B.C. construction industry faces challenges amid growing demand for infrastructure investments

Statistics in the BC Construction Association's (BCCA) Fall 2024 Construction Industry Stat Pack demonstrate that while the value of existing projects continues to grow, the threat posed by inadequate industry support and declining investments in major projects is concerning. The industry faces intense pressure to meet the current demand due to persistent workforce shortages, high labour costs, and uncertainty regarding payments.

According to the report, the challenges facing the industry are two-fold. Firstly, the construction industry seeks increased investments in major infrastructure projects. Since spring 2024, the value of proposed major infrastructure projects has decreased by five percent and nearly 20 percent over the past five years. This trend raises concerns about the future of the industry, especially as current major projects begin to wind down with no guarantee of adequate replacements.

"British Columbia's construction industry will be paramount to building our province's critical infrastructure and alleviating the housing crisis," said Chris Atchison, president of the BC Construction Association. "During the election campaign, B.C.'s political party leaders committed to supporting the construction industry. Now that the results have been finalized, we need the government and opposition caucuses to work together to implement policies geared towards payment certainty and workforce development to ensure the construction industry can meet the current and future demand to build B.C. better."

There is a high demand for major infrastructure projects in British Columbia. Hospitals, schools, multi-unit housing, bridges, and supporting infrastructure across the province must be built. However, the decreasing value of proposed construction projects suggests that the province is not adequately investing in making these projects a reality.

This decrease in investments is coupled with a growing need for robust support mechanisms to ensure that these projects can be delivered successfully. The underlying factors of payment uncertainty, workforce shortages, and high labour costs create significant strains on the construction industry that must be addressed by political leaders.

The association contends that despite the need for major infrastructure investments and commitments from every party in that regard during this recently completed election, British Columbians cannot wait and need political leaders to work together to recommit advancing major projects, attracting external investment, and creating more favourable conditions for significant projects to get approved. 

 Key BC construction industry statistics

• Construction is the number one employer in B.C.'s goods sector.
• B.C.'s construction industry accounts for 10 percent of the province's GDP. A 16 percent increase over the past five years.
• 243,000 people rely directly on B.C.'s construction industry for a paycheque.
• Number of workers in trades jobs: 167,300, an increase of 3,400 since Fall 2023 but still a five-year trend decrease of seven percent
• The number of women in construction trades is 9,536 (5.7 percent), an increase of over 2,100 since Fall 2023 and a five-year trend increase of nearly 15 percent.
• Number of construction companies in B.C.: 28,065, an increase of over 200 since Fall 2023.
• The average yearly wage of B.C. construction employees is $72,200 ($17.5B cumulative annual wage), a slight decrease since Spring 2024 but a five-year trend increase of 17 percent.
• Value of proposed construction projects in B.C.: $166 billion, a decrease of $4 billion since Spring 2024.
• The estimated value of current major construction projects underway in B.C.: $170 billion, an increase of $10 billion since Spring 2024 and a 5-year trend increase of nearly 50 percent.
• Number of construction jobs in B.C. that will be unfilled due to labour shortages by 2033: 6,600, an increase of 600 compared to 2032 forecasts made in Fall 2023.