Business

Winnipeg Free Press - PRINT EDITION

Bodies needed for homebuilding boom

By: Murray McNeill

Posted: 02/22/2012 1:00 AM | Comments: 0 (including replies)

Homebuilders work on a project in Sage Creek. The industry will need to attract younger workers. (BORIS MINKEVICH / WINNIPEG FREE PRESS )

MANITOBA'S homebuilders are on a tear, and industry officials say one of the biggest challenges they face is finding enough skilled tradespeople to keep the momentum going.

The local industry is coming off its best year in nearly 21/2 decades for new-home construction. And the next two years should be even better, Canada Mortgage and Housing Corp. officials told about 200 delegates attending a CMHC-sponsored conference Tuesday in Winnipeg.

Manitoba Home Builders Association president Mike Moore said while most homebuilders seem to have enough tradespeople to get by for now, he questions how much longer that will last.

"I think it is going to become worse in time because we'll be building more homes," he said.

Also, a growing number of tradespeople are nearing retirement age, he said, and there aren't enough new ones entering the industry to replace them all.

The problem is exacerbated by the non-residential construction boom the province has enjoyed in recent years.

"We've had a lot of mega projects, and mega projects demand mega workers. So in some ways, it's because of our own success. It's good news (for the economy), but it takes away from our (the homebuilding industry's) labour force."

Moore said the solution is to persuade more young people to enter the building trades -- a goal industry officials, educators and labour groups are going to have to work together to achieve.

A spokesman for the province's largest homebuilder -- Winnipeg-based Qualico Group -- said it expects to find enough independent contractors to reach its usual target of 300 to 350 new homes a year.

"But it's always an issue. It's an issue for everybody," said Ken Braun, manager of the firm's new-homes division.

Braun said framing carpenters are often the hardest to find because they're so critical to the homebuilding process.

"The framing component is the key component, because if that drags out, everything else gets dragged out."

Fortunately, Manitoba's homebuilders aren't losing framing carpenters and other tradespeople to Alberta the way they were 15 years ago, Braun said.

And many of the ones who returned during the last recession are opting to stay because there's plenty of work and the cost of living is much lower than in Alberta, he said.

Lai Sing Louie, CMHC's regional economist for the Prairies and Territories, said Manitoba homebuilders pounded out 6,083 single- and multi-family starts in 2011. That's the most in a single year since 1987, he said, and that total is expected to rise to 6,150 in 2012 and 6,250 in 2013.

It's much the same story for the Winnipeg Census Metropolitan Area. Dianne Himbeault, CMHC's senior market analyst in Winnipeg, said local homebuilders recorded 3,331 total starts in 2011, and that number is expected to climb to 3,450 this year and to 3,500 in 2013.

"Winnipeg is one of the most unique markets in the country," Himbeault said. "There's a real sense of renewal here, and it's not just because of the Winnipeg Jets."

Sing Louie and Himbeault said sales of existing homes are also booming and should continue to grow over the next two years, although at a slower pace than in recent years.

murray.mcneill@freepress.mb.ca

Republished from the Winnipeg Free Press print edition February 22, 2012 B3

(You must be logged in to post your reaction)

Your reaction?

More Business

Undock

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010; View the changes. New to commenting? Check out our Frequently Asked Questions.