Ottawa, ON — Canada will need a substantial increase in skilled trade workers to meet its goal of building 5.8 million new homes by 2033.
BuildForce Canada announced that Canada’s residential construction workforce would need to grow to over 1,030,000 workers, 83 per cent above the status quo, in order to meet this goal.
As part of its Residential Scenario Outlook 2024-2033 report, BuildForce Canada highlighted the support needed to reach the housing target. The scenario assumes that starts will begin rising in 2024, peak at 691,600 in 2029, and gradually de-escalate from the peak through 2033.
From there, “Historically normal levels of building activity would resume. The corresponding escalation in residential construction investment would be 109 per cent, which Canada needs for its economic growth and productivity,” states the report.
The report also highlighted how Canada’s residential construction sector continues to struggle with an ageing workforce. It is expected that more than 22 per cent of workers will retire in the next decade, with 40 per cent ageing over the age of 55.
In order to meet the labour demands needed to reach the housing goals, the Canadian Home Builders’ Association (CHBA) voiced its opinion on how to support the skilled trades industry.
As stated in its press release, the CHBA called on the federal government to encourage more Canadians to consider a skilled trade, particularly youth, equity-deserving groups, immigrants, and those seeking a second career. It also asks for an update to the immigration system to proactively attract much-needed skilled workers in residential construction, including enhancing the express entry system to support the specific labour needs of the residential construction sector, including bringing in TEER 5 construction labourers and assistants.
Lastly, the CHBA is calling on the federal government for support to increase productivity as detailed in CHBA’s Sector Transition Strategy.
CHBA’s strategy further details the work and support needed to reach Canada’s housing goals, calling for a “whole-systems approach by all local, provincial and federal governments.”
The strategy highlights various suggestions to help streamline the new housing timeline. One suggestion was moving the industry towards more factory-built construction.
As stated in the strategy, “In modular construction, the home is built in one or more three-dimensional modules in a factory and then shipped to the site. Panelized systems – where two-dimensional wall and floor panels are pre-built in factories and shipped to the site – are also an option for using factory-built construction. Both approaches can be used for all forms of housing, from small homes to large homes to multi-family buildings.”
While moving the industry towards factory-built construction can offer many benefits, this process has costs, risks, and barriers. These challenges include high capital investment, high overhead, steady workforce, and transportation logistics, to name a few.