b'Presidents Message OIRCABoard of DirectorsPresidentMark AgiusFlynn CanadaPast PresidentDoug MaikawaTrio Roofing Systems Inc.First Vice-PresidentDarcy BeitesDouro Roofing & Sheet MetalContractors Ltd.Second Vice-PresidentJay CampbellDean Chandler Roofing Ltd.TreasurerPeter SerinoSopremaDirectorZach PetrachekAtlas-Apex RoofingDirectorJoel DandeleDantech Building TechnologiesDirectorMarinos BarlasSchreiber BrothersDirectorMark MollisonConestoga Roofing & Sheet MetalDirectorMike GodfreyGodfrey Roofing Inc.DirectorRyan WarnerCovertite Eastern Ltd.DirectorDavid RauthRauth RoofingRising Costs in Construction ONTARIODirector Mary Smith Lexsuco CorporationROOFING NEWS is a market-ing and information periodical published for the Ontario Industrial Roofing Contractors Association By Mark Agius, President, OIRCA by MediaEdge Publishing. Advertising in ONTARIO ROOFING NEWSis restricted to the member companies of OIRCA.Published for:T here is a sea change happening in the construction sector. Oneof Canada just recently hiked its largest one-time increase in keyOntario Industrial Roofing Contractors Associationcould argue that the perfect storm of unprecedented events overinterest rates by 50 bsp to one per cent, the largest in 20 years, the last two years is now impacting all sectors of our industry. Ma- and is warning of more to come. This is a significant move to rein940 The East Mall, Suite 301Etobicoke, ON l M9B 6J7terial supply chain shortages, cost escalations, a shortage of skilled la- in inflation.Tel: (416) 695-4114 l Toll Free: 1 (888) 33-OIRCAbour, inflationary costs and uncertainty in global markets are all causesHowdoweascontractorsandbusinessownersmitigateouroirca@ontarioroofing.comfor concern.risks when trying to navigate all these external pressures? First andwww.ontarioroofing.comFrom the onset of the pandemic, contractors have faced severe mate- foremost, we need to have clear and open lines of communicationPublished by:rial supply chain issues, cost escalations and material shortages unlikewith all purchasers of construction. We need to ensure that all our anything we have experienced before. The good news is it appears sup- contracts and bids are clear, concise and to the point, to not only33 South Station St. l North York, ON l M9N 2B2pliers are gearing back up; however, this has now caused a shortfall inprotect our interests but also those of our clients. Clauses to protectTel: (866) 480-4717 l Email: robertt@mediaedge.cainventories and a back-up in production and supply. Additionally, thereagainst material escalations/supply chain issues, material availabil- 531 Marion St. l Winnipeg, MB l R2J 0J9is a shortage of skilled trade workers in all sectors and an aging demo- ity and substitutions are paramount. Understanding risk and howTel: (866) 201-3096 l Fax: (204) 480-4420graphic workforce with little new entrants into the construction sector. one can monetize it is a whole other topic. Accelerated constructionwww.mediaedgepublishing.comThepandemictemporarilystoppedourimmigrationprogram.President While its starting to open up, our sector is competing with other seg- schedules and unattainable deliverables are talked about day in andKevin Brownday out. The cost of financing projects is only going to increaseSenior Vice President l Publisher ments of our economy. There is a decline in new immigration appli- along with interest rates. Robert Thompsoncants entering the construction workforce. Make no mistake, there isDirector, Business Development a war on talent, recruitment and retention, both in the field and inAs these costs increase, contractors are forced to pass them on,Michael Belland the result is pressure on the consumer or purchaser of goods.Branch Manager the office. The narrative must change. If you have not read my winterWages have not kept up with inflation in most markets, and thisNancie Priv2021/22 presidents message, Rebranding the Construction IndustrySenior Editor as a Career, I encourage you to do so. We need all stakeholders to alignputs more pressure on labour-driven sectorsespecially when thereJustyne Esseryis a shortage of skilled labour, as is the case with construction. Com- Design Specialist and change the way a career in construction is perceived.Marisa GiesbrechtThis leads us to the inflationary costs we are all experiencing. Can- panies that strive to empower their employees by adapting to newJunior Design Specialist adas annual inflationary rate rose to 6.7 per cent in March of this yearworkplace philosophies and technologies have a fighting chance inBethany Giesbrechtsuch a competitive market.National Sales Executivethe highest since August 1991. Construction data shows that buildingPat Johnstoncosts have significantly risen year over year (upwards of over 30 perHow much can the economy bend until it breaks, or at least reinsAll rights reserved. The contents of this publication may cent in some sectors). There are many variables that are contributingin inflation? When we have all these external pressures at once, itsnot be reproduced by any means, in whole or in part, without the prior consent of the publisher. to the rising costs in construction. The demand for residential housingvery difficult to see what lies ahead. A mentor of mine once told me,Published May 2022is outweighing the supply, and developers are racing to get zoning ap- In our business, if you fail to plan, youre planning to fail! ThePublication Agreement #40787580provals to meet the demand. simplicity of this speaks volumes as we continue to ride this waveOntario Roofing News is printed on 10%The Ontario government has committed to spending billions onof unpredictability.post-consumer FSC certified paper using soyabased inks. When necessary to mail an issueinfrastructure, and the economy seems robust. Basic economics againMy parting words: a sea change is upon us. Make no mistakewein an enclosure, we use an environmentally-friendly,100% oxo-degradable poly-wrap.comes to mindsupply vs. demand. This is a perfect storm. The Bankmust pivot, adapt and realign, or get left behind.8ONTARIO ROOFING NEWSISSUE 1 2022 THE ONLY SOURCE FOR PROFESSIONAL ICI ROOFING CONTRACTORS IN ONTARIO ORN'