A report on Employment Trends in the Construction Industry:
London, Middlesex, Elgin, Oxford, Huron, and Lambton

Report prepared for and funded by Human Resources Development Canada and the London HRCC by Kevin McQuillan, Angela Conti and Jennifer Hoffman from the Population Studies Centre, University of Western Ontario, published in October of 1999.

Executive Summary

• This study examined employment trends in the construction industry in London and the counties of Middlesex, Elgin, Oxford, Huron and Lambton. Representatives of all of the major contractors in the industry as well as spokespersons for a sample of the medium and small sub-trades were interviewed. Interviews were also conducted with representatives from unions and industry associations. Owners and business managers were asked about their present and future employment needs and about the changing skill requirements for employees in the industry.
• The construction industry is highly influenced by economic cycles. The local industry experienced very little growth in the early nineties but has rebounded strongly beginning in 1997. Industry experts are now expressing a need to recruit workers in several key trades.
• Aging of the workforce and a potential shortage of skilled trades people is a pressing issue in this industry. Industry experts expect significant growth in the local HRCC region over the next couple of years. Areas outside of the HRCC region are also providing opportunities for workers from the local area. These processes are adding to the demand for new workers in various trades.
• There is a movement towards greater "professionalization" in the industry. The industry has recognized the importance of marketing careers in construction to students at the high school level. Related to this is an increased emphasis upon "soft skills". Employers are requiring that their prospective employees demonstrate multiple skills and engage in a continual process of learning and upgrading .
• The industry faces a challenge in recruiting young people into the sector. It is important to communicate to young people that jobs in the industry are increasingly professional careers that are well-compensated and in need of young recruits. Individuals who are interested in pursuing a career in construction are urged to visit their guidance counselor, local construction association or local trade union representative. These contacts are provided at the end of the report.

Introduction

The construction industry is one of the largest and most diverse industries in Canada. The industry not only provides employment to large numbers of workers but also has far-reaching effects on the economy of regions across Canada. This report examines employment trends in the construction sector in London and the surrounding five county region: Middlesex, Elgin, Oxford, Huron and Lambton (HRCC area). The goal of this research is to assess the demand for workers in various branches of the industry in the years ahead. Specifically, we are interested in identifying trades or occupations that are likely to be seeking recruits as well as those in which demand may be limited. The report is intended to serve as a guideline for those who are seeking work or retraining by pooling together the views of experts and employers in the industry with respect to skills and training.

To gather the information needed, we contacted employers, associations, unions, general contractors, and tradespeople in the five county region in order to gain an understanding of their perceptions with regards to current issues surrounding employment, training, recruitment and the industry in general. In most cases, our interviews were conducted with managers or the individuals who were best acquainted with the hiring and training practices of the particular company or union. Our interviews focused on the current and future economic prospects for the industry, the situation of their organization, the educational and skills of their current employees, as well as their concerns with regards to issues of aging, skills development, training and technology. We also asked our interviewees to identify the traits or characteristics they would most value in new recruits and to provide advice to those considering a career in construction. Where appropriate we supplemented our qualitative research with quantitative data from Statistics Canada, the Canada Mortgage and Housing Corporation, the Apprenticeship Office, the Local Training Board, and some of the local trade unions. These data included statistics on the age distribution of workers, the number of apprentices in various trades, and the number of building permits issued by county. Our goal is to profile long-term employment trends in the industry rather than to list current job vacancies. Given the volatility and rapid fluctuations of the construction industry, it is our belief that persons considering employment in the industry need to look at the longer-term outlook when making decisions about seeking training.

Overview

In 1997, the construction industry employed approximately 747,000 Canadians in jobs that ranged from general labourers to those in the specialized trades. (Canadian Construction Association www.cca-acc.com/bulletins/human) According to the 1996 census, six percent of the labour force in the London CMA was employed in the construction industry (approximately 11,025 workers). Unlike many other industries in Canada, the construction industry is primarily Canadian owned (approximately 94%). It is also important to note that the industry is dominated by small businesses, 90% of which employ less than 20 workers.

The construction industry comprises five sub-sectors: residential construction, industrial, commercial and institutional construction (ICI), heavy construction (roads, sewers and watermains), power-systems, and heavy engineering. The sectors vary considerably in terms of union organization, size of firms and seasonality. Whereas the residential sector is largely unorganized, the power-systems, heavy engineering, and heavy construction sub-sectors are largely unionized. Similarly, the ICI sub-sector is characterized by larger firms and less seasonality then is typically the case in the residential sub-sector.

Perhaps more than any major industry, construction is particularly sensitive to shifting economic trends. When looking at the overall health of the industry, three factors stand out. First, the overall level of economic activity is very volatile. As will be discussed in more detail below, the industry suffered from the recession of the early nineties. The slowdown in the economy and high unemployment reverberated through the construction sector. The stronger economy of the last few years has thus given a needed boost to construction. This was evident in that the Canadian Construction Association noted that the outlook for 1998 was positive with GDP growth (the strongest single indicator for the industry), projected at three percent. They anticipated a "continued strong economic level through 2000 in most sectors". Second, the sector is particularly sensitive to changes in government spending. This is especially true in the heavy construction and heavy engineering areas where governments are the dominant source of funding. As governments at all levels struggled to reduce debt and hold the line on taxes, investment in infrastructure was reduced. Again, this weighed heavily on the industry in the early nineties, but the situation shows signs of improvement in the years ahead. Finally, and of longer-term significance, is the changing demographic situation. Population growth in Canada and this region is slowing and the population is aging. While slower growth is a negative for this industry, the changing make-up of the population may bring benefits to certain parts of the industry. This may be especially so for those involved in household renovation work. An aging population may be less inclined to tackle projects on their own and more interested (and financially better prepared) to hire others to do the work. Similarly, the demand for different types of housing and government services may lead to significant investments as society "retools" to serve the needs of an older population.

While the industry is affected by larger economic cycles, economic conditions at the local level also play an important role in determining the demand for employment. The construction industry in the London HRCC region experienced little growth through the early nineties, with a slow recovery beginning in 1997. Our interviews and data suggested that this region has lagged behind much of Ontario in its recovery from the difficult years of the early nineties. Our most recent interviews indicate that many of the trades (i.e. bricklayers, operating engineers and skilled labourers) are currently at full employment and may soon be experiencing a shortage of skilled workers given the strong growth in the surrounding area.

As is true on the national level, a number of factors have contributed to relatively slow growth at the local level. Severe cutbacks in government funding to health and educational institutions not only limited funds for capital construction but also weakened the local economy through job losses. In the private sector as well, the loss of employers such as Nortel and the recent takeover of London Life have adversely affected the health of the regional economy. Overall, population growth in the five-county region in the period 1991-96 amounted to only four percent, and this has limited demand for new construction.

The weakness in the regional economy has not affected all parts of the region in the same way, however. Table 1.1 compares the total value of building permits for major cities in each of the five counties considered in this report. While the industries in London, Sarnia and Goderich showed modest improvement by 1997, St. Thomas experienced a truly significant recovery, with the value of building permits more than doubling between 1994 and 1997. Our interviews with individuals involved in and knowledgeable with regards to the industry in the St. Thomas area attributed this positive performance to a dedicated effort on the part the city to attract business and industry. It would appear that these efforts are having a substantial effect on the local economy.

Source: Data for the table are derived from local building permits for each municipality.

On the other hand, we were repeatedly informed that the city of London continues to fare relatively poorly in comparison with some of the other municipal regions in Southwestern Ontario. The city of London was referred to as "the hole in the doughnut", an area characterized by limited growth while surrounded by areas faring significantly better. Tables 1.2 and 1.3 address this concern by comparing the total number of dwelling starts (Table 1.2) and the total value of residential and non-residential construction (Table 1.3) for London and some of the other municipal regions in Southwestern Ontario.

Source: Canada Mortgage and Housing Corporation, Canadian Housing Statistics, 1997 and 1998.

Source: Canada Mortgage and Housing Corporation, Canadian Housing Statistics, 1997, 1998.

Many of our respondents indicated that conditions have improved recently and that unemployment in the London area has decreased . They were also optimistic regarding the outlook for employment for the next couple of years. Some anticipated the need for municipal upgrading of infrastructure, specifically roads and sewage systems. It was believed that if these upgrades come about, the industry would experience growth and the demand for skilled trades people would increase. It should also be noted that the residential sub-sector has experienced significant growth in the recent past.

Another potentially important source of work for the local industry could be derived from capital spending in the health and education sectors. Plans are underway for a $330 million overhaul of The London Health Sciences Centre and St. Joseph's Health Centre. According to the June 10th edition of the London Free Press, this renovation would represent "the single largest infrastructure construction project in London's history". (Egan, Mary-Jane. 1999. "Details of hospitals' overhaul today." London Free Press June 10, Sec. A:3.) According to hospital representatives, the project will require 9,000 person-years of construction work to complete and should serve to provide a variety of economic benefits for the city of London and the surrounding region. (Macartney, Gerry. 1999. "It makes sense to invest in our hospitals." London Free Press, June 6, Sec. A:9.) The Ontario government is also considering investing large sums for capital spending in the post-secondary sector in anticipation of continued growth in enrolment and the impact of the "double cohort' that will arrive with the elimination of the fifth year of high school. As much as $50 million could flow into the local area in connection with this initiative.

Our recent interviews with individuals in the industry indicated several other projects that are scheduled for the HRCC area and the surrounding regions. It is anticipated that the construction industry will benefit from proposed upgrades to the Bruce nuclear power plant as well as improvements to Ontario Hydro's transmission lines. Also noteworthy are the proposed plans for a gas pipeline that will extend from Sarnia to Port Stanley. This project is expected to employ 300 - 400 workers for at least one year. These projects will increase the demand for skilled tradespeople in the local area and may cause further shortages in several of the key construction trades.

While the factors cited above hold the promise of increased demand for labour in the construction sector, the volatility of the industry makes forecasting hiring needs rather difficult. Moreover, there are several other features of the labour force in the construction industry that complicate the process of predicting employment needs. We will briefly comment on each before moving to a review of the various trades that account for much of the employment in the construction sector.

One factor is the high level of mobility in the construction industry. Our interviews with workers and employers indicated that steady employment often requires that workers and contractors service areas outside of the local region. This is critical because it suggests that local economic trends may have more to do with where people work rather than whether they work. By the same token, a surge in demand locally may be met in part by the movement of skilled workers from other regions. Both companies and unions have become accustomed to a situation in which mobility is common. However, while the practice of traveling in search of work may allow some individuals to avoid unemployment, it may also encourage others to abandon construction for work in other industries. This may be particularly true for those who are older, have family commitments, or for whom constant travel is undesirable. Related to this is the lure for many in the skilled trades of regular employment in manufacturing or related sectors. Several respondents expressed concern about the loss of experienced workers who preferred the greater stability of employment in other sectors of the economy. Third, the strenuous nature of work in many trades may produce a different pattern of retirement or job change than in many other industries. Some jobs, such as roofing, are so physically demanding that relatively few workers may be likely to spend their whole careers at this type of work. These factors must be kept in mind when examining the age distribution of workers in various trades. If early retirement or movement into work in other industries is common, the potential for labour shortages may be greater than would be apparent from data on the age distribution of current workers. Finally, changes in Canada's immigration patterns have closed off an important source of labour for the construction industry. In past decades, immigrants from Europe moved into construction in large numbers. In recent years, however, very few immigrants indicate an intention to enter the industry. In 1989, only 5,101 (or 5.1% of newcomers headed to the labour market) immigrants identified the construction trades as their intended occupation. Since then the numbers have declined steadily even while the number of immigrants has risen. 1995 figures show only 1,324 (1.2%) immigrants looking for work in construction. We will return to the significance of some of these factors after first examining the outlook for employment for some of the major construction trades.

Outlook For Employment

Through our interviews with representatives in the construction industry we were able to gather information pertaining to the skill requirements and the demand for workers in various areas of construction. It is important to note that demand for workers in all of the trades fluctuates according to the economic climate, and that those who are considering a career in construction should be aware of the cyclical nature of the industry. This section of the report details some of the major occupations in the construction sector and discusses employment prospects and skill demands within each. (A more detailed review of each trade and its skill, education, and training requirements is contained in Appendix F. Appendix F also contains additional information on current work opportunities and wages)

Managerial, Supervisory and Technical Positions

• Project managers plan and direct the activities of construction projects. They are responsible for monitoring and ensuring the progress and timely completion of work. They negotiate contracts and interact with architects, owners, other managers, and the site supervisor.
• To gain employment, one must have a strong technical background and considerable experience in the industry. Project managers may also be required to possess formal educational credentials, most often a degree in engineering or professional engineer designation. The demand for project managers is intimately connected to the overall health of the industry. Our research indicates a fairly significant demand for project managers in the HRCC area and throughout Southwestern Ontario.

Site Supervisor

• Site supervisors are responsible for overseeing the day-to-day activities on the job site. They supervise and assist the sub-trades and are responsible for the safety and efficiency of work at the job site.
• To gain employment, individuals must possess a thorough knowledge of the industry and the trades. While in the past supervisory status was earned primarily through practical, hands-on experience in the industry, it is becoming increasingly common for individuals to combine formal credentials with experience. The introduction of computers and related technology to the job site has, in some instances, increased the occupational credentials required of site supervisors. It is increasingly the case that they must not only be able to manage the site and trades people, but must also be competent using more advanced systems of communication. It should be noted that technology in this sense has primarily been employed in very large-scale projects. However, it is anticipated that these forms of technology will become more common in the future.

Estimators

• After considering the labour, material and equipment requirements for a particular project, estimators prepare and report on the probable cost of a particular job. They act in an advisory capacity with regards to tenders and conduct negotiations with potential trades people.
• To gain employment, both estimators will most likely have completed formal training at the college or university level (i.e. Construction Engineering Technician Supervisor). While formal education provides estimators with theoretical training and some specific skills (math skills), on-the-job training provides additional technical skills and an introduction to the subtleties that may be encountered on the job site. Our interviews indicated that skill levels for surveyors are changing with technological development. Although technological innovations alleviate some of the more painstaking aspects of the job, they also serve to intensify credentials and, can make the work more complex. They require an individual who possesses a good deal of technological knowledge and expertise.

Skilled Trades

Bricklayer

• Bricklayers lay brick, stone, concrete blocks and other similar materials in accordance with blueprints and plans in the residential and industrial-institutional-commercial sub-sectors. Bricklaying is a highly-skilled trade; it demands a high level of technical ability and an eye for precision and detail. A good bricklayer also demonstrates the capacity to judge the aesthetic value of a particular job, noticing colour and composition.
• The bricklaying trade was overwhelmingly identified as a trade that will be in need of skilled recruits. Data on current members of the trade and our interviews with union officials and workers suggest that many of the individuals who currently work in the trade are approaching retirement, and the skill base will need to be replenished. (Detailed information on the age distribution of members of the Bricklaying and Allied Craftsmen Union re included in Appendix C. 1996 census data for the trade are presented in Appendix B.) According to one local sub-contractor "a lot of bricklayers have retired or are very close to retiring...within a couple of years, the trade will need to recruit young workers". Concern regarding a potential shortage of skills was consistently expressed in our interviews. The quantitative data provided by the union indicates 25% of unionized bricklayers and tilesetters are aged 50 and older. The local union is aware of the potential shortage and has been actively recruiting young people.

Plumber

• Plumbers install and repair pipes and other plumbing equipment used for the distribution and disposal of water in residential and ICI construction. Plumbing is a highly-skilled trade that requires mandatory trade certification.
• To gain employment in this industry, workers will need to take initiative and demonstrate maturity, reliability, a technical aptitude and commitment to one's career and the trade. Our interviews indicated that employers were looking to hire individuals who were willing to constantly upgrade their skills and certification, and individuals who were multi-skilled. Our contacts also emphasized the importance of social skills as plumbers are in frequent contact with a variety of different people. Integrated plumbing systems in residential construction and prefabrication and new technologies in gas and water piping are changing the demands and skill requirements of plumbers. In some instances, these technological changes decrease the demand for labour as the number of individuals required to perform various tasks diminishes.
• Our interviews with plumbers in the HRCC area indicated that demand for plumbers is strong. One of our contacts in Huron county indicated that business has been good. He noted that he was looking to expand and that he was "optimistic about the outlook for the trade in the area for the near future at least¼work has been steady". A similar opinion was voiced by a sub-contractor in Lambton county who noted that business had been "very good" over the past three years and that good weather was permitting the company to work year round. This employer also indicated that other contractors in the area had experienced "booming business".
• Quantitative data provided to us by the local union indicated a potential problem of aging in the trade. According to these data, 61% of employed members were aged 41 and older. This concern was also voiced by a local sub-contractor who noted that the average age of apprentices was increasing.

Crane Operators

• Cranes are used to move and lift machinery, supplies and equipment. The crane operator is responsible for operating and maintaining tower and/or mobile cranes. While crane operation may not be as physically rigorous as some of the other construction trades, it demands a great deal of mental concentration, focus and awareness of the job site. Crane operators must demonstrate alertness and good hand-eye coordination. To gain employment in the industry, operators must possess strong technical and mechanical skills. Employers look for individuals who are computer-literate and willing to further develop their skills based on changing technology. It is particularly important for crane operators to demonstrate good communication skills as the safety of the job site depends on their awareness of the activities of those around them. Technology has increased the degree of sophistication in the controls and operation of the crane. Crane operators must demonstrate some technological adaptability as cranes move from mechanical to electronic controls.
• The local union representative indicated that the average age for the London local was approximately 48 to 50 and that he expected to lose a lot of workers to retirement in the next three to four years. This would seem to be consistent with the views of workers with whom we spoke on the job site. They indicated that the trade is dominated by older workers. Demand is currently strong, although the union indicated that it was difficult to take on any new apprentices because of the uncertainty about future opportunities. They emphasized the importance of providing on-the-job experiences for apprentices, something that has been difficult to achieve in recent years. The shortage of training opportunities combined with aging of people currently in the trade could lead to significant shortages in future should the pace of construction activity increase.

Millwright

• Construction millwrights install and maintain stationary machinery and equipment in industrial and institutional settings. They must have the ability to read and interpret blueprints and plans as well as the ability to examine and inspect machinery to determine whether it is functioning properly.
• Mobility is especially important in this trade. To gain employment individuals ought to possess very strong mechanical and technical skills. Employers look for individuals who have a strong desire to learn and show their initiative. They are responsive to apprentices who are motivated and who exhibit a strong interest in the trade. The introduction of computer controlled industrial equipment requires increasingly complex skills from millwrights. They must possess the ability to install, maintain and repair computer-based machinery.
• Given the importance of the millwright's skills to many parts of the manufacturing industry, the loss of skilled millwrights to competitors is an important problem for employers in construction.

Roofer

• Roofers apply and repair shingle, shake or tile roofs. Roofing is a physically demanding job that often requires working at heights and may involve working in uncomfortable conditions. To gain employment in this trade individuals should demonstrate a strong sense of responsibility, maturity and physical dexterity. Individuals considering this trade should be aware of the rigorous physical demands. Although a high school diploma is not required, most employers look favourably upon those who have completed grade 12. Someemployers indicated preference to those candidates who possessed a valid driver's license.
• Roofing is a trade that experiences a high rate of turnover. For this reason, opportunities for employment appear to be relatively good. Demand for these workers should increase with continued growth in the trade. According to a local sub-contractor, "the workforce is very transient, about fifty percent stick around and the other fifty percent are always coming and going". Aging was identified as an issue by a second roofing sub-contractor who stated the following: "we are not in a crisis yet but I can see a crisis potentially occurring about 10 years down the road...this could be a big problem in this trade...aging is especially pressing due to the fact that roofing is a younger man's job".

Construction Electricians

• Electricians install, maintain, and identify problems in electrical systems. They may establish wiring layouts for communications, and heating and cooling systems. Electricians must understand electrical code specifications and possess the ability to read and interpret blueprints.
• To gain employment in the industry one must complete a mandatory apprenticeship program and become certified. An awareness of technological change and development is integral to this trade. Our interviews suggested that individuals seeking work in the industry must have some understanding of computer networks and electronics. The employers with whom we spoke in London and Goderich indicated a strong interest in recruiting responsible, motivated individuals with good people skills and the ability to function in a team-oriented environment. They also expressed concern with respect to a potential shortage of workers over the next five to 10 years in the trade and in the industry as a whole.
• Industrial migration was noted as particularly problematic by a sub-contractor in the electrical trade. Our contact stated that "there is a severe shortage of certified electricians¼a gap was caused by the recession when few apprentices were trained. This combined with the number of electricians who have moved to industry from construction has created fewer lower-middle (25-40) aged journeymen". 1996 census data provided by the ELO local training board area support the idea that the trade is aging with 42% of the workforce aged 45 and older.

Tilesetters

• Tilesetters lay marble, terrazzo, and ceramic tile for interior and exterior walls, floors and ceilings. Tilesetters may be required to cut and shape tiles, or they may work with pre-fabricated materials. They must be able to read and work with blueprints and plans.
• To enter the tilesetting trade, individuals may elect to undertake a voluntary apprenticeship program or they may gain experience on the job. Employers value individuals who demonstrate skills in more than one trade. Our contacts emphasized the increasing importance of social skills and the ability to project a professional self-image. Tilesetters also need to demonstrate basic math skills and physical dexterity and should place value in the craftsmanship and creativity of their work. Our interviews with individuals in the industry suggested that tilesetting is a trade that is facing a potential shortage of skilled workers due to the retirement of many experienced workers. Employers clearly recognized the fact that the industry would need to recruit younger trades people.

Heavy Equipment Operators

• Heavy equipment operators operate, maintain, assemble and disassemble all types of heavy equipment including backhoes, power shovels, bulldozers, side-booms, loaders and graders. They are employed in all sub-sectors of the construction industry.
• To gain employment in the trade individuals must undertake a mandatory apprenticeship program and become certified. Our interviews indicated that many equipment operators started out as labourers and, with experience, began to train in the trade. While this trade is not as physically demanding as some others, operators must demonstrate good hand-eye coordination, keen awareness, and an understanding of the operation and organization of the job site. Some of our contacts, including individuals currently working in the trade, indicated serious concern with regards to a shortage of skilled operators in the next five to 10 years. Slow growth in the London area has limited current opportunity for young people, but an upswing in activity could expose a shortage of skilled operators.

Carpenters

• Carpenters cut and assemble products made from wood, plywood and drywall. They must possess the ability to understand blueprints and plans and an awareness of building codes and regulations. Carpenters also work with the hardware that is used to assemble doors, stairs, mouldings and roof systems, and may specialize in one of these areas.
• To gain entry into the trade most individuals who work in ICI undertake an apprenticeship program in conjunction with the local union. More efficient and technologically complex residential and ICI designs are changing the nature of work done by carpenters and the way in which work is done. Increasingly, carpenters will require some computer knowledge to work with computer assisted design packages (CAD). While technology increases some skill demands, it may also serve to deskill work in other areas of the trade, particularly with reference to the increasing tendency to pre-assemble flooring and wall systems. When pre-assembled materials arrive at the job site, there is less work required of the trades person, fewer trades people are needed on site, and those who work with the pre-fabricated materials may not need to be as highly skilled in the trade. In spite of the thrust towards pre-assembly, the slow but steady growth in residential and ICI construction in the London area should provide employment opportunities for carpenters over the next couple of years. The union representative was optimistic regarding work prospects for this season, noting both the potential for hospital construction and continuing construction in the Masonville area.
• Our interview with the local union representative indicated that the average age of members in the local was approximately 54. He also noted that the local had lost a significant number of members to other industries and provinces.

Sheet Metal Workers

• Sheet metal products are fabricated, assembled and repaired by sheet metal workers. Individuals in the trade may operate light metal working machines such as punches and drill presses, and fit and join sheet metal using rivets, welding and soldering.
• To work in this trade individuals must complete a compulsory apprenticeship program. Sheet metal workers must be able to work from plans and drawings in the fabrication of ventilation shafts, eavestroughs, air and heat ducts, partition frames and sheet metal buildings. They must demonstrate good spatial abilities and strong math skills. It is anticipated that skill levels in this trade will increase based on changing technology especially computer-assisted design (CAD). It is therefore advisable that individuals considering a career in this trade keep abreast of developments in technology and relevant software design programs.
• Our interview with the local union representative indicated that opportunities for workers in the unionized sector of the trade were good at the time of our interview. However, he argued that this was "just a blip in the overall picture", and that the trade typically experienced a rate of unemployment of approximately 30%. It is thus important to note that opportunities vary significantly based upon the demand for new construction and renovation.

Labourer

• On the construction site labourers perform a variety of duties. The minority of labourers assist skilled tradespeople while the majority do stand-alone, skilled trades work. They may move materials around the job site, they are involved with the operation and maintenance of various pieces of machinery, and they may also survey land. A labourer might be expected to operate a zoom boom or a boring machine, or to work with concrete in various capacities.
• Although some labourers do not require any formal trade certification many are certified. While the bulk of labourers' training is provided through direct experience on the job site, theoretical and practical training is available at the local labourers' union. The recent emphasis upon multi-skilling is changing the occupational requirements for labourers. A highly employable labourer demonstrates a thorough knowledge of the job site as well as the ability to operate a number of machines and a variety of equipment safely and efficiently.
• Data from the local union indicate that approximately 63% of working members are aged 41 and older. The union also indicated a chronic shortage of skilled labourers including: formsetters, forming layout persons, sewer and watermain pipelayers and cement finishers.

ISSUES AFFECTING EMPLOYMENT IN THE CONSTRUCTION INDUSTRY

Having reviewed the occupational outlooks for many of the major trades and occupations in the industry, we will now review some of the issues that were identified in our interviews as affecting employment in the construction sector.

• Aging of the workforce in construction was consistently identified as one of the most pressing problems facing the industry. Many of the workers who entered the workforce in the late 1950s or early 1960s are now fast approaching retirement. This problem is confounded by the significant number of middle-aged, skilled trades people who left the industry for more attractive positions elsewhere, particularly during the recession of the early nineties. One industry representative estimated that approximately thirty percent of skilled workers left the industry during the last recession. He noted that these individuals included "owners, project managers, estimators, trades people, design people and others," and that these individuals migrated to other industries that offered greater stability. The aging of the workforce in conjunction with the loss of middle aged trades people suggests a potential lack of highly-skilled, experienced individuals in the industry. In particular, bricklayers, carpenters, tile setters, non-union electricians, skilled construction labourers and roofers were identified as experiencing a severe shortage of workers unless an adequate number of new tradespeople are recruited to the industry (assuming activity levels remain as they are at the present time). There was also potential for a shortage of skilled plumbers, millwrights and heavy equipment operators, depending on the rate of growth and development in the industry.
• One interviewee noted that construction is "a young man's job due to tough physical labour, mobility and the sporadic nature of the industry. Older workers (40-45) tend to move on to jobs in manufacturing and industry". The physical demands associated with employment in the industry make working in construction increasingly difficult with age. For this reason, the "age at retirement" for the sector may be lower than is commonly the case in other industries. One of our contacts in the roofing sub-trade noted that "most workers are in their 20s and 30s¼my oldest is about 40". This is important to understand as "older workers" in construction would not be regarded as such in many other industries.
• It seems clear that the construction industry will soon confront the issues raised by the retirement of large numbers of skilled, experienced workers. How severe this situation will be for the local industry will depend on several factors. One factor, of course, is the pace of activity. If growth remains modest, the current pool of labour (apprentices and journey people) might be sufficient to meet the demand. On the other hand, if some of the major projects under consideration move forward, the industry will be pressed to find sufficient workers in the local area. A second issue concerns age at retirement. Canadian workers are increasingly opting for earlier retirement. And, as we have noted, in certain trades working to an older age is difficult given the physical demands of the job. A shift to earlier retirement will intensify the need to recruit new workers in many parts of the industry. Finally, the impact of technology is hard to predict. Innovations may reduce the need for some types of labour while increasing the demand for other skills.

Seasonality

• The construction industry in this region has been a highly seasonal industry. However, our interviews and research indicate that, increasingly, it is possible for work to continue year-round. This is true for several reasons. One factor is the moderate winter weather that Southwestern Ontario has experienced in recent years. Our interviews suggested that it was common for work to continue through the winter months, albeit sometimes at a slower pace. One of our contacts informed us that their site was shut down only briefly over the course of the winter. The heavy construction sub-sector (road building) is highly seasonal due to the fact that concrete and asphalt cannot be laid in the winter months. The residential sub-sector is also highly seasonal, unless there is an exceptionally high demand for new housing.
• Technological advances as well as the pressure to be productive throughout the year have made work in the industry less seasonal today than was true in the past. Some of our contacts indicated that for a construction company to remain profitable, year-round productivity is imperative. The desire to work year-round on the part of some contractors and trades has required that others follow suit. Where it is perceived to be profitable and necessary, sub-trade contractors will find ways of working in difficult weather.
• While the movement to year-round work is important, it does not eliminate seasonal unemployment in the industry. This is perceived by some as a disincentive, especially in light of changes to the unemployment insurance system, which will be discussed below. Seasonality has the effect of putting construction at a competitive disadvantage when recruiting skilled workers in a number of trades, particularly those who are able to seek work in the manufacturing sector.

Multi-skilling

• In an effort to become more cost-effective, many employers are requiring that their employees possess a broad set of skills. This trend toward multi-skilling has affected many industries but is a particular challenge in construction where there has been a strong tradition of work being organized along traditional trade lines. Nevertheless, in many cases, a trades person is now expected to demonstrate a thorough knowledge of all aspects of the trade, rather than simply specializing in one of its components. Our interviews with individuals who employ labourers, operating engineers, bricklayers, electricians, and plumbers indicated that diverse and adaptable skills are increasingly important for the majority of workers. A marketable trades person is one who demonstrates not only the mastery of certain skills, but who also shows the desire to engage in a continual process of learning and upgrading. That said, it is still true that an individual who is uniquely skilled in a particular trade will continue to be in high demand.

Technology

• Technological change has influenced both the nature of work and the demand for labour in the construction industry, though its influence varies across the sector. In some cases technology has had a profound effect on the skill requirements of trades people. It was noted in our interviews that the increasing prevalence of computer, laser and sonar technology in some of the trades has led to an increase in the educational requirements of trades people. In other trades (i.e. roofing, bricklaying and tilesetting), however, the job is done in essentially the same manner as it was done 20 years ago, with very little change in the technological skill requirements of workers.
• The industry as a whole has been influenced by the development of new materials and equipment. Materials are more advanced and have helped to make the industry more efficient. Improvements in the type of equipment used on the job site has helped to make the work less labour intensive, and, in some cases, has decreased the number of workers required to do a particular job. For instance, the increasing popularity of directional boring machines used in the laying of pipe has diminished the labour and expense once associated with this type of construction. These developments have had a particular effect on the demand for low skilled workers, in effect raising the overall level of skill requirements in the industry.
• Computers, fax machines and cellular phones are now used on many large scale projects. It is common for blueprints and plans to be sent via electronic mail or fax from the office to the job site. As we have previously noted, the increase in this form of technology on the job site has required that site supervisors and other supervisory staff possesses the knowledge and skills to operate these forms of technology effectively. Where implemented, they have improved the efficiency and speed with which the site supervisor may communicate with the project manager, architect, or owner.

The New Employment Insurance Act

• The old Unemployment Insurance program was replaced by the Employment Insurance Act (EI), which was implemented June 30, 1996. According to the federal government the new act "is designed for today's labour force, providing assistance where it is most needed and offering incentives for claimants to return to work". The new Employment Insurance Act was an issue of contention in many of the interviews. Particularly problematic were the stipulations with reference to the repayment of benefits at income tax time. The new legislation is contingent upon both weeks of work and net income as follows: those who have received 20 weeks or less of benefits will be required to repay some of the benefits that they have received should their net income be $48,750 or more. Similarly those who have received more than 20 weeks of benefits since July of 1996 will be required to repay some of what they have received should their net income be $39,000 or more . (Information taken from a publication by HRDC entitled Employment Insurance, Regular Benefits.) Some of our contacts expressed concern that these changes might unfairly penalize those who work in the construction industry given that employment in the sector can be seasonal. These interviewees also suggested a possible correlation between these amendments and the loss of skilled trades people to other industries. Others, however, indicated their belief in the need for restructuring of the old system, noting that the flexibility of the new system would allow individuals to work sporadically where work was available without jeopardizing claims and benefits.

The Movement Towards "Professionalization" in the Construction Industry

• Our interviews indicated that the industry as a whole is moving towards professionalism and that employers and union leaders are placing a greater emphasis upon marketing careers in construction as valuable and lucrative options. Our interviewees noted the importance of personal contacts, people skills and good interpersonal skills, with one contact expressing this as follows: "professionalism is very important in this industry...gone are the days of yelling on job sites...yelling on the job site and disrespecting the sub-trades, neither of these are looked upon fondly by professionals in the industry". Professionalism was also accentuated by employers in the sub-trades with one noting that "attitude is all...your license is not enough, the ones who are successful are the ones who give and invest in themselves. You need a good disposition, be able to understand your customer and be sympathetic". This employer went on to say that "professionalism in the industry is now more important than ever before, in fact it is absolutely crucial".
• Employers in the construction industry expressed discontent with the fact that construction is sometimes overlooked as a viable career option. Our contacts were enthusiastic regarding the possibility of attracting highly-motivated, and academically-oriented students or those who would normally pursue post-secondary education. In this way undertaking an apprenticeship would be seen as the "third pillar" in post-secondary education (university, college and/or apprenticeship).
• These concerns encouraged us to further explore the opinions and impressions of individuals in the high-school system at two local schools as well as contacts at the local Catholic Board of Education. We were immediately aware of a strong interest on the part of the educational system to develop ties between itself and the trades. Our contacts noted that there was some gap between the educational system and the trades and that this did not facilitate an easy transition between high school and apprenticeship training. We were informed of several potential projects that are currently being undertaken to identify and alleviate these disparities. One such initiative, The Construction Work Experience Program, developed by The London District Catholic School Board in conjunction with The Construction Labourers' International Union of North America, Local 1059 offers students the opportunity to gain real "on site" work experience while earning credits towards their Ontario Secondary School Diploma. This program is beneficial to both the industry and to students. It provides the industry with an opportunity to recruit young people into the construction trades and it introduces the students to a potentially lucrative career in the industry.

Broad-Based Technology

• A gap also seems to exist between the philosophy underlying and the implementation of Broad-Based Technology in the high schools and its perception by those in the construction industry. Broad-Based Technology (BBT) was introduced in the early nineties to address changing trends in the workplace, namely that "many low skilled jobs were being eliminated and 'skilled jobs' were requiring higher and higher levels of initial education" and that individuals were more likely to find themselves making career changes in mid-life. BBT was intended as a response to the needs of employers who were demanding that candidates possess both technical and "soft" or transferable skills. Such skills include "communication, team work, time management, organizational, problem solving, critical thinking and entrepreneurial abilities". (Information regarding the move to broad-based technology was obtained from Kel Sandie who teaches various technology courses at St. Thomas Aquinas Secondary School in London.)
• Under this format, seven BBT courses replaced the over seventy different technological studies that were previously offered. BBT courses are "to be delivered in a student-centred, project-driven, open ended problem solving format" (Sandie, 1998). Students are encouraged to learn semi-autonomously, with the opportunity to direct their work while being guided by an instructor. In this capacity, students learn to determine the viability of a project, evaluate and resolve problems, develop critical thinking skills and interact with local suppliers and, in some cases, customers. It is important to note that BBT requires students to develop a project from its conception to its completion and that students are responsible for making all of the decisions with reference to the project. BBT does not intend to eliminate specific skills training but rather "enhances the experience by setting the skill into context. The thrust of the program should be to help our students become team workers, problem solvers, time managers, independent researchers and entrepreneurs" (Sandie, 1998 [italics added]).
• BBT has been criticized based upon the perception that it has decreased the specific skill levels of new entrants into the trades. This is deemed problematic because it decreases the likelihood that individuals will be able to demonstrate specific skills and requires that employers and unions focus on imparting these skills. These sentiments were expressed by a union representative who believed that "the broad-based curriculum gives students a little of everything but not much of anything in the way of preparedness to enter an apprenticeship".
• This problem is not unique to the construction industry. Many industries are experiencing the tension between the need to train workers in the specific skills required to perform the technical aspects of the job and the desire to have workers who are flexible and able to function as part of a team. It is a continuing challenge for the educational system to impart to young people the hard skills necessary while also supplementing that training with the softer skills that many employers now consider appropriate.

Women in the Construction Trades

• There continue to be very few women employed in the construction industry, and this is a source of concern to the industry and the educational system. According to the 1996 Census, 93% of individuals working in the construction trades (SIC H0-H8) were males and only seven percent of workers employed in construction were females. When asked, most of our contacts demonstrated a willingness to hire women, and a few noted that it would be nice to have more women in the industry. Employers recognized that the atmosphere on the job site might be uncomfortable for some women, but that the thrust towards professionalization within the industry is helping to alleviate some of these barriers.
• Educators and students noted some reluctance on the part of female students to pursue technical education. Our contacts indicated that the predominantly male-populated classroom acted as a deterrent to female students, who might experience some level of discomfort or intimidation. Nevertheless, there is an increasing openness in the school system to encouraging young women to pursue technical training.

Unionization

• One of the most contentious issues in the industry, and one this report cannot avoid, is the role of unionization. It is not surprising that we heard very different views expressed on the role of unions in the industry. Union leaders argue that unions not only provide benefits to their members but help the industry and its customers by providing properly trained and highly responsible workers. Some owners and management representatives voiced concerns about the cost and lack of flexibility that characterize unionized settings. In addition, some non-union workers that we interviewed were skeptical about the benefits of unionization, feeling that the non-unionized companies they worked for offered steadier work while providing good wages, even if their wages were somewhat lower on an hourly basis than those earned by unionized workers. It should be noted that the wages paid to non-union workers "shadow" the unionized rates, and, to that extent, these workers draw benefit from the contracts arrived at between employers and the major trade unions. (It is important to note that the trade unions in Sarnia's Chemical Valley have recently accepted pay cuts in a move to increase their competitiveness vis-a-vis their counterparts in Alberta and the United States Gulf Coast.)
• Despite the tension that inevitably arises in an industry where union and non-union firms compete, there is currently a high level of co-operation in the industry. Construction projects frequently have union and non-union sub-contractors on site. Employers have some degree of choice in hiring from union lists, and there is considerable flexibility in the treatment of employers from outside the local area who are engaged on projects in the region. Some union officers believe this greater flexibility developed in response to the difficult conditions of the early nineties. The improved situation in recent years has been accompanied by largely peaceful relations on the labour front.

Future Recruitment to the Industry

• The highly cyclical nature of the construction industry makes forecasting demand for workers more difficult than in other industries. Both employers and workers need to be flexible and mobile in order to respond to shifts in demand that occur in response to the business cycle. While the local industry appears to have recovered well from the very difficult years of the early nineties, the industry will face a number of difficult issues in the years ahead. The data on the age structure of the local labour force are not as complete as we would like, but this information and the observations of many of our respondents point to a significant aging of the work force. This situation is further complicated by the outflow of skilled workers to jobs in manufacturing and the virtual end of immigration as a source of skilled labour for the industry. All of this suggests that the industry faces a major challenge in recruiting a new generation of workers.
• There is broad public support for encouraging young people to train for a career in the skilled trades. A recent survey by Angus Reid for the Council of Ontario Universities found that 39% of respondents believed an apprenticeship was the best preparation for secure employment. Yet, there is still a worry that this generalized support will not translate into action. People may support the idea of training for the skilled trades, but still hold the idea that this is a good course of action for other people's children.
• It is also critical for the general public and young people considering a career in the industry to appreciate the skills necessary for success. Employers repeatedly emphasized two things: one must have an aptitude for the work and one must develop the personal discipline to work in a sometimes difficult environment. The skilled trades cannot be seen as something we recommend to young people simply because they are not interested in more academic pursuits that lead to university. It would be helpful to both the industry and interested recruits to develop a series of measures that assess the likelihood of a young person being successful in a trade.
• Our discussions with people involved in education and training both locally and in the Toronto region uncovered some exciting initiatives. The Peel District School Board in conjunction with their local Labourers' Union have established a joint training initiative with the intention of providing interested high school students with practical experience in a construction environment. The venture attempts to promote careers in construction as a viable option to students. Similarly, both the Thames Valley and the London Catholic School Board are developing innovative programs to introduce young people to careers in the skilled trades. Our research suggests that there will be excellent opportunities for young people in a variety of the trades in the near future and that the industry is well aware of the need to recruit young people. The provincial government has indicated a strong commitment in the area with the unveiling of a separate Ministry of Training, Colleges, and Universities. And, it might be added, some of the problems that the construction industry must deal with in competing for labour - especially the tendency for skilled workers to migrate to manufacturing - work to the benefit of workers. The greatest challenge will be convincing young people with the requisite skills (and their families) that construction holds out the opportunity to build a rewarding career.