Challenges in New Brunswick's Construction Sector Outlook
Understanding the Trends in New Brunswick's Construction Sector
OTTAWA, Ontario — Construction activity in New Brunswick has seen a significant uptick recently due to robust residential growth, encompassing both new housing projects and renovations. The non-residential construction sector has also experienced increased activity, particularly in engineering and the construction of industrial, commercial, and institutional buildings.
Residential and Non-Residential Growth Profiles
According to the latest findings from BuildForce Canada, the province’s construction outlook is positive through to 2034. The residential sector starts this forecast period with heightened activity, largely due to a surge in new-home construction. Although investments in new housing are anticipated to decline by 2029, renovations will gain prominence, eventually surpassing new construction investments by 2026.
In contrast, the non-residential sector is forecasted to slow down initially but is expected to rebound significantly between 2027 and 2031. This growth will be propelled by major projects like the Mactaquac Life Achievement Project and ongoing upgrades at the Irving Pulp & Paper NextGen capital improvement initiative.
Employment Landscape in New Brunswick's Construction Industry
As these varied sectors evolve, overall construction employment is projected to rise by 2034. While residential employment may plateau, the non-residential segment is expected to see a 6% increase. This recruitment surge will be crucial to compensate for the retirement of roughly 6,500 workers—20% of the workforce by 2024—implying that approximately 8,400 new workers will need to be added by 2034.
While new entrants to the workforce, count of about 6,700, is primarily anticipated from local populations, the industry could still face a shortfall of 1,700 workers. Addressing this potential gap requires immediate action, which includes fostering local recruitment, enhancing training efforts, particularly with groups historically underrepresented in the field, and looking to attract skilled workers from other sectors.
Strategic Recruitment Initiatives
In 2023, new registrations in the largest construction apprenticeship programs in New Brunswick surged by 14% year on year. Notable growth was seen particularly in programs related to carpentry, refrigeration, air conditioning mechanics, welding, and heavy-duty equipment technology. Despite the program completions climbing 15%, they still fall short compared to figures from the previous decade.
Bill Ferreira, the Executive Director of BuildForce Canada, emphasized that the demographic trends indicate an older provincial population compared to the national average. This situation highlights the urgency for the construction industry to improve its recruitment of younger workers, as competition increases across all sectors for this demographic.
Women's Representation in Construction
In 2024, approximately 3,590 women worked in New Brunswick’s construction industry, marking an increase of nearly 400 from the previous year. However, women still represented only 3% of the total 29,100 tradespeople in the sector, with 21% of them working directly on construction sites.
Opportunities with Indigenous Workers
The Indigenous population has been recognized as the fastest-growing demographic in Canada, which presents new recruitment opportunities. Currently, Indigenous individuals constitute 2.6% of the construction labor force in New Brunswick, with little change over the past decade. As this population grows, sustained recruitment efforts and retention initiatives will be essential in addressing future labor demands.
Embracing Newcomers and Future Workforce Needs
The construction industry also aims to bolster its ranks by recruiting newcomers to Canada. Given historical patterns and adjusted immigration targets, it is anticipated that nearly 100,500 new immigrants will be welcomed in the province between the coming years. Successfully integrating these newcomers into the labor force could play a critical role in filling proposed positions.
Enhancing participation among women, Indigenous people, and new Canadians will be pivotal for the construction industry in New Brunswick to meet its labor force challenges in the upcoming years.
BuildForce Canada and Industry Impact
As a nationally recognized organization, BuildForce Canada is dedicated to supporting the diverse sectors within Canada’s construction industry. Their focus encompasses addressing labor market needs, collaborating with industry stakeholders, and driving initiatives that enhance workforce development. By identifying demand and supply trends, they are poised to effect positive changes to support the future of the industry.
For additional details, please reach out to Bill Ferreira, Executive Director of BuildForce Canada, at ferreira@buildforce.ca or call 613-569-5552 ext. 2220.
Frequently Asked Questions
What is driving growth in New Brunswick’s construction sector?
The growth is primarily fueled by increased residential activity, including new home builds and renovations, as well as notable non-residential projects.
How many workers will need to be hired in the coming years?
New Brunswick will likely require around 8,400 additional workers by 2034 to replace retirees and meet growing demand.
What initiatives are in place for recruiting underrepresented groups?
The industry is focusing on enhancing recruitment of women, Indigenous peoples, and newcomers to Canada as part of its workforce strategy.
How has apprenticeship registration changed recently?
New registrations in major apprenticeship programs increased by 14% year-on-year, with significant interest in trades like welding and carpentry.
Who can I contact for more information?
You can contact Bill Ferreira, Executive Director, BuildForce Canada, at ferreira@buildforce.ca for any inquiries.
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