Construction And Infrastructure Survey For 2019 Q4 Shows Skills Shortage And Soft Energy Market Dampening Overall Positive Outlook
RICS and the Canadian Institute of Quantity Surveyors (CIQS) have released their joint Canadian Construction and Infrastructure Survey for 2019 Q4. Respondents generally painted an upbeat picture of the national construction market activity, albeit with some challenges. Most regions indicated that total workloads increased across the fourth quarter and are expected to continue doing so for the next twelve months, but increases in costs, labour shortages and, in some cases policy and regulation, are being seen as obstacles in different areas of the country.
In British Columbia and the Central Provinces, the report paints an upbeat picture of current market conditions. Workloads were said to have increased in the fourth quarter, driven by commercial and residential projects in British Columbia and Ontario, and by infrastructure work in Quebec. Participants in all three provinces also reported a robust pipeline of new business enquiries.
The Prairie Provinces, particularly Alberta, indicated market conditions were substantially different, as workloads across all types of projects have contracted. The report pointed to fluctuations in energy markets driving the slowdown, and highlighted both international oil prices and domestic regulations as factors. Sentiment may improve in future quarters following the federal government’s recent court victory on the Trans Mountain Pipeline.
“The shortage of labour, and particularly skilled labour, is having a significant impact on affordability as companies compete for qualified quantity surveyors, project managers and skilled trades,” said Simon Rubinsohn, Chief Economist with RICS. “This trend is likely to continue to limit construction activity over the short and long terms.”
More than 60 per cent of respondents noted a shortage of skilled tradespeople. This was particularly acute in Quebec (89 per cent), British Columbia (84 per cent), Ontario (70 per cent) and at large- (73 per cent) and medium-sized firms. A majority of respondents in these regions and from these firms also note that a general shortage of skills and labour were having negative effects on construction market activity.
“CIQS is proud to have partnered with RICS on this survey, which offers significant insight into the impact of the economy and infrastructure workloads on our industry today and in the near future,” said per cent, Executive Director of CIQS. “It was extremely educational to learn how industry companies in Ontario forecast market conditions (current and future) versus companies in Alberta. CIQS and RICS joining forces ensured that these results give a true representation of industry companies of all sizes in Canada by providing a platform for a fair sample size across the country.”
Survey questionnaires were sent out on 9 December 2019 with responses received until 16 December 2020. Respondents were asked to compare conditions over the latest three months with the previous three months as well as their views as to the outlook. Responses were collected in conjunction with the Canadian Institute of Quantity Surveyors.
You can find the full report at https://www.rics.org/ uk/news-insight/research/market-surveys/international-construction-infrastructure-surveys/.
