Be careful at construction sites: congestion ahead. With so many major infrastructure projects in the crosshairs, Quebec is facing serious problems with cost overruns and work slowdowns. And it is the taxpayers who will pay the price.
With the energy transition, projects are popping up everywhere.
While Hydro-Québec wants to invest up to 18 billion to double its power, which would mobilize 35,000 workers, the battery sector continues its momentum and Quebec wants to develop structuring collective transport.
Alright. But a hydroelectric dam cannot be ordered on Amazon. And you can’t buy a REM or a tram at IKEA.
It takes hands and brains to develop all this. However, there is a shortage of precisely 12,245 workers in the construction industry in Quebec (4% of the total).
The industry is in trouble, because Quebec has increased its infrastructure budget by 70% since 2015, which now has a gigantic envelope of 150 billion over 10 years.
This imbalance between supply and demand has caused strong growth in construction costs in 2021 and 2022, which clearly exceeds general inflation in Quebec, notes the Institut du Québec1.
The Maisonneuve-Rosemont hospital, the Quebec tramway… costs are exploding everywhere.
Quebec will have to make choices.
You have to get to the point. Housing, which is the key to many social issues, tops the list. This week, Quebec and Ottawa released 1.8 billion to build 8,000 affordable and social housing units. Well done ! But the middle class in all this? According to the Canada Mortgage and Housing Corporation, the number of housing starts should be at least tripled and 1.2 million housing units built by 2030 in Quebec. A titanic challenge.
We must also give priority to the repair of existing infrastructure.
The needs are immense. It would take 35 billion to repair Quebec’s infrastructure – roads, hospitals, schools – which are falling into ruin. It’s not any better in municipalities, which would need 38 billion just to upgrade water-related infrastructure.
This maintenance deficit, which continues to increase, is like a debt that is being shoveled towards future generations. It is not fair. The longer you wait, the more it hurts… a bit like a neglected cavity that ends in root canal treatment.
Talk to the Ministry of Transport, whose mismanagement has just been denounced by the Public Procurement Authority2. By neglecting the inspection of aging bridges, the Department finds itself awarding contracts by mutual agreement, paying top dollar, to carry out emergency work.
Don’t wonder why the renovation of the Louis-Hippolyte-La Fontaine tunnel saw its bill jump from 1 billion to 2.5 billion.
At the same time, Quebec must modernize the construction industry, whose productivity is lagging behind. Here, the Minister of Labor, Jean Boulet, is already at work.
Let’s be clear: the rigidity of construction regulations limits the development of Quebec.
In Quebec, there are 26 trades, compared to only seven in Ontario. To do the same work, it often takes three or four people, instead of just one from our neighbors. By reducing the preserves that cause delays and increase costs, we could recover 10% of hours worked, according to an analysis by the firm AppEco3.
Let’s do it!
While we’re at it, we should also deregulate the renovation of small rental housing. At the moment, contractors can employ workers who do not hold cards for renovations at an owner-occupier’s home… but not at a tenant’s home, even if they are two identical homes. It’s illogical. Changing the rules would free up valuable workers for jobs where maps are truly essential.
What else ?
Better integrate women and immigrants who are largely underrepresented in construction, such as The Press has already pleaded4.
Put the pedal to the metal on training to replace the 21% of workers who will leave construction within 10 years, according to the Association of Construction and Housing Professionals of Quebec.
The accelerated and paid training courses, launched at the end of October, are a step in the right direction. But we will still have to find the teachers.
However, these short training courses remain a somewhat… short solution.
We also need workers with comprehensive training. However, registrations continue to decline. And students are often recruited, before finishing, by entrepreneurs lacking labor. To encourage academic perseverance, why not develop “dual” type training courses focusing on school-employer collaboration?
Ultimately, it is the addition of all kinds of initiatives that will make the difference. But we need an overview. It’s up to Quebec to play the role of foreman and ensure that we don’t shoot ourselves in the foot by wanting to do everything at the same time, without having the means.
The position of The Press
Prioritize major state infrastructure projects. Modernize the construction industry. Here are the avenues to follow to prevent the bill for the many construction sites in Quebec from climbing to the ceiling.