OGCA: make ICI reopening a priority
The Ontario General Contractors Association (OGCA) has written a letter to several key Ontario cabinet ministers, including Premier Doug Ford, calling for the government to re-open the province’s industrial, commercial and institutional (ICI) construction sites.
The letter was delivered on April 30, the day before the province announced its decision to expand the definition of essential construction and thereby allow a limited number of ICI sites across the province to reopen.
In its letter to Finance Minister Rod Phillips, the OGCA points to three considerations that it says demonstrate the fact that not only is the ICI sector prepared to resume construction works safely, but also that in so doing, it can become a key driver of the economy during and after the COVID-19 pandemic.
The first is that ICI construction is a key economic driver for Ontario, and will be so for post-pandemic growth. The letter points to the fact that the ICI sector has been hit hard by the pandemic. Building permit values in Ontario are estimated to drop by 44 percent in March, and a recent OGCA survey of its members shows average revenues have dropped by nearly 45 percent in the first quarter of the year. Declines in revenue, the OGCA suggests, will have lasting implications on the sector.
The letter points out that ICI construction is a large sector of the provincial economy. In 2018, it accounted for about 1.2 percent of the province’s GDP. In 2019, it accounted for more than $21 billion in annual investments. Every day the industry is closed, the Ontario economy loses about $26 million.
Additionally, the industry typically employs about 200,000 persons. Half of those people are currently out of work due to the pandemic.
Following on that point, the letter suggests that construction can employ not only its own core workers, but also those who have lost jobs elsewhere in the economy. When it resumes, construction will need to maximize employment to complete projects and respond to federal and provincial infrastructure-stimulus incentives.
“The government has already proposed alternatives to the traditional means of training for those transitioning to construction. Through rapid training, skills assessments and partnerships with employers, Ontario could dramatically shorten training times while still equipping workers with the necessary skills.”
Additionally, says the letter, the industry will have greater capacity than usual to target public-sector construction projects. This is due to the fact that many private-sector firms have cancelled projects as a result of the pandemic.
The letter’s third point: that ICI contractors have implemented government safety protocols to ensure the safety of site workers. The OGCA says the industry has worked hard to develop new procedures and standards to ensure workplace safety, including those endorsed by the Chief Prevention Office. Moreover, those sites that continue to operate during the pandemic has put in place high standards of care to limit workers’ exposure.
The letter concludes by urging the province to re-open the ICI construction industry as soon as possible.