COMMON CENTS

Noah and the Skilled Labour Shortage

By Bo Mocherniak

I wasn't a big fan of Darren Aronofsky's cinematic interpretation of the story of Noah, which hit theatres last year. When Noah, played by Russell Crowe, had to build a boat the size of an airplane hangar, he couldn't do it alone. How did the director solve the problem for Noah? Spoiler alert: A team of giant rock monsters rose out of the earth, of course. While this construction crew was laughable, the scene did remind me that labour shortages are as old as the Bible.
According to The Conference Board of Canada, Canada faces a shortage of an estimated one million workers by 2020. This daunting fact has many in the construction industry asking: How can we possibly address the problem in time-and where will the industry find workers?
Like many complex issues, there isn't one single answer to these questions. To fill the looming gap, the industry will need to undertake a number of measures to attract new workers:
Attract and train the next generation. The development of new school programs such as Acorn-which was recently announced by The CWB Group, Canada's national welding certification body-is laudable because they offer end-to-end training and a curriculum that starts in high school. By creating more programs like this, construction associations can help ensure vocational training programs are properly promoted in high schools, and positioned as viable and exciting career options for students.
Groom a new wave of entrepreneurs. Skilled labour can be a very effective stepping stone for those with an entrepreneurial bent. In my practice, I see many successful private businesses started by people who built on their skills and experience in the trades. This can be an appealing selling point for young people who are disheartened by the shortage or monotony of the entry-level jobs out there-or more established individuals who simply want to escape the rat race and become their own boss.
Recruit more established job seekers. Investing in our youth is not the only answer to the skills shortage. The industry shouldn't overlook workers who may have been in the workforce for five or ten years and are now looking for a new career path. It also must boost its efforts in recruiting more women to join the skilled trades-possibly one of the greatest untapped labour markets out there.
Lobby the government for further skills training. In April 2015, the Ontario government announced an additional $55 million to support apprenticeship, as well as another $19 million for equipment upgrades and lab time in colleges and other training programs. This kind of investment will pay dividends in improving the strength and competitiveness of the economy-and we need as much of it as we can get.
Improve mobility. Since apprenticeship programs are provincially regulated and administrated, we need to preserve and increase inter-provincial harmonization of apprenticeship training. Programs like the Red Seal Program (which allows certified journeypersons in 55 trades to obtain national endorsement through the completion of a Red Seal exam), bilateral provincial agreements and credential recognition are all important steps. Programs like the 2009 Inter-Provincial Labour Mobility Initiative under the Agreement on Internal Trade (AIT) are also a good start.
Address financial barriers. In looking at regional skills shortages, financial barriers must be removed to further ensure the inter-provincial mobility of workers. This should include the re-introduction of federal programs and incentives like mobility tax credits-credits that go beyond just moving expenses and instead address all the hidden financial costs of mobility.
Improve immigration policies. Streamlined or fast-tracked entry for skilled workers and improved recognition of foreign credentials are a start, but governments need to be more proactive in both attracting and bringing in new workers and matching their skills to regional and industry demands. In 2013, the government improved the federal Skilled Worker Program by adding industrial, electrical and construction trades to the list-but there's room to take this program even further.
While all these suggestions will help, at the end of the day, your business's survival will depend on your ability to attract and retain employees. Employees are out there-there just may not be enough of them. By investing in your people and culture, offering opportunities for training and development, creating a positive work environment, and offering competitive benefits and incentives, you can make sure skilled tradespeople are choosing to work for your company instead of the competition.
Otherwise, you might just look out across the jobsite and see a team of rock monsters unemployed since that ark job dried up.

With over 30 years experience with audit, acquisitions, divestitures and valuations, Bo Mocherniak, CA, CBV, provides services to both public and private companies in Canada and the United States. Bo is National Sector Leader for the Real Estate and Construction Group of Grant Thornton Canada, a member of the Grant Thornton International Real Estate Sector Group and past Chair of Grant Thornton LLP.  He can be reached at bo.mocherniak@ca.gt.com.

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