News
News and information from and for Ontario’s construction industry
The Link2Build group publishes news and information about the Ontario construction industry daily. Check here for the latest in trends, developments and insight from a wide variety of contributors, and visit regularly for updated information.
Building construction investment rises 0.6% in July
Published: Monday September 30, 3019
According to Statistics Canada, the total investment in building construction increased slightly—by 0.5 percent—to $15.2 billion in July. Gains in both the residential and non-residential sectors helped spur the increase. Investment in the residential sector grew by 0.6 percent to $10.4 billion, while investment in the non-residential sector rose by 0.3 percent to $4.8 billion.
On a constant dollar basis, investment in building construction increased 0.8 percent to $12.8 billion.
The multi-unit residential component was the only investment component to post a decline for the month of July, down 1.6 percent to $5.2 billion, mainly as a result of decreases in British Columbia (-$149.9 million) and Saskatchewan (-$43.8 million). Investment in single-unit construction was up 2.9 percent to $5.2 billion, driven by Ontario (+$139.3 million) and Nova Scotia (+$32.6 million). This increase more than offset the decline in investment in multi-unit construction.
The commercial (+0.3 percent to $2.8 billion), industrial (+0.2 percent to $911.1 million) and institutional components (+0.1 percent to $1.1 billion) were all up slightly in July.
On an unadjusted basis, investment in new non-residential building construction grew 3.3 percent to $2.3 billion, led by the province of Quebec (+9.4 percent to $404.7 million). This was attributable in part to projects such as a government building valued at $151.0 million in the newly developing eco-neighborhood of Estimauville in the city of Québec.
Overall construction investment increased in Ontario by 11.6 percent to $6.7 billion. Investment in the province’s residential sector grew by 14.5 percent to $4.9 billion, while investment in the non-residential sector increased by 4.3 percent to $1.7 billion.
NCA celebrates membership appreciation day
Published: Friday September 27, 2019
The Niagara Construction Association hosted its annual Membership Appreciation Day and Tradeshow on September 26.
A record number of members and exhibitors shared the opportunity to socialize, meet new members, and catch up with long time industry friends in the spirit of membership camaraderie. Members participated in games, and visited 16 exhibitor booths to learn about new products and services.
Keynote speaker Barry Wright, CEO of the Niagara 2021 Canada Games, spoke about the infrastructure investment announcement, and the economic and cultural benefits that the games will bring to the Niagara region.
“Thank you to everyone who participated, our generous sponsors, the exhibitors, and for all of the raffle prizes donated,” says NCA general manager Karin Sheldrick. “We had a great day and a great lunch of fried chicken, fresh Niagara region corn, salads and homemade pie in a beautiful outdoor pavilion setting.”
WSIB announces 2020 premium rates
For the fourth year in a row, Workplace Safety and Insurance Board (WSIB) premiums are heading down.
The board announced its schedule of employer premiums for 2020—the first year under the new rate-framework model—at its annual general meeting on September 25. The average premium rate has been reduced by 17 percent. This represents a premium decrease from a Schedule 1 average rate of $1.65 on every $100 of insurable payroll in 2018 to an average of $1.37 in 2020.
Contributing to this decrease was the decision to eliminate the Past Claims Cost component of premium rates. Labour Minister Monte McNaughton made this announcement on September 24, and the WSIB backed up this decision with the message that its operations are now better than 110 percent funded, and the board operates a reserve of more than $3.2 billion. The board indicated it was also able to lower administrative and new claims costs for the 2020 premium year.
Since 2016, the average premium rate has dropped nearly 47 percent.
"Eliminating our unfunded liability last year paved the way for us to implement a new premium rate-setting model that levels the playing field, boosts fairness and increases transparency," said WSIB chair Elizabeth Witmer. "We are pleased that we have been able to help more people recover and return to work while reducing premiums for Ontario businesses."
The WSIB also announced that its Maximum Insurable Earnings Ceiling for 2020 increased to $95,400, compared to $92,600 in 2019. Changes to the ceiling are directly linked to changes in average earnings in Ontario as measured by Statistics Canada, and provisions under the Workplace Safety and Insurance Act.
Construction rates drop nearly 20 percent
Under the new rate framework model, construction companies are now grouped into five classes—rather than 13 rate groups. In 2019, the average premium paid across the 700-series rate groups, those to which most construction companies belonged, was $3.32. For 2020, the average premium rate for construction’s five classes has dropped 19.6 percent to $2.67.
- G1 Building Construction $2.30
- G2 Infrastructure Construction $2.31
- G3 Foundation, Structure and Building Exterior Construction $4.45
- G4 Building Equipment Construction $1.84
- G5 Specialty Trades Construction $2.47
Individual companies’ premium rates will vary based on their claims experiences. Employers can login to WSIB’s online services to see their particular premiums for 2020.
WSIB announces HSEP and new online services
Premium rates weren’t the only announcement that made news at WSIB’s AGM. The board announced that it will launch is new Health and Safety Excellence program in November. Details of the program have not yet been announced, but it is expected to replace the Safety Groups program, and help employers improve their health and safety records with a view to lowering their premium rates.
The board also announced details of a number of online services that will help employers see their premium rates and claims and costs data, and will help anyone report injuries or illnesses, upload claim-related documents, make premium payments, and register new businesses.
"Our focus now is on improving service for people and making Ontario a safer place to work," said WSIB president and CEO Thomas Teahen. "Today we announced new online services and a new Health and Safety Excellence program to help thousands of Ontario businesses become even better places to work."
How recent developments are impacting the Canadian construction & infrastructure sector
The prompt payment movement is spreading throughout Canada, and it is critical for players in the Canadian construction and infrastructure sector – including owners, developers, contractors, sub-contractors, lenders, construction managers, architects and engineers – to be aware of ongoing developments and the related implications so they can prepare and respond effectively.
MoL blitzes to focus on musculoskeletal disorders and PPE use
The Ministry of Labour has announced a series of workplace safety blitzes aimed at all sectors—and in particular at workers in the construction sector.
Beginning October 1, and through December 27, inspectors will conduct focused inspections for practices that could lead to musculoskeletal disorders and respirator hazards. Construction will be one sector particularly targeted for these site visits.
According to statistics from the Workplace Safety and Insurance Board, musculoskeletal disorders are the most-reported lost-time injury. In 2017, workers reported more than 19,000 claims, and 462,000 lost days of work—or approximately one-third of all accepted lost-time claims at the WSIB.
Starting in January of next year and through to mid-March, inspectors will target personal protective equipment. Specifically, they will look for the lack and misuse of personal protective equipment such as foot, eye, hearing and respiratory protection devices.
A similar inspection blitz in 2017 resulted in nearly 7,500 orders issued for lack of personal protective equipment on projects. This was the second highest violation in construction workplaces for 2017.
By law, personal protective equipment should be provided to workers wherever there are health or safety risks that cannot be adequately controlled for in other ways. Personal protective equipment can include: respiratory protection devices, hearing protectors, skin protection, high-visibility clothing, face shields and eye protection.
Inspectors will focus on checking that appropriate personal protective equipment is being supplied and worn.