilled workers.

Kerry Jothen, a Victoria-based human relations strategist, says builders must also appeal to non-traditional workers such as aboriginals, immigrants and women and girls. Employers must also provide more flexible training opportunities.

"The only (economic) risk is if we sit on our hands and don't do anything," says Jothen, president of Human Capital Strategies, who consults for industry associations, employers and governments.

Sashaw says the VRCA plans to target specific demographic groups from which large labour pools can be drawn, such as aboriginals and immigrants. New training programs are also being developed with BCIT and other colleges that will allow workers to specialize in one area and still pursue a higher qualification, he says.

For example, someone can be certified as a framer alone, or obtain that qualification and use that training to become a full-fledged carpenter.

The province, he says, is also providing a clearer picture of what training programs will look like going forward - after 18 months of turmoil stemming from the disbandment of the Industry Training and Apprenticeship Commission in early 2003. A new, much leaner provincial Industry Training Authority is giving builders more confidence, he adds.

Sashaw also says developers, designers and builders must take more of a team approach on projects to mitigate volatility in prices for commodities such as steel, and avoid problems with documents, drawings and timelines.

"It's really going to be a volatile situation in terms of supply of labour, supply of materials and the astute contractor and the astute owner are going to be keeping a very careful eye on schedules, on when is going to be a good time to start a project - on planning. That is going to be a very important part of development as we go into the future."

Jock Finlayson, a vice-president and economist with the Business Council of B.C. , says it's inevitable that there will be temporary shortages in a market economy the size of B.C.

Noting that builders already face higher costs for steel, re-bar and wood, he says the tight labour market could will likely prompt more cost increases.

The industry will also have to watch out for potential labour disputes, he says.

The BCBC is trying to help through its Third Option program that emphasizes career opportunities in construction and sectors outside of resource industries. The council sends a representative around the province each year to talk to high school students and tout the benefits of construction employment.

"The market is tight but it provides a wonderful opportunity for young people to actually get into the industry," says Philip Hochstein, executive vice-president of the Independent Contractors and Businesses Association of B.C. "In the '90s, there was absolutely no opportunity."

But Hochstein does not believe B.C. will be able to lure workers from other provinces, because the construction industry is strong across the country.

"They'd only move if they didn't have that kind of security," he says. "This may be a beautiful place to live, but they're not going to move just for the hell of it."