What is a Sector Council?What is a Sector Council?

Sector Councils are industry-led, labour-Sector Councils are industry-led, labour-management partnership organizations designed management partnership organizations designed to address human resource development issues to address human resource development issues within a specific industrywithin a specific industry

Initiated through Human Resources and Skills Initiated through Human Resources and Skills Development Canada (HRSDC)Development Canada (HRSDC) program formally established in 1992 to support program formally established in 1992 to support

industry partnership efforts in the area of human industry partnership efforts in the area of human resource development resource development

More than 40 Sector Councils in place, some since More than 40 Sector Councils in place, some since 1989, examples include: 1989, examples include:

• Mining, SteelMining, Steel• Tourism, TextilesTourism, Textiles• Software, Automotive RepairSoftware, Automotive Repair

Construction Sector Council (CSC)Construction Sector Council (CSC)

CSC established in April 2001CSC established in April 2001 Non-government, Not-for-Profit industry organizationNon-government, Not-for-Profit industry organization

Industry led Board of DirectorsIndustry led Board of Directors

Mandate Mandate Identify and undertake human resource projects and Identify and undertake human resource projects and

initiatives geared toward meeting the current and future initiatives geared toward meeting the current and future human resource needs of the industryhuman resource needs of the industry

Four Program AreasFour Program Areas 1. Labour Market Information 1. Labour Market Information

2. Career Awareness2. Career Awareness

3. Learning Technologies 3. Learning Technologies

4. Standards and Skills Development4. Standards and Skills Development

We work with the . . . . We work with the . . . .

Suppliers of Construction Services:

Diverse industry:• New Home Building and Renovation• Institutional and Commercial • Heavy Industrial• Civil Engineering

Multi billion dollar industry:• Represents 12% of GNP• Over 1,000,000 workers• Close to 270,000 contractors

– (95% have less than 10 employees)• Maintains and repairs over $5 trillion in assets• Construction trains close to 60% of all apprentices

for all industries in Canada

Driving Force for ConstructionDriving Force for Construction

New Home Building and Renovation: Over $50 billion in annual construction activity . . . this

translates into significant worker requirements

Government Construction Investment Federal, provincial, local governments spent a combined $35

to $40 billion dollars

Industrial Construction Investment There are over $100 billion in announced industrial projects

across Canada

British Columbia Construction Investment VANOC $1.5 billionVANOC $1.5 billion

Several major mining projectsSeveral major mining projects

Port facility developmentsPort facility developments

Vancouver Airport expansionVancouver Airport expansion

Human Resource IssuesHuman Resource Issues

Key Workforce Questions in Construction Where is the work?

Where are the workers?

How do we manage worker shortages / surpluses?

Demand for Construction Services Where are the “hot spots”

Getting better demand information

Translating demand into worker requirements

British Columbia LMI CommitteeBritish Columbia LMI Committee

• B.C. Yukon Territory Building and B.C. Yukon Territory Building and Construction TradesConstruction Trades

• Canadian Home Builders’ Association – Canadian Home Builders’ Association – B.C.B.C.

• Greater Victoria Construction Skills Greater Victoria Construction Skills CouncilCouncil

• British Columbia Institute of TechnologyBritish Columbia Institute of Technology

• B.C. Construction AssociationB.C. Construction Association

• Construction Labour Relations Construction Labour Relations Association – B.C.Association – B.C.

• B.C. Industry Training AuthorityB.C. Industry Training Authority

• Vancouver Regional Construction Vancouver Regional Construction AssociationAssociation

• Human Resources and Skills Human Resources and Skills Development CanadaDevelopment Canada

• B.C. Ministry of Skills Development and B.C. Ministry of Skills Development and LabourLabour

British Columbia - HighlightsBritish Columbia - Highlights

BC is in the early stages of a construction boom

Tight labour markets will get tighter over the medium term to 2010 – over 14,500 new jobs

Continuing risks of shortages and recruiting challenges

Tight market conditions have implications on project delays, quality, productivity and safety

Some trades face retirement challenges over the next ten years

Residential ConstructionResidential Construction

Very strong residential investment over the past few yearsKey drivers – increased household formation, rising incomes and low interest ratesActivity to remain strong over medium term, with new housing investment peaking in 2010Post 2010, new activity declines in line with slower economic and population growth

Housing Starts and Household Formation, BC, 000's

15

20

25

30

35

40

45

2001 2003 2005 2007 2009 2011 2013

Starts Household Formation

Non-Residential Construction Investment, Non-Residential Construction Investment, BC, $97 millionsBC, $97 millions

Strong growth projected over the medium term

Major projects driving activity

Several mining and pipeline projects

Major transportation and warehousing projects

2010 Olympics

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2001 2003 2005 2007 2009 2011 2013

2000

2500

3000

3500

4000

4500

5000

5500

6000

6500

7000

Industrial Building

Commercial Building

Institutional & Government Building

Engineering (Right Axis)

Labour Market Conditions, CSC Labour Market Conditions, CSC trades trades (70% of construction employment)(70% of construction employment)

Strong employment growth since 2001 has created challenges for construction

Between 2001 and 2005, employment increased by 40% from 78,000 to 110,000

Unemployment has been pushed to record lows

Continued growth over the medium term calls for an additional 14,500 workers

Large gains in the labour force will be needed to keep up with building activity

25,000

50,000

75,000

100,000

125,000

150,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

6

8

10

12

14

16

%

Labour Force Employment Unemployment Rate (Right Axis)

Supply ChallengesSupply Challenges

Recruiting problems have been acute over the past few years

Competition for skilled workers is intense

Potential for mobility from other regions is limited by strong construction markets in other provinces

New entrants to the workforce are often unskilled and require mentoring and supervision to develop skill sets

Project delays, costs issues, worker safety are a growing concern

Demographics indicate increasing need to replace an aging workforce

RetirementsRetirements

Rising retirements will reduce available workforce

Construction will need to replace over 20,000 workers over the next decade

Trades facing above average replacement demand: - Boilermakers- Bricklayers- Construction Managers and Supervisors- Crane Operators- Heavy Equipment Operators

British ColumbiaBritish Columbia

Trade/Year 04 05 06 07 08 09 10 11 12 13

Boilermakers 3 4 5 4 3 4 4 3 2 3

Bricklayers 4 4 4 3 3 3 3 3 2 2

Cabinetmakers 5 4 4 3 3 3 3 3 3 3

Carpenters 4 4 3 3 3 2 2 2 2 2

Concrete Finishers 5 5 4 4 4 4 4 3 3 3

Construction Millwrights and Industrial Mechanics (except textile)

3 5 5 4 3 3 4 3 2 3

Construction Trades Helpers and Labourers

4 4 4 3 3 3 3 3 3 3

Crane Operators 4 4 4 4 4 4 4 4 4 4

Electricians (except industrial and power system)

4 4 4 4 3 3 4 3 3 3

Floor Covering Installers 5 5 4 3 3 3 3 3 2 2

Gas Fitters 3 5 5 4 3 4 5 3 2 3

Strong GrowthStrong Growth

Commercial and Residential sectors Bricklayers Tilesetters Plasterers and drywall installers Glaziers Painters and decorators Floor covering installers Electricians Plumbers

Strong GrowthStrong Growth

Heavy engineering and civil trades Boilermakers Construction Millwrights Heavy-duty equipment mechanics Heavy-duty equipment operators Ironworkers Insulators Welders and related machine operators Drillers and blasters Steamfitters, pipefitters sprinkler installers

Construction Looking ForwardConstruction Looking Forward

BC registers the strongest economic growth in Canada in the medium term

Construction activity is strong for both residential and non-residential markets

Labour markets for several trades/occupations are to remain tight over the medium term to 2010

Tight markets have implications on project delays, quality, productivity and safety

Some trades face retirement challenges

Final report to be released in the coming weeks

THANK YOU

For additional information contact:

Construction Sector Council220 Laurier Ave. W, Suite 1150Ottawa, Ontario K1P 5Z9Tel: (613) 569-5552Fax: (613) 569-1220Email: info@csc-ca.org