How Can Modular Building Practices Help the Construction Labour Shortage?

Simply put, many experienced baby boomers are retiring, leaving a skills gap that new workers aren’t filling in sufficient numbers. For example, the construction industry in Alberta is currently struggling to replace about 38,200 workers, or 21 percent, of its 2022 workforce who retired. This number will only compound in the next decade due to high rates of retirement.

The COVID-19 pandemic only exacerbated this workforce issue. Some construction workers left the industry altogether and found new careers or opted for early retirement, creating more vacancies than forecasted. 

Skilled trades haven't always attracted younger generations because they haven’t been promoted as strongly as other occupations and career paths. There are a lot of misconceptions and a lack of awareness around the construction industry and other trades which has deterred younger workers.

However, this attitude is changing as more people realize the need for skilled workers in the trades. In the last few years, a record number of young workers signed up for apprenticeships. 

However, there’s still a disconnect between the skill sets of new workers and those who are retiring. These apprenticeship programs are a great way to start bridging that gap, but training can’t be rushed to keep up with the incoming construction demands.

The construction industry ebbs and flows based on a variety of factors. Here are the three biggest trends that have been at play in Canada for the last several years. When you look at the big picture, these have led to some stagnation on new projects, but they may also trigger new areas of growth and focus within construction.

While the shortage of skilled labourers is the focus of this blog, the supply and demand of materials have also had a huge effect on commercial construction. 

Most notably, the pandemic disrupted the national supply chain, leading to widespread shortages. In response to this, 2021 to 2022 saw some of the highest cost increases compared to the decade before. While more materials have become available again, people are still having trouble sourcing specific items based on the fragility of the supply chain. In the post-pandemic world, other factors like geopolitics are also playing a role in shortages.

Reporting from 2023 has shown that only 3 of the 13 provinces and territories in Canada saw increases in building permits. Seemingly, the demand for building is cooling slightly, likely because of all the factors tied to higher project costs.

For example, from 2020 to 2022 Canada saw spikes in the inflation rates. While those rates have come down and stabilized a bit, they’re still higher than they were in the previous decade. Alongside inflation, more workers need wage increases to keep up with the cost of living. Plus, as a means of controlling the spike, the interest rates of commercial loans in Canada were also recently trending higher.

This means commercial building is more expensive between labour, land, and material costs. All of this can make businesses more cautious about what construction projects they’ll take on in the next ten years.

On a positive note, attitudes are shifting as businesses are looking for ways to reduce their eco-footprint in return for tax breaks, credits, and grants. This means that sustainability is becoming a major trend within Canadian construction projects. More buildings are designed to be energy-efficient, conserve natural resources, rely on natural energy, and reduce waste.

Modular is the future of the construction industry in Canada because these structures deliver the same quality while putting less strain on available labourers. Their production is more controlled, meaning you are more likely to get your structure on time and on budget compared to traditional construction, which can be more unpredictable. Let’s take a closer look at modular construction advantages that highlight why it’s a forward-thinking  solution.

Up to 95% of the construction work for a modular building happens off-site in a controlled factory setting. This reduces the labourers needed on the job site throughout the process and makes more efficient use of the skilled workers available. 

Within the production facility complex tasks are broken down into simpler, repetitive tasks that can be learned quickly. This also paves the way to making training easier, ensuring there are enough skilled workers to meet commercial construction demands in Canada.

Because the majority of modular construction happens inside a factory, bad weather conditions won’t push back your manufacturing timeline or require you to reschedule workers.  While the weather may still affect onsite installation, the delays straining the construction workforce will be minimized.

Modular has been a game changer in the arena of green building methods. Because the construction process is more controlled, it leads to less material waste and offers more opportunities to recycle materials. This helps reduce the strain on materials that have faced supply and demand issues in recent years. 

It’s also the primary reason that modular structures can easily be fabricated to meet the Leadership in Energy and Environmental Design (LEED) standards. LEED certification recognizes many of the sustainable construction principles that modular building supports including material selection, sustainable site development, and energy efficiency.

A common misconception about modular structures is that because they are more cost-effective, they’re also lower quality. However, the cost has everything to do with efficiency and nothing to do with quality. Modular construction is held to the same National Building Code of Canada as regular construction. 

With traditional construction, moving a building or reconfiguring it later comes with astronomical costs that aren’t very practical. However, modular structures offer you more options to fit your budget and plans. You can lease or buy them, relocate them, and reuse them if you move to a new location. At BOXX Modular, we also offer our unique SmartSpace system that gives you the ultimate control so you can easily add or reconfigure your setup.