Construction pace is continuing at an average pace even as the industry as a whole faces labour and supply shortages. (file photo/NanaimoNewsNOW)

By Alex Rawnsley

BUILDING BACK UP

Labour shortage, material supply are major concerns for Island construction industry

Jul 12, 2020 | 7:35 AM

NANAIMO — Six months removed from a record year of building permit approvals, Nanaimo faces a speed bump with local construction projects thanks to COVID-19.

The hurdle comes through recruiting tradespeople in entry level positions, something which the industry has struggled doing in recent years

“We were already going to be in need of 7,000 to 10,000 new workers in B.C. just to maintain the projects we had,” Rory Kulmala, CEO of Vancouver Island Contruction Association, said. “We already know we were already short of workers. There are a lot of them who are aging out and retiring.”

However, COVID-19 economic shutdowns which have disproportionally hit the hospitality industry could present an opportunity for construction.

Contractors on Vancouver Island hope those out of work in restaurants and retail see construction as an alternate career path.

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Kulmala added the Canadian Emergency Response Benefit has been a double-edged sword for the industry as many labourers have elected to remain off the job and receive the benefit.

Building pace has been decent through the first half of 2020. According to the City of Nanaimo, an average number of building permits have been issued which is seen as a positive sign given the pandemic.

Concrete numbers will be presented to council later in July.

In 2019, the City of Nanaimo gave the green light to $445 million in building permits, a record year for Nanaimo.

Eclipsing that pace will be difficult as the world emerges from COVID-19.

At present, supply chains domestically are solid however it’s expected to change as more countries return to normal.

“Domestically we have enough supply to keep things going, but where it’s going to be a challenge is that as communities across the globe start to ramp up and come back to some level of normal operations, some materials may be harder to get,” Kulmala said.

He said B.C. is positioned well to maintain supply chains, however receiving custom products or shipments from China and India is the next part of COVID-19 recovery and understanding how changes will affect projects moving forward.

alex.rawnsley@jpbg.ca

On Twitter: @alexrawnsley