ICBA: B.C. 2024 Construction Outlook Surprisingly Robust
January 11, 2024
Despite economic uncertainty both domestic and international, 87% of B.C. construction contractors expect 2024 to be as busy – or even busier – than last year, according to the results of a new survey of Independent Contractors and Businesses Association (ICBA) member companies.
The nearly 250,000 men and women who work in construction in B.C. will benefit from this growth – with ICBA employers reporting that the average construction hourly wage will grow 5% this year, and another 6% in 2025. With these increases, in 2025, the industry’s average hourly wage – before any bonuses, benefits, profit-sharing or overtime – will reach $37.51, or about $78,000 annually.
“Construction is dynamic, fast-paced, and rewarding – people wake up every day and go to a job site to build everything around us, creating inspiring legacies that shape our communities and the way we will live for generations,” said ICBA President Chris Gardner, who released ICBA’s annual Wage and Benefits Survey of its member companies today. “It’s a message we have to convey to young people in a more convincing way than we have in the past.”
Despite record levels of immigration, B.C. builders flag labour shortages of people (79% of contractors say there aren’t enough skilled workers), as a major challenge. Said Gardner: “Fewer than 2% of permanent immigrants entering Canada pursue a construction trade, so as a country we are failing to identify the gaps in our economy and recruiting people to move to Canada with the skills to fill those gaps – we have to do better and quickly.”
Other major issues include supply chain constraints (62% say they are experiencing supply delays), and government red tape (only 4% say government is on the right track in dealing with them) cited as major drags on their work – and this is driving up costs and impeding the efforts to tackle housing affordability.
“We have not moved the needle on housing supply for the past 50 years – we are building fewer homes today than we did in 1972. Reams of new regulations and convoluted approval processes have choked the supply we need to keep home prices affordable for first time homebuyers and young families,” said Gardner. “All three levels of government need to stop the finger-pointing and working at cross-purposes, and collaborate meaningfully to fast track housing, cut red tape, and put in place practical policies that will make a real difference for home buyers.”
The ICBA Wage and Benefits Survey also noted:
- Interior: 42% of contractors expect more work in 2024 than last year; 83% say they are short of workers.
- North: 47% of contractors expect more work in 2024 than last year; 88% say they are short of workers.
- Vancouver Island: 32% of contractors expect more work in 2024 than last year; 77% say they are short of workers.
- Lower Mainland: 50% of contractors expect more work in 2024 than last year; 66% say they are short of workers.
