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Industry
Profile - Residential Construction |
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Introduction
The JobStart/Future Skills Sector Partnerships Program of Saskatchewan
Learning enabled a sector study of the residential construction
industry in Saskatchewan. This industry profile is based on
that study, published in July, 2000.
The residential construction industry established a partnership
of industry members and key stakeholders through funding and
support from the Sector Partnerships Program. These partners
worked together to carry out a study that identified current
and future hiring needs and training requirements.
Strategic planning enables industry and training providers
to work together to provide training opportunities that match
the skills the industry requires.
For more information about the Sector Partnership Report and
this industry visit the Executive
Summary. You'll need Adobe Acrobat Reader to view this PDF
file.
Residential Construction Overview
The Canadian scene
- The residential construction industry is a large and important
industry in Canada. Home building, buying and renovating was
a $49 billion market in Canada in 1999.
Renovation work accounts for an estimated one half of this total.
- According to Statistics Canada, the construction industry has
a stronger effect on the economy than most industries do. A
study by Market Research Corp. reported that, for every construction
job created, three are created in the general economy.
- There were 137,357 housing starts in Canada in 1998. An estimated
58,360 of these were multiple housing units (row housing, apartment
buildings or condominiums).
- The Canadian construction industry is composed mostly of a large
number of small and highly specialized companies. In 1995, there
were 20,000 general contractors and 107,500 trade contractors
in the industry.
- The residential construction market (new homes and renovation)
is influenced by population characteristics, consumers’
incomes and the cost of borrowing. The market is highly cyclical.
- The construction industry performs most new construction and
about 50% of repair and renovation work. As more property owners
carry out their own repair and renovation, the proportion of
construction work performed by the contracting industry declines.
Construction employment in Canada
- The construction industry employed 762,000 workers in Canada
in 1998. A large number are employed in residential construction
and renovation.
- Most workers in the industry are hired on a project basis, with
only key employees kept over the long term.
- Between 90 and 95% of the firms that make up Canada’s
construction industry have less than 20 employees. In addition,
a relatively high percentage of workers employed in construction
are self-employed.
- Because of the project nature of work in the construction industry,
unemployment is considerably higher than in other industries.
Even in boom times, workers spend time between jobs.
- Workers often travel from location to location to go where the
work is.
- To attract and retain workers, the industry offers wages generally
higher than those for similar occupations in more stable industries.
Saskatchewan Overview
- Residential construction is a large industry in Saskatchewan.
According to Statistics Canada, from January 1956 to February
2000, residential construction made up 47% of the value of
all construction in the province. Commercial construction
made up 26%, government and institutional 19%, and industrial
8%.
- As of September 1999, 27,000 workers were employed in the
construction industry.
- In 1996, the housing stock created in Saskatchewan totaled
372,820 units.
- The forecast for housing starts in 2000 was 2,950 units.
- One in four Saskatchewan homeowners planned to renovate their
home over the year 2000-2001.
- A 1997 Saskatchewan Home Builders’ Association study
showed over 1,200 residential contractors in the province.
Most obtained their main source of revenue from renovations.
- The value of residential building permits in 1998 was $266
million.
- The 2000 survey indicated a shortage of skilled workers in
the residential construction industry, mainly in the carpentry
trades.
Who works in the industry?
- The companies surveyed in 2000 indicated that 55% of their
employees were between 25 to 44 years of age, 23% were 45
and older and 21% were between 16 and 24.
- Of the women who were employed by these companies, 32% were
clerical workers, 20% were in administrative positions, 18%
in finance, 13% in management and 7% in sales. Only 3% were
employed in trade occupations.
- Of the Aboriginal people employed, 63% were in trades, 14%
were shipper/receivers, 14% were sales representatives and
7% were truck drivers.
- The three workers with disabilities were employed as a cabinet
builder, janitor and salesperson.
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Saskatchewan Trends
- The home building industry across North America faces a shortage
of skilled workers. The workforce is aging rapidly and these
workers are not being replaced.
- A Saskatchewan Labour Market Trends Report was prepared for
the former Saskatchewan Post-Secondary Education and Skills
Training in 2000. It estimates that Saskatchewan has from 10
to 15 years to find and prepare skilled workers to replace retiring
baby boomers.
- Technological change is beginning to have an effect on the skills
required of workers and management. New materials and methods
are being introduced.
- Technology is taking some of the physical work out of on-site
construction. Many of the components of homebuilding are now
created in manufacturing facilities instead of at the construction
site.
- The ability to use computerized equipment and computer-assisted
design and planning techniques is becoming a requirement. Continuous
upgrading of skills is necessary.
- Environmental awareness, cost effectiveness and waste control
are issues contributing to new construction methods. Energy
efficiency is a continuing trend.
- New environmental regulations are opening up fresh market opportunities
for the industry. They are also increasing the responsibilities
of construction firms.
- Some companies develop specialized skills to minimize energy
and water costs.
- Other firms become expert in the treatment of hazardous material,
pursuing markets created by new regulations in this area.
- The industry is also developing new waste-reducing practices.
- Companies need to become skilled at examining indoor environmental
issues and developing measures to address them.
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Related Jobs
The following list provides an idea of some of the
jobs in the residential construction area.
Where there is a relevant occupational description in Saskatchewan
Job Futures, you can click on the job to go directly to that
description. You’ll learn more about the occupation, including
education and training requirements, work duties, wage information
and employment trends.
National Occupational Classification (NOC) numbers follow the
job title. You can use the NOC numbers to look up the occupations
in the NOC.
Where the Jobs Are
More than 70% of Saskatchewan housing is built in urban areas.
The shift to urban centres is a continuing trend in the province.
From 1998 to 1999, the population in the cities grew by 2.7%.
In rural municipalities it fell by 3.7%.
In addition, the population centre of the province is gradually
moving northward. Prince Albert and Meadow Lake, in particular,
are both growing rapidly.
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Skills and Training
The existing apprenticeship program and provincial training
programs for construction trades are comprehensive. Significant
portions of these programs are devoted to commercial construction.
There are few, if any, training programs available for workers
in the low-rise residential construction industry.
There are 47 apprenticeable trades in the province. The
Saskatchewan Apprenticeship and Trade Certification Commission
purchases the theory and technical training for apprenticeship
from SIAST and private training providers throughout the
province. Some training also takes place out-of-province.
No certification is required to work in the majority of
trades. In Saskatchewan, certification is compulsory in
four construction-related trades: construction electrician,
plumber, refrigeration and air conditioning mechanic and
sheet metal worker.
Want to find out what kind of construction education and
training programs are offered in Saskatchewan? Check into
What to Study? to find out what’s available and where.
- Technical skills specific to the occupation
- Math
- Literacy
- Plan reading
- Safety
- Computer skills
- Knowledge of codes and standards
- Customer relations
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- New tools, methods, materials and techniques
- Supervisory skills
- Management skills
- Organizational skills
- Product knowledge
- Interpersonal/relationship skills
- Problem-solving
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Employers look for workers with a good work ethic and positive
attitude, initiative, interpersonal and teamwork skills,
adaptability, and cultural sensitivity.
Changes in codes and standards, health and safety regulations,
and new technology will all impact future training.
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The Future
In Canada, continued strong growth of consumer spending and
investment in housing is expected. Significant spending is forecast
for both new housing and renovation. Housing starts are expected
to rise to 2004 and beyond.
In Saskatchewan, a recovery in housing investment was expected
in 2001, after more than a decade of low investment. Spending
on renovation is expected to be the same as, or greater than,
that for new housing.
More than half the survey participants foresaw a shortage of
skilled workers in the residential construction industry. They
expected most of the shortage to occur in the carpentry trades.
The shortage of workers would be due to construction growth
in the two to five years beyond 2000. People leaving the industry
over this period, mostly for retirement, would add to the shortages
of skilled workers.
The construction industry is expected to have to comply with
additional regulations. This increases the burden of responsibility
on companies. It can add to the cost, complexity and time required
to complete a project.
Technological change, environmental awareness, energy efficiency,
cost effectiveness and waste control are major trends. They
will continue to impact the materials, methods and strategies
used in the residential construction industry.
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