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April 9, 2021

Construction sector bracing for ‘grey tsunami’

Both U.S. president Joe Biden and Canadian Prime Minister Justin Trudeau have said their respective countries need to “build back better,” as hope for a post-pandemic economic rebound appears on the horizon.

But who is going to do all that better building?

Because Canadians are retiring at a rate that exceeds workforce entry rates, a skilled-labour shortage that has been predicted for about a decade has already arrived for B.C.’s construction sector.

“I would say it has gone from a flashing yellow light to a solid red light, in terms of the challenges it is presenting to the construction sector in particular,” said Chris Gardner, president of the Independent Contractors and Business Association (ICBA).

A recent ICBA survey found contractors reporting they have had to turn down jobs, are taking longer to complete projects, paying more overtime and spending more time on training.

BuildForce Canada estimates that 41,000 workers will retire from B.C.’s construction sector this decade. Only 35,100 new entrants are expected to fill those jobs.

“Combining retirement and expansion demands, the construction industry will need to recruit close to 59,650 workers over the coming decade,” BuildForce says in a recent B.C. industry snapshot.

The residential homebuilding sector is already feeling the pinch, which is reflected in the time it takes to complete new projects.

“We’re pretty good at getting those projects started,” Brendon Ogmundson, chief economist for the BC Real Estate Association (BCREA), said of new housing starts in B.C. “We’re really bad at finishing them. Those construction times keep getting longer and longer.”

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