By Jessica Kirby
The results of Sheet Metal Journal’s 2019 Construction Outlook survey are in, and spirits are high looking at the year ahead. As anticipated, labour and government action remain at the top of this list of possible challenges, but more contractors than not are looking at positive solutions, which include investments in education, training, and expanding to new market sectors.
In terms of pressing issues the BC sheet metal industry can look forward to in 2019, 76% of survey respondents list developing and retaining a skilled labour shortage as the top concern. Competitive pricing and economic climate fall in tied for second place, but the majority of respondents anticipate their numbers going up this year, so the the challenges may not be insurmountable.
Although 78% of respondents see their businesses’ performance at the same, slightly up, or much better for compared to 2018, nearly half of respondents feel the industry overall will sit flat, mimicking last year’s numbers. This points to individual action plans for boosting businesses’ bottom line. Some of these include investment into training and education as well as market expansion plans targeting niche markets and broadening geographic reach.
Contractors also see the coming abundance of work and opportunities for greater profit margins as good places to start. The market is vast and opportunities exist if companies are willing to price fairly and can retain the workforce necessary to maintain quality standards. In practical terms, LNG might be the province’s biggest opportunity moving forward, but at least one company feels progressive business owners with a solid plan and the capacity for productivity will flourish regardless of what 2019 holds in store.
Nearly 89% of contractors who responded to the survey indicated some form of business investment is in the works. (Eleven percent said they had no plans to invest in their companies). Workforce retention and education and training will see 33% and 25% of investment dollars, respectively, with technology and company expansions also seeing a significant portion of spending moving forward.
Of course, business can only respond to certain factors outside the sheet metal industry. Nearly half of respondents reported government action would be a major factor affecting the industry in 2019, while another 25% said the global marketplace was consideration-worthy. Causing minor alarm are access to materials because of trade and pricing issues and other trades’ poor workmanship, the effects of which can bleed over into the sheet metal trade. Staying competitive in 2019 and beyond will be a matter of retaining labour, pricing competitively, and staying “right-sized” to mitigate market fluctuation and outside factors.
Moving forward, 33% of contractors surveyed will expand new markets, 22% will expand or move geographically, and 22% will retire, leaving plenty of opportunities for new recruits and seasoned business owners in the years to come.
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