Construction industry leaders have raised millions of dollars for scholarships to encourage more people to enter the field as a result of an impending labour crisis.
On Tuesday, the leaders of SAIT, the home builder Jayman Built, and the business organisation BILD Alberta announced a scholarship fund of more than $7 million to support 1,400 students pursuing construction-related education.
The single biggest and most difficult issue the business has ever encountered, according to Jay Westman, chief executive officer of Jayman Built, is the employment vacancy rates, which have been rising “at an alarming rate” since the turn of the century.
According to Westman, the time it takes to build a home has tripled due to the shortage of craftsmen.
In other words, Westman explained, “We’re not building any more homes, it’s just taking longer.”
Based on his more than 40 years of experience in the building industry, Westman asserted that recent hikes in borrowing rates to levels below record highs are likely to delay demand.
And he said construction materials like lumber have experienced supply chain shocks that have seen prices rise and fall, but labour availability has continued to worsen, driving up waits and wages.
The CEO of Jayman Built claimed that he collaborated with other homebuilding and construction firms to raise money for the scholarship, setting a new goal of $15 million and assisting roughly 3,000 students from all socioeconomic backgrounds.
Westman challenged other construction firms to contribute to the scholarship, saying, “(Through) the support and money I had previously received, there was obvious indication that this problem facing business is entirely provincewide.” “Everyone is going to be needed.
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The new construction scholarships will benefit students at SAIT and NAIT as well as for youth outreach in rural and urban high schools, according to SAIT President Dr. David Ross.
With predictions of a coming recession, according to Ross, funding skilled trades training now could benefit the sector in the long run.
Ross told Global News that “there is a significant shortage across all trades in the province.”
And even if there is a recession, we think the gap is so large that we must work very hard to ensure that we create the support for more apprentices to enter the different industry sectors, including residential construction.
The third-largest employer in the province is the construction industry, which employs little under 10% of all workers.
Scott Fash, executive director of BILD ALberta, said last year residential construction accounted for over 120,000 jobs and $8. 8 billion in wages.
However, he pointed out that one in five experienced labourers is anticipated to retire prior to 2030.
The construction of affordable, secure, and energy-efficient homes in this province is mostly dependent on skilled trades. They’re incredibly well-paying, rewarding careers, and we need to do a better job of promoting them and removing any roadblocks to entry,” Fash said.
According to a news statement from SAIT, costs for diploma and apprentice programmes in trades including carpentry, plumbing, sheet metal, electrical work, and glazing can reach more than $5,000.
Alberta’s construction sector funds scholarships to address a labour shortfall
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