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

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

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

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.

The construction industry includes many different types of activities

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

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

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

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

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

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

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

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

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

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 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.

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.

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

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

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

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 ing 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

Questions?