ItSA国际影视传媒檚 been a turbulent couple of pandemic years for many in the Northern construction industry and the future is offers varying degrees of promise, depending on who you ask.
For Joe Lavoie, part-owner of Home Hardware in Inuvik, there was some temporary upside after Covid-19 emerged. Homeowners in the Beaufort-Delta invested money in home improvements that would have normally went into travel, recreation and other pastimes.
But Lavoie is seeing that trend fading and not much on the horizon to replace it.
SA国际影视传媒淚tSA国际影视传媒檚 been relatively quiet this new year,SA国际影视传媒 he said in mid-April. SA国际影视传媒淚 think people have done a lot of the work (around their homes) that they planned on doing SA国际影视传媒 and it possibly could be due to the fact that you have materials going up in cost substantially.SA国际影视传媒
Although the price of lumber skyrocketed for a while and then came back down to a degree, Lavoie noted that gasoline prices have climbed steadily, resulting in a considerable price spike in transportation costs for those ordering construction materials.
SA国际影视传媒淔or us, bringing up a truckload of lumber, youSA国际影视传媒檙e looking at an additional $16,000 to $17,000,SA国际影视传媒 he said. SA国际影视传媒淭hat is a huge difference.SA国际影视传媒
Even if the private sector is trimming budgets, there are government projects that still must be completed. However, even those are fewer than in the past and thereSA国际影视传媒檚 no guarantee of a winning bid in a competitive process, noted Lavoie, who has been doing business in Inuvik for 30 years.
SA国际影视传媒淚tSA国际影视传媒檚 quieter than itSA国际影视传媒檚 been in the last two to three years,SA国际影视传媒 he said, adding that he provides work for 15 to 20 people through his store.
And yet his overhead has risen too following a winter with long stretches of bitterly cold weather. He said his heating and electrical bills were inflated because of it.
SA国际影视传媒淭here was six weeks of maybe 40 (C) below,SA国际影视传媒 he said. SA国际影视传媒淭he heat is very expensive. It averages 10 times what you pay down south.SA国际影视传媒
SA国际影视传媒楳ore strainSA国际影视传媒 to come
In Nunavut, one of the hardships that construction contractors are facing is procurement time in the face of ongoing supply chain issues, particularly when so much has to be coordinated to arrive on a limited number of sealift vessels.
SA国际影视传媒淎 lot of businesses are really worried about that,SA国际影视传媒 said Clarence Synard, president and CEO of NCC Investment Group, which has a construction division.
He gave an example of a three-month delay SA国际影视传媒 not only can that create complications for other projects, there are potentially issues revolving around additional financing costs and extra insurance payments. In addition, interest rates are moving upwards.
SA国际影视传媒淭he numbers just keep mounting,SA国际影视传媒 said Synard. SA国际影视传媒淭here donSA国际影视传媒檛 seem to be a lot of support systems out there for those types of scenarios SA国际影视传媒 itSA国际影视传媒檚 a really tough time.SA国际影视传媒
With some construction materials costing three to four times as much as they did prior to the pandemic, it doesnSA国际影视传媒檛 bode well for a territory that is already facing a housing crisis, according to Synard, who is also president of the Baffin Regional Chamber of Commerce.
SA国际影视传媒淥ne large contributing factor to the housing crisis that we find ourselves in in the territory is the high cost of construction,SA国际影视传媒 he said. SA国际影视传媒淭o see a market thatSA国际影视传媒檚 already strained, I think itSA国际影视传媒檚 going to feel more strain, I really do.SA国际影视传媒
On the bright side, volumes of work and opportunities are increasing significantly. But finding specialized labour is another major challenge, particularly in the North SA国际影视传媒渨hen you have so many competing sectors out fighting for that same labour pool,SA国际影视传媒 Synard added.
SA国际影视传媒楢dapt to the environmentSA国际影视传媒
In Yellowknife, Trevor Kasteel, president of Kasteel Construction and Coatings, has persevered through a difficult couple of years. At one point, he candidly addressed his staff of close to 50 during a meeting, informing them that the company was behind the previous yearSA国际影视传媒檚 pace by $711,000. He refused to lay off anybody because theySA国际影视传媒檙e like family, and they helped the company to rally.
SA国际影视传媒淲hen times get tough, you donSA国际影视传媒檛 simply discard people,SA国际影视传媒 he said. SA国际影视传媒淏ut then I said (to the staff), SA国际影视传媒榃eSA国际影视传媒檝e taken care of everybody but my God I need your help getting out of this hole.SA国际影视传媒 We ended up being in the positive at the end of the year.
SA国际影视传媒淎s a business, you need to adapt to the environment,SA国际影视传媒 he said. SA国际影视传媒淚tSA国际影视传媒檚 also your positivity as a company and the relationships that youSA国际影视传媒檙e building.SA国际影视传媒
Kasteel has formed partnerships with other Northern companies to address labour shortages by agreeing to borrow and lend employees for projects as circumstances warrant. He looks to the southern labour market as a last resort. He also aims to train local people.
SA国际影视传媒淭hereSA国际影视传媒檚 a lot of people hurting out there, a lot of people having tough times,SA国际影视传媒 he said. SA国际影视传媒淚tSA国际影视传媒檚 just showing compassion and helping people to grow. It doesnSA国际影视传媒檛 all need to be about ourselves. ItSA国际影视传媒檚 just being thoughtful and kind and opening a door for others.SA国际影视传媒
He acknowledges the obstacles posed by supply chain issues and the challenges of bidding on projects where construction wonSA国际影视传媒檛 begin for another year SA国际影视传媒 therefore rising costs in the interim are ones his company has to absorb later.
SA国际影视传媒淵ouSA国际影视传媒檝e just have to be careful. YouSA国际影视传媒檝e got to be on top of everything. I think youSA国际影视传媒檝e really got to provide good, clear leadership, strong leadership, positive leadership, communicate extremely well,SA国际影视传媒 he said. SA国际影视传媒淓verybody has to do their best SA国际影视传媒 stay positive, stay humble and stay thoughtful.SA国际影视传媒