Declining investment in major infrastructure projects is “alarming,” according to a new report from the B.C. Construction Association (BCCA).
The BCCA said that since spring 2024, the value of proposed major infrastructure projects has decreased by five per cent, and by nearly 20 per cent over the past five years.
This “makes the future of the industry look problematic as current major projects begin to wind down with no guarantee of being adequately replaced,” said the industry group in an Oct. 30 news release.
BCCA president Chris Atchison said there is a great need for more hospitals, schools, multi-unit housing, bridges and supporting infrastructure across the province.
“We’re seeing a decrease in the pipeline of future infrastructure and major project proposals,” he told BIV.
“While we can take some solace in the fact that the building environment still seems very busy, we have to keep an eye on the future. We have to make sure we’re planning for the inevitable new infrastructure-building, the infrastructure-repairing and any new investments, along with meeting the high-density housing requirements that are already upon us.”
High labour costs and workforce shortages are also concerning, Atchison said, since they contribute to steep prices for homeowners and renters. There has been a seven-per-cent decrease in the number of workers in trades jobs since 2019, according to the BCCA. The association also estimates that 6,600 construction jobs will be unfilled by 2033.
“When there is a labour shortage, employers are going to be in a position of having to pay more for that,” Atchison said.
“In the construction world, that is going to get passed along to the end consumer, so we need to keep making sure that we’re investing in the workforce of tomorrow, to make sure that we have skilled people at the ready to do the jobs, so that our businesses can remain competitive. That is huge for us.”
In addition to high construction and labour costs, the BCCA president also cited high prices for materials, supply chain disruptions and poor procurement practices as factors in exorbitant shelter costs.
Atchison said he looks forward to working with the next B.C. government to enact “prompt payment” legislation, one of the industry’s top priorities.
The goal of prompt payment legislation is to increase the cash flow of contractors and subcontractors by legislating mandatory payment terms. The legislation includes aspects like invoice specifications, payment timelines and dispute resolution provisions. Similar legislation is already in force in other provinces.
“Any increased risks that need to be borne by the contractors and the business community, those risks are going to be passed on by way of risk premiums to the owners as well,” Atchison noted.
He said he looks forward to working with the new BC NDP government, and that his organization has already started its outreach.
“The slim majority may slow the legislative process a little bit, and there may be more considerations given to policy development, but I think we’ve done a lot of work with the former NDP government under David Eby … so those lessons learned from the past government session need to be brought forward with urgency to this new government session, so that we can begin that dialogue in earnest with the attorney general and the premier about bringing prompt payment legislation to British Columbia.”
The BCCA says the construction industry accounts for 10 per cent of the provincial GDP, and that 28,065 construction companies directly employ 243,000 people in B.C. at an average yearly wage of $72,200.
