Recent reports from the British Columbia Construction Association (BCCA) reveal a mixed landscape for the province’s construction sector, characterized by workforce improvements and ongoing legislative hurdles. Data from the Spring 2024 BCCA Construction Industry Stat Pack and the annual BC Construction Industry Survey Report indicate significant pressure on employers due to a high demand for construction and a persistent shortage of skilled workers.
Despite a 39% increase in the value of ongoing major projects over the past five years, reaching an estimated $160 billion, the construction industry in BC continues to grapple with labour shortages and payment delays. The value of proposed major projects has seen a decrease to $170 billion from $221 billion in Spring 2023, underscoring potential future challenges.
“Labour shortages mean higher wages and steep competition for qualified workers,” notes the BCCA report, highlighting a 21% increase in the average annual wage in the sector over five years to $74,853. Furthermore, 77% of employers have raised wages in the past year to attract and retain talent.
The BCCA survey, which included 1,854 respondents from various construction sectors across BC, also sheds light on the pressing issue of payment uncertainty. A majority of contractors report regular late payments, and many have experienced not being paid at all for completed work. This financial instability is exacerbated by the lack of Prompt Payment legislation in BC, a situation that Chris Atchison, BCCA President, criticizes strongly.
“We have asked the Eby government time and time again to respect the hard-working people and small business owners of BC’s construction industry by ending payment uncertainty through Prompt Payment Legislation,” Atchison stated. “To see yet another legislative cycle pass without enactment of commonsense legislation already available in other Canadian jurisdictions is shocking. What’s taking so long?”
The industry’s skills shortage has seen some improvement, with a projected deficit of 6,600 skilled workers by 2033, a substantial decrease from the 26,100 shortfall estimated a decade ago. This comes as the sector sees a 9% growth in the number of industrial, commercial, and institutional construction companies, even though the total number of tradespeople has declined by 7% over five years.
Amid these challenges, the industry remains a vital part of BC’s economy, contributing 10.3% to the province’s GDP and employing over 229,100 people. The sector continues to advocate for reforms including prompt payment and lien holdback release legislation, which remain critical to its sustainability and growth.