Coming together for the future, Annual Report, 2017-18

Coming Together for the Future ANNUAL REPORT 2017-18

About BuildForce Canada

Strategic partners

BuildForce Canada (formerly the Construction Sector Council) provides the country’s construction and maintenance industry with the information and resources it needs to meet and manage its workforce requirements. Focusing on three key areas — labour market information, recruitment and retention, and e-learning and skills development — our programs and initiatives have helped the industry build the capacity and capability required to meet current and future workforce demand since 2001.

Alberta Council of Turnaround Industry Maintenance Stakeholders

Our strategic partners make our work possible. BC Hydro Canada’s Building Trades Unions Canadian Construction Association Canadian Home Builders’ Association Canadian Natural Resources Limited CLAC Irving Oil LNG Canada Manitoba Hydro Merit Canada National Construction Labour Relations Alliance Nexen Energy ULC Ontario Power Generation Progressive Contractors Association of Canada Suncor Energy Syncrude Canada

Contents Message from the Chair of BuildForce Canada

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Message from the Executive Director of BuildForce Canada Workforce Recruitment and Retention Challenges Productivity Equals Competitiveness E-Learning Tomorrow’s Skills Today

Meet Our Team

BUILDFORCE ANNUAL REPORT 2017-18

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6 8

Labour Market Information Drives Smart Decisions Financial Overview

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10

12

14

1

Message from the Chair

Bringing everyone together in changing times

W

hen I began my career in labour relations and workforce development at Irving Oil in 2005, I quickly realized that positive collaboration involving labour, contractors and owner stakeholders — from the workers on the front lines to senior executives — was key to successful workforce development. Since then, my conviction has only grown that collaboration is critical to addressing the workforce development challenges of the future. As the world around us keeps changing faster and faster, we need to keep pace by finding innovative ways to work together. That’s where BuildForce Canada is having a profound impact. The training, tools and information BuildForce offers are designed and regularly updated to help meet our most important challenges and to help us help each other. One of the biggest challenges we share is the demographic shift underway that is seeing a wave of retirements without a corresponding surge in new workers coming through the door. Attracting and retaining workers is a top priority, along with training people in ways that demonstrate the construction and maintenance industry is a forward-looking sector of Canada’s economy. Through the use of dedicated online tools, resources and strategic partnerships, BuildForce actively supports the promotion of careers in the construction and maintenance industry. These efforts include specific information and resources geared toward increasing recruitment from, and providing support for, traditionally underrepresented groups, such as women, Indigenous people and recent immigrants to Canada. Our labour market forecasts are also helping us understand where these underrepresented groups can find the most opportunity. BuildForce continues to refine our annual labour market forecasts with the invaluable input of our industry stakeholders. The more we know about where the labour market stands today, the better we can forecast future needs and position ourselves accordingly. Solid labour market information offers many benefits. It informs our planning and guides our efforts to make the investments required to attract and maintain a well-trained, efficient and adequate construction and maintenance labour force capable of meeting current and anticipated future demands.

As the world around us keeps changing faster and faster, we need to keep pace by finding innovative ways to work together. That’s where BuildForce Canada is having a profound impact.

I look forward to working with the BuildForce community in the coming year. Tackling the challenges we face together will ensure our shared success as we transform the construction and maintenance sector into a destination of choice for Canada’s most talented workers. Christina Taylor Chair, BuildForce Canada Workforce Development, Irving Oil

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Message from the Executive Director

Training to be the best at what we do, today and tomorrow

A

t BuildForce Canada, we recognize that the intense day-to-day pressures and challenges our stakeholders face can often mean ignoring or delaying more long-term demands. That’s why we take a strategic view of the future, so our stakeholders can rely on us to help them make the right long-term decisions. Where will the construction and maintenance industry be in 10 years? Of course, no one can guarantee they know the answer. But the depth and precision of our labour market information is painting a picture that looks very different from what we see today. An aging workforce means dealing with the fallout from retirements and the associated recruitment and retention challenges. We see training for this future as key to successfully transforming our sector. This annual report reflects that mindset. It focuses on where we are continuing to make progress on behalf of stakeholders in workforce development, productivity, e-learning and, of course, labour market information. Workforce development means always looking for ways to help industry recruit and retain top talent as retirements start to accelerate. Our work on productivity is supporting benchmarking for companies to measure performance. Our advances in e-learning are encouraging training that is approved and developed by industry. Underpinning it all is the ceaseless work to ensure that our topflight labour market information continues to represent all industry stakeholders and enables them to make smart, strategic decisions. Collaboration is critical to ensuring a prosperous future for all construction industry stakeholders. This is why we have worked so hard to gain the trust of owners, contractors, industry associations, governments and educators across Canada. We look forward to building on this solid foundation as we move forward supporting the construction and maintenance industry with its future labour force development needs.

An aging workforce means dealing with the fallout from retirements and the associated recruitment and retention challenges. We see training for this future as key to successfully transforming our sector.

Bill Ferreira Executive Director, BuildForce Canada


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Workforce Recruitment and Retention Challenges

7,968

VIEWS OF CAREER VIDEOS ON YOUTUBE

4

33,514

GOAL COMPLETIONS FROM FACEBOOK

REPLACEMENT DEMAND OVER THE NEXT DECADE

255,000

WO M E N E M P LOY E D I N CONSTRUCTION IN 2017

180,000

INDIGENOUS PEOPLE E M P LOY E D I N CONSTRUCTION IN 2017

66,200

257,047

VISITS TO CAREERSINCONSTRUCTION.CA

Workforce Development

BuildForce is helping industry recruit and retain top talent in the face of a growing wave of retirements Canada is facing a growing wave of retiring workers, and the pressures to recruit and retain top talent are intensifying. In the construction and maintenance industry alone, more than 255,000 workers are set to retire between 2018 and 2027. In addition to our dedicated Careers in Construction website, BuildForce works with a number of important industry stakeholders to enhance industry recruitment efforts. For example, working in partnership with Women Building Futures, BuildForce is helping to advance the promotion of career opportunities for women in the skilled trades. - -Respectful Workplaces Blog As Canada prepares for a growing wave of retirements over the next decade, the pressure to recruit and retain the best and most talented workers will be intense. Young workers entering the workforce will have many choices. Providing a stimulating, dynamic and cuttingedge workplace environment will be critical to the industry’s success. To ensure the industry remains an employer of choice, the construction workplace must be respectful and inclusive. In 2017, BuildForce launched the Respectful Workplaces Blog to promote industry awareness and dialogue. In 2018, this resource will be augmented with additional tools and resources in support of this important industry goal. Access the blog: buildforce.ca/ respectfulworkplacesblog. - -Improving performance through mentorship Education and onsite practical training is critical to the development of any young apprentice. Ensuring they receive the right instruction at the right time is essential to their development. BuildForce, in partnership with SkillPlan and the Social Research and Demonstration Corporation, is midway through a four-year initiative to improve performance through mentorship. The goal of the project is to develop, implement and evaluate a mentorship training model. We are working with trade groups and construction and maintenance companies across Canada, and will begin training participants in the summer of 2018.


5

SCOPE

4.55

4.33

WA S T E

3.28

3.62

Productivity 2 . 6 1 Q U A Equals LITY 3.15 HUMAN RESOURCES 3.45 Competitiveness SAFETY SCOPE

4.55

4.33

WA S T E

3.28

3.62

SAFETY

2.61

3.18

QUALITY

3.15

4.12

HUMAN RESOURCES

3.45

3.56

2,620

VISITS TO THE PRODUCTIVITY PORTAL

6

1,299

MINUTES OF PRODUCTIVITY WEBCAST VIDEO VIEWS

3.18 4.12 3.56

265

DOWNLOADS OF THE 2017 NATIONAL WORKFORCE STRATEGY

Productivity

BuildForce supports benchmarking for companies to measure performance - -Canadian Construction Productivity Initiative In 2017, BuildForce launched the Canadian Construction Productivity Initiative with the goal of providing industry stakeholders a balanced forum in which to discuss issues critical to stronger industry performance through improved productivity. As part of the initiative, BuildForce launched a webcast series to help better define what productivity means for Canada’s construction and maintenance industry. The site has become a valuable industry resource, hosting four in-depth webcasts on this issue. Access the productivity portal: buildforce.ca/productivity. - -Performance Benchmarking Self-Assessment Tool With the support of the National Research Council’s Industrial Research Assistance Program (IRAP), BuildForce launched an online Performance Benchmarking SelfAssessment Tool in March 2018. The tool allows contractors to compare their performance against the industry average in 10 areas critical to the successful delivery of any construction project. Over time, as the tool matures, more granular comparisons will be possible, permitting industry firms to compare their performance based on subsector, firm size, revenues and number of employees. Many industry firms have used the tool to gain a better appreciation of their strengths and to highlight areas where productivity improvements could be made. Firms have access to regional experts to support their learning and help guide them to the tools they need to improve their construction management and delivery practices. Access the free tool: benchmarkingtool.ca. - -2017 National Industry Summit In 2017, BuildForce held its second National Industry Summit in Ottawa. The summit brought together 120 industry leaders and government officials to share and inspire continued industry action relating to productivity enhancements through improved safety practices and improved workforce retention though better workforce career preparation. A summary report was published in the fall of 2017. Access the report: buildforce. ca/2017Strategy.


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MANAGEMENT COURSES

9

SAFETY COURSES

3

225 E-Learning Tomorrow’s Skills Today

CONSTRUCTION PROJECT MANAGEMENT COURSES COMPLETED

95,000

REGISTERED LEARNERS

8

12,500

COURSE COMPLETIONS

470

COMPLETIONS OF THE FIRST LEVEL SUPERVISOR TRAINING COURSE

E-Learning

BuildForce delivers training approved and developed by industry BuildForce e-learning courses are offered through a national network of 135 distribution partners. These partners provide their employees, students, members and customers with enrolment access to our online courses. Access the E-Learning Centre: elearning.buildforce.ca. BuildForce continues to redevelop our online learning courses to make them more compatible with current technologies and the evolving learning needs of users. In August 2017, BuildForce released an update to the popular First Level Supervisor Training course, which was followed by the release of the new Construction Project Management course in December. In June 2018, BuildForce released the new Construction Law course. Watch for the release of the new Communications, Negotiation and Conflict Resolution course in the winter.


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Canada

d & Labrador

w Brunswick

dward Island

Labour Market Information Drives Smart Decisions 21.2% (118,400)

29.9% (1,800)

27.7% (3,700)

26.7% %(700) CHANGE 2017–2021

Quebec

2016

Nova Scotia

23.3% (19,300) 5 years 2017–2021

22.6% (4,500)

% CHANGE

2022–2026

10 years 2017–2026

21.6% (14,600)

Alberta

sh Columbia

21.0% (22,700)

Ontario

19.8% (44,800)

Manitoba

19.8% (3,200)

askatchewan

19.0% (3,100) 0%

5%

10%

15%

20%

25%

30%

35%

Source: Statistics Canada, BuildForce Canada

10,672

DOWNLOADS OF LABOUR MARKET REPORTS IN 2017

SUMMARY – HIGHLIGHTS 2017–2026

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41

AVERAGE AGE OF THE CONSTRUCTION WORKFORCE IN 2017

1,122,400

SIZE OF CONSTRUCTION TRADES WORKFORCE IN 2017

CONSTRUCTION & MAINTENANCE LOOKING FORWARD

RESIDENTIAL SUMMARY

RD NANCE LOOKING FORWA CONSTRUCTION & MAINTE

- -Inclusive workplaces are a growing focus To attract the best and brightest younger workers, the construction industry must continue to promote construction as a leading-edge, technologically sophisticated industry offering younger workers tremendous career opportunities. In addition, the industry must broaden its recruitment focus to groups traditionally underrepresented in the construction workforce, such as women, Indigenous people and new immigrants to Canada. To help the industry rise to this challenge, BuildForce continues to improve our annual labour market information forecasts. In 2017, BuildForce expanded our reporting to better track on-site employment of women and Indigenous workers. Further enhancements in 2018 will better track career progression by qualifications, helping employers obtain a more complete picture of their future needs based on the anticipated number of years individuals spend in their acquired trade.

NEW HOUSING

RESIDENTIAL INVESTMENT

1.3%

RENOVATIONS

2017

0.9%

$124 (0.9%) 1.8%

2.1%

MAINTENANCE

=

247,900

RETIREMENTS

NEW HOUSING

ICI BUILDING

7.9%

ENGINEERING

MAINTENANCE

MAINTENANCE

INVESTMENT

215,700

NEW ENTRANTS

RESIDENTIAL OUTLOOK FOR CANADA

HIGHLIGHTS

118,400

projects moderate declines ■ The 2017–2026 outlook scenario across the period, but gains in total construction employment across provinces. are uneven between sectors and

RETIREMENTS

94,100

strongest in British to 2021 NEWareENTRANTS ■ Near-term employment gains while Newfoundland Columbia, Ontario and New Brunswick, long term, most provOver the and Labrador and Alberta lag. total employment levels more inces trend down, returning to scenario period. consistent with the start of the growth limits the long-term ■ The slowing pace of population into declines in new housing residential outlook translating and maintenance work. that is partially offset by renovation

tial projects provide a AVERAGE ■ Ongoing and proposed non-residenover the near term, but UNEMPLOYMENT modest boost to total employment RATE this slows as projects wind down. EMPLOYMENT continue retirements ■ An aging workforce and expected CHANGE requirements across demand labour of driver to be a key and non-residential the scenario period for both residential EMPLOYMENT . BuildForce’s LMI construction System CHANGE

7.8%

AVERAGE UNEMPLOYMENT RATE

RENOVATIONS

TIALthat the investment values are in year 2007 dollars, NON-RESIDEN * $2007 billions indicates that is, adjusted for inflation.

FOR CANADA WORKFORCE OUTLOOK

18,700 (-1.8%)

RESIDENTIAL MAINTENANCE

RENOVATIONS

NON-RESIDENTIAL

NEW HOUSING

HIGHLIGHTS ■ Expected retirements will be a key source of new job opportunities across Canada, as an estimated 118,400 workers (or 21 percent of the current residential workforce) are expected to retire over the next decade. ■ Retirements will be partially offset by first-time new entrants expected to be drawn from the local population

RESIDENTIAL INVESTMENT

10-YEAR

10-YEAR

$63 $65 $18 (0.2%) (1.3%) (2.1%) 1.3% 2.2% 1.9%

(% change) OUTLOOK FOR CANADA SECTOR INVESTMENT GROWTH

0.2%

DISTRIBUTION OF CONSTRUCTION EMPLOYMENT IN 2017, CANADA

2017

2017

CANADA ($2007 BILLIONS*)

2017

2017–2026

2017–2026

2026

Canada’s construction and maintenance industry is changing dramatically — demographics are shifting, markets are fluctuating, and some regional markets are slowing while others are growing. Our stakeholders look to BuildForce for accurate and timely labour market information to make smart workforce decisions in changing times.

HIGHLIGHTS

Retirements dominate hiring needs; 118,000 expected to retire HIGHL IGHTS by 2026

New workers will be required in residential construction over the 2017–2026 scenario period, despite slowing construction activity, driven by the need to address an aging TION OF CONSTRUCTION DISTRIBU workforce, where an estimated 118,400 residential construction workers ENT IN 2017, CANADAare expected in 2017 to retire over the next decade.EMPLOYM This represents a significant loss of skilled workers. is expected to edge slightly higher Construction activity in Canada Replenishing exiting workers may become increasingly difficult with slower population is uneven as many growth but years, two past the following small declines over growth and fewer young people available to enter the workforce. Residential construction in different directions. the country continue to move across markets the also compete against other industries that are facing similar demographic challenges. construction acrossmust employment is mostly unchanged NON-RESIDENTIAL Looking forward, total construction to 2016, with largRESIDENTIAL MAINTENANCE down 2 percent in 2026 compared by there are distinct provincial trends emerging across the scenario period, a common offsetWhile 2017–2026 scenario period; (down 7 percent) that are partially t of slower growth is evident for both residential and non-residential construction er declines anticipated in residential theme in employmen tial (up 3 percent). While changes the For residential, slower population growth is expected to drive housing starts lower moderate gains in non-residen growth overactivity. there is an overall trend to slower – vary significantly by province, workforce across Canada, while increasing demands for renovation and maintenance work only aging capacity, while addressing an INDUSTRIAL, long term. Sustaining workforce partially offset new housing declines. decade – may COMMERCIAL, expected to retire over the next ENGINEERING more than 20 percent of workers INSTITUTIONAL (ICI) fewer youth are As population growth slows and become increasingly difficult. other indusconstruction must compete against 2017 RESIDENTIAL CONSTRUCTION INVESTMENT, available to enter the workforce, ic challenges. tries that are facing similar demograph

2017

Representing all industry stakeholders

NATIONAL SUMMARY

2026

Labour Market Information

37,400 (-7.3%)

aged 30 and younger, estimated at 94,100 over the next 10 years.

■ Driven by the decline in new housing, residential construction is expected to see a loss of 37,400 jobs, or a 7 percent decline in employment. ■ Declining activity may create a false impression of weak labour markets, when in reality, markets are anticipated to be generally balanced; unemployment rates are expected to decline over the long term as retiring workers exit the residential labour force. ■ The largest declines occur in new housing in line with lower population growth and fewer housing starts in most provinces. Moderate, but steady, increases in renovation and maintenance activity partially offset the expected decline in new residential activity. ■ Alberta, Manitoba, New Brunswick and Prince Edward Island go through a moderate up-cycle that will drive housing starts and employment up and then down, as demographic trends limit growth over the long term. ■ Weaker population growth impacts British Columbia, Quebec, Nova Scotia and Newfoundland and Labrador with lower new housing activity over the scenario period, while housing activity is expected to be sustained near current levels in Ontario and Saskatchewan.

BuildForce Canada uses a scenario-based forecasting system to assess future labour market conditions in both residential and non-residential construction. This labour market information (LMI) system tracks measures for 34 trades and occupations. BuildForce consults with industry, including owners, contractors and labour groups, to validate the scenario assumptions and construction project lists, and seeks input from government on related analysis. The system distills labour market conditions into ranks to provide signals to industry employers. ial both residential and non-resident conditions in the oil sands and contractors and labour groups, to assess future labour market owners, system including forecasting ed industry, consults with distills labour market condiBuildForce Canada uses a scenario-bas and occupations. BuildForce on related analysis. The system tracks measures for 34 trades and seeks input from government construction. This LMI system and construction project lists, to validate the scenario assumptions industry employers. to tions into ranks to provide signals

BuildForce’s LMI System

In addition to the annual labour market information forecasts, in 2017, BuildForce released the second edition of Global Trends. The report covers emerging trends related to changes in global energy and resource markets, the workforce characteristics of selected countries and global migration patterns that may have the greatest impact on the Canadian economy.


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Financial Overview

BuildForce Canada’s programs and services are funded through three primary sources: Industry contributions — generously provided by our strategic partners to help sustain our organization

12

Government funding — which supports our labour market forecasting and other projects

Revenue generation — primarily from the sale of online courses and custom labour market information impact analyses, helping to offset our operating costs


Financial Summary For the fiscal years ending on March 31, 2018 and 2017

31-Mar-18

31-Mar-17

2,597,994

1,152,959

Industry Contributions

350,000

350,000

Product Sales

1,134,024

1,220,614

498,061

204,900

Support and Revenue Government Contributions

In-Kind Contributions Total Support and Revenue

$

4,580,079

$

Current Year Revenue

2,928,473

11%

Expenses General and Administrative

1,271,580

1,135,234

Professional

2,441,128

1,156,929

Industry Outreach and Engagement

270,427

162,258

In-Kind

498,061

204,900

Total Expenses

$

4,481,196

$

2,659,321

Total Net Revenue

$

98,883

$

269,152

25% 57% 7%

Asset, Liability & Net Asset Summary Current Assets

2,317,709

2,784,642

Term Deposits

733,768

-

16,879

14,920

Tangible and Intangible Assets Total Assets

$

Current Liabilities Other Payables Net Assets Total Liabilities and Net Assets

$

3,068,356

$

2,799,562

441,272

271,361

-

-

2,627,084

2,528,201

3,068,356

$

■ Government ■ Industry ■ Products ■ In Kind

2,799,562

Note: The figures that appear in the financial summary are derived from the 2018 & 2017 financial statements that have been audited by BDO Canada LLP and have received an unqualified opinion.


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Meet Our Team

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BuildForce Canada Board of Directors As of March 31, 2018, our Board of Directors consisted of the following representatives from contractors, owners and labour organizations.

CHAIR

VICE-CHAIR

PAST CHAIR

Christina Taylor

Clyde Scollan

John Schubert

Manager, Workforce Development, Irving Oil

President and CEO, Construction Labour Relations Association of BC

Canadian Construction Association

Paul de Jong

Patrick Dillon

Bill Earis

Ron Genereux

Business Manager & Secretary Treasurer, Provincial Building and Construction Trades Council of Ontario

Divisional Manager, Generation Construction & Contract Management, BC Hydro

VP Productivity & Construction, Suncor Energy Services Inc.

MEMBERS

Robert Blakely Director of Canadian Affairs and Chief Operating Officer, Canada’s Building Trades Unions

President, Progressive Contractors Association of Canada (PCA)

Robert Kucheran

Dr. L.B. (Lindsay) Langill

Jason Peterson

Wayne Prins

General Vice President, International Union of Painters and Allied Trades; Chairman of the Executive Board, Canada’s Building Trades Unions

Vice President of Training, Independent Contractors and Businesses Association

HPMA Managing Director/Labour Relations Lead, Business Support, Manitoba Hydro

Executive Director, CLAC


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BuildForce Canada Staff As of March 31, 2018, the BuildForce team consisted of the following people.

EXECUTIVE DIRECTOR

Bill Ferreira Executive Director

FINANCE AND ADMINISTRATION

Rosemary Sparks Former Executive Director

Tara Ricci Director, Finance and Administration

Ann Edwards Office Administration

Klayton Goncalves Economist

Aaron Stokes Economist

Magali Jacquel Accounting and Office Assistant

LABOUR MARKET INFORMATION PROGRAM

Bob Collins Economist

Adam Cywinski Economist

COMMUNICATIONS AND MARKETING

E-LEARNING

Sanjay Sundram Director, E-Learning

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Tim Bolger Manager, Learning Innovation and E-Learning Support

Rasha Saymeh Instructional Designer

Pamela Feeny Editor and Digital Content Manager


Suite 1150–220 Laurier Avenue West Ottawa ON K1P 5Z9 (613) 569-5552 [email protected] buildforce.ca constructionforecasts.ca careersinconstruction.ca