new brunswick sector profile: industrial fabrication · 5.4 regional distribution ... regional...

New Brunswick Sector Profile:

Industrial Fabrication

June 2012

New Brunswick Career Development Action Group

(Funded by the Government of Canada and the Province of New Brunswick

through the Canada-New Brunswick Labour Market Development Agreements)

Prepared by: InPro Solutions

New Brunswick Sector Profile: Industrial Fabrication

i June 2012

Table of Contents

1 Executive Summary ............................................................................................... 1

2 Introduction ............................................................................................................ 8

2.1 Purpose and Scope ........................................................................................... 8

2.2 Objectives ........................................................................................................... 8

3 Methodology .......................................................................................................... 8

3.1 Primary Research................................................................................................ 9

3.1.1 Contact List .................................................................................................. 9

3.1.2 Interviews ................................................................................................... 10

3.2 Secondary Research ....................................................................................... 10

4 Sector Definition ................................................................................................... 11

4.1 About the Definition ......................................................................................... 12

5 Sector Profile ......................................................................................................... 13

5.1 The New Brunswick Context ........................................................................... 13

5.2 Structure of the Sector ..................................................................................... 15

5.3 Capability .......................................................................................................... 17

5.3.1 Company Size ........................................................................................... 17

5.3.2 Facility Size ................................................................................................. 18

5.3.3 Lifting Capacity ......................................................................................... 18

5.3.4 Heavy, Medium, or Light Duty ................................................................ 19

5.3.5 Manufacturing Materials, Processes, and Technologies .................... 20

5.3.6 Design ......................................................................................................... 22

5.3.7 Certifications .............................................................................................. 22

5.3.8 Capability Analysis .................................................................................... 24

5.4 Regional Distribution ........................................................................................ 26

5.5 Markets .............................................................................................................. 27

5.5.1 Market Segments Served......................................................................... 27

5.5.2 Geographic Reach .................................................................................. 28

5.5.3 Outlook ....................................................................................................... 29

5.5.4 Market Barriers ........................................................................................... 31

5.6 Transportation Infrastructure ........................................................................... 31

5.6.1 Land ............................................................................................................ 31

5.6.2 Sea .............................................................................................................. 32

5.7 Sector Development ....................................................................................... 33

6 Human Resources Profile..................................................................................... 35

6.1 Human Resource Practices ............................................................................ 35

6.2 Workforce Composition .................................................................................. 36

6.3 Unionization ....................................................................................................... 38

6.4 Wages ................................................................................................................ 39

6.5 Demographics .................................................................................................. 40


ii June 2012

6.6 Future Hiring Plans ............................................................................................ 41

6.7 Staffing and Hiring Issues ................................................................................. 43

6.8 Recruitment Methods ...................................................................................... 43

6.9 Challenges in Recruiting ................................................................................. 44

6.10 Skill Deficiencies with New Hires ..................................................................... 45

6.11 Needed Skills for the Future ............................................................................ 46

7 Training Capacity................................................................................................. 47

7.1 Defining Educational Capacity in a Time of Change ................................ 47

7.2 Primary Trades Utilized in the Sector .............................................................. 47

7.3 Paths for New Entrants into the Fabrication Trades .................................... 49

7.4 New Brunswick Trades Colleges ..................................................................... 50

7.4.1 NBCC .......................................................................................................... 51

7.4.2 CCNB .......................................................................................................... 52

7.4.3 BayTech College ....................................................................................... 52

7.4.4 Eastern Trades College ............................................................................ 53

7.4.5 ReadyArc Welding ................................................................................... 54

7.5 Atlantic Canada Public Trades Colleges ..................................................... 54

7.6 Other Canadian Trades Colleges ................................................................. 55

7.6.1 Welding programs .................................................................................... 56

7.6.2 Fabricator / Fitter Programs ..................................................................... 57

7.6.3 Machinist Programs .................................................................................. 57

7.7 New Brunswick Apprenticeship ...................................................................... 58

7.8 Projected Need vs. Educational Capacity .................................................. 60

7.9 Summary of Findings Regarding Educational Capacity ........................... 61

Appendix A: Acronyms ................................................................................................ 1

Appendix B: Catalog of College Programs ................................................................ 1

B1.1 Welding Pre-Employment Programs .................................................................. 1

B1.2 Welding Technology Programs ........................................................................... 9

B1.3 Steel Fitting/Fabrication Pre-Employment Programs ..................................... 11

B1.4 Machinist Pre-Employment Programs .............................................................. 15

B1.5 CNC Machinist Pre-Employment Programs .................................................... 17

List of Tables

Table 1: Manufacturing Sector and Metal Working Subsector (NB 2009).............. 14

Table 2: Capability Analysis Assessment Criteria ........................................................ 24

Table 3 : Selected Comparison of Survey Responses To COPS Data ..................... 37

Table 4: Wage Rates Reported by Respondents (n=51) .......................................... 39

Table 5: Wage Rates From “Working in Canada – HRSDC” .................................... 39

Table 6: NBCC Yearly Seat Capacity for Primary Fabrication Trades ..................... 51

Table 7: CCNB Yearly Seat Capacity for Primary Fabrication Trades ..................... 52

Table 8: BayTech Pre-Employment Welding Program Seat Capacity ................... 53

Table 9: Eastern Trades College Welding Program Seat Capacity ........................ 54


iii June 2012

Table 10: ReadyArc Welding Program Seat Capacity ............................................. 54

Table 11: College Educational Capacity - NS/PEI/NL ............................................... 55

Table 12: Welding Pre-Employment Programs in Canada ....................................... 56

Table 13: Metal Fitter/Fabricator Pre-Employment Programs .................................. 57

Table 14: Machinist Pre-Employment Programs ......................................................... 57

Table 15: CNC Machinist Pre-Employment Programs ............................................... 58

Table 16: NB Apprenticeship ......................................................................................... 59

Table 17: Age Distribution of Active Apprentices ...................................................... 59

Table 18: Summary of Educational Capacity (Yearly Seats Available) ................. 60

Table 19: Projected Need vs. Educational Capacity................................................ 60

List of Figures

Figure 1: Regional Distribution of the New Brunswick Labour Force ....................... 13

Figure 2: PWC Modular Fabrication Supply Chain Model ........................................ 15

Figure 3: Structure of the Industrial Fabrication Sector in New Brunswick .............. 16

Figure 4: NAICS Classification of New Brunswick IF Companies .............................. 17

Figure 5: Make Up of IF Sector by Establishment Size Categories (n=62) ............... 18

Figure 6: Size of Manufacturing Space in Square Feet (n=51) ................................. 18

Figure 7: Shop Crane Lifting Capacity of NB IF Companies (n=51) ........................ 19

Figure 8: Self-assessment of Light, Medium, and Heavy Duty Capability (n=51) .. 20

Figure 9: Metals Routinely Used for Manufacture (n=51) .......................................... 20

Figure 10: Use of Advanced Manufacturing Technologies (n=51) ......................... 21

Figure 11: Welding Certifications (n=51) ...................................................................... 23

Figure 12: Quality Program Certifications (n=50) ....................................................... 24

Figure 13: Capability Analysis of New Brunswick IF Companies Surveyed ............. 25

Figure 14: Location of IF Companies in New Brunswick ............................................ 26

Figure 15: Regional Distribution of IF Establishments and Employment (n=62) ...... 27

Figure 16: Market Segments Accounting for 10% of Corporate Revenue (n=51) 27

Figure 17: Top Three Markets by Value of Revenue .................................................. 28

Figure 18: Largest Portion of Revenue – By Geography (N=50) .............................. 29

Figure 19: New Brunsiwck Metal Working Sector International Export History ....... 29

Figure 20: Perception of Past and Future Economic Performance of the Sector 30

Figure 21: Diversification Markets Targeted By Respondents (n=34) ...................... 30

Figure 22: Land Transportation (Road and Rail) Infrastructure in New Brunswick . 32

Figure 23: New Brunswick Ports ..................................................................................... 33

Figure 24: Ratio of Core IF Occupations to Non-Core Occupations ...................... 36

Figure 25: Employment of Selected IF Occupations (n=51) ..................................... 37

Figure 26: Unionization in the Sector (n=51) ................................................................ 38

Figure 27: Age Distribution of IF Core Fabrication Occupations (n=50) ................. 40

Figure 28: Vacant Positions Reported by Respondents (n=49) ................................ 42

Figure 29: Respondent Hiring Expectations in the Next 2 Years (n=49) .................. 42

Figure 30: Challenges Recruiting Selected Occupations (n=51) ............................ 44

Figure 31: Paths to Occupational Certification .......................................................... 50


1 June 2012

1 Executive Summary

The New Brunswick Industrial Fabrication (IF) sector is comprised of metal

fabrication companies that manufacture industrial equipment or systems to

support the construction of large industrial projects common in industries such as

petrochemical, mining, pulp and paper, and utilities. The sector holds many

opportunities to grow the New Brunswick economy, yet also holds many

challenges in meeting workforce and other needs. This report provides a profile

of the sector based upon information gathered from secondary research as well

as interviews with 51 employers, six economic development agencies, and

every relevant training institution in the Province.

SECTOR PROFILE

The sector is made up of a relatively small but influential group of companies,

about 60 – 70, representing 80% of employment within the broader Metal

Working/Metal Fabrication sector (well over 250 companies). As such, the IF

sector employs approximately 10% of all people working in manufacturing, and

just less than 1% of the entire New Brunswick workforce. The study identified 62

New Brunswick companies as being “in-scope”.

From a global perspective, the New Brunswick IF sector is comprised primarily of

smaller companies. However, there are a number of companies capable of

pursuing major industrial projects on their own. A snapshot of sector capability

(capacity + expertise) in New Brunswick is shown below.

Exp

ert

ise

Capacity


2 June 2012

This analysis attempts to identify, within the confines of the New Brunswick sector,

the relative position of industry players. To help put this in context, there are no

Engineering, Procurement and Construction (EPC) leaders in New Brunswick.

However, those companies residing in the upper right quadrant are well

positioned to become strategic partners to EPC firms who manage large

industrial mega projects and subcontract work (modular and otherwise) in this

region and beyond. Upper-right-quadrant companies also have the opportunity

to partner with each other, as well as with the skilled niche metals companies

that make up the sector supply chain in the province. All of these companies, as

well as the infrastructure and labour force supporting them, are key to New

Brunswick’s success in this sector.

Lifting capacity, facility size, and workforce size are major indicators of a

company’s ability to compete in the Industrial Fabrication sector. Approximately

73% of the companies identified employ less than 50 people, accounting for

only 23% of total sector employment. Conversely, just over one quarter of the

companies employed three quarters of the labour force. Only 4% of companies

operated facilities larger than 100,000 square feet, and only 10% reported lifting

capacity over 50 tons. These larger companies are typically upper right

quadrant companies that have both the capacity and expertise to compete

and lead in the pursuit of work from industrial mega projects.

The sector, as a whole, has extensively adopted advanced manufacturing

technologies. Almost all (92%) reported having Computer Aided Design (CAD)

software and over 60% reported having Computer Numerical Control /

Computer Aided Manufacturing (CNC/CAM) capabilities. Overall, 80% of IF

companies have the ability to offer clients design services on a routine basis -

over half (55%) using in-house resources, and 25% through contractual

relationships with external engineers, technicians, or design firms.

Shown below is the regional distribution of the 62 Industrial Fabrication

companies identified as “in-scope”. The “Campbellton – Miramichi” and the

“Saint John – St. Stephen” economic regions account for almost 50% of

establishments and almost 70% of sector employment, yet account for only 43%

of the total provincial labour force.


3 June 2012

The mining industry is by far the primary source of revenue for most New

Brunswick IF companies. Not surprising, the construction, petrochemical, pulp

and paper, and utility industries are also major sources of revenue. Many

respondents qualified their responses indicating that revenue sources change in

relation to the economy. For example, companies that mainly serve the

petrochemical market today may have principally relied on the pulp and paper

market 10 years ago.

From a geographic market perspective, a significant portion of the companies

interviewed (60%) indicated that the largest portion of their revenue originated

from within New Brunswick (8% from Atlantic Canada, 22% from Canada,

and10% from international markets). It is important to note that this does not

imply that 60% of sector revenue originates from New Brunswick, but rather only

60% of the companies indicate that it is their major source. No major projects

have been announced, or are planned in New Brunswick. If this sector is to

grow, it must seek work from beyond New Brunswick borders. In fact, New

Brunswick stakeholders have identified significant and viable opportunities that

extend from northeastern Canada in the mining sector to southeastern USA in

the oil and gas sector.

5-9

10-49

50-250

250+


4 June 2012

Collectively respondents viewed the past performance of the sector over the

last two years as being “somewhat strong” (average rating of 5.3 out of 9).

However, there was much greater optimism for the next 2-5 years where

respondents see performance appreciably increasing (average rating of 6.4 out

of 9). There is no single specific indicator or project that employers pointed to

that would improve business, but rather this positive outlook was a combination

of a recovering economy in the USA, shipbuilding in Nova Scotia, resource

extraction opportunities in northern Canada, and general entrepreneurial

enthusiasm.

A large percentage of respondents (69%) claim to have taken concrete steps to

diversify their markets although many struggled to identify specific capital

expenditures in this regard. It is not surprising, given the recent announcement of

the $25-billion Irving contract to build the next generation of combat ships, that

the majority of respondents (approximately 38% of those claiming diversification

efforts) identified shipbuilding as a diversification area. Despite this, mining

continues to be a market focus for companies. Aerospace and defence are

also high ranking target markets - likely fuelled by the shipbuilding buzz.

While individual companies may face a number of market barriers depending

upon their unique circumstances, there was really only one sector-specific

market barrier identified: access to free and open trade. This is a significant

hurdle since most opportunities in the sector, particularly if growth is to continue,

exist beyond the borders of New Brunswick. It was suggested that the bi-lateral

government agreements between Newfoundland and Labrador with the

Government of Nova Scotia and the Government of Canada are a major

barrier to New Brunswick companies wishing to pursue these regional markets.

Similarly, the union influence and control over construction sites in Quebec

creates challenges for New Brunswick companies that wish to build, ship, and

install modular components in that province. Impacted industry players suggest

that the Provincial government needs to continue to press this issue with other

provinces and the federal government.

Infrastructure, particularly sea ports, are very important to the sector when large

prefabricated industrial modules are required to be exported to distant markets.

Two of the larger Ports, Belledune and Saint John, have undertaken specific

efforts to support and pursue the sector in New Brunswick. In 2010 $13.2 million

was invested in the “Belledune Modular Fabrication Facility” to specifically

position the region to pursue this sector. In 2012 the facility welcomed its first

tenant. In the Saint John area it has been proposed to construct, at a cost of

approximately $6 million, a barge loading terminal to support companies

pursuing the sector. At this point, the project remains unfunded and advocates

continue to seek funding.


5 June 2012

In terms of sector development, clustering activities have been initiated in both

the private and public domains in New Brunswick. In the public domain, a

“Provincial Modular Fabrication Committee” with representation that includes

the Department of Business New Brunswick has been established. In the private

sector, the Associated Manufacturing Marketing Group (AMMG) is a consortium

established to specifically pursue this sector. The organization represents six

private companies under one marketing umbrella to pursue business

development opportunities directly in the industrial fabrication sector.

HUMAN RESOURCES PROFILE

Investigation into workforce issues focused on the 21 occupations core to the IF

sector. These occupations were broadly categorized as: Welders, Fitters,

Machinists, Machine Operators, Labourers, Shop Supervisors, Technologists,

Drafters and Engineers. Excluded from the analysis were employees that worked

in management roles, administration, sales, or who were otherwise employed in

trades not directly involved with metals work.

The majority of employers (78%) operated with a non-unionized workforce. Only

16% of companies were unionized, and many of these were based in the Saint

John area where heavy industrial trades have been in existence since the 1950s.

A small number of companies (6%) employed both union and non-union trades.

Findings related to demographics were consistent to what would be expected

of a trade-intensive sector. Only 1.9% (43) of the workforce were female. Only

10% of companies reported employing landed immigrants, and in total only 10

(0.4%) were actually employed in the sector. Only one employer reported hiring

a single temporary foreign worker. Employers who engaged foreign and female

workers all reported positive experiences in relation to their skills and

performance. These underrepresented workforce segments could be key to

further developing the sector workforce.

Many employers did raise concerns about the aging workforce and out-

migration of workers (especially younger workers to Alberta) as being a

significant challenge. However, the survey data collected suggested that a

significant number of younger workers, proportionally similar to their older co-

workers, still remain in New Brunswick.

In terms of skill gaps, the majority of respondents (55%) reported that new

employees lacked the skills required to take on the duties of the workplace.

However, the deficiencies identified were more generic in nature (i.e. common

to many trades in many industries) and not specific to the IF sector. Similarly, very

few respondents identified any skill requirements “new to the sector”.


6 June 2012

Fitter/Fabricators, Welders, and Machinists collectively made up 50% of the 2,250

workers employed in the core IF occupations. Wages for these occupations

exhibited a less than 10% variation across the trades; however senior employees

were paid 35-42% higher than their entry-level counterparts. Wages were

generally consistent, with a less than 10% variance, with national database

figures for the region. It was interesting to find that wages for Welders in the

northeastern region were over 20% higher than in the southeastern region, likely

due to the need to attract and retain skilled workers. As expected, wages in

Alberta were considerably higher for all trades.

The table below shows some of the key workforce characteristics provided by

survey respondents for the three occupations Fitters/Fabricators, Welders, and

Machinists.

Employment Current

Vacancies

% of Companies

Experienced

Difficulty Hiring

2-yr Hiring

Expectations

Fitter/Fabricator 511 29 31% 175

Welder 431 26 29% 156

Machinist 157 18 24% 73

TRAINING CAPACITY

The annual seat capacity of post-secondary training institutions in New

Brunswick, and the rest of Atlantic Canada for the Fitter/Fabricator, Welder, and

Machinist trades is shown in the table below.

NB Colleges

Annual

Capacity

Combined

2-Year

Capacity

Other Atlantic

Colleges Annual

Capacity

Combined

2-Year

Capacity

We

ldin

g

NBCC 95

710

NSCC 91

428 CCNB 52 Holland College 15 BayTech 100 CNA 108 Eastern 36

Ready Arc 72

Fitte

r /

Fa

br.

NBCC 14 56

NSCC 38 424 CCNB 14 Holland College 90

CNA 84

Ma

ch

inis

t

Trad. NBCC 21

110

Holland College 12

162 CCNB 14 CNA 32

CNC NBCC 12 NSCC 37 CCNB 8


7 June 2012

The “combined 2-year capacity” values were simply calculated by doubling the

annual capacity values at time of writing and do not take into account any

expansion or contraction of program seats. Assuming that the capacity in the

other three Atlantic Provinces would be largely unavailable to the New

Brunswick Industrial Fabrication sector, because of demands outside of New

Brunswick, there is a potential short-fall in educational capacity required to

meet the employer-projected need for Fitters/Fabricators.

Economic development advocates within the province naturally hold different

perspectives on the scope of the opportunity, limitations and labour force issues

faced by New Brunswick in developing the IF sector and modular fabrication

subsector. In southern New Brunswick, the need for a barge terminal is top

priority. In northeastern New Brunswick, attracting and retaining skilled labour

and the need to close deals with EPC players are top priorities.


8 June 2012

2 Introduction

2.1 Purpose and Scope

Industrial Fabrication has been identified as a strategic sector in New Brunswick1.

Through the New Brunswick Career Development Action Group (NBCDAG),

InPro Solutions was commissioned to study and develop a fact-based profile of

the Industrial Fabrication (IF) sector with a focus on the metal working labour

force.

The study was intended to provide information that can be used by

stakeholders, policy makers, and training institutions to support their respective

goals and objectives.

The scope of the study is limited to companies participating in the Industrial

Fabrication (IF) sector as explicitly defined in Section 4. In addition, analysis is

confined to the geography and issues faced by the sector in the province of

New Brunswick.

2.2 Objectives

The overall objective of the study was to provide a detailed sector profile, with a

focus on the labour market, of the Industrial Fabrication sector in New Brunswick.

To support this, four sub-objectives were identified:

1. Develop a clear definition of the sector, followed by an identification of

which companies in New Brunswick fall within the sector;

2. From secondary data sources, develop a summary profile of the sector (i.e.

number of companies operating in this sector, those not in the sector but

which employ similarly-skilled workers, the size of the workforce in this sector,

revenues, etc.);

3. Conduct a survey to gather detailed information about the workforce of this

sector (age, occupation, skills, education, etc.), and skills they will require to

work in this sector in the near to medium-term future (2 to 5 years); and

4. Conduct a review of the educational capacity for skills related to this sector

in the province, and in a less comprehensive manner, the rest of Canada.

3 Methodology

Study methodology was based on a combination of both primary and

secondary research activities as described below. The focus however was on

1 Department of Business New Brunswick, (December 2011). 2010-2011 Annual report. Fredericton

NB: Department of Business New Brunswick.


9 June 2012

primary research efforts where a census survey of Industrial Fabrication

companies was intended.

3.1 Primary Research

3.1.1 Contact List

One of the greatest project challenges was the development of a reliable

contact list. Because a census survey was intended, great efforts were made in

an attempt to ensure that all “in-scope” companies were captured.

The starting point was a composite list provided by LMAB which was compiled

from a number of sources including Service Canada and the Department of

Business New Brunswick (BNB). The list was then augmented with:

1. Canadian Welding Bureau (CWB) (n=109): Downloaded from the CWB

website listing all New Brunswick organizations with certification

(downloaded January 2012).

2. Yellow Pages (n=63): An online search for New Brunswick companies using

“welding” as a keyword (downloaded January 2012). A manual

elimination of duplicate companies was conducted before integrating

into the list.

The Master Contact List was thus created when all of the sources identified

above were merged and “cleaned” into a single worksheet (n=329). All

information for a particular company, as listed by the multiple sources, was

integrated into a single record.

Through an iterative process involving both secondary (websites, directory

listings, Google Maps, etc.) and primary (phone interviews) research efforts, the

Master Contact List was filtered for “in-scope” companies (n=62). Inclusion

criteria included:

Company must be a manufacturer (ex. repair-only companies excluded);

Company must fit the sector definition;

Company must employ five or more staff; and

Company must still be in business.

In total 267 companies were determined to be out of scope based on these

criteria.

The Master Contact List was validated by cross-referencing it against recently

compiled reports related to the sector:


10 June 2012

2010 PWC Report2 (x=43);

2011 New Brunswick Community College (NBCC) Report3 (x=49); and

2007 Metal Working Association of New Brunswick (NWANB) Directory4

(x=127).

Where appropriate, additional information related to an already captured “in-

scope” company was added to the spreadsheet. The “x=” notation in the

above list refers to the number of companies common to the respective list and

the Master Contact List. No additional “in-scope” companies were identified.

3.1.2 Interviews

To support interview activities, three discussion guides were designed for

telephone interview purposes. Once drafted, they were submitted for review

and approval by the project Steering Committee. They included:

1. Employer Survey (56 questions);

2. Economic Development Organizations (EDO)/Association Survey (20

questions); and

3. College/Training Institute Survey (14 questions).

Interviews were conducted by four interviewers, in English and French as

required, during the period of February-March 2012. In total 63 interviews were

completed:

1. Employers: 51 completed (82%)5, 8 refused to participate (13%), and 3

were unable to be reached (5%);

2. EDO/Associations: 6 completed (100%); and

3. College/Training Institutes: 6 completed (100%).

3.2 Secondary Research

Secondary research efforts contributed significantly to the study. Numerous

sources were accessed and are appropriately referenced throughout this

document. Research activities include:

o Literature search of related studies;

o General internet search for sector information, industry directories, etc.;

o Review of IF company websites;

o Statistics Canada data sources; and

o Industry Canada data sources.

2 PricewaterhouseCoopers LLP, (2010, October 20). Comparative benchmarking study – modular

fabrication facility. Beldune, NB: Enterprise Chaleur. 3 Mackellar Cunningham & Associates Ltd., (2012, February). Labour market analysis: metals

processing. Fredericton, NB: New Brunswick Community College. 4 The Metal Working Association of New Brunswick. 2006-2007 New Brunswick directory of metal

working companies. Moncton, NB: The Metal Working Association of New Brunswick 5 Two employers chose to complete the survey themselves - one on line, and the other by fax.


11 June 2012

4 Sector Definition

The Industrial Fabrication sector is comprised of metal fabrication companies

that manufacture industrial equipment or systems to support the construction

and erection of large industrial projects in sectors such as petrochemical,

mining, pulp and paper, and utilities. A key capability of companies in this sector

is the ability to manufacture large “modular” components that can be

transported and integrated into the mega-project site. In this definition, these

firms are deemed to be “primary” metal fabricators for heavy industry and

generally have the capacity to supply modular fabricated products to large

industrial projects.

Also of interest, particularly in the New Brunswick context, are companies whose

focus is currently not in this sector, but have the capability in terms of

equipment, facilities, and workforce to supply to the sector. Also within this

categorization are smaller firms with unique capability to supply and

subcontract and thus round out the supply chain. Under this definition these

firms are deemed to be important suppliers to the sector, and are labelled as

“secondary” metal fabricators for heavy industry.

Common processes used in the sector involve the cutting, bonding, forming,

machining, and assembly of metal products – usually on a large scale.

Equally important to the definition is the exclusion of metal fabrication firms not

involved in such industrial projects. This includes companies that manufacture

products primarily for the commercial or consumer markets. Also not included

are companies with metal manufacturing capabilities not likely to be interested,

or skilled, in large industrial project work. For the purposes of this study these firms

are labelled as “non-industrial” metal fabricators.

Companies within scope, as defined above, typically supply to large

multinational organizations known as Engineering Procurement and

Construction (EPC) companies who usually lead these large industrial projects.

Using the North American Industry Classification System (NAICS 2007), the sector

is defined as encompassing companies classified according to the following 4-

digit industry groups:

1. 3323 Architectural and Structural Metals Manufacturing;

2. 3324 Boiler, Tank and Shipping Container Manufacturing;

3. 3327 Machine Shops, Turned Product, and Screw, Nut and Bolt

Manufacturing;

4. 3329 Other Fabricated Metal Product Manufacturing;

5. 3331 Agricultural, Construction and Mining Machinery Manufacturing;

6. 3332 Industrial Machinery Manufacturing;


12 June 2012

7. 3334 Ventilation, Heating, Air-Conditioning and Commercial

Refrigeration Equipment Manufacturing;

8. 3336 Engine, Turbine and Power Transmission Equipment Manufacturing;

and

9. 3339 Other General-Purpose Machinery Manufacturing

While there are in the vicinity of 150 different occupations within this sector (as

defined above), the following occupations6 have been determined to be core

to the industry and are the focus of this study:

1. 2131 Civil Engineers

2. 2132 Mechanical Engineers

3. 2141 Industrial and Manufacturing Engineers

4. 2142 Metallurgical and Materials Engineers

5. 2231 Civil Engineering Technologists and Technicians

6. 2232 Mechanical Engineering Technologists and Technicians

7. 2233 Industrial Engineering and Manufacturing Technologists and

Technicians

8. 2253 Drafting Technologists and Technicians

9. 7211 Supervisors, Machinists and Related Occupations

10. 7231 Machinists and Machining and Tooling Inspectors

11. 7232 Tool and Die Makers

12. 7261 Sheet Metal Workers

13. 7262 Boilermakers

14. 7263 Structural Metal and Platework Fabricators and Fitters

15. 7264 Ironworkers

16. 7265 Welders and Related Machine Operators

17. 7266 Blacksmiths and Die Setters

18. 9511 Machining Tool Operators

19. 9514 Metalworking Machine Operators

20. 9516 Other Metal Products Machine Operators

21. 9612 Labourers in Metal Fabrication

4.1 About the Definition

The concept of an “Industrial Fabrication (IF)” sector was born out of the

modular fabrication trend that has been gaining traction in the construction

industry. New Brunswick stakeholders for this project had the intention of

focussing on “heavy industrial” development projects versus “building

envelope” construction projects. This focus swayed the emphasis toward metal

fabrication and away from other building materials such a precast concrete

and wood.

6 as defined by the National Occupation Classification (NOC 2006)


13 June 2012

As such, some of the larger players in the IF sector using metal-working

processes, equipment, and skilled employees have become a hybrid of

classical manufacturing (NAICS 33) and construction (NAICS 23) companies.

Some companies integrate both shop (manufacturing) and field (construction)

staff under one homogenous entity, while others have created distinct divisions,

and yet others have created separate legal operating entities.

This report attempts to look at all companies serving this sector and looks at

some of the characteristics and skills issues affecting their entire metal-working

labour force.

5 Sector Profile

5.1 The New Brunswick Context

In order to gain an appreciation of the scope and impact of the Industrial

Fabrication sector it is first useful to understand the size and composition of the

New Brunswick economy.

In 2011, New Brunswick’s population was estimated to be 755,5007 with 619,400

individuals aged 15 and older making up the working age population. The total

labour force was comprised of 389,200 individuals where 352,000 found

employment, leaving 37,100 to the ranks of the unemployed8. The regional

distribution of the entire New Brunswick labour force is shown in Figure 1.

Figure 1: Regional Distribution of the New Brunswick Labour Force

7 Source: Statistics Canada, CANSIM, table 051-0001. Last modified: 2011-09-28. (accessed: 2012-

03-28) 8 Source: Statistics Canada. Table 282-0055 - Labour force survey estimates (LFS), by provinces,

territories and economic regions based on 2006 Census boundaries. (accessed: March 27, 2012)

20%

27% 23%

19%

11% Campbellton-Miramichi [1310]

Moncton-Richibucto [1320]

Saint John-St. Stephen [1330]

Fredericton-Oromocto [1340]

Edmundston-Woodstock [1350]


14 June 2012

As seen in Table 19, the entire New Brunswick

manufacturing sector in 2009 was comprised of

approximately 1,400 establishments generating $14.8

billion in revenue and accounting for just over 8.5%

(29,973) of total employment in New Brunswick.

According to Statistics Canada, the Metal-Working

segment (NAICS 332 and 333) generated $645 million

in annual revenue from 230 establishments

employing 3,170 individuals – about 10.6% of the

manufacturing sector, and just under 1% of New

Brunswick employment.

Table 1: Manufacturing Sector and Metal Working Subsector (NB 2009)

Industry Segment No.

Establishments

Total Revenue

(x 1,000)

Total Employment

Production Non-Mfg.

All Manufacturing

(NAICS 31-33) 1,413 $14,758,114

29,973

23,268 6,705

Metal Working

(NAICS 332 & 333)

226 $644,562

3,167

2,357 810

The Canadian Occupational Projection System (COPS), based on the 2009

scenario, predicts that the “Metal Fabrication and Machinery (excluding

electrical)” industry would employ 4,245 individuals in 2011 (4,259 in 2009).

However it is important to note that this industry definition is much broader and

based on the 1980 Standard Industry Classification (SIC) system. While there is no

official concordance between SIC 1980 and NAICS 2007, it roughly includes

NAICS 331, 332, and 333.

Based on the above, and as defined in Section 4, the Industrial Fabrication

sector is in fact only a segment of the larger Metal Working/Metal Fabrication

sector. However, as will be described in the balance of this report, this segment

represents a very influential group of companies. Made up of relatively few

companies, about 60 - 70, they represent 80% or more of all individuals

employed in the Metal Working/Metal Fabrication sector - depending upon the

statistical reference.

9 Source (unless otherwise specified): Statistics Canada. Table 301-0006 - Principal statistics for

manufacturing industries, by North American Industry Classification System (NAICS), annual

(dollars unless otherwise noted), CANSIM (database). (accessed: 2012-03-28).

There is no universally

accepted definition for the

Metal Working industry. For

statistical purposes, some

studies include NAICS 331,

332, 332, and 336, while others

include only NAICS 332 and

333. Unfortunately, data for

NAICS 331 and 336 in New

Brunswick has been

suppressed by Statistics

Canada therefore limiting

analysis of the broader

definition.


15 June 2012

5.2 Structure of the Sector

There are a number of ways that the structure of a sector can be viewed. For

example, Figure 2 shows a supply chain model developed by PWC2 for the

Modular Fabrication sector. As can be seen it is based on key inputs, or

activities, required to produce a “module”.

Figure 2: PWC Modular Fabrication Supply Chain Model2

Another way to view sector structure is through the lens of business-to-business

relationships, or more specifically how companies interact with each other.

Where Figure 2 identifies ‘what is to be done’, Figure 3 identifies ‘who will do it’.

The focus of this study, as the title suggests and as defined in Section 4, are New

Brunswick metal fabrication companies with an industrial focus. In the context of

the relationships depicted in Figure 3, this study focuses on companies at the

centre of the supply chain (red block). Companies with the capability and

interest to participate in this sector currently number between 60 to 70 in New

Brunswick.

Customer Requirements

Manufacturing and Assembly

• Fabrication• Piping• Machining• Assembly• Welding• Finishing and

Painting• Electrical and

Instrumentation

Labour• Skilled Labour• Project

Management• Engineering• Drafting and

Detailing• Quality Assurance• Other Trades

Design• Engineering

Planning and Management

• Estimation• Project

Management• Scheduling• Risk Management

Materials• Steel• Pipe• Electrical• Valves• Paint and

Finishing• Equipment• Sheet Metal

Quality Assurance and Safety

• Quality Programs• Audit• Inspection• Safety Program• TestingTransportation

• Specialty Trucking• Port Facilities• Rail

Assu

rance

and

Qu

ality Co

ntro

l

Ch

ange

/ Co

nfigu

ration

Man

agem

en

t

Pro

ject M

anage

me

nt / R

isk Man

agem

en

t

Module

Key Inputs

ThroughoutEntire Process


16 June 2012

Figure 3: Structure of the Industrial Fabrication Sector in New Brunswick

Of the New Brunswick companies identified to be in-scope, over 80% were

classified as; “NAICS 3329 Other Fabricated Metal Product Manufacturing”

(57%), “3323 Architectural and Structural Metals Manufacturing” (15%), and

“3327 Machine Shops, Turned Product, and Screw, Nut and Bolt Manufacturing”

(10%). The entire breakdown is shown in Figure 410.

10 NAICS assignments were determined through assessment by the author based on a number of

factors including but not limited to; company self identification, listings on the Industry Canada

Canadian Company Capability website, as identified in the Service Canada regional database,

company website information, and responses to survey questions (where applicable).

VALUE CHAIN SUPPLIERS

NB INDUSTRIAL FABRICATION SECTOR

EPC COMPANY

LARGEINDUSTRIAL

PROJECT

Drafting & Detailing Co’s

Ind. Comp. Supply Co’s.

Design Service Co’s

MODULARFABRICATIONCOMPANIES

Primary Secondary

Capable Metal Fab. Co’s:• Welding

• Machining• Plate Work• Sheet Metal

Plating and Painting Co’s

Inspection and NDT Co’s

Raw Material Supply Co’s

Electrical & Control System Co’s

Hyd . & Pneu. System Co’s


17 June 2012

Figure 4: NAICS Classification of New Brunswick IF Companies

5.3 Capability

The intent of this section is to provide an overview of the spectrum of capability

offered by New Brunswick IF companies. It is based on, and includes information

collected from, survey respondents (over 80% of IF companies).

5.3.1 Company Size

The New Brunswick IF sector is comprised primarily of smaller companies. On

average NB IF companies employ 60 full time equivalents (FTEs) per company.

When the two largest employers are excluded, the average employee count

per company is closer to 45.

Figure 5 shows that 73% of the sector companies have less than 50 employees,

accounting for only 23% of total sector employment. Conversely, only 27% of

companies have more than 50 employees which represent 77% of total sector

employment.

1.6%

3.3%

3.3%

3.3%

6.6%

9.8%

14.8%

57.4%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

3334 Ventilation, Heating, Air-Conditioning and Commercial Refrigeration Equipment Manufacturing

3331 Agricultural, Construction and Mining Machinery Manufacturing

3332 Industrial Machinery Manufacturing

3324 Boiler, Tank and Shipping Container Manufacturing

3339 Other General-purpose Machinery

Manufacturing

3327 Machine Shops, Turned Product, and Screw, Nut and Bolt Manufacturing

3323 Architectural and Structural Metals

Manufacturing

3329 Other Fabricated Metal Product Manufacturing


18 June 2012

Figure 5: Make Up of IF Sector by Establishment Size Categories (n=62)

5.3.2 Facility Size

Another factor affecting capability, specifically capacity, is facility size. It is an

indicator of the size of products/equipment that a company is able to handle

within their shop. Just less than 70% of respondents reported that their

manufacturing space totalled less than 30,000 square feet. Nearly half (45%)

operated facilities in the 10,000 to 29,999 square foot range. About 30% reported

facilities with 30,000 to 100,000 square feet, and only 4% operated facilities larger

than 100,000 square feet.

Figure 6: Size of Manufacturing Space in Square Feet (n=51)

5.3.3 Lifting Capacity

In Modular Fabrication “lift capacity of shop cranes is an industry standard

measure typically used as a pre-qualifying criterion for bidding purposes”2. In the

context of this study, companies able to perform true modular fabrication would

represent the higher end of capability. As such, lift capacity is an important

factor toward assessing capability.

Figure 7 shows the breakdown of shop crane lifting capacity of surveyed

companies.

19

26

14

3137

725

1668

1300

0

200

400

600

800

1000

1200

1400

1600

1800

0

5

10

15

20

25

30

<10 10-49 50-250 250+

Emp

loym

en

t

Esta

bli

shm

en

ts

Company Size Category (Employment)

22%

45%

29%

4%

0% 10% 20% 30% 40% 50%

< 10,000

10,000 - 29,999

30,000 - 100,000

> 100,000


19 June 2012

Figure 7: Shop Crane Lifting Capacity of NB IF Companies (n=51)

Many companies, through the use of mobile cranes, had the ability to lift

greater tonnage than rated above; however the intent was to examine in-shop

fabrication capacity. Where applicable, total lift capacity was reported. For

example, if a company had two 10 ton cranes that were configured to provide

a combined lift capacity of 20 tons – 20 tons was reported.

A distinct gap above 30 tons is apparent where relatively few companies have

this ability. In fact, these same companies have the ability to lift over 50 tons.

5.3.4 Heavy, Medium, or Light Duty

When asked “How would you characterize the capacity of your staff skills and

facilities in relation to the size of materials and projects your company can

reasonably manage?” respondents were given three options:

1. My company has heavy duty capacity and can easily handle the

heaviest and largest materials that are to be manufactured in the region

typically found in very large industrial projects.

2. My company would be considered a medium duty shop that can do

large projects as found in commercial or industrial job sites.

3. My company is a light duty metal shop and usually works with lighter

materials typically found in light industrial and commercial projects such

as miscellaneous metals.

Almost half (49%) of the respondents self identified as “Heavy Duty”, 43% as

“Medium Duty”, and only 8% as “Light Duty”, as shown in Figure 8.

33%

20%

25%

12%

0%

10%

0% 10% 20% 30% 40%

1-5

6-10

11-20

21-30

31-49

50+

Percentage of Companies

Ton

nag

e


20 June 2012

Figure 8: Self-assessment of Light, Medium, and Heavy Duty Capability (n=51)

It is the opinion of the authors that a few responses were inflated, and perhaps

skewed the aggregate results more towards Heavy Duty than what was reality.

This was likely due partly to the ambiguous nature of the question, but also to the

“salesmanship” of some respondents. For example, at least two respondents

with less than 10,000 sq. ft. of manufacturing facilities self-identified as Heavy

Duty.

5.3.5 Manufacturing Materials, Processes, and Technologies

Not surprisingly, and as shown in Figure 9, all companies routinely worked with

steel. In addition, most routinely use stainless steel and aluminum. However, only

33% routinely manufacture with other metals such as titanium, copper, brass and

magnesium. Most were either machine shops, or possessed machining

capability.

Figure 9: Metals Routinely Used for Manufacture (n=51)

Questioning related to “standard” metal working processes (ex. cutting,

bending, welding, etc.) was purposefully omitted from the survey since by virtue

of being determined to be “in-scope”; a company would naturally possess

49%

43%

8%

0%

10%

20%

30%

40%

50%

60%

Heavy Duty Medium Duty Light Duty

33%

71%

78%

100%

0% 20% 40% 60% 80% 100% 120%

Other Metals

Aluminum

Stainless Steel

Steel


21 June 2012

these basic capabilities. Instead companies were polled about their in-house

capability regarding special processes.

Painting - By far the most common (63%) special process was in-house

painting capability;

Plating/Coating - Only a few companies (about 8%) indicated the ability

to perform other in-house plating/coating processes. Responses included

chrome plating, galvanizing (either hot dip or cold spray), and hard

coating;

Heat Treating – Roughly 13% reported an ability to perform heat treating

in-house;

Sand Blasting - A commonly reported (unsolicited) response to the special

process question was sand blasting.

It is important to note that most companies have access to special processes

through subcontract relationships with suppliers when required.

The intent of the investigation was not to conduct a detailed analysis of

technology adoption in the sector, but rather to get a sense of what advanced

manufacturing technologies are commonly used by companies in the sector.

The results are shown in Figure 10.

Figure 10: Use of Advanced Manufacturing Technologies (n=51)

Almost all (92%) reported having Computer Aided Design (CAD) software. While

some extensively used CAD for design activities (see next section), others simply

used it to work with “drawings” provided by other sources.

Over 60% reported having Computer Numerical Control / Computer Aided

Manufacturing (CNC/CAM) capabilities. This primarily included CNC equipment

used for machining (ex. turning, milling, etc.), cutting tables (ex. plasma, water

jet, etc.), and to a lesser extent punching, bending, and shearing.

92%

63%

6% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CAD CAM/CNC Robotics None


22 June 2012

The few respondents (6%) that reported having robotic capability use it for

welding processes.

Only two companies reported not using any of the above mentioned

advanced manufacturing technologies. It would appear that the sector, as a

whole, has extensively adopted advanced manufacturing technologies. It is

worth noting that small companies with fewer than 5 employees were

considered out of scope and not surveyed. Smaller operations are less likely to

have expensive automated equipment.

5.3.6 Design

Design capability was singled out as an offering that could potentially

differentiate one IF company from another by offering a greater breadth of

service. Overall, 80% of IF companies polled have the ability to offer clients

design services on a routine basis, whereas 20% do not. A wide spectrum of

design capabilities exists within the sector; ranging from companies with fully

rounded engineering departments to companies with a single employee that

might create a sketch for the shop floor.

Over half (55%) of respondents reported having in-house design capabilities,

whereas the remaining 45% have access to external engineers, technicians, or

design firms through contractual relationships.

5.3.7 Certifications

The two most common and most relevant areas of sector certifications relate to

welding and quality.

Welding: The welding certification environment is relatively complicated.

Certification applies to process (ex. SMAW, GTAW, PAW, etc.)11, material (ex.

steel, aluminum, etc.), application (ex. structural, high pressure, etc.), and

other factors. Within New Brunswick, the Canadian Welding Bureau (CWB)

certifies both companies and individual welders according to standards

established by the Canadian Standards Association (CSA). The New

Brunswick Department of Public Safety certifies welders according to ASME12

standards for pipe and pressure vessel welding.

Individual welder certifications or “tickets” are mandatory based on the

specific technologies, substrates, positions and techniques required for the

type of work/product being produced. Welders require certifications for the

11 SMAW=Shielded Metal Arc Welding, GTAW=Gas Tungsten Arc Welding, PAW=Plasma Arc

Welding 12 The American Society of Mechanical Engineers


23 June 2012

processes utilized by their employer. The “mix” of required certifications varies

from company to company based on industries served and products

produced.

The intent of the investigation was not to conduct a detailed examination

and classification of IF company welding certification in New Brunswick, but

rather to identify if companies have actually achieved welding certification

and if so, what “type”. As shown in Figure 11, over ¾ of respondents possess

some form of structural welding certification. Of these, all possessed

Canadian Welding Bureau (CWB) certification, and 13% also had

certification with the American/Canadian Institute of Steel Construction

(AISC/CISC).

Figure 11: Welding Certifications (n=51)

Approximately one third (35%) of the companies interviewed possess pressure

welding certifications (ASME - pipe or pressure vessel). With few exceptions,

companies with this certification also possess structural welding certifications.

Only two companies reported achieving welding certification for nuclear

applications. A surprising 16% have not achieved any welding certification

(or were unable to accurately report). However, over half of these were

machine shops.

Quality: Certification of quality programs is another differentiating factor in the

sector. As shown in Figure 12, almost half (48%) of respondents reported

having an externally certified quality program. ISO 9001 (including AS9100 in

a few instances) made up most (79%) of the external certifications while

AISC/CISC quality certification made up the balance (21%).

16%

4%

35%

76%

0% 20% 40% 60% 80% 100%

None

Other: Nuclear

Pressure (ex. ASME)

Structural (ex. CWB, AISC/CISC)


24 June 2012

Figure 12: Quality Program Certifications (n=50)

Another 42% of respondents reported having a documented in-house quality

program, and 10% had no formal quality program in place.

5.3.8 Capability Analysis

To provide insight into the relative capability of IF companies, and the New

Brunswick sector as a whole, an algorithm was developed to quantitatively

assess companies against a number of relevant factors unique to the IF sector.

Shown in Figure 13 is a plot of IF companies based on values calculated for

Capacity (X-Axis) and Expertise (Y-Axis). Coordinates for each company were

calculated based on a weighted average of numerical values assigned to

selected survey responses as outlined in Table 2 below13:

Table 2: Capability Analysis Assessment Criteria

Factor Weight

Ca

pa

city

Ax

is

Size of Shop 25%

Shop Lift Capacity 25%

Heavy, Medium or Light Duty 20%

Total Number of Employees 20%

Revenue Range 10%

Ex

pe

rtis

e

Ax

is

Participation in Industrial Markets 25%

Welding Certifications 25%

In-House Design Capability

Engineers/Technicians on Staff (10%)

CAD Capability (5%)

Offer Design Services (5%)

20%

Geographic Market Reach 10%

Quality Program Certification 10%

Ratio of Production to Total Employment 5%

Metals Routinely Worked With 5%

13 Sections 5.3 and 5.5 provide greater insight into the various factors.

Externally Certified

48%In-House Program

42%

No Formal Program

10%


25 June 2012

Figure 13: Capability Analysis of New Brunswick IF Companies Surveyed

It must be clearly stated that it is not the intent of this analysis to make an

unequivocal assessment of a company’s capability and definitively plot it on a

chart14. Rather it is intended to provide a relative assessment to get a sense of

the collective New Brunswick IF sector landscape.

It should also be noted that this analysis is focussed on, and thus “scaled” to, the

New Brunswick situation. For example, an average “global” modular fabrication

company would employ 550 people while a large global modular fabrication

company would employ upwards of 1750 people2. The two largest New

Brunswick employers interviewed had less than 500 full time staff. If Figure 13 was

plotted on a global scale, the net effect would be to shift the data points

toward the lower left quadrant.

The upper right quadrant would represent capability of “primary metal

fabricators for heavy industry” as defined in Section 4. As shown in Figure 13,

14 There are obvious limitations to such an analysis. As well, the assessment is dependent entirely

upon survey responses, most of which have not been explicitly investigated and verified.

Exp

ert

ise

Capacity


26 June 2012

there are relatively few companies in this quadrant who would have the

capacity and expertise to “go it alone” when pursuing mega project

prefabricated modules.

Anecdotal evidence established through interviews indicated that a number of

smaller companies are currently supplying products and services to larger New

Brunswick companies in the sector. For smaller progressive companies wishing to

pursue the sector, the situation presents potential partnering opportunities. Due

to this reality, specific sector development efforts are taking place in the

province by both private and public stakeholders (see Section 5.7).

5.4 Regional Distribution

Figure 14 shows the regional distribution of 62 Industrial Fabrication companies in

New Brunswick.

Figure 14: Location of IF Companies in New Brunswick

5-9

10-49

50-250

250+


27 June 2012

The “Campbellton – Miramichi” and the “Saint John – St. Stephen” economic

regions, as shown in Figure 15, are most prominent in the sector accounting for

almost 50% of establishments and almost 70% of employment.

Figure 15: Regional Distribution of IF Establishments and Employment (n=62)

5.5 Markets

5.5.1 Market Segments Served

Figure 16 shows the ranking of market segments identified by survey respondents

that account for at least 10% of corporate revenue.

Figure 16: Market Segments Accounting for 10% of Corporate Revenue (n=51)

11

12

8

12

19

1302

512

255

415

1186

0 500 1000 1500

0 5 10 15 20

Saint John - St. Stephen

Moncton - Richibucto

Fredericton - Oromocto

Edmundston - Woodstock

Campbellton - Miramichi

Employment

Establishments

4%

4%

6%

8%

10%

10%

24%

31%

39%

43%

43%

47%

59%

59%

0 5 10 15 20 25 30 35

Water and Sewage

Waste Management

Aquaculture

Shipbuilding

Other

Aerospace/Defence

Land Transportation

Food Processing

Petrochemical

Power Generation including Nuclear

Agriculture and Forestry

Pulp and Paper

Construction

Mining


28 June 2012

The most common market segments served (59%) are mining and construction.

The significant participation in construction illustrates the “cross-industry” nature

of companies in this sector.

Figure 17 drills down further and shows how respondents identified the top 3

industrial markets served, by revenue. In viewing the data it is important to note

that while all respondents identified their primary (n=51) market, not all identified

their secondary (n=41) and tertiary (n=37) markets.

Figure 17: Top Three Markets by Value of Revenue

The mining industry is by far the primary source of revenue for most New

Brunswick IF companies. Not surprising, the construction, petrochemical, pulp

and paper, and utility industries are also major sources of revenue. Most

respondents did qualify their responses indicating that revenue sources change

in relation to the economy. For example, companies that mainly serve the

petrochemical market today may have principally relied on the pulp and paper

market 10 years ago.

5.5.2 Geographic Reach

As shown in Figure 18, a large portion (60%) of the companies interviewed

indicated that the largest portion of their revenue originates from within New

Brunswick. It is important to note that this does not imply that 60% of sector

revenue originates from New Brunswick, but rather only 60% of the companies

indicate that it is their major source. The same companies are likely to have

interprovincial and export revenue as well. It should be noted that respondents

indicated that the percentage of their revenue coming from various

0 5 10 15 20

Other

Shipbuilding

Land Transport


Aerospace/Defence

Food Processing

Pulp and Paper


Petrochemical

Construction

Mining

Primary

Secondary

Tertiary


29 June 2012

geographic regions can shift, sometimes dramatically, from year to year, based

on contract wins.

Figure 18: Largest Portion of Revenue – By Geography (N=50)

To gain insight into actual export values, Figure 19 shows the history of

international exports for the broader New Brunswick Metal Working Sector

(NAICS 332 and 333).

Figure 19: New Brunsiwck Metal Working Sector International Export History

An obvious and significant negative trend, $245.6 million in 2002 to $85.3 million

in 2011, characterises export activity of the metal working sector. A steep

decline during the recession in 2008-2009 is especially apparent. International

exports in 2009 ($132.7 million) represented approximately 21% of total NB Metal

Working revenue ($644.6 million from Table 1).

5.5.3 Outlook

Collectively respondents (n=51) generally viewed the past performance of the

sector over the last two years as being “somewhat strong”. However, there is

much greater optimism for the next 2-5 years where respondents (n=50) see

performance appreciably increasing as shown in Figure 20.

60%

8%

22%

10%New Brunswick

Atlantic Canada

Canada

Inernational

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

NAICS 333

NAICS 332


30 June 2012

Figure 20: Perception of Past and Future Economic Performance of the Sector

A large percentage (69%) of respondents (n=51) claim to have taken concrete

steps to diversify their markets. Figure 21 shows the most common responses

relating to market diversification.

Figure 21: Diversification Markets Targeted By Respondents (n=34)

It is not surprising, given the recent announcement of the $25-billion Irving

contract to build the next generation of combat ships, that the majority of

respondents (approximately 38% of those claiming diversification efforts)

identified shipbuilding as a diversification area.

0% 10% 20% 30% 40%

(Extremely weak) 1

2

3

(Somewhat weak) 4

5

(Somewhat strong) 6

7

8

(Extremely strong) 9

Next 2-5 Yrs

Last 2 Yrs

0 2 4 6 8 10 12 14

Other

Pulp and Paper


Land Transport

Construction


Petrochemical

New Geographies

Aerospace/Defence

Mining

Shipbuilding


31 June 2012

Despite this, mining continues to be a market focus for companies. Aerospace

and defence are also high ranking target markets - likely fuelled by the

shipbuilding buzz.

Although not asked specifically, only three respondents identified that they will

be pursuing new geographic markets.

In terms of expansion or contraction plans (machinery or buildings), none of the

respondents indicated that they plan to contract. Forty-nine percent (49%)

indicated that they plan to expand, whereas the remaining 51% plan to

maintain current operations.

5.5.4 Market Barriers

While individual companies may face a number of market barriers depending

upon their unique circumstances, there was really only one sector-specific

market barrier identified – access to free and open trade. This is a significant

hurdle since most opportunities in the sector, particularly if growth is to take

place, exist beyond the borders of New Brunswick.

It was suggested that the bi-lateral government agreements between

Newfoundland and Labrador with the Government of Nova Scotia and the

Government of Canada are a major barrier to New Brunswick companies

wishing to pursue these regional markets. Similarly, the union influence and

control over construction sites in Quebec creates challenges for New Brunswick

companies that wish to build, ship, and install modular components in that

province.

New Brunswick government officials acknowledge there are challenges in this

area, and that the New Brunswick government must continue to raise these

issues with their provincial and federal counterparts.

5.6 Transportation Infrastructure

Transportation infrastructure is critically important to the New Brunswick IF sector.

The nature of business – fabrication of large metal products for installation at

distant industrial sites – demands appropriate transportation infrastructure to

move goods to distant markets. Infrastructure to support land (road and rail)

and sea transportation in New Brunswick is briefly discussed below15.

5.6.1 Land

New Brunswick’s land transportation infrastructure is shown in Figure 22.

15 Unless otherwise specified, information in this section is taken primarily from the New Brunswick

Department of Economic Development website -

http://www2.gnb.ca/content/gnb/en/departments/economic_development/Export_Trade.html

http://www2.gnb.ca/content/gnb/en/departments/economic_development/Export_Trade.html


32 June 2012

Figure 22: Land Transportation (Road and Rail) Infrastructure in New Brunswick

New Brunswick’s modern toll-free highways are fully integrated with U.S. and

eastern and central Canadian networks. Interstate-95 continues in New

Brunswick, connecting to the four-lane Trans-Canada Highway that runs through

the province.

The only transcontinental rail network in North America - Canadian National

Railways - links New Brunswick with both the Atlantic and Pacific U.S. seaboards,

Central Canada, and the Gulf of Mexico. Networked railways include:

CN: Canadian National MM&A: Montreal, Maine & Atlantic

CP: Canadian Pacific GSR: Boston & Maine (Central)

NBSR: New Brunswick Southern Railway EMR: Eastern Maine Railway

NBEC: New Brunswick East Coast Railway Via Rail Canada Inc.

5.6.2 Sea

Being a coastal province, New Brunswick is gifted with ample coastal access

and five ports (Figure 23) that permit inexpensive and convenient shipping of

raw materials and finished goods to the United States, Europe, the Caribbean,

and beyond.


33 June 2012

Figure 23: New Brunswick Ports

Sea ports are particularly important to the sector when very large prefabricated

industrial modules are required to be exported to distant markets. Two of the

larger Ports, Belledune and Saint John, have undertaken specific efforts to

support and pursue the sector in New Brunswick.

Belledune: In 2010 the Port of Belledune and the Provincial Government formed

a strategic partnership to construct the “Belledune Modular Fabrication

Facility” with $13.2 million in funding from the Federal and Provincial

governments. The endeavour included the construction of a new 40,000

square foot facility and the acquisition for another 90,000 square foot facility.

The first tenant of the facility was announced in March 2012.

Saint John: In 2010 Saint John Industrial Park Ltd. commissioned an engineering

study for a site review of a barge loading facility in Saint John16 citing that:

“Metal fabricators in Saint John are seeking to provide a barge loading

facility that will allow the proponents to ship (or receive) large components

that exceed rail and truck capability or limitations.” In 2012 a news report17

indicated that the $6 million project was supported by local companies such

as Lorneville Mechanical and that construction could begin in the fall of

2012.

5.7 Sector Development

As presented in Sections 5.3.1and 5.3.8, the very nature of the New Brunswick IF

sector (comprised primarily of smaller companies) presents opportunities for,

16 “Site Reviews for a Barge Loading Facility in Saint John, NB for Fabricated Steel Modules for

Heavy Industry”, Cormier Management Consulting Ltd. in association with Fundy Engineering Ltd,

June 2010 17 “Proposed barge docking site could boost business”, CBC News, March 7, 2012


34 June 2012

and in some cases necessitates, partnering to pursue larger projects. A logical

extension would be to take deliberate steps toward cluster development. PWC

in their 2011 modular fabrication report2 determined that there were “no major

gaps of service” and “that the supply chain exists. It just needs to be organized

and coordinated”. They go on to say that the coordination role is usually played

by industry associations in mature clusters, and by government in early stage

cluster development. Industrial Fabrication sector clustering activities are in fact

happening in both the private and public domains in New Brunswick.

In the public domain, a “Provincial Modular Fabrication Committee” with

representation that includes the Department of Business New Brunswick18 has

been established. While the committee was originally created to pursue efforts

at the Port of Belledune (see above), interview discussions have indicated that it

is evolving to take a broader provincial approach.

In the private sector, the Associated Manufacturing Marketing Group (AMMG) is

a consortium established to specifically pursue this sector. The organization

represents six private companies under one marketing umbrella to pursue

business development opportunities directly in the industrial fabrication sector.

It was the opinion of most economic development advocates that New

Brunswick was well positioned to take advantage of opportunities in the

industrial metal fabrication sector. Access to deep water ports, a skilled

workforce, and a proven track record in delivering on other major infrastructure

projects in the past were all cited as key strengths that will help the Province

become successful in this effort.

Most believe that New Brunswick is currently, or could become, a respected

player in this market place and needs to continue to develop relationships with

EPC contractors responsible for project management and delivery of major

projects. On the other hand, the enthusiasm of some was tempered by the

perception that New Brunswick is not currently a major player in the sector, and

that most opportunities for this type of work exist beyond its borders where New

Brunswick companies face both global competition as well as barriers to free

and open trade (see Section 5.5.4).

A total of six interviews were conducted with individuals involved in economic

development activities related to the sector. Some individuals were charged

with a regional mandate, some represented specific industrial sites, and some

had a Province-wide mandate for economic development. Not surprisingly, a

wide variety of perspectives were shared, with varying opinions likely forged in

the execution of the different roles and mandates of those interviewed.

18 Recently renamed and reorganized into the Department of Economic Development.


35 June 2012

Advocates for modular fabrication in the northern part of the Province saw

Belledune as the best location in the Province for fabricating and delivering

industrial modular components from New Brunswick. Proponents cited

economic opportunities generally in the mining sector of northern Quebec and

Labrador. Companies in the region have expertise in this sector and access to

the facility at the Port of Belledune and elsewhere in northern New Brunswick.

The group has identified 43 major mining projects that total more than $47 billion

as potential target markets.

Yet, it was the perspective of those interviewed from southern New Brunswick

that the Saint John area was the best location in the Province for delivering

industrial modular components from New Brunswick. Factors in support of Saint

John were: access to a major deep sea port with ice free waters, a highly skilled

labour force, and a culture of heavy industry. Opportunities from Newfoundland

and Labrador to Texas, mainly in the oil and gas industry, were cited as potential

market areas.

Although, regional economic development strategies were not a central focus

of the study, the issue did surface in interviews with leaders in this sector. It might

appear there are differing views for economic development for modular

fabrication within the Province, and perhaps even competitive concerns. One

interviewee noted: “We need to be careful not to create an unnecessary

competitive environment within the Province when we have the infrastructure in

place here.”

It is the authors’ opinion however, that the differing visions are more

complementary than competitive. All those interviewed agreed that there are

major opportunities to build modular components for large industrial projects

and agreed that the New Brunswick labour force and companies are prepared

to exploit these opportunities. Companies in the north of the Province have an

interest and expertise in the mining sector and are geographically positioned to

exploit these interests. Companies in the south have expertise in oil and gas and

stakeholders there have identified 70 oil refineries16 on the eastern seaboard

that require modernization and operational support.

6 Human Resources Profile

6.1 Human Resource Practices

Forty-one percent of 51 respondents indicated that they had no dedicated

human resource staff. Often, it was the company owner who hired, fired and

managed payroll and other aspects of the workforce, in addition to running the

business. About half of the companies (47%), reported having a full or part time


36 June 2012

person to help with these functions. Only 12% of companies had a human

resources department with two or more employees.

When asked about human resource plans that address labour force planning,

recruitment, training, performance management, and exit interviews, 63% had

no plan in place. The remainder (37%) had at least a partial or a full plan on file.

When questioned about succession planning for the ownership and / or

management of the company, 35% indicated that they had a formal plan in

place, while 45% indicated they did not have a formal plan, but were mentoring

employees for management roles. The remaining 20% did not have a plan, or

declined to say.

As expected, larger companies and companies that were part of

multidisciplinary organizations were more likely to have a plan for the

development of their workforce than smaller owner / operator companies. In

such instances full time human resources staff were available to support this

work.

6.2 Workforce Composition

It was determined that companies in this sector (n=62) employed approximately

3,440 total staff. About 2,550 (65%) made up the metal fabrication and

processing occupations that are the focus of this study (Section 4).

Figure 24: Ratio of Core IF Occupations to Non-Core Occupations

The relative distribution of each occupation is shown in Figure 25.

Core Metal Fab, 65%

Other, 35%


37 June 2012

Figure 25: Employment of Selected IF Occupations (n=51)

According to the Canadian Occupational Projection System (COPS), the

broader New Brunswick metal fabrication industry employs 134 different

occupations and 4245 people. As such, this study has effectively captured over

80% of the employment within the industry.

It should be noted that COPS data is not entirely consistent with survey data as

shown in Table 3. Interviews with employers uncovered significantly more Fitters /

Fabricators and moderately more Welders working in this sector than in the

broader Metal Fabrication industry (as defined by SIC 1980) reported by COPS.

Table 3 : Selected Comparison of Survey Responses To COPS Data

Occupation Employer Responses 2011 COPS DATA

Machinists 157 415

Fitters / Fabricators 511 49

Welders 431 399

Workforce issues in the Employer interviews focused on the 21 occupations core

to the IF sector as defined in Section 4, namely: Welders, Fitters, Machinists,

Machine Operators, Labourers, Shop Supervisors, Technologists, Drafters and

Engineers. Excluded from the analysis were employees that worked in

0%

0%

0%

0%

0%

0%

1%

1%

1%

1%

1%

1%

2%

6%

7%

8%

9%

10%

11%

19%

22%

0% 5% 10% 15% 20% 25%

Metallurgical & Materials Eng (2142)

Blacksmiths and Die Setters (7266)

Machining Tool Operators (9511)

Ind and Mfg Eng (2141)

Tool and Die Makers (7232)

Mechanical Eng (2132)

Ind Eng & Manuf Eng Techs (2233)

Civil Eng Techs (2231)

Other Metal Production Machine Ops (9516)

Civil Eng (2131)

Drafting Techs (2253)

Mechanical Eng. Techs (2232)

Sheet Metal Workers (7261)

Metal-working Machine Operators (9514)

Machinists and Tooling Inspectors (7231)

Labourers in Metal Fab. (9612)

Supervisors - Machinists & Related (7211)

Ironworkers (7264)

Boilermakers (7262)

Welders and related Machine Workers (7265)

Structural Metal Fitters & Fabricators (7263)


38 June 2012

management roles, administration, sales, or otherwise employed in trades not

directly involved with metals work.

At first glance it would appear there are an unusually high number of employees

not directly involved in the production process. However, it should be noted that

some companies were multidisciplinary and employed trades people in other

disciplines such as electrical, instrumentation, hydraulics or construction.

Fitter/Fabricators and Welders were the two occupations with the largest

employment. Together they made up 41% of the sector workforce. An analysis

of these employment numbers to the post-secondary training capacity in the

Province, and future staffing needs is discussed further in Section 7.8.

Trades people in the small- to medium-sized companies commonly perform

more than one role. Fitters may also be Welders and Machinists may be certified

in welding operations while also operating metal-working machines such as

brakes and shears. This was a common story, and something valued by

employers. In very large or unionized shops it was more likely to find trade-

specific practices where, for example, a Fitter would set up the fabricated

component to be welded but would not do the actual welding.

6.3 Unionization

The majority of employers (78%) operated non-union shops. Only 16% of

companies were unionized, and many of these were based in the Saint John

area where heavy industrial trades have been in existence since the 1950s. A

small number of companies (6%) employed both union and non-union trades. In

these circumstances, it was determined that companies may have had non-

union shop employees and unionized field workers or installers.

Figure 26: Unionization in the Sector (n=51)

16%

78%

6%

Unionized

Nonunionized

Hybrid


39 June 2012

Employers that were unionized had considerably different practices and

attitudes towards recruitment, professional development, training and

succession planning than companies that were non-unionized. Unionized

employers worked closely with union leaders on these issues and called upon

union halls for labour when staff were required and laid off employees when the

work was complete. Non-union shops generally took more of a custodial view of

their employees, their development, and progression within the company.

Employees in the non-unionized environment were compensated less based

upon hourly wages but might spend a major part of their career with one

employer.

6.4 Wages

Wage rates were only requested on three occupational profiles for both entry

level apprentice employees and for those at the top skill level of their trade.

Wages for Welders, Machinists and Machine Operators were surveyed. There

was less than a 10 percent variation across the trades, however senior

employees were paid 35-42% percent higher than their entry-level counterparts.

Table 4: Wage Rates Reported by Respondents (n=51)

Occupation Junior Senior Average

Welder $16.26 $22.66 $19.46

Machinist $15.14 $21.60 $18.37

Machine Operator $15.17 $20.55 $17.86

According to the HRSDC19 database Working in Canada20, wages paid by

surveyed employers were consistent with less than 10 percent variance

compared to the national database figures for the region. One interesting

finding, as shown in Table 5, was that wages in the northeastern region of New

Brunswick for Welders were over 20% higher than in southeastern New Brunswick.

This is consistent with anecdotal feedback from employers in the north who

indicated there were challenges finding and keeping skilled workers in their

region, and as a result they had to offer more competitive wages. As expected,

wages in Alberta were considerably higher for all trades.

Table 5: Wage Rates From “Working in Canada – HRSDC”

Occupation Calgary Moncton N-E NB Region

Welder $27.97 $18.00 $22.03

Machinist $26.22 $17.64 N/A

Machine Operator $21.37 $17.88 N/A

19 HRSDC=Human Resources and Skills Development Canada. 20 http://www.workingincanada.gc.ca

http://www.workingincanada.gc.ca/


40 June 2012

6.5 Demographics

The majority of workers in the core occupational groups were 25 to 44 years of

age, representing just under half of the sample size. Workers aged 45 to 54 were

the second largest group followed by those 24 years and under. Only about

15% of workers were over 55 years old. There were very few metal workers over

65 years of age active in the labour force.

Figure 27: Age Distribution of IF Core Fabrication Occupations (n=50)

When considering the fact that the 25-44 year old category spans a 20 year

time period while the 45-54 age period spans 10 years and the 24 and under

period is typically less than 5 years in the workforce, there is a fairly even

distribution of workers by age within the New Brunswick sector.

Many employers raised concerns about the aging workforce and out-migration

of workers (especially younger workers to Alberta) as being a significant

challenge. However, the data would suggest that a significant number of

younger workers remain in New Brunswick companies, proportionally similar to

their older coworkers. Adjusting the results to account for the differing number of

years within each group, there is a relatively even distribution of workers at every

age profile within a margin of plus or minus 3 percent (assuming an even

distribution in the 25-44 age category). The exception to this is the group aged

65 and over.

Of the 2,250 workers employed in the core IF occupations, as identified by

respondents, only 1.9% (43) were female. Metal fabrication remains a male-

dominated field and there is likely no change in sight. Despite this bias, some

employers commented that their female employees exhibited better skills in

12%

47%

25%

15%

1%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

-24 25-44 45-54 55-64 65+


41 June 2012

some areas than their male counter parts. Their attention to detail, high

productivity and reliability were all cited as valuable traits.

Only 5 respondents (10% of n=50) reported employing landed immigrants. In

total only 10 (0.4%) landed immigrants were employed as part of this workforce.

Only one employer reported hiring a single temporary foreign worker. Most

respondents, when further questioned on this subject, had never considered the

option of hiring from outside Canada and relied on traditional recruitment

methods (including internet job sites) to find new employees. One large

employer residing in a rural area is increasingly looking at immigration to help fill

his labour needs, as it has been difficult to find employees willing to move to the

more remote area where they are located. Employers that did employ landed

immigrant workers offered the commentary that their skill sets were usually far

better than their Canadian-trained co-workers. This is especially the case with

immigrants from Europe where the training of trade skills begins in the early to

mid teens and the entire path to becoming a journeyperson takes 10 to 15

years. It was noted that Europeans hold a different perspective regarding the

trades compared to those in the western world. Journeypersons are respected

by society on a par with engineers, doctors and other professionals. Here, trades

are regarded as a path for those graduating from high school who do not have

the academic aptitude for university.

Should New Brunswick become successful in becoming a centre of expertise in

building, shipping and installing major modular components for industry, workers

from other countries could not only become part of the solution to filling its

labour needs, but also may bring with them new skills such as diverse cultural

and linguistic knowledge that could be beneficial in the export business.

6.6 Future Hiring Plans

Employers were questioned about current vacancies as well as their hiring

predictions over the next two years for the core IF occupations. Shown in Figure

28 were current vacancies reported by respondents.


42 June 2012

Figure 28: Vacant Positions Reported by Respondents (n=49)

Figure 29 shows hiring expectations for the core IF occupations over the next

two years.

Figure 29: Respondent Hiring Expectations in the Next 2 Years (n=49)

Employers generally noted that longer-range hiring plans would be a result of an

increase in business rather than a loss from the current workforce through

retirements or termination of employment. The top three occupations in

demand, consistent with current vacancies as well as anticipated hiring, were

Welders, Fitters and Fabricators, and Machinists / CNC Operators.

0

1

1

2

3

5

9

12

18

26

29

0 5 10 15 20 25 30 35

Engineers

Machine Operators

Sheet Metal Workers

Technologists

Draftspersons

Other

Shop Supervisory Staff

Labourers

Machinists/CNC Operators

Structural Fitters & Fabricators

Welders

9

11

12

12

13

26

29

45

73

156

175

0 50 100 150 200

Sheet Metal Workers

Engineers

Technologists

Draftspersons

Shop Supervisory Staff

Machine Operators

Other

Labourers

Machinists/CNC Operators

Structural Fitters & Fabricators

Welders


43 June 2012

6.7 Staffing and Hiring Issues

The reasons that led to the hiring of metal-working employees over the past five

years were explored with respondents (n=50). Only 43 positions had to be filled

because of retirement. Another 241 replaced those that had quit, or were fired.

The majority of the new hiring in the past five years was a result of growth in

business where companies reported hiring 482 new employees.

Caution should be used in interpreting these numbers since this does not mean

the sector’s labour force grew by 500 employees during this period. The numbers

do not account for employees who quit one company and were hired by

another. Also, respondents indicated that over the past few years they have

observed a number of competitors going out of business. Some new hires are

likely a result of these displaced workers joining other companies.

Only eight landed immigrants (permanent residents) were hired by respondents

in the last five years.

Within the unionized companies, there was no way to track these numbers at

the employer level since the companies requisitioned employees from the union

hall, and were not able to track worker movement within the labour force.

6.8 Recruitment Methods

All respondents (n=51) hired new staff over the past five years. Most use multiple

methods to find new employees. Two-thirds of companies hire employees who

have forwarded their resume or filled out an application form. Forty-five percent

of companies advertise in newspapers. One-third have hired from referrals

through government programs or lists. Fifty-three percent of companies use the

internet to find employees including use of their own website as well as

specialized third-party providers such as Career Beacon, Workopolis, etc.

Twenty-nine percent found employees through “other” means. Unionized

companies hired trades staff exclusively through the union hall. Some employers

developed a relationship with a college and hired directly from the graduating

class, often hiring a student placement after completion of a formal on-the-job

training session.

No companies reported using any means to specifically target foreign workers.

Only 12% used a professional recruiter to find workers. This approach was

sometimes used to obtain employees with special skill sets.


44 June 2012

6.9 Challenges in Recruiting

Twenty-nine percent (29%) of respondents had no problem finding employees in

their local labour market over the past five years as shown in Figure 30. However,

slightly more (31%) found it challenging to find Fitters / Fabricators.

Figure 30: Challenges Recruiting Selected Occupations (n=51)

Welders ranked second in difficulty to recruit with 29% of respondents indicating

that this was a challenge. Survey respondents often qualified their remarks,

mentioning that Welders were difficult to find a few years ago but that the

problem has largely been solved with additional training provided at the post-

secondary level. They further clarified their responses, stating that Welders with

special certifications in high pressure welding and the welding of stainless steel

and other metals were in demand. “Run of the mill” Welders were not hard to

find in today’s labour market.

Nearly one-quarter (24%) of employers reported difficulty in finding Machinists

and CNC Operators. This number should not be dismissed even though three-

quarters of employers report not experiencing any problems in this area, since

many of these companies, by virtue of their work, do not employ many or even

any Machinists, nor do they have CNC capability. For those employers that do

rely on this skill set, significant difficulty recruiting is being experienced.

Respondents did not report a problem finding Engineers and Technologists (only

2% and 4% respectively). However, 8% of employers expressed problems in

finding CAD Drafters. Lower numbers in these categories are likely a result of

some companies not performing in-house design work and the low ratio

12%

2%

2%

4%

6%

8%

8%

24%

29%

31%

4%

29%

0% 10% 20% 30% 40%

Other

Engineers

Sheet Metal Workers

Technologists

Machine Operators

Draftspersons

Shop supervisory staff

Machinists and CNC Operators

Welders

Fitters / Fabricators

Have not hired in last 5 years

No trouble recruiting in last 5 years


45 June 2012

requirement of design staff to production staff. Anecdotal comments suggest

that CAD Drafters with a high degree and breadth of software knowledge and

understanding of the metals industry were not available right out of trade

school.

When employers were given the opportunity to provide their own rationale why

the local labour market was not able to fulfill their needs, a wide variety of

responses were received. The most frequent response was out-migration of

younger workers to western Canada. However the issue is far more complex

than this single factor.

A number of employers cited geographic challenges in finding labour. Workers,

especially younger workers, want to be near larger centres where their spouses

can find work and their families have access to a wider range of employment,

entertainment and social services. One insightful respondent felt it was in

everyone’s best interest to try to develop communities from a cultural and social

standpoint rather than to focus only on economic and employment issues.

Some respondents observed generational challenges with employees from the

younger demographic: “The younger people don't see welding as a life-long

profession.”

Many comments were made about the educational system and its failure to

develop the workforce in all trades disciplines. References were made to the

“old” system where students were exposed to the trades at an early

impressionable age in school and were offered a career path to study.

Employers commented that the system is geared to send students to university

and “those that can’t” end up at trade school.

Many respondents felt that colleges needed to do a better job by better

communicating with employers about their needs and delivering better trained

students in fields that are in demand, although 45% of respondents indicated

new graduates had the skills they expected. Often, the demand for Fitters and

Fabricators and Machinists was noted, along with the need for Welders with

advanced skills who can pass exams to maintain their welding tickets.

6.10 Skill Deficiencies with New Hires

The majority of respondents (55%) reported that new employees lacked the skills

required to take on the duties of the workplace. However, the deficiencies

identified were more generic in nature (i.e. common to many trades in many

industries) and not specific to the IF sector. Examples of deficiencies cited

include:


46 June 2012

A number of employers noted that basic safety training required in a

modern industrial work environment was lacking;

It was often noted that new graduates lacked practical experience and

employers carried the burden of training individuals in skills that should be

a prerequisite for graduation;

Workers, especially Fitters and Fabricators, lacked the ability to read and

interpret drawings;

Poor math, physics and literacy skills with some graduates was a concern

to some respondents;

Programming at the post-secondary level does not address the labour

market need for training for advanced skills. Common examples were:

welders trained for specialty metals or processes, CNC skills specific to

certain machines, and CAD Drafters with knowledge of multiple software

platforms; and

A few employers noted the lack of professional skills from new graduates

such as time-keeping, work ethic, and willingness to take instructions.

6.11 Needed Skills for the Future

When asked, “Do you believe there are any new skills that will be needed to

compete and grow your business over the next 2 to 5 years?” there were very

few respondents that identified any skills “new to the sector”. Most responses

related to skills “new to the company” such as the need for;

CNC/CAM programmers and, to a lesser extent, CNC operators;

Mechanical Engineers and Draftspersons;

Skills unique to a particular piece of equipment;

Skills in advanced welding techniques and technologies;

Expertise in the areas of Lean Manufacturing, Six Sigma and ISO quality

management; and

Specific trades such as Industrial Mechanics, Millwrights, Electricians, and

Hydraulic Technicians that can support system integration capabilities to

produce more complex industrial modules.

However, there were also a couple of instances where skills unique to the sector,

versus unique to the company, were identified. These included:

Expertise in new software (SpoolGen and ISOGen), which can take 3D

engineering drawings and turn it into specifications for component

sections of mechanical modules, and ultimately into specs for the pipe

spools to be manufactured; and

Addressing the lack of training related to skills required for industrial

painting applications such as the use of high-pressure airless systems for

industrial coatings. In-house training is currently the only means of

teaching such skills.


47 June 2012

7 Training Capacity

A catalog of New Brunswick training institutions and courses is provided in

Appendix 1. Included in the listing are basic program parameters, such as:

yearly seat capacity, course length, summary of curriculum, articulation

agreements, and potential certifications the student may challenge.

The scope and mandate of this study was to determine training capacity, and

therefore does not include qualitative comparisons or recommendations

regarding the various training programs. Similarly, since the focus is educational

capacity to support the sector, the exploration of the training programs is

primarily forward-looking. That is, the findings provided are based on the current

programs offered and any intended change in the capacity or nature of the

programs. The study, therefore, does not examine data regarding past

graduates.

7.1 Defining Educational Capacity in a Time of Change

Gaining insight into the ability and readiness of educational services to support

an industry sector is always strategic. However, when that sector is seeking to

change and adapt in response to rising global opportunities presented by the

emergence of new technologies and supply chain paradigms, it is critical to

gain an understanding of the educational system’s capacity to support the

needed evolution. Times of great change highlight the importance of the

educational partners’ essential role in helping to effect that change.

During such periods of significant adaptation and growth within an industry

sector, the consideration of educational capacity must include:

1. The ability to train students (new entrants and apprentices) in foundational,

relevant skills to their chosen occupation in a quantity that can help meet

the prospective increase in labour demand; and

2. The evidence of willingness and ability within the education system to

respond to and support the learning of advanced skill demands in a timely

manner.

The primary and secondary research looked for evidence of both these factors.

7.2 Primary Trades Utilized in the Sector

The primary research with employers regarding their work force and practices

provided guidance as to how to focus the review of training capacity to the

trades most utilized in the sector and which are estimated to require the largest

growth within the sector’s labour force.


48 June 2012

Interviews with New Brunswick employers explored their current work force and

future staffing needs within occupations and trades that are directly involved in

the production process – from design to fabrication. These included: Engineers,

Technologists and Technicians, Supervisors, Machinists, Tool and Die Makers,

Sheet Metal Workers, Boilermakers, Structural Metal and Platework

Fitters/Fabricators, Ironworkers, Welders, Blacksmiths and Die Setters, and various

lower-skilled positions such as Labourer, Metal working Machine Operators,

Machining Tool Operators, and Other Metal Production Machine Operators.

Part of this method was to obtain a clear picture of the current work force profile

and in-house expertise contributing to each company’s overall capabilities. In

addition, immediate new staffing requirements and projected hiring needs over

the next two years were explored. Some of the findings relevant to this study’s

approach to examining training capacity are:

Engineering: Though integral to the functioning of the sector, many of these

skilled professionals reside in engineering firms and large EPC (Engineering,

Procurement and Construction) companies, which generally manage large

industrial projects. New Brunswick has a very strong set of engineering programs

in its universities to support these needs with full capacity.

Lesser-skilled labour: These entry-level positions do not generally require pre-

employment training – the labourers are trained on the job. Having said this,

operation of some metal-working/forming equipment is part of the training for

some of the trades, for example Fitter/Fabricator. Some companies prefer to hire

“green” labourers from high school and train them, then apprentice them into

one of the trades. Others like to hire those who have gone through a pre-

employment program. In any case, these lower-skilled jobs fall outside of this

exploration of training capacity for the fabrication sector.

Trades largely practiced in the Construction Sector: Although there are

exceptions, the primary focus of the Sheet Metal Workers, Boilermakers, and

Ironworkers in the New Brunswick labour force is within the Construction Sector.

Very few were found on the manufacturing floors of New Brunswick fabrication

shops. Indeed, all Ironworkers were identified as being utilized exclusively for on-

site construction/installation work.

Civil and Mechanical Technicians and Technologists: The current capacity

within the NBCC and CCNB programs is well-suited to meet the projected needs

for new hires over the next 2 years as reported by the companies interviewed. It

should be noted, however, that Mechanical Technology is an area reported

among employers where new skills are expected to be needed moving forward.

The colleges’ mechanisms for engaging companies in the sector can be utilized

to identify and provide for these new training requirements.


49 June 2012

Drafting Technicians: It should be noted that interviewed employers in the sector

utilize Drafting Technicians and project the need for an additional 12 over the

next 2 years. There currently are no programs for the role of Drafting Technician

in New Brunswick. The estimated requirement does not likely justify the costs of

offering a regular program for this occupation, unless other sectors utilizing

drafting technicians, such as the construction sector, have similar needs.

Primary Fabrication Trades: The “big three” skilled and/or apprenticeable trades

supporting the fabrication process in the companies interviewed were Welders

(19% of production staff), Fitters/Fabricators (22%), and Machinists (7%) –

reference Figure 25. These occupations also represented the largest portion of

current vacancies, as well as projected hires – reference Figure 28 and Figure 29

respectively.

Therefore, the assessment of training capacity is focussed on these three trades.

This assessment also includes a review of CNC Machinist and Welding

Technology programs.

7.3 Paths for New Entrants into the Fabrication Trades

The primary model for preparing individuals to enter a trade is centuries old and

has been proven as highly effective: the mentoring of apprentices by those

experienced in the trade – journeypersons. This method includes both learning

the theory, and the guided use and development of the specific skills required.

An individual may be indentured as an apprentice by a company having come

into employment with no previous skills, or may be employed and indentured by

a company (or a trade union) having completed pre-employment training at a

public or private college. For those colleges meeting the standards set by the

Apprenticeship branch, graduates may challenge the Block I exam and upon

indenturing into an apprenticeship program may apply to have their in-school

hours credited toward completion of the apprenticeship program. Some

college programs, by design, may cover additional theory and practice beyond

Block I requirements in their courses.

In the case of the Welding, Machining and Steel Fabrication/Fitting trades,

completing the apprenticeship path successfully leads to a Certificate of

Qualification with a Red Seal endorsement, which is recognized throughout

Canada. In addition, based on experience gained and the ability to

successfully challenge the certification exam, an individual can acquire a Red

Seal endorsement.

These alternative paths to certification are represented in Figure 31.


50 June 2012

Figure 31: Paths to Occupational Certification

7.4 New Brunswick Trades Colleges

NB Crown Corporation Colleges New Brunswick is served by the multiple campuses of the New Brunswick

Community College (NBCC) and the Collège communautaire du Nouveau-

Brunswick (CCNB). These colleges not only offer pre-employment programs in

several of the trades and occupations necessary to this sector, they also provide

all Block classroom training for the New Brunswick Apprenticeship program. The

pre-employment courses offered are all designed to provide a path into the

apprenticeship programs for the student, and to provide a pre-skilled employee

to New Brunswick companies.

Cert.

Exam

Obtain Employment

Certificate of Qualification & Diploma of Apprenticeship

Register as an Apprentice

Complete On-the-Job Hours

Attend Block Training

Apprenticeship

Process Repeats forBlocks 3-5

Cert.

Exam

Work Required Hours

(3,600 – 10,800)

Certificate of Qualification

Apply to Challenge Cert. Exam

Provide Proof of Hours

Trade Qualification /

Occupational Certification

Complete Pre-Employment Course

at College

Obtain Employment

Challenge

Block 1

Exam


Obtain High School Diploma

or Equivalent

Register as an ApprenticeBlock 1

Exam

Return to work


Block 2

Exam

Return to work


Complete On-the-Job Hours


51 June 2012

7.4.1 NBCC

NBCC offers the following 40-week pre-employment programs for trades

applicable to the Industrial Fabrication sector:

Welding;

Steel Fabrication;

Sheet Metal Fabrication; and

Machinist.

Successful graduates from these programs may challenge the Apprenticeship

Block I exam, and are credited1,200 hours toward the Block I work requirements.

The college also offers several technology programs that support this sector’s

needs:

CNC Machining (also a pre-employment program with advanced

placement into Block III of the apprenticeship program);

Welding Technology (this program expands the welding student’s skills for

work in weld inspection, quality control, and assisting Welding Engineers);

Mechanical Engineering Technology;

Mechanical Technician;

Civil Engineering Technology; and

Civil Technician.

NBCC has developed an advisory and feedback methodology that utilizes

many touch points with companies within the sector. This provides a mechanism

for insuring that the programs offered remain relevant to employers’ needs. This

will be especially important as companies in the sector stretch and adapt to

serve new market segments.

At time of writing, the college did not offer contract training in response to

employer-specific requests for advanced training.

NBCC’s yearly seat capacity for the primary trades utilized in the sector is

represented in Table 6.

Table 6: NBCC Yearly Seat Capacity for Primary Fabrication Trades

Program Yearly Seat Capacity

Welding 95

Steel Fabrication 14

Machinist 21

CNC Machinist 12


52 June 2012

7.4.2 CCNB

CCNB offers the following 40-week pre-employment programs for trades within

the Industrial Fabrication sector:

Welding;

Metal Shaping and Erecting (Steel Fabrication/Fitting); and

Material Machining.

Successful graduates from these programs may challenge the Apprenticeship

Block I exam, and are credited1,200 hours toward the Block I work requirements.

The college also offers technology programs in:

CNC Machining (also a pre-employment program with advanced

placement into Block III of the apprenticeship program);

Engineering Technology Building (mechanical, electrical, structural and

architectural design); and

Civil Engineering Technology.

CCNB also employs consultation with employers to adapt its programming

content.

At time of writing, the college did not offer contract training within this sector.

CCNB’s yearly seat capacity for the primary trades utilized in the sector is

represented in Table 7

Table 7: CCNB Yearly Seat Capacity for Primary Fabrication Trades


Welding 52

Metal Shaping and Erecting 14

Material Machining 14

CNC Machining 8

NB Private Colleges New Brunswick has three private colleges offering welding programs: BayTech

College of Moncton, Eastern Trades College of Saint John, and ReadyArc

Welding of Saint John.

7.4.3 BayTech College

BayTech College was established eight years ago and offers a 16-week pre-

employment course in welding. The course was developed specifically at the

request of employers to offer an accelerated path to employment and


53 June 2012

apprenticeship. The approach is similar to the 16-week courses offered in

Alberta.

The program was developed to fully meet and exceed the apprenticeship

curriculum standards. Successful graduates may challenge the Block I exam,

and are credited 640 hours toward the Block I work requirements.

BayTech maintains very close ties with employers within the sector, and can

adapt its welding course to meet employer-specific needs for graduates with

certain skill sets and/or with specific CWB tickets. Students can currently

challenge up to 4 CWB certifications; however, the college is looking at

expanding this to 8 in order to meet the particular needs of a large employer.

Feedback coming from the Apprenticeship branch’s Program Advisory

Committee (PAC) are also incorporated as needed.

Table 8: BayTech Pre-Employment Welding Program Seat Capacity


Welding 100

BayTech also designs and delivers individualized contract training programs to

meet the needs of employers for instruction in specific welding methods.

Employers reportedly utilize this contract training, most often to help employees

reach standard welding ticket levels.

BayTech has an in-house capacity for contract training of 384 student days

(days of training times number of students) per year. The college can expand its

complement of instructors, when needed, to meet the needs of companies for

on-site training. Journeypersons skilled in the welding techniques to be taught

are put through Instructor training to prepare them for teaching.

7.4.4 Eastern Trades College

Eastern Trades College began offering a 28-week welding pre-employment

course three years ago. It was designed in cooperation with the Apprenticeship

branch to insure that the curriculum met and exceeded the requirements for

Block I training. Successful graduates may challenge the Block I exam, and

receive credit for 1,120 hours toward the Block I work requirements.

The college modifies its curriculum as needed based on feedback from

employers and from the Apprenticeship branch’s Program Advisory Committee.


54 June 2012

The school is currently in the planning stage to offer contract training to meet

specific needs identified by employers. The college is actively exploring

opportunities to meet requirements rising within the sector.

Table 9: Eastern Trades College Welding Program Seat Capacity


Welding 36

7.4.5 ReadyArc Welding

ReadyArc Welding began offering a 24-week course on pressure welding six

years ago. It was designed to enable the successful graduate to challenge and

obtain the F4 pipe ticket from the Department of Public Safety. The first instructor

was previously an instructor at the Northern Alberta Institute of Technology

(NAIT), and the curriculum took as its starting point an Alberta program model.

There is no agreement currently in place with the Apprenticeship branch to

certify the curriculum and allow graduates to challenge the Block I exam.

ReadyArc is considering expanding the course to 28 weeks to give greater

coverage to production welding, and to branch out into more CWB methods

and certifications. The college would also like to add a work term.

Table 10: ReadyArc Welding Program Seat Capacity


Welding 72

ReadyArc also provides contract training to meet the specific needs of

employers. ReadyArc has an in-house contract training capacity of 480 student

days per year. The college also has a current capacity of approximately 100

student days for contract training on employer premises. The college could add

instructors to expand this to 180 student days, if needed.

7.5 Atlantic Canada Public Trades Colleges

Table 11 represents an overview of the yearly seat capacity within the Nova

Scotia Community College (NSCC), Holland College, and College of the North

Atlantic (CNA) programs for Welding, Steel Fabrication and Machining. A

catalog of these courses may be found in Appendix 1.


55 June 2012

Table 11: College Educational Capacity - NS/PEI/NL

Trade/Program College Yearly Seat Capacity

Welding NSCC 91

Holland College 15

CNA 108

Total 214

Steel Fabrication NSCC 38

Holland College 90

CNA 84

Total 212

Machining Holland College 12

CNA 32

Total 44

CNC Machining NSCC 37

Total 37

In addition, there are two private colleges offering welding programs in New

Brunswick’s neighbouring provinces:

Academy Canada Career College of Newfoundland and Labrador offers a 37

week diploma program.

New Dawn College of Nova Scotia offers a 42 week diploma program.

Seat capacity for these programs was not available.

7.6 Other Canadian Trades Colleges21

Secondary research indicated that there are approximately 52 public colleges

and 15 private colleges throughout Canada that offer pre-employment

programs in one or more of the welding, steel fabrication, and machining

trades. These run between 16 weeks to 2 years long.

Twenty of these institutions also deliver the technical training for the

apprenticeship programs in their respective provinces. For the purposes of this

study, colleges that provide apprenticeship training, but do not offer pre-

employment programs were not included in the data.

21 Extensive secondary research from many sources was conducted, and, while presented with

confidence, the data should not be considered exhaustive.


56 June 2012

7.6.1 Welding programs

Table 12 details the number of colleges in each province offering pre-

employment programs in welding.

Table 12: Welding Pre-Employment Programs in Canada

Province/Territory Public Colleges Private Colleges Apprenticeship

Articulation

British Columbia 13 0 9

Alberta 8 1 9

Saskatchewan 7 0 7

Manitoba 3 0 2

Ontario 16 10 13

Quebec 0 3 0

Yukon 1 0 1

Totals 48 14 41

Some of these schools offer more than one pre-employment course based on

focus (for example, pipe vs. structural plate, or both). Several institutions offer

welding technologist or technician programs as well.

Many of these schools also provide welding upgrade courses. In addition, there

are some private institutions that offer training in specific welding techniques,

but do not offer any pre-employment courses. For the purposes of this study,

these schools were not included in the data.

Six of these colleges combine their Welding and Metals Fabrication training into

a single program. In most cases these have extended curriculum to cover more

welding techniques than is normally part of the training received in Metals

Fitter/Fabricator programs.

Some interesting and innovative practices that various institutions have

implemented to deal with industry needs and concerns include:

4.5 hour days with a choice of 3 shifts, including evenings;

Evening-based apprenticeship training;

Continuous or rolling intake (as opposed to semester-based offerings). New

students may be added each Monday, or every 3 weeks. In many cases this

approach necessitates a self-directed program design;


57 June 2012

In British Columbia, some institutions are partnered with secondary schools to

allow for the completion of the fundamental C-level22 welding program

concurrent to their grade 12 studies; and

One public college in British Columbia that uses a self-directed learning

model allows apprentices to leave for periods of heavy work demand and

come back at any time. This same school recommends that during

employer-projected slow-downs, apprentices should consider taking their

next two blocks of technical training back-to-back.

7.6.2 Fabricator / Fitter Programs


employment programs in Metal Fabricator / Fitter.

Table 13: Metal Fitter/Fabricator Pre-Employment Programs


Articulation


Saskatchewan 1 0 1

Manitoba 1 0 1

Ontario 9 3 8

Quebec 0 0 0

Totals 17 3 16

7.6.3 Machinist Programs


employment programs in Machinist.

Table 14: Machinist Pre-Employment Programs


Articulation


Alberta 1 0 1

Saskatchewan 1 0 1

Manitoba 1 0 1

Ontario 2 0 2

Quebec 0 2 0

Totals 8 2 8

22 British Columbia has 3 provincial certification levels in welding: C, B and A. C-level comprises

the fundamentals of welding skills. B and A-level certifications are progressively more advanced.

Pre-employment college programs in British Columbia prepare students for C-level certification.


58 June 2012

In the West, three of these pre-employment programs combine Machinist and

Millwright training.


employment programs in CNC Machinist.

Table 15: CNC Machinist Pre-Employment Programs


Articulation


Alberta 1 0 0

Manitoba 1 0 1

Ontario 1 1 0

Quebec 0 1 0

Totals 4 2 1

7.7 New Brunswick Apprenticeship

When evaluating educational capacity, it is necessary to consider the

Apprenticeship program separately from the college pre-employment programs

due to its unique nature:

1. Unlike pre-employment training, the Apprenticeship yearly block training is

not limited to a specific number of seats offered. Instead, Apprenticeship

trains as many apprentices as industry can supply.

2. Apprentices are all, by nature, employed. They are already part of the labour

force and do not factor into new entrants potentially available to the labour

force, except at the point they are indentured after having completed a

pre-employment course at one of the colleges.

3. The greater risks to the capacity of the Apprenticeship program are factors

like the outward migration of journeypersons to other regions of the country.

If, for example, the draw to Halifax for the pending shipbuilding project is

great enough it could put at risk the apprenticeship of those currently in the

program who must be mentored by experienced journeypersons. This is a

significant concern.

The following table presents an overview of the NB Apprenticeship programs for

Welder, Steel Fabricator (Fitter), Machinist and CNC Machinist.


59 June 2012

Table 16: NB Apprenticeship

Trade # of Training

Blocks

Required Hours

Work

Experience

# of Active

Apprentices

Welder 3 5400 191

Steel Fabricator 3 7200 56

Machinist 4 7200 54

CNC Machinist 4 7200 29

Approximately 40% of apprentices enter the program after completion of pre-

employment college programs and entry into the work force. The majority, 60%,

are apprenticed directly by employers.

The number of active female apprentices within these trades was:

Welder: 5

Steel Fabricator: 1

Machinist: 1

CNC Machinist: 2

This represents 2.7% of these trade apprentices, roughly in line with the average

of 3% females among all active apprentices in the Province. The primary

research yielded a similar ratio of female workers (1.9%) among the core IF

occupations.

The age distribution of active apprentices is represented in Table 17. That the

average entry age of an apprentice is 26 years seems to indicate that the

trades are not capturing high school graduates as they leave school. This may

support the view that the trades continue to suffer from an image problem, and

are not seen as desirable and respected career paths.

Table 17: Age Distribution of Active Apprentices23

Age Group % of Total

< 20 years old 2.94%

20 – 30 years old 64.68%

31 – 40 years old 21.20%

Over 40 years old 11.11%

Age Unknown 0.07%

Totals 100% Average entry age of an apprentice is 26 years

23 Apprenticeship “Fact Sheet as of 2011/09/15”


60 June 2012

Approximately 66% of all apprentices work with non-union employers; 34% with

unionized companies.

The Welder program is the 6th largest among New Brunswick apprenticeship

programs, by number of active apprentices.

7.8 Projected Need vs. Educational Capacity

Table 18 summarizes the yearly educational capacity (yearly seats available)for

the trades of Welding, Machining/CNC Machining and Steel Fabricator in New

Brunswick and the rest of Atlantic Canada.24

It should be noted that yearly seat capacity does not infer that that number of

students will enter the programs. It only represents the present capacity of the

educational system to take on new students.

Table 18: Summary of Educational Capacity (Yearly Seats Available)

Trade NB Educational Capacity

Additional Educational

Capacity in Atlantic

Canada

Welding 355 214

Machining/CNC Mach. 55 81

Steel Fitter/Fabricator 28 212

It should be assumed that the capacity present in the other 3 Atlantic Provinces

will be largely unavailable to support New Brunswick’s Industrial Fabrication

sector. Indeed, the opposite is likely true. Primary research among the NB

colleges indicated that most (especially the private colleges) are exploring how

they can adapt their offerings to meet the needs of the shipbuilding sector, for

example.

Table 19 compares the employer-projected need for new hires in the 3 primary

fabrication trades over the next two years to the educational capacity

(available seats in pre-employment training) over the same period.

Table 19: Projected Need vs. Educational Capacity

Trade Employer Estimated 2-

year Labour Demand

NB Educational Capacity

(2-year)

Welding 175 710

Machining/CNC Mach. 73 110

Steel Fitter/Fabricator 156 56

24 See Sections 6.4 and 6.5


61 June 2012

The potential short-fall in training capacity is for the trade of Steel

Fitter/Fabricator. This is not a new problem. One-third (33%) of the companies

interviewed indicated that they have had difficulty finding Fitters. Several

indicated this to be an on-going problem for them. At least one employer

commented that New Brunswick trains more Welders than needed and far too

few Fitters.

For many employers who utilize trades people for more than one role in

production, Fitters are potentially more versatile, as they have welding skills;

Welders, however, do not always have the skills needed to perform the

Fabricator’s role, although their welding skills may be broader and deeper.

Even if the employers’ projections prove doubly optimistic, the current

educational capacity could not meet the need. It is likely that Fitters will need to

be brought in from other regions, or the positions will be filled by less qualified

individuals.

7.9 Summary of Findings Regarding Educational Capacity

The existing capacity for pre-employment training in Welding is more than

sufficient for the projected new hires in the sector.

There is also significant capacity in contract training available

(approximately 1,000 student days per year) to provide for employers’

specific needs with regards to welding upgrade instruction. While this

appears to be sufficient for current demand, it is currently unknown what

capacity may be required to support the move of the sector’s employers into

specific new industrial sectors.

The present capacity for pre-employment training in Machining is sufficient

for the estimated new hires in the sector. However, employers did indicate

that it has been difficult for them to find the kind of skills and experience that

they are looking for.

There is a projected short-fall in educational capacity required to meet the

employer-projected need for Steel Fitters/Fabricators. If employers’

projections for new hires are substantially true, it is unlikely that adding

capacity in the pre-employment programs alone will be sufficient to meet

the need. It will need to be paired with an influx of experienced

journeypersons from other regions to mentor apprentices.

A1 June 2012

Appendix A: Acronyms

AISC – American Institute of Steel Construction

ASME - American Society of Mechanical Engineers

BNB – Business New Brunswick (New Brunswick Government Department)

CAD – Computer Aided Design

CAM – Computer Aided Manufacturing

CCNB - Collège communautaire du Nouveau-Brunswick

CISC – Canadian Institute of Steel Construction

CNA - College of the North Atlantic

CNC – Computer Numerical Control

COPS – Canadian Occupational Projection System

CSA – Canadian Standards Association

CWB – Canadian Welding Bureau

ELTT - Entry Level Trades Training

GMAW - Gas Metal Arc Welding (A.K.A. MIG - Metal Inert Gas welding, or Metal

Active Gas (MAG) welding)

GTAW - Gas Tungsten Arc Welding (A.K.A. TIG - Tungsten Inert Gas welding)

HRSDC – Human Resources and Skills Development Canada

IMF – Industrial Metal Fabrication

LMAB – Labour Market Analysis Branch (Branch of PETL)

NAICS – North American Industry Classification System

NBCC – New Brunswick Community College

NOC – National Occupational Classification

NSCC - Nova Scotia Community College

PAC - Program Advisory Committee (Apprenticeship)

PAW - Plasma Arc Welding

PETL – Post-Secondary Education, Training and Labour (New Brunswick

Government Department)

SIC – Standard Industry Classification

SMAW - Shielded Metal Arc Welding (a.k.a MMA - Manual Metal Arc welding, or

Stick Welding)

B1 June 2012

Appendix B: Catalog of College Programs

B1.1 Welding Pre-Employment Programs

New Brunswick - Welding – Pre-Employment Programs

School Program

Length

Yearly

Capacity

(Seats) Curriculum Overview25

Available

Apprenticeship

Articulations

Certification

Testing Offered Contract

Training

NBCC 40

weeks 95

Bench Work

Shop Safety

Oxy-Fuel Cutting

Shielded Metal Arc Welding

Gas Metal Arc Welding

Flux-Cored Arc Welding

Blueprint Reading

Metallurgy

Mathematics for Welders

Related Subjects

Work Practicum

Students may

challenge the

Apprenticeship

Block I exam;

credited1200

hours toward

Block I work

requirements

Students may

challenge up to

4 CWB tickets –

most will

challenge at

least one;

Students also

challenge the

Class B – F3

certification from

the Dept of

Labour

25 Please note: the curriculum overviews provided in the following program summaries are taken from each organization’s web site and may represent the coursework

in a condensed or more detailed manner.

B2 June 2012

School Program

Length

Yearly

Capacity


Available

Apprenticeship

Articulations

Certification


Training

CCNB 40

weeks 52

Computer Basics Blueprint reading and

interpretation of welding

symbols Mathematics Metallurgy Health and safety Welding and thermal cutting Welding techniques Technical sheet metal

Same as NBCC Same as NBCC

B3 June 2012

School Program

Length

Yearly

Capacity


Available

Apprenticeship

Articulations

Certification


Training

BayTech

College 16

weeks 100

Safety, tools & weld faults Oxy-Fuel/Plasma cutting Trade math Shielded metal arc welding

(SMAW) Flux core arc welding Gas Metal Arc

Welding/GMAW Pulse Blueprint Reading Introduction to Fabrication Distortion Control/Jigs and

Fixtures Overview of applicable

Standards Productivity/Employability

Skills Workmanship/Material

Finishing Work term

Students may

challenge the

Apprenticeship

Block I exam;

credited 640

hours toward

Block I work

requirements.

Students

challenge 4

CWB tickets:

Shielded Metal

Arc Welding in

flat and

horizontal

positions; and

Flux Core Arc

Welding in flat

and horizontal

positions.

In response to

specific industry

requests,

BayTech is

currently

considering

adding

challenges for

the vertical and

overhead

positions for both

processes, for a

total of 8

potential tickets.

Contract

training

designed to

meet specific

employer

training needs

is available.

Modifications

to the pre-

employment

course to meet

specific

employer

needs is also

available.

B4 June 2012

School Program

Length

Yearly

Capacity


Available

Apprenticeship

Articulations

Certification


Training

Eastern

Trades

College

28

weeks 36

Student Success Strategies Welder Apprenticeship

Orientation Safety Guidelines Welding Safety Power Tools Hand Tools Oxyfuel Equipment Oxyfuel Welding, Brazing and

Braze Welding Oxyfuel Cutting Materials Handling / Rigging SMAW Equipment Mild Steel Electrodes Basic Joints and Weld Types Shop / Lab Practices: SMAW

Welds on Mild Steel Plate Arc Cutting and Gouging Gas Metal Arc Welding

(GMAW ) Equipment GMAW Filler Metals, Shielding

Gases and Safety GMAW Equipment

Maintenance and

Troubleshooting Weld Faults Flux Cored Arc Welding

(FCAW) Submerged Arc Welding

(SAW ) Blueprint Reading 1

Students may

challenge the

Apprenticeship

Block I exam;

credited 1120

hours toward

Block I work

requirements.

Contract

courses

currently being

explored to

meet sector

needs.

B5 June 2012

School Program

Length

Yearly

Capacity


Available

Apprenticeship

Articulations

Certification


Training

Blueprint Reading 2 –

Welding Symbols Shop / Lab Practices: GMAW

Welds on Mild Steel Shop / Lab Practices: FCAW

Welds on Mild Steel Shop / Lab Practices:

Combined GMAW and

FCAW Welds on Mild Steel Mathematics Fractions Decimals Percentages and Ratios Geometric Formulas Metric and Imperial

Measurement Production and Properties of

Metal Distortion Metallurgy Heat Treatment Professional Skills Work Placement Workplace Standard First Aid

WHMIS Essential Skills Assessment and

Support

B6 June 2012

School Program

Length

Yearly

Capacity


Available

Apprenticeship

Articulations

Certification


Training

ReadyArc

Welding 24

weeks 72

Pressure Welding Course

420 Hours of Practical Time consisting

of:

• Oxygen / Acetylene - Cutting

& Brazing

• Shield Metal Arc Welding - Fillet

Welds & Butt Welds

• Flux Core Arc Welding - Fillet

Welds & Butt Welds

• Overhead Crane Operation

• Iron Worker Operation

• Horizontal Bandsaw Operation 360 Hours of Class Time consisting of:

• Blueprint Reading for Welders

• Math for Welders

• Welding Theory:

• Shield Metal Arc

• Metallurgy

• Basic Shop Safety

• Communications

• Flux Core Metal Arc

• Rigging

• Welding Safety

• WHMIS

None at

present

Students

challenge ASME: F3B Plate Test

(4 Position) F3 Pipe Test

(6G Position) F3/F4 pipe Test

(6G Position))

Contract

training

designed to

meet specific

employer

training needs

is available.

B7 June 2012

Nova Scotia, Prince Edward Island and Newfoundland - Welding – Pre-Employment Programs

School Program

Length

Yearly

Capacity

(Seats) Curriculum Overview

Nova

Scotia

Community

College

(NSCC)

2 years 91

Communications I Communications II Computer Applications I Introduction to WHMIS (Workplace Hazardous Materials Information Systems) Introduction to NS OH&S Act Occupational Safety Fundamentals Work Experience I Blueprint Reading I Shielded Metal Arc Welding I (SMAW) Shielded Metal Arc Welding II (SMAW) Gas Tungsten Arc Welding I (GTAW) Semi-Automatic Wire Welding Processes I Math I Oxy-Fuel Cutting and Welding Exotic Metals Blueprint Reading II Shielded Metal Arc Welding III (SMAW) Gas Tungsten Arc Welding II (GTAW) Semi-Automatic Wire Welding Processes II Math II Work Experience II

B8 June 2012

School Program

Length

Yearly

Capacity


Holland

College 9

months 15

Shielded Metal Arc Welding II Practicum I Trades Awareness and Safety Orientation Lift Truck Training Essential Skills Math I Computer Literacy Oxy-Acetylene Cutting Procedures Oxy-Fuel Welding Gas Tungsten Arc Welding I Shielded Metal Arc Welding I Carbon and Plasma Arc Cutting Procedures Blueprint Reading I Materials and Metallurgy Gas Metal Arc Welding I Communications I Gas Tungsten Arc Welding II Rigging I Flux Cored Arc Welding I Layout I Hand Measuring and Layout Tools I Component Assembly Power Tools Stationary Power Equipment

College of

the North

Atlantic

(CNA)

1 year 108

See: http://www.cna.nl.ca/programs-courses/current_programs/CNA Welder.pdf

http://www.cna.nl.ca/programs-courses/current_programs/CNA%20Welder.pdf

B9 June 2012

B1.2 Welding Technology Programs

This Canadian Council of Technicians and Technologists (CCTT) accredited program prepares the student to

find employment in roles such as a welding engineering assistant, a robotic welding programmer, a welding

inspector, or welding supervisor.

NB Welding Technology Programs

School Program

Length

Yearly

Capacity

(Seats) Curriculum Overview External Certifications

NBCC 80

weeks 12

Welding Inspection Methods Welding Processes Metallurgy Non-destructive Examination Engineering Drawing Codes and Specifications Welding Safety Welding Electricity Welding Economics Weld Design Fundamentals of Quality Assurance Mathematics Human Relations Computer Skills for Technologists Report Writing and Presentations Weld Automation Fabrication Techniques Work Practicum

Graduates may acquire

the following certifications

upon meeting the external

agencies’ certification

requirements:

CWB: Level 1 Welding

Inspection Examination

New Brunswick Society of

Certified Engineering

Technicians and

Technologists (NBSCETT):

certification with two years

of acceptable work

experience

B10 June 2012

NS/NL Welding Engineering Technician / Welding Inspection & Quality Control

School Program

Length

Yearly

Capacity


Nova

Scotia

Community

College

(NSCC)

2 years ?

Computer Aided Drafting I - AutoCAD Level I Communications I & Communications II Fundamentals I Introduction to WHMIS (Workplace Hazardous Materials Information Systems) Introduction to NS OH&S Act Occupational Safety Fundamentals Engineering Drawings I Oxy-Fuel and Plasma Cutting Welding Processes and Procedures I (SMAW) Computer Fundamentals Quality Systems and Standards I Metallurgy I Metrology and Calibration Welding Processes and Procedures II (GMAW/FCAW) Math Fundamentals II Work term I Welding Processes and Procedures III (GTAW/SAW) Engineering Drawings II Technical Communications Welding Inspection and Testing I (Visual) Welding Automation and Procedures IV (Orbital GTAW, STT Transfer, Tracking

Systems) Welding Inspection and Testing II (Visual) Quality Systems and Standards II Metallurgy II Applied Mathematics Welding Inspection and Testing III (LPI) & Welding Inspection and Testing IV (MPI) Work term II Engineering Drawings III

CNA 2 years 20 Not available on CNA website – broken link

B11 June 2012

B1.3 Steel Fitting/Fabrication Pre-Employment Programs

New Brunswick - Steel Fabrication – Pre-Employment Programs

School Program

Length

Yearly

Capacity


Available Apprenticeship

Articulations

NBCC 40

weeks 14

WHMIS General First Aid and CPR Occupational Health and Safety Portable and Stationary Power Tools Shop Safety Benchwork Fabrication Equipment Material Preparation Metallurgy SMAW Welding Groove Welds in Flat and Horizontal Position SMAW GMAW Layout and Developments Blueprint Reading Mathematics Communication for Trades Work Practicum Related Subjects

Students may challenge

the Apprenticeship Block I

exam; credited1200 hours

toward Block I work

requirements

CCNB 40

weeks 14

ESL Shaping profiles and pipes Computer Basics Reading and interpreting plans Mathematics Assembly and assembly of metal parts Machine setting Welding techniques

Same as NBCC

B12 June 2012

NS/PEI/NL - Steel Fabrication – Pre-Employment Programs

School Program

Length

Yearly

Capacity


NSCC 2 years 38

Computer Aided Drafting I - AutoCAD Level I Communications I Communications II Computer Applications I Math I Math II Shielded Metal Arc Welding III Blueprint Reading III Layout and Fabrication III Rigging and Material Handling II Marine Applications Blueprint Reading IV Work Experience Semi-Auto Wire (4-Pos Fillet) Numerical Control-Cutting Introduction to WHMIS (Workplace Hazardous Materials Information Systems) Introduction to NS OH&S Act Safety Fundamentals Oxy-Fuel Processes Shielded Metal Arc Welding I Blueprint Reading I Rigging and Material Handling I Semi-Automatic Wire Welding Processes I Blueprint Reading II Layout and Fabrication I Shielded Metal Arc Welding II Layout and Fabrication II Gas Tungsten Arc Welding I

Holland

College 2 years,

7 90

Shielded Metal Arc Welding II Practicum I

B13 June 2012

School Program

Length

Yearly

Capacity


months Practicum II Practicum III Practicum IV Shielded Metal Arc Welding III Shielded Metal Arc Welding IV Practicum V Welder Interprovincial Preparation Trades Awareness and Safety Orientation Lift Truck Training Essential Skills Math I Computer Literacy Oxy-Acetylene Cutting Procedures Oxy-Fuel Welding Gas Tungsten Arc Welding I Shielded Metal Arc Welding I Carbon and Plasma Arc Cutting Procedures Blueprint Reading I Materials and Metallurgy Gas Metal Arc Welding I Communications I Gas Tungsten Arc Welding II Rigging I Flux Cored Arc Welding I Layout I Hand Measuring and Layout Tools I Component Assembly Power Tools Stationary Power Equipment Communications II Project Management

B14 June 2012

School Program

Length

Yearly

Capacity


Specialty Welding Basic Drafting and Design Blueprint Reading II Computer Aided Design Software Destructive and Non-Destructive Testing Rigging II Gas Metal Arc Welding II Gas Tungsten Arc Welding III Layout and Installation Math II Finishing and Installation

CNA 1 year 64 See: http://www.cna.nl.ca/programs-

courses/current_programs/CNA%20Metal%20Fabricator%20(Fitter).pdf

CNA 2 year 20 See: http://www.cna.nl.ca/programs-

courses/current_programs/CNA%20Welder%20Metal%20Fabricator%20(Fitter).pdf

http://www.cna.nl.ca/programs-courses/current_programs/CNA%20Metal%20Fabricator%20(Fitter).pdf

http://www.cna.nl.ca/programs-courses/current_programs/CNA%20Metal%20Fabricator%20(Fitter).pdf

http://www.cna.nl.ca/programs-courses/current_programs/CNA%20Welder%20Metal%20Fabricator%20(Fitter).pdf

http://www.cna.nl.ca/programs-courses/current_programs/CNA%20Welder%20Metal%20Fabricator%20(Fitter).pdf

B15 June 2012

B1.4 Machinist Pre-Employment Programs

New Brunswick - Machinist – Pre-Employment Programs

School Program

Length

Yearly

Capacity



Articulations

NBCC 40 21

Safety Practices including First Aid, CPR, and WHMIS Layout and Benchwork Lathes Saws and Drill Presses Milling Machines Grinders Welding Metallurgy Mathematics Blueprint Reading Physics Communication Computerized Numerical Control (CNC) Work Practicum




toward Block I work

requirements

CCNB 40 14

Quality Assurance Computer Basics Reading and interpreting plans Mathematics Metallurgy Physical Health and safety Basic welding Turning, drilling, milling and machining by computer




toward Block I work

requirements

B16 June 2012

PEI/NL - Machinist – Pre-Employment Programs

School Program

Length

Yearly

Capacity


Holland

College 9

months 12

Occupational Health and Safety Optional courses Precision Machinist OJT Computer Literacy Communications I Precision Trade Math CAD I Blueprint Fundamentals Mill Operation I Mill Operation II Lathe Operation I Lathe Operation II CNC Fundamentals Precision Measurement Introductory Welding and Metallurgy Machine Shop Practices Optional course: Introductory Mastercam

CNA 1 year 32 See: http://www.cna.nl.ca/Programs-Courses/current_programs/CNA%20Machinist.pdf

http://www.cna.nl.ca/Programs-Courses/current_programs/CNA%20Machinist.pdf

B17 June 2012

B1.5 CNC Machinist Pre-Employment Programs

NB CNC Machinist – Pre-Employment Programs

School Program

Length

Yearly

Capacity



Articulations

NBCC 2 years 13

Safety Practices including First Aid, CPR, OHS, and

WHMIS Layout and Benchwork Mathematics Physics Lathes Saws and Drill Presses Milling Machines Grinders Welding Blueprint Reading Introduction to CAM Machine Tool Theory Elements of Quality Management Geometric Dimensioning and Tolerancing Communication and Human Relations Jigs and Fixtures Metallurgy Computerized Programming Coordinate Measuring Machine Machining Centre Turning Centre Work Practicum

Upon successful

completion of this

program, graduates are

eligible to challenge Block

III of the CNC Machinist

license.

B18 June 2012

School Program

Length

Yearly

Capacity



Articulations

CCNB

80 weeks: 40 weeks

Machining

+ 40

weeks

CNC

Machining

8

Adjustment, turning and milling of metals Quality control Interpretation of engineering drawings Application software Mathematics Mounting Statistical Process

Upon successful

completion of this

program, graduates are

eligible to challenge Block

III of the CNC Machinist

license.

B19 June 2012

NS CNC Machinist – Pre-Employment Programs

School Program

Length

Yearly

Capacity


NSCC 2 Years 37

Communications I, Communications II Computer Applications I General Safety Introduction to Hand Tools Introduction to Measuring Tools I Basic Sawing and Grinding Operations Drilling Operations Turning Operations I Engineering Drawing I Mathematics I Introduction to Measuring Tools II Engineering Drawings Mathematics II Basic Milling Operations I Basic Threading Operations I Turning Operations II Work Experience - MACD CNC Fundamentals CNC Process Planning CNC Programming CNC Operations Machining CAD Advanced Milling Operations Advanced Turning Operations I Geometric Dimensioning and Tolerancing Work Experience - MACD Introduction to WHMIS (Workplace Hazardous Materials Information Systems) Introduction to NS OH&S Act

new brunswick sector profile: industrial fabrication · 5.4 regional distribution ... regional...

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