Declining Investment In BC’s Major Projects Contributes to Industry’s Challenges

Statistics in the BC Construction Association’s (BCCA) Fall 2024 Construction Industry Stat Pack have revealed that while the value of existing projects continues to grow, the threat of poor industry support as well as declining investments in major projects is a major concern.

The industry continues to face pressures to meet the current demand due to persistent workforce shortages, high labour costs, and lack of payment certainty.

The industry is currently dealing with a two-fold challenge. First, the construction sector is seeking more investment in large-scale infrastructure projects. Since spring 2024, the value of proposed major infrastructure projects has dropped by 5 per cent, and nearly 20 per cent over the last five years. This decline casts uncertainty over the industry’s future, as current major projects begin to wind down with no guarantee of being replaced.

“British Columbia’s construction industry will be paramount to building our province’s critical infrastructure and alleviating the housing crisis,” said Chris Atchison, president of the BC Construction Association. “During the election campaign, BC’s political party leaders committed to supporting the construction industry. Now that the results have been finalized, we need the government and opposition caucuses to work together to implement policies geared towards payment certainty and workforce development to ensure the construction industry can meet the current and future demand to build BC better.”

British Columbia is in high demand for major infrastructure projects. Hospitals, schools, multi-unit housing, bridges, and supporting infrastructure across the province must be built. However, the decreasing value of proposed construction projects indicates that the Province is not invested in making these a reality.

This decrease in investment is accompanied by a need for stronger support systems to ensure the successful delivery of these projects. The industry faces major challenges, including payment uncertainties, workforce shortages, and high labour costs, which place pressure on construction efforts and require urgent attention from political leaders.

Although every party highlighted the need for major infrastructure investments during the recent election, the BCCA says British Columbians need immediate action. Political leaders must collaborate to renew efforts toward advancing major projects, attracting outside investment, and creating conditions that facilitate project approvals. The BCCA noted that with the election being over, it’s time for BC’s leaders to return to the legislature and work alongside the industry to tackle the critical issues affecting construction and the buildings of BC.