New Homes
New Homes
Need for workers experiencing labour pains
THE Construction Looking Forward document was released this week by the Construction Sector Council and the research shows continued need for professionals in all trades and occupations. The regular but slowing growth from 2010 to 2018 has been highlighted by three distinct periods.
The Shallow Dip (2008-09) occurred immediately after the record years of construction activity. Combined with a worldwide recession, there was really nowhere for the employment requirement numbers to go but down.
Fortunately, in Manitoba, this was only a slight decrease. Residential, roads and related engineering were most impacted, but not to any great degree. A fast rebound was predicted.
The Ramping Up period (2010-2012) backs this prediction with new housing and utility-related engineering construction experiencing the biggest gains.
Finally, the High Plateau (2013-2018) shows annual increments between one and two per cent. The increased labour needs do not grow by large amounts, however it is important to note that the increase is experienced virtually every year, thereby exhibiting a constant need for labour market entry. Labour markets are already tight and so this extended growth pattern will only exacerbate the situation.
The Manitoba construction labour market experienced very little unemployment during the recession. Future labour requirements cannot be met through existing unemployment ranks. Recruiting must occur outside.
From 2010 through 2018, construction employment will rise by 6,200 jobs.
Add to this replacement requirements for 5,300 retirements occurring over this period and another 900 lost through other means and there is a massive shortfall of skilled trades workers. If prior employment entry patterns continue, we can expect 6,500 new entrants, thereby leaving this province with a 7,800-worker deficit.
The identified worker needs are spread out evenly throughout the various trades. In the next four years, projections are that 23 of the 28 trades will experience serious shortages of skilled labour. With the mobility that currently exists in the local industry, this means that virtually every single trade can ensure continued employment for at least the next eight years.
For additional information regarding 2010 Construction Looking Forward or the Labour Market Indicators in Manitoba's construction industry, visit the website of the Manitoba Construction Sector Council at www.mbcsc.com.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Membership does make a difference
LOOK for the logo.
That's the soundest advice I can give people who are looking for a builder, renovator or supplier. It's far from the last thing they will have to do in their quest for selection, but it's a great starting point.
Look for the logo -- the logo of the Manitoba Home Builders' Association.
Membership does make a difference. The difference is that industry professionals representing the entire industry have already done the preliminary work for you. They have screened the membership application and determined if the applicant has met certain industry qualifications. They have already done some of your homework.
Case in point; although coming soon, new home warranty has not been mandatory in Manitoba. However, in order for a builder to be a member of the MHBA, he must have been offering a recognized third-party warranty for a minimum of two years. That's not to say that there are not builders offering a proper warranty who are not members, it's just that your search can be narrowed down that much quicker when you look for the MHBA logo.
Many new home developments will only feature MHBA member builders. All Parade of Homes entries are from MHBA builders. Look for the logo.
Manitoba has developed the reputation as the renovation capital of Canada. How do you differentiate one renovator from another? Look for the RenoMark logo. A RenoMark renovator pledges to adhere to a nationally recognized, elevated set of standards and ethics. Become familiar with these and insist that your renovator operates at the same level.
Again, no one is telling you who to hire, but the informed consumer should be able to benefit from homework done by the professionals regarding their industry.
The same logic can be applied to suppliers. If the most qualified new home builders and renovators are purchasing their building supplies from companies they have thoroughly researched, why shouldn't the consumer benefit from this knowledge?
In conclusion, although there is never a simple answer regarding what and where to buy, there are sources to help you. One is professional industry associations such as the MHBA. Look for the logo.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Winnipeg's future discussed in documents
There has been considerable talk recently regarding the master plan draft on Winnipeg's future.
Originally launched as Speak Up Winnipeg, this was a comprehensive, exhaustive and inclusive process that sought the input of all of this city's citizens regarding future directions for the next 25 years. There were dozens of workshops involving thousands of people. The results are now available.
Our Winnipeg is a 110-page blueprint aimed at guiding the physical, social, economic and environmental development of our city. It delivers an introductory overview to the ensuing, more topic-direct documents while providing food for thought in areas such as safety, recreation and other qualities of life.
A Sustainable Winnipeg is 50 pages long and provides a directional strategy aimed at defining sustainability and then achieving it. It admits that significant change to our current way of thinking will need to be introduced, while stating that the basic principles of sustainability must be part of every decision going forward. It lays out some of these considerations while conceding that the tools will continue to evolve over time.
Sustainable Water and Waste is a 68-page document that deals with water, wastewater, stormwater and the Capital Region. Given the new water-treatment proceedings, concerns about what we are doing to our water systems and the amount of water that has fallen from the sky over the past three weeks, this is an extremely relevant subject. After all, the River City has a large reputation to maintain.
Sustainable Transportation is a 58-page document that addresses an extremely hot topic in Winnipeg. Last week, informational workshops were conducted on Transit Oriented Development. The need for efficient transportation systems being developed as the city grows and changes is critical if we are to thrive over the next 25 years and beyond.
Finally, Complete Communities is a 162-page document that concentrates on housing, commercial development, parks and open areas, rural and agricultural lands, aboriginal economic development areas, airport, heritage conservation and the urban and capital regions. This is about where we live and how we live.
Future Saturday columns will deal with these documents in greater depth.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Activity shows market has bounced back
Venture into any new subdivision and you will see a flurry of residential construction activity.
During the recent Spring Parade of Homes, Amber Trails, Algonquin Estates, Bridgwater Forest, Canterbury Park, Harbourview South, Heartstone Estates, Kildonan Green, Royalwood, Sage Creek, South Pointe and Van Hull Estates were not only highlighting completed show homes, but were also busy building more new homes.
New home construction was the beneficiary of an early weather break thanks to an unseasonably warm March. Although rain has recently slowed things down a bit, demand is still high in Winnipeg and Manitoba.
Residential building permits are considerably ahead of last year.
The first four months of 2009 found us still mired in a recession.
Still, this year's activity sends a positive message concerning confidence in the economy and the residential construction industry.
In Manitoba, residential permits are up 53.66 per cent over last year.
Single-family detached construction makes up 80 per cent of that market, although multi-family housing has more than doubled last year's pace.
In Winnipeg, multi-family permits represented 17 per cent of the market at this point last year. In 2010, that percentage has grown to almost 25 per cent, as this sector has experienced a rejuvenation of sorts. As a whole, residential permits are up 72.38 per cent over last year.
What does all this mean? In part, it signifies that we're back to business as usual. The builders and sub-trades are busy trying to fill the demands of the public. The consumer is confident of the economy and is moving ahead on plans that may have been shelved since mid-2008. We may not be back to the lofty heights experienced in 2007, but we are definitely back.
Manitoba is not the only province in Canada to be experiencing this rebound effect. However, we are one of the few bouncing back so quickly.
Residential construction permit activity may not stay at this rate of increase in Manitoba and Winnipeg all year, but the positive signs for the first four months bode well, once again proving now is an ideal time to purchase a new home.
Mike Moore is president of the Manitoba Home Builders' Association
New Homes
Renovation industry likely to remain strong
RESIDENTIAL renovation is a $54-billion business annually in Canada.
Manitoba and Winnipeg have long been reputed to be the renovation capitals of Canada. Even though we don't always follow national trends, we can always learn from them.
Even in the recessionary times of late 2008 and early 2009, renovation spending remained positive in Canada. Last year, home improvements and repairs increased .8 per cent across the country in a time where discretionary spending was being severely reduced. Much of the credit goes to the Home Renovation Tax Credit and the ecoEnergy retrofit grants from the federal government.
Now that both programs have ended, it will be interesting to see the impact on renovations this year. Although the HRTC did its intended job of stimulating the economy, it should have been extended in some form.
Winnipeg has the third-oldest housing stock in Canada and those houses will require renovations. Our boom in existing home sales also bodes well for the industry. Many households make repairs, as well as cosmetic changes prior to selling, in order to increase the attractiveness of the house.
There are, however, a few dark clouds on the horizon for the renovation industry. First and foremost is the impact of the Harmonized Sales Tax.
Ontario and B.C. are implementing the HST on July 1 of this year; Quebec and Nova Scotia are increasing their existing tax rates. Manitoba is currently HST free, so our homeowners seeking renovations will not be subject to that additional tax burden.
The projected increase in interest rates may have some effect on the industry, but it is not likely to be a large factor in Manitoba. Rates are still very low and consumers still see the wisdom in taking advantage of the opportunity to borrow in order to make home improvements.
Renovation spending is projected to be up 6.6 per cent across Canada this year, with comparable increases in Manitoba. That number will drop by 3.2 per cent in Canada while remaining about the same here in 2011.
By all accounts, the renovation industry is expected to remain very strong in Manitoba for the foreseeable future.
Mike Moore is president of the Manitoba Home Builders' Association.
