National Hardwood Magazine - May 2022

ONTARIO Continued

ONTARIO Continued challenge on the labor front. Construction investment rebounded in 2021 as Canada’s economy recovered from the effects of the pandemic. Total year-over-year construction investment increased by approximately 11 percent in 2021, as both the residential and non-residential sectors saw gains. Investment is projected to remain at or near current high levels through 2023 before declining gradually over the remainder of the forecast period. Last year’s rise in construction activity lifted employment to approximately 1.1 million workers, a seven percent increase over 2020, and a gain of one percent beyond pre-pandemic figures recorded in 2019. The surge in activity is expected to boost employment further, with a peak happening this year, continues the report. Construction has rebounded well from the effects of the pandemic, thanks to a strong housing market and public-sector infrastructure investments. The challenge for the industry, however, is how to manage its labor force. Retirements are expected to reach their highest levels over the next two years. More than 150,000 workers are expected to leave the industry, with many of those being baby boomers. It represents a loss of skills and experias this time last year, commented contacts. Soft Maple markets are strong they added. Some companies have shifted part or all of their raw material purchases to Soft Maple from Hard Maple. Kiln-dried supplies aren’t keeping pace with buyers’ needs, and prices are rising. Demand for green stocks is as good as for kiln-dried Soft Maple. International market interest in Red Oak has picked up, led by demand from China. At the time of this writing, it was not known if tariffs would be extended or rolled back as the April 16th deadline approached. White Oak sales are keeping green development production shipped for this species. Markets for kiln-dried White Oak are steady in Europe and the U.S., noted contacts. BuildForce Canada said in its national forecast, 2022- 2027 Construction and Maintenance Looking Forward, Canada’s construction and maintenance industry rebounded strongly in 2021 and is expected to continue growing through 2027. It notes that strong near-term demand and sustained activity in several key sectors present considerable opportunity, but may also present a Contact: Mike Tarbell, Sales Manager Rus Gustin (814) 697-7185 FAX (814) 697-7190 25,000,000 BF of Quality Bandsawn Pennsylvania Hardwoods 1,500,000 BF Kiln Capacity Export Packaging & Container Loading SPECIALIZING IN ASH, RED OAK, HARD MAPLE and CHERRY “We welcome your inquiries and look forward to serving your needs.” Mailing Address 1716 Honeoye Road Shinglehouse PA 16748 E-mail: mtarbell@ramforestproducts.com ence and these are not easily replaced by new workers entering the labor force. Residential construction activity recorded significant increases in 2021, with housing starts increasing by 21 percent year-over-year. BuildForce Canada expects demand in most provinces to recede from this peak in 2022 or 2023. There appears to be some evidence that Canada is not keeping up with demand for new homes, though in the face of rising interest rates, declines are expected in the rate of new-home construction throughout the forecast period. This in turn should produce corresponding declines in overall employment. By the end of the forecast period, residential-sector employment is expected to have declined by 24,900 workers in comparison to its 2021 starting point. Non-residential demands are expected to remain strong over the forecast period, however, driven by increases in spending across the public and private sectors. The largest gains are expected over the near term, peaking in 2024. Employment by 2027 is expected to be five percent higher than 2021, an increase of 26,300 workers. Ontario’s construction market is expected to see labor market challenges throughout the forecast period as sectoral unemployment returns to historically low levels. The pace of residential activity is expected to moderate, but a growing inventory of major infrastructure projects and a projected recovery in commercial building construction is expected to create growth across the forecast period and throughout the province’s discrete regions. Interprovincial mobility would be one solution industry can deploy to compensate for peak periods of demand, but peak demands will be seen across the country at the same time, that option appears less viable in the short term. Employee-incurred costs when searching outside their home market creates a strong disincentive. Developing a skilled workforce in the construction industry takes years, and often requires participation in a provincial apprenticeship program. By 2027, overall hiring requirements in the industry are expected to near 172,000 due to the retirement of approximately 13 percent of the current labor force and growth in worker demand. Based on historical trends, Canada’s construction industry is expected to draw an estimated 143,000 firsttime entrants aged 30 and younger from the local population, leaving the industry with a possible recruitment gap. 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