Since last spring, the value of proposed major infrastructure projects has decreased in value by 5 percent, and nearly 20 percent over the past five years.
BRITISH COLUMBIA – To view the glass half full, construction in British Columbia continues to grow.
If one is inclined to look at it half empty, declining investments in major projects and the threat of poor industry support is troubling.
The Fall 2024 Construction Industry Stat Pack released by the BC Construction Association (BCCA) shows both, while also demonstrating that the industry is facing intense pressure to meet current demand due to increasingly higher labour costs, continuous shortages in workforce numbers, and the provincial government’s failure to enact lack of payment legislation.
Chris Atchison
“British Columbia’s construction industry will be paramount to building our province’s critical infrastructure and alleviating the housing crisis,” says BCCA President Chris Atchison. “During the election campaign, BC’s political party leaders committed to supporting the construction industry. Now that the results have been finalized, we need the government and opposition caucuses to work together to implement policies geared towards payment certainty and workforce development to ensure the construction industry can meet the current and future demand to build BC better.”
Since last spring, the value of proposed major infrastructure projects has decreased in value by 5 percent, and nearly 20 percent over the past five years. The construction industry recognizes the need for increased investments in large projects, and views the decrease as problematic since Site C dam and other major developments wind down towards completion.
Hospitals, schools, multi-unit housing, bridges, and supporting infrastructure across the province must be built, and major infrastructure projects are in high demand. The decreasing value of proposed construction projects suggests that the provincial government is not invested in making these a reality. The BCCA notes that “this decrease in investments is coupled with the concurrent need for more robust support mechanisms to ensure that said projects can be delivered. The underlying factors of payment uncertainty, workforce shortage, and high labour costs pose significant strains on the construction industry, which need to be addressed by our political leaders.”
The industry needs political leaders to work together to recommit to advancing major projects, while also attracting external investment, thus creating more favourable conditions for significant projects to be improved.
The value of proposed construction projects in BC is $166 billion, a decrease of $4 billion since Spring 2024, and the estimated value of current major construction projects underway is $170 billion, an increase of $10 billion since Spring 2024 and a 5-year trend increase of nearly 50%. The value of construction projects in 2019 was $206 billion, and the figure stood at $220 billion stood for 2020, 2021 and 2022.
Statistics show that construction continues to be the number one employer in B.C.’s goods sector, with 243,000 direct employees. The industry accounts for 10 percent of the province’s GDP – which represents a 16 percent increase over the past five years.
The number of workers in trades jobs now stands at 167,300, representing an increase of 3,400 since Fall, 2023, even though that shows a 5-year trend decrease of 7%. The number of women in construction trades is 9,536 (5.7%), an increase of over 2,100 since Fall 2023 and a 5-year trend increase of nearly 15%.
There are now 28,065 construction companies in the province, over 200 more than the previous year, and the average annual wage for employees in the industry is $72,200, which, although being slightly lower than last spring, still shows an increase of 17 percent over five years.
The number of construction jobs in BC that will be unfilled due to labour shortages by 2033 is estimated to be 6,600, which would be an increase of 600 compared to 2032 forecasts that were made in Fall 2023.
Don Wightman of PML Professional Mechanical Ltd. to Lead BC’s Construction Association
Meanwhile, the BCCA has announced that Don Wightman has been elected Board Chair for the 2024-2025 term. Wightman is President of PML Professional Mechanical Ltd., which he founded in 1995. He takes over from Anthony Minniti, President of CGI Constructors.
“Builders work hard and get things done,” notes Wightman. “With important advocacy issues like Prompt Payment Legislation, Lien Reform and Adjudication still on the table, we will be working hard to ensure British Columbia’s next government understands that enactment is becoming critical if British Columbia is to remain competitive. Let’s get this done.”
BCCA President Wightman notes that “Don is passionate and always brings the level of energy that is needed to continue to advocate for what is in the best interest of BC’s construction industry. Together, we will work hard to meet the housing and infrastructure challenges that will make life better for all British Columbians.”
Business Examiner Staff
