British Columbia and Alberta see growth and labour challenges moving into 2025
By / Robin Brunet
The good news is that British Columbia’s construction sector, which accounts for 10 percent of the province’s GDP and employs 167,300 tradespeople, was busier than ever in 2024—and the New Year overflows with work opportunities.
Jeremy Hallman, executive director at SMACNA-BC, says, “We just finished one of the busiest years our trade has enjoyed on record, with hospital projects including Lion’s Gate, St. Paul’s, Burnaby, and Royal Columbian, and other facilities—being a main driver.
“Yes, inflation and other factors caused some projects to stall, especially in the residential sector. But currently our members have worked approximately 15 percent more hours than in the previous year, so we’re withstanding the headwinds.”
The bad news is that labour shortages, payment uncertainty, and high costs continue to pressure the province’s contractors, and Chris Atchison, president of the BC Construction Association (BCCA), wonders just how long people working in the sector will be able to withstand the headwinds.
“I think we’re at a pivotal juncture,” he says. “The value of current major building projects is $170 billion, an eight percent increase over last year. That’s good news, but when you look at the value of proposed major projects, unfortunately those numbers have declined by five percent over the past year and nearly 20 percent over the past five years.”
What makes this troubling is that public expenditures far outstrip private sector spending. As megaprojects such as the Trans Mountain Pipeline and Site C come closer to completion, the decreasing value of proposed construction projects suggests that the province is not investing in additional much-needed infrastructure projects, such as schools, multi-unit housing, bridges, and supporting infrastructure.
In short, the juncture Atchison refers to is one in which British Columbia, despite the breadth and expertise of its construction sector, and despite high demand, could be hurtling towards a correction.
The situation is somewhat different in neighbouring Alberta, always a pro-business province. There, the economy is projected to stabilize and diversify, driven by strong energy sector performance and increasing investments in non-oil industries. The provincial government’s commitment to infrastructure development of all kinds is robust, but even Alberta’s can-do spirit can’t escape fluctuating material costs and supply chain issues, along with the chronic labour shortages that exist in virtually every region of Canada.
Hallman concedes that in British Columbia, “there will be a bit of a plateau this year as some of the major projects wind down. That said, there are others coming online, but we see the market cooling and stabilizing over 2025.”
With regards to the labour shortages, Hallman finds it encouraging that Local 280’s Sheet Metal Workers Training Centre Society is receiving record rates of apprentices but it’s yet to be seen if that will keep up with retired members and the additional work. “Our numbers have gone up, but so has work in this province,” he says.
Jeannine Martin, president of the Vancouver Regional Construction Association, says several important trends accompany the labour situation in 2025. “After many years, the perception of working in the trades is shifting. More and more, trades are being seen as a rewarding career path rather than just a job. But we need new talent in far greater numbers, if nothing else than to compensate for the growing number of workers reaching retirement.”
If construction advocates seem to be unduly focused on labour, it’s because of the severity of the situation. The BCCA estimates that the number of construction jobs in British Columbia that will be unfilled due to labour shortages by 2033 is 6,600, an increase of 600 compared to 2032 forecasts that were made in the fall of 2023.
Accordingly, industry is scrambling to find ways to remedy the problem. Last year, the VRCA enjoyed strong success with its pilot Bring Trades to School (BTS) program, which sparked interest and excitement among grades 8–12 students due to hands-on workshops in electrical, mechanical, carpentry, roofing, heavy equipment operation, virtual welding, and masonry.
“This year 180 students from two high schools will participate in an immersive day of trade workshops,” Martin says. “The numbers may not be huge, but we’re trying to lay the groundwork for the future. We’re also linking Bring Trades to School to our bursary program, which is usually for people already in a trade.”
This program is designed to support students pursuing higher education in trades and construction-related fields, and it awards up to $3,000 per selected student to help with tuition and costs for programs that pave the way for a successful career in construction and trades.
“The point is, this is all part of a greater effort to raise our profile and foster the growing awareness of construction providing really excellent, challenging, and well-paying careers,” Martin says.
Other important issues are being addressed. Atchison’s organization continues to strongly advocate to bring about long-awaited prompt payment legislation, which among many other benefits would enable small contractors (the backbone of the British Columbia industry) to pay their staff and bills and avoid taking on extra debt.
“Lack of prompt payment has cost BC’s construction sector an estimated $4 billion with regard to risk premiums, interest charges, and legal fees,” Atchison says. “During our recent election campaign, our political party leaders committed to supporting the construction industry. Now that the NDP has been re-elected, we need them and opposition caucuses to work together to implement policies geared towards payment certainty and workforce development.”
“If we’re able to achieve this, along with improving the labour situation, it’ll help attract external investment and create more favourable conditions for significant projects to get approved.” ■
