b'POST-COVID ERAAnother significant COVID change iseconomic indicators including consumerto recruit more than 309,000 new price volatility and supply shortages ofconfidence, demand for exports andworkers to replace retirees and keep pace construction materials. After decadesremoval of international travel restrictions. with demand.of stable material prices, volatile and rising prices have surfaced during COVID.Buildforce is also forecasting that theA productive, safe and healthy Concern has risen among industryconstruction workforce will increaseconstruction industry is vital as part of the experts that this volatility could becomeby nearly 65,000 workers (six per centoverall economic recovery in Ontario. As a norm in the future, which could createhigher than 2020) over the next 10 years.Mollenhauer notes: Coming out of COVID, financial havoc for contractors withCompared with the nearly 260,000members need to be aware of change current and future project contracts in theworkers forecast to retire over that period,happening in the industry, embrace it post-COVID era. the current skilled labour deficiencyand close the gap on uncertainty through will become more acute. According tocareful business planning and investment Because of more stable pricing in theBuildForce Canada executive director Billin technology to increase productivity and past, small increases during a projectFerreira, the industry will be challengedcompetitiveness going forward.could be handled in most instances because contractors allow for this in their project bid. However, contractors risk will increase considerably if substantial price increases continue into the future. Contract solutions such as lump-sum or percentage allowances will probably not work in this scenario. Solutions to this potential risk require a change to future contract language to include provisions such as price index allowances for significant increases in material costs.Supply shortages caused by closed plants and other COVID safety requirements have also been prevalent during the pandemic. To guard against this occurring in the future, construction companies should review various options to lessenLeading the Way in their risk. For example, companies could look at how they are structured (e.g., explore vertical integration) or changeInnovationtheir relationship with suppliers to ensure materials needed on future projects are readily available.A final challenge that is becoming aSPECIALIZING IN ROBOTIC DEMOLITION SERVICESconcern in the last few months is the threat of rising interest rates. After years of low lending rates and resultant affordable carrying costs, contractors will need to take the cost of lending into account when pricing out a project. Simply put, they have to take the necessary time to plan their bids around changing financial terms that are occurring in the industry, explains Mollenhauer.THE FUTURE Leading the WayA report from Buildforce Canada released in March 2021 noted that Construction in Canada [is] expectedCONTROLLED DEMOLITION Group Inc.to rebound in 2021 in the wake of the COVID-19 pandemic and rise through1185 Queensway Ave. E., Suite 4A, Mississauga, ONL4Y 1S1the coming decadealbeit at moreT. 289-232-6566muted levels than in the past 10 years. In addition, the timing and progress ofwww.controlleddemolition.cathe recovery hinges on the success of the vaccine programs and improving BUILDERSDIGEST Quarter 2 202113'