BC Building Industry in the Next Decade

1. BC Building Industry inthe Next Decade Sid Siddiqui, P. Eng. Vice President, Buildings Engineering September 17, 2011

2. BC Economic Outlook • Modest GDP growth of 2.0% to 2.5% expected till 2013 • Government spending on infrastructure will decline as deficit reduction measures are implemented • Rate of inflation will remain below 2% in the near term • BC construction industry will have the highest growth rate among domestic industries in the near term • Unemployment rate will decline each year to 2013 but will remain high

3. Global Pressures • Global uncertainty • European debt crisis • Pessimistic US economic outlook. Another US recession? • Market turmoil • Crisis in middle east

4. The Construction Industry • About 125,000 people work directly in the construction industry, representing 7% of the province's workforce. • Total value of construction in BC averages about $15 billion a year, or 15% of the gross provincial product.

5. The construction industry includes many different types of activities

6. BC Real GDP Growth Forecast, % Source: Construction Sector Council

7. Housing Starts Forecast (000s) Ontario Quebec Alberta BC Manitoba, NB, Nova Scotia, Newfoundland and Labrador Source: Construction Sector Council

8. BC Engineering Construction Forecast, $M Source: Construction Sector Council

9. Engineers Canada – Forecast • High demand for experienced engineers (> 5years) in current and coming years • High demand for engineers with specialized technical skills • For BC, demand will remain moderate until 2014 and significant shortage is expected after 2014 • Industrial/manufacturing, aerospace and petroleum engineers will see the highest demand in Canada • Graduations in engineering is slowly rising, while immigration of engineers is declining

10. Engineers Canada - Forecast • Retirements will cause an increase in demand • Employers are seeking business experience and specialized skills • Surplus of recent graduates with no experience – not many jobs available for non-experienced engineers • Some employers are off-shoring jobs or hiring engineers with experience from other countries under temporary foreign worker program

11. Engineers Canada - Challenges for Engineering Profession • Graduation to work transition • Employers looking for experience and special technical skills – serious oversupply of young graduates • Challenging of moving experienced engineers from declining sectors to growing sectors

12. Consulting Industry in BC • Consulting firms in BC employ over 10,000 engineers, geoscientists, technologists, technicians and support staff • Range of services provided by engineering consultants include: • Buildings and Structures • Municipal Engineering • Transportation • Natural Resources, Energy and Environment • Specialized, High Tech and Soft Engineering

13. Building Sectors • Heath care • Educational facilities • Public transit facilities • Recreational facilities • Commercial • Residential • Manufacturing and industrial buildings • Institutional and municipal buildings • Sustainable design

14. Project Delivery Methods • Design, Bid, Build • Design Build • Construction Management • Public Private Partnership (Design, Build, Operate and Finance) • EPCM (Engineer, Procure, Construct, Manage)

15. The Green Economy and Green Jobs! What is Green economy? • Creation of green jobs • Promotion of sustainable economic growth • Prevention of environmental pollution, global warming, resource depletion and ecological degradation 1 The green economy in BC is a growing trend across all industries and sectors.  The green elements of B.C.’s economy are growing faster than the economy as a whole, and creating a growing number of green jobs.

16. The six key green sectors • Clean and alternative energy • Energy management and efficiency • Green buildings • Environmental protection • Carbon finance and investment • Green knowledge and support In addition to these key sectors, traditional industries are increasingly “greening” their operations.

17. Our Forecast • It’s not all doom and gloom. BC buildings industry will grow at a moderate pace in near term • We will not likely see the gang buster construction activity we saw prior to the Olympics • BC Government and public sector will commit money in the following areas: • infrastructure, healthcare and education sectors • Renovation and retrofit of current building stock • Meeting carbon neutrality mandate to avoid penalties • Federal government will pump money in the economy to avoid another recession • Growing number of jobs in BC’s Green Industry

18. Our Forecast …. Contd. • As long as the interest rates remain low, residential sector will do well • Alternate project delivery methods will be employed for major projects • Current municipal infrastructure is in need of upgrade. This will generate work for engineers and trades • Projects like Evergreen Line will proceed to design and construction • Vancouver office vacancy rate is low. This should trigger office building construction projects

19. Skills Employers Look for! • Related Industry Experience • Exceptional Technical skills • Excellent Communication and people skills • Business skills • Leadership skills

20. Tips for successful employment search • Finding a job is a full time job • Competition is tough for inexperienced engineers • Network and get to know the people in industry • Research the firm before applying for a job • Only apply for jobs that match your education and experience. Shot gun approach usually does not work • Mailing or emailing resume’s is not enough. Go meet the people • Dress up appropriately when going for an interview. First impression matters! • Volunteer your time to technical, business and charitable organizations – people refer people

21. Questions?