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The B.C. construction sector is experiencing a mixed situation. While the workforce numbers have shown improvement compared to a decade ago, there's still a significant shortage of qualified workers putting a strain on employers.
Key facts
- The BC Construction Association reports a projected skilled worker deficit of 6,600 by 2033, down from the previously estimated 26,100 in 2023.
- Despite improvement, the number of trades workers has dropped 7% in the last five years to 167,300.
- The average construction company size has shrunk by 15% during the same period.
Wage Increase
- To attract workers, the average annual wage in the sector has risen to nearly $75,000, a 21% increase in the last five years.
- Entry-level construction workers now earn over $22 per hour, exceeding the provincial minimum wage by 25%.
Payment Delays
- Construction companies also face challenges related to late payments. Contractors may have to wait for months to receive payment for their work.
- This delay creates financial risks and increases debt burdens, potentially leading to bankruptcies.
- The association says construction companies are essentially financing construction projects, including much-needed housing.
Call to Action
- The BC Construction Association is urging the provincial government to enact prompt-payment legislation to ease the financial strain on the industry.
- The construction sector employs 229,100 people and contributes $27 billion, or 10.3%, to B.C.'s GDP.
- The government is reviewing prompt-payment legislation from other jurisdictions to determine its applicability in B.C.
Source: BNN Bloomberg
