By / Jessica Kirby, Editor, Sheet Metal Journal
July-August is a great time to evaluate your company’s yearly performance. It’s just past the half-way mark, but there is still time to make key changes during the busy summer months. It is also vacation season, so there is lots of time to reflect and relax. And, according to an an annual survey by the BC Construction Association, relaxation is key for BC contractors.
The survey, completed this spring, found that construction employers across BC are facing operational stresses at new levels. According to 1,300 survey respondents, demand for construction services is high, but labour supply, costs, and inadequate public sector standards and systems regarding permits, contracts, procurement, and payments are putting BC’s builders in a tough spot.
According to the survey, more than 80% of contractors of all sizes received late payment in 2022 and almost half of large contractors say they are paid late at least 25 percent of the time. It is even worse for smaller contractors (20 employees or less), who report being paid late about 30 percent of the time.
With the price of materials, shipping, and borrowing hitting unprecedented highs, most contractors struggle to keep the doors open.
According to the BCCA, this consistently leads to contract disputes (mainly related to costs) and 44% of small contractors say they’ve “filed a fixed price contract dispute in the last 12 months, compared to 31% of medium contractors and 28% of large.”
When it comes to labour, the job market remains highly competitive, with labourers ad skilled workers benefitting the most. While the skills shortage has improved significantly over the last five years, the industry is still short 6,000 skilled workers. Contractors of all sizes are feeling the pressure that brings.
And despite initiatives aimed at non-traditional workforce development, 2022 saw a 21% decrease in tradeswomen, even though numbers have been growing for several years.
The BCCA survey says “women comprise only 4.5% of the 163,900 skilled tradespeople in BC’s construction industry today, down from 6% in 2020, despite continuing improvements in construction culture and more employers actively pursuing diverse hiring practices.”
BC’s construction industry is advocating for several changes, including prompt payment legislation; fair, open, and transparent procurement processes and reasonable contract conditions; and a faster permit process with the authorities having jurisdiction.
The survey revealed several other important points, and I encourage you to read it at bccassn.com/annual-survey-reveals-a-construction-industry-under-strain
But in the meantime, if stress is in your way, it’s a great time to re-evaluate and make a plan for dealing with the issues brought to all of us by the weird and unprecedented post-covid, overseas-war-driven, economically intense times we find ourselves in. Connect with your team, reach out to the SMACNA office, share your desires for professional development opportunities, and most of all, be good to yourself. Like my dentist always says when I over-react in the chair: Relax. You only get one kick at this life, so make it a good one.
Besides general self-care, consider checking out the SMACNA National convention in October or Partners in Progress Conference in February 2024 for some good old fashioned netowrking, learning, and listening. You might be surprised what you learn.
Is your company feeling the pinch? Email me at jessica.kirby@pointonemedia.com and share your story. Watch for prompt payment and business development features in the Fall issue. ■
