Latest / Kvetch & Release / Construction demands in Ontario remain elevated through 2029
Transcript
- 0:00And although activity in Ontario's residential sector slowed in twenty twenty three and response to
- 0:07rising borrowing and construction costs, the province's non residential sector continued its steady growth
- 0:15trend and shows little sign of slowing until at least the late twenty twenties.
- 0:20That is according to build Force Canada's new outlook for the sector twenty twenty four
- 0:26to twenty thirty three Construction and Maintenance Looking Forward Report for Ontario Today. Joining
- 0:33me right now to discuss and break it all down for us is the executive
- 0:37director of Build Force Canada, Bill for Area. How are you doing today,
- 0:41Bill? Very good, Thank you for having me on. Yeah,
- 0:44thank you so much for joining me here. So let's just you know,
- 0:47start broadly here talking about for Ontario as a whole. Sounds like in the
- 0:53non residential sector, things are looking pretty good for the next at least five
- 0:58years. That's absolutely true. There's been a lot of investment in the province
- 1:03and we continue to see that investment going into all five regions of the province
- 1:08and that is certainly driving construction demand and has been driving construction demand since coming
- 1:15out of the pandemic in twenty twenty one. And what I mean, I'm
- 1:19not asking for a specific number here, but in terms of the breakdown between
- 1:23public investment and construction and private investment in construction, what are we looking at
- 1:29here just generally speaking, well, back of the envelope, I'd say it's
- 1:33probably around the sixty percent mix in favor of the public sector. Are a
- 1:37lot of the investments that are going into into non residential construction right now are
- 1:44primarily healthcare, but road works as well, and a lot of that is
- 1:48driven by the population growth that we've seen in the province. And of course
- 1:53you've got our province broken down with Central, Eastern, GTA, Northern and
- 1:57southwestern. We're here in Windsor, Ontario, so I was wondering if you
- 2:01could walk us through what the forecast is for southwest Ontario. Well, it's
- 2:08pretty strong, and a lot of it is I mean, many of these
- 2:12investments are already well now. In the Atlantis investment is a significant investment.
- 2:16We're also tracking the Windsor a q Care Hospital, which will begin around twenty
- 2:23twenty seven. We're looking at significant investments in the Bruce Peninsula and to Bruce
- 2:30Power and there are a number of retooling projects going on right now in Windsor
- 2:38with respect to the auto industry, all of which is coming together at the
- 2:42same time as we are seeing a bit of a decline. Now obviously we're
- 2:46in the latter stages of construction at the Gordy how Bridge, but investment has
- 2:50been very, very strong in the region. And what about all the people
- 2:53who are going to be needed to do this ongoing work here? Obviously,
- 2:59you know, we're looking at a situation in Ontario where I've done reporting in
- 3:02the past, where we hear that you know, a lot of people are
- 3:05to be leading the workforce over the next number of years in very large numbers.
- 3:09How is that going to come into play with things? Well, what
- 3:12we've been tracking across the province is about nineteen percent of the current workforces anticipated
- 3:17to enter into retirement over the next ten years. In the region, it's
- 3:23slightly less, but we are tracking the need for an expansion of the existing
- 3:29workforce in the region by about eleven eight hundred workers. And when that's added
- 3:36to the thirteen thousand, nine hundred that we anticipate in southwestern Ontario will be
- 3:40retiring during that period, means the industry is going to have to hire an
- 3:45additional twenty five thousand, seven hundred workers, and we are just not seeing
- 3:50the pace of new entrants. Despite best efforts on the part of the industry
- 3:54and government and a slight increase that we've seen in recruitment into the industry,
- 4:00we still anticipate the industry may be about seven five hundred workers short by twenty
- 4:05thirty three, twenty thirty four. You know, it's a big number,
- 4:09it's significant, but I know that the industry is still focused on becoming more
- 4:14diverse and more inclusive in terms of the labor force of the construction industry.
- 4:18What are some of the efforts that are being done to seek out people from
- 4:23underrepresented groups like women, Indigenous communities, or even Canadian newcomers. Well,
- 4:29the construction industry has been very focused on this for some time, and when
- 4:32we look at the construction on site workforce, so those individuals that are actually
- 4:39on site actually building the assets. We've been tracking and trying to promote careers
- 4:45in construction to women, and we know that women only make up about five
- 4:49percent of the on site workforce. So we've been looking at and seeing a
- 4:56significant increase in the overall numbers of young women in particular coming into the industry
- 5:03over the past eighteen months, and in part that's because of the focus the
- 5:08industry has had on trying to recruit young women into the trades with the support
- 5:15of the federal government as well as the provincial governments, and in part that
- 5:18message is starting to get out there and I think young women. Again,
- 5:23we haven't seen the latest registration numbers for twenty twenty three, but certainly from
- 5:29what we've been hearing, those numbers are going to be quite strong. Beyond
- 5:32that, of course, the industry has been very focused on trying to reach
- 5:35out to other underrepresented groups and trying to find a way to increase their overall
- 5:45participation in the construction labor force, and the industry has done a relatively good
- 5:49job with the promotion of careers to individuals from indigenous groups. We've also been
- 6:00doing trying to find a better way to integrate newcomers to the country into the
- 6:05construction workforce and also in promoting careers in the construction in construction to those individuals
- 6:15that are newly arrived in Canada. Again, this has been an ongoing effort
- 6:21on part of the industry for a great many years, and with the recent
- 6:27supports from both the federal and provincial governments, are starting to see a bit
- 6:32of an uptick, which is quite positive and we hope to see that trend
- 6:36continue. Yeah. Absolutely, So. The last thing I would like to
- 6:40ask about real quickly, understand we're running out of time here as well,
- 6:44apprenticeship registration in Ontario and how that has been able to affect the situation.
- 6:51Well, like I said, we haven't seen the twenty twenty three numbers yet,
- 6:57but certainly from what we are here anecdotally from the industry as well as
- 7:01the tracking that we've been doing, those numbers are up, and in particular
- 7:05for young women, the number of young women registering into construction apprenticeship programs seems
- 7:13to be up, and that was a trend that we started to see coming
- 7:15out of the pandemic and even slightly before the pandemic, but it really has
- 7:19accelerated in the last little while, and again that speaks to the efforts of
- 7:25the industry to continue to promote diversity in the construction workforce, but as well
- 7:30the support that we've been receiving from both federal and provincial governments to try and
- 7:36assist the industry in promoting careers in the trades to young people, but in
- 7:42particular to individuals from underrepresented groups, including women. Absolutely. Well, Hey,
- 7:46I want to thank you so much for your time today, Bill.
- 7:49Looking like there's pretty good outlook here for the next five years, but we'll
- 7:54hope to talk before twenty twenty nine. Okay, okay, then, thank
- 7:58you so much. Cheers. Bill Ferraria is the executive director of Build Force
- 8:03Canada, which is a national industry led organization that represents all sectors of Canada's
- 8:07construction industry. And again we were hearing there construction demands in Ontario remain elevated
- 8:13through twenty twenty nine, propped up by public investment, private investment. We've
- 8:20got a lot going on down here in Windsor