New Homes
New Homes
Lots of job opportunities for skilled workers ahead
Last Monday, the Canadian Construction Sector Council released its assessment of the construction labour market in Manitoba from 2008 through 2016. It analyzed needs in 31 trades, with consideration for normal business, new projects, retirements, anticipated provincial and national economies and numerous other factors.In short, the council's findings indicated a need for more than 10,000 new people to enter the construction workforce in Manitoba over the next eight years. Of these, 4,500 are needed to replace retirements of existing personnel and 6,000 are needed to keep up with the construction work demand.
Keep in mind that these numbers reflect skilled labour needs for all construction activity in Manitoba over the next eight years, not just residential construction. Industrial and commercial buildings, highways, pipelines, government projects, Manitoba Hydro, transportation and warehousing are just some of the many facets of construction in Manitoba.
However, all construction sectors are projected to increase in scope, production and labour needs over the next eight years.
Given some of the mega-projects (airport, pipelines, Hydro, floodway, football stadium, to name a few) anticipated for Manitoba over the next eight years, there is little wonder that the most pressing shortages are in specific occupations such as crane operators, heavy equipment operators and mechanics, boilermakers, ironworkers and welders.
The CSC report indicates an urgent and immediate need for persons trained in these trades with the situation becoming critical if not addressed immediately.
Although these may be the most identifiable shortages in terms of immediacy, they are not necessarily so as it relates to numbers of persons needed. They also do not reflect most employment opportunities within the residential construction sector.
The Construction Sector Council report indicates continued projected growth in new home construction over the next eight years in Manitoba. In order to meet those demands, a large number of skilled trade professionals will be needed.
The following are examples of projected trade needs for professions common to the residential housing industry. Note that these numbers reflect needs for all construction projects utilizing that trade and not just residential construction, also appreciating the availability of crossover work throughout the 2008-2016 period.
Carpenters - 986
Electricians - 431
Contractors and Supervisors - 856
Painters and Decorators - 392
Roofers and Shinglers - 203
Helpers and Labourers - 1,158
The above only represent six of the 31 identified trades but comprise a large number of the necessary employment categories. These six trades were selected to indicate the myriad of opportunities that will exist in Manitoba in the coming years.
The jobs in construction will be there. However, the overwhelming concern is whether we will be able to fill them.
Next: Where will the 10,000 needed workers come from?
This column prepared by the Manitoba Home Builders' Association.
New Homes
Why U.S. housing crisis won't happen here
There has been great concern expressed lately that the housing crisis happening in the United States will spread to Canada. Consumer confidence on the part of the American buyer has dropped to its lowest level since 1980.Americans are cutting back on discretionary spending, as reflected in the lowest vehicle sales period in the last 10 years. If it were not for personal tax rebates totaling more than $100 billion, the situation for the average U.S. taxpayer would be even worse. Banks are not taking any credit risks and, when they do, the payoffs are extremely high.
New housing starts in many markets have practically disappeared. We have seen American-based real estate companies offer seminars in Winnipeg recently in an effort to stimulate buying by Canadian snowbirds in the southern U.S.
The big question on many people's minds is "Will this happen here?" In a word, no.
Canada's mortgage market has avoided the turmoil in the U.S. Sub-prime lending is only about five per cent of our mortgage market. Our banks do not engage in reckless lending. In fact, mortgage rates continue to show substantial declines due, in part, to Bank of Canada rate cuts.
Canadian motor vehicle sales have continued to increase steadily over the past four years. This is an indicator of consumer confidence and shows that Canadians are not shying away from big ticket, discretionary spending.
Oil prices continue to rise creating, in effect, the same impact as a tax increase. Consumers have a greater incentive than ever to invest in energy efficiency. However, as stated by the Canadian Energy Alliance Association, new homes in Manitoba are the most energy efficient in Canada.
Nowhere else in all of Canada do new homes meet energy efficiency standards than those of Manitoba builders. Manitoba Home Builders' Association members are committed to maintaining this lofty position.
Granted, housing starts are down considerably in Alberta. However, they are down from all-time record highs, not traditional patterns. Manitoba and Saskatchewan are both showing positive population flow from Alberta. Employment opportunities here continue to increase.
Manitoba is enjoying its second strongest year in terms of new housing starts in the past 20 years. Single family detached units are actually above last year's record-setting pace. Manitobans are not only buying new homes, but they are also putting equity into the homes they currently own.
Manitoba leads the country in the percentage of increased renovation spending compared to the first quarter of last year.
All of this growth is at a steady, moderate rate. Manitoba's new home industry has never been based on a boom or bust mentality. The development of sustainable communities is always a primary consideration for both the developer and the builder.
The housing industry has relied on a well planned, calculated growth that the market can bear. Manitoba home builders work very closely with the province and various municipalities to plan according to the market. They build based on what can be sold, according to consumer demands.
Quality has always been at the forefront, and the value of an investment in a new home has consistently paid dividends.
Current and historical economic indicators demonstrate that Canada, and especially Manitoba, will not face the current crisis being experienced in much of the U.S. It's not going to happen here.
This column prepared by the Manitoba Home Builders' Association