b'COVER STORYor leased for a project to move forward.Mollenhauer is convinced that the An increasingly severe shortage of skilled personnel available toLook at the residential sector. More thankey to working within the new normal construction companies and the750,000 Canadians in the residentialis collaboration. These uncertain added challenge of having youngsector alone have taken advantage oftimes make decision-making difficult people view construction as a safethe six-month deferral of their mortgagefor companies because of the many and prosperous career; and payments. The six-month deferral period,unknowns in the industry and the however, is quickly coming to an end andeconomy. Organizations like TCA can The increasing need for the industryemployment continues to be tight. Howhelp to foster collaboration and developto innovate and add new technologymany mortgages will now default?smarter approaches for all types and such as robotics, drones and 3Dsizes of construction companies. printing to improve efficiencies andSIGNIFICANT EVENTSfend off foreign competition with veryThree key events will occur in the next sixThis collaborative approach would see little capital to invest. months that could significantly affect thelarger companies sharing business new normal: recovery of the economy, solutions with smaller companies and Short-term measures from governmentthe second wave of COVID and the members being connected with resources include assistance with employee wagesU.S. election. that will make their businesses more and low interest loans to help companiesprofitable. The industry must also be through the economic downturn andRecovery of the economy is a largevigilant with government on how to encourage them to keep employeesquestion mark as Ottawa and theimprove regulatory processes for securing on the payroll. With a current federalprovinces continue to deal with COVID.foreign workers, attracting young people government deficit projected at over Hopefully the recession we are in will notinto the industry and ensuring that $350 billion, this assistance willbe too severe considering the economicthe construction industry remains an be coming to an end, leavingdevastation the country has already goneessential service to the public.undercapitalized companies to deal through. However, this issue is still up in with these costs. the air and only time will tell us how theTCA is open for business under economy will do in the next few years. COVID controls. The association offers Market volatility created by COVID is alsoassistance to members collaboratively changing the industry. Work-from-homesuch as health and safety protocols for employees have become the norm in theWe are now facing a second wave of theworksites to keep them open and ensure pandemic. Many of these employees liveCOVID virus, and flare-ups of the virus areworkers get home safe each night, in small (e.g., 400-square-foot) condos orinevitable until a reliable COVID vaccine issays Mollenhauer, The industry will get apartments where it is a challenge to live,available. However, the last thing we needsmarter in response to the new normal sleep and eat, let alone work. Will thisis another across-the-board shutdownand TCA will be there to help maketype of housing become less attractive toof the economy. Canada would have ait happen.buyers, leading to a lower volume of newdifficult time dealing with this challenge construction in this sector in the future? twice in one year.The work from home approach couldThe results of the U.S. election could also affect the commercial office market.have far-reaching effects on Canada. With their staff working from home forThe Trump administration has been the last six months, employers may seehampering U.S.-Canada trade since day the benefits to having staff work remotelyone with the renegotiation of NAFTA and reduce their current office space,and tariff disputes on a wide range of states Mollenhauer. This could lead to aproducts, including ones that directly potential office space glut in the provinceaffect the construction industry, like and reduce the need for new projects inaluminum and softwood lumber. The the commercial sector. implementation of trade barriers by the U.S., particularly in the middle of a global Another changing norm involves thepandemic, is seen by many Canadians as national banks, which both developerssimply irresponsible. Hopefully, a Biden and construction companies rely on forvictory gets U.S.-Canada relations back on capital to invest in projects, technologytrack in trade and other key policy areas. PROGRESS CLAIM and other resources. COVID has created a great deal of uncertainty for the banksINDUSTRY RESPONSE MANAGEMENTabout the future of the economy andThe new normal for the construction the security of current loans for bothindustry has highlighted a particular commercial and personal needs.need. The industry needs to get smarter to protect the interests of their This uncertainty could lead banks tocompanies, says Mollenhauer. For tighten their requirements for commercialexample, construction contractors have lending. For example, the banks couldbeen accepting far too much risk in increase the criteria for financing newproject contracts. They have to startGCPAY.COMcommercial buildings, requiring 60 tomaking the interests of their companies 80 per cent of units to be either pre-soldpriority one.BUILDERSDIGEST Quarter 3 202015'