Construction Industry's Labor and Supply Chain Challenges Fuel Government Housing Concerns in New Brunswick
Concerns over the supply chain and the lack of available workers have troubled the construction industry. An association for builders in New Brunswick believes that these difficulties will impact government-promised housing projects announced over a year ago.
(Photo : Getty Image/Joe Raedle)
Government Housing Concerns in New Brunswick
On Wednesday, Jan. 17, Prime Minister Justin Trudeau announced that the federal government had achieved a deal with the City of Saint John, New Brunswick, to accelerate the construction of 285 new housing units over the next three years. Completing this work will contribute to constructing over 1,700 residences over the next ten years, assisting in meeting the demand in Saint John.
As mentioned, this agreement will deliver more than $9.1 million to the Homes Accelerator Fund by removing obstacles to constructing the homes they require more expediently. Housing options in the city will be expanded, including an increase in rental, subsidized, and missing-middle housing, with a maximum of four units per residential unit.
However, some people believe that any building project is either in danger of not taking place or not taking place on time or within the allotted budget. Susan Holt, the leader of the Liberal Party in New Brunswick, noted that with an investment of $100 million over a year ago, the government of New Brunswick assured 380 units. The following year, they reiterated the same assurance even though no unit had undergone any needle movement. Therefore, there are valid reasons to be suspicious about the possibility that the deadline will not be able to be met.
Based on the Construction Association of New Brunswick, the industry's current number of job openings is approximately 1,900, with an increase in this figure during the summer season, while Nova Scotia has roughly 3,000 vacancies. Moreover, the industry has been seeing increasing demand due to the damages caused by storms such as Hurricane Fiona, as well as other projects such as hospitals and schools.
Duncan Williams, the president and chief executive officer of the Construction Association of Nova Scotia, warned that money alone will not be sufficient to accomplish what they require. The construction industry must reportedly take precedence over immigration regarding its essential aspect. There is a critical demand for builders willing to immigrate to the country to construct housing, apartments, and other amenities for the remaining population that requires a place to live, work, and park.
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Challenges in Canada's Construction Industry
Across the country, major urban centers from coast to coast are seeing a worsening scarcity of tradespeople in the building business located in Canada. When securing a consistent supply of trained people, developers consider all options, including the cancellation of projects, costly delays, and new strategies.
As per Rob Ramsay, executive vice-president and national head of project and development services at JLL Canada, the shortfall is impacting a construction market that is already somewhat competitive.
There is a further decrease in supply, which increases the prices charged by contractors. Additionally, to keep up with the competition, trades recruit individuals needing more experience. Because of this, the task may be carried out in a manner that is progressively slower and of a lesser quality, which may result in an extension of the schedule, additional expenses, and increased frustration.
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