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8/6/2019 Ontario ICI Construction Survey 2011 OCS
1/18
8/6/2019 Ontario ICI Construction Survey 2011 OCS
2/18
Table of Contents
Survey Highlights
Year In Review
Contractors Outlook for 2011Business OutlookEmployment OutlookConstruction Prices Outlook
Ontarios Construction Industry Profile
About the Survey
15
16
2011 Survey of Ontarios ICI Construction Industry
1
3
5
2O11 SURVEY OFONTARIOS ICICONSTRUCTION INDUSTRY
MARCH 2O11
11
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2 2011 Survey of Ontarios ICI Construction Industry
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SURVEY HIGHLIGHTS
OCS survey reveals that contractors are tentatively optimistic about
Ontarios economic prospects and expect continued growth in theirbusiness this year.
2011 Survey of Ontarios ICI Construction Industry 3
The annual Ontario Construction Secretariat (OCS) survey of Industrial, Commercial and Institutional(ICI) construction contractors across Ontario reveals that the sector is poised to experience continuedgrowth in 2011. The survey of 1000 non-residential ICI contractors conducted by Ipsos Reid for theOCS highlights that nearly half of contractors operating in the ICI industry expect to conduct more ormuch more work this year, compared to 2010.
This year, firms anticipate conducting the most new work in the commercial sector. The percentage ofcontractors expecting to conduct more work in the institutional sector dropped 5 points from 2010 whichis consistent with the perception that government funding for institutional projects will be pulled back.Meanwhile, the number of contractors expecting to conduct more work in the industrial sector wasrelatively unchanged while the percentage of contractors expecting to conduct less work declined 4points from last years survey. This suggests less pessimism about industrial construction in 2011.Contractors in the GTA are the most optimistic for new business in 2011, while those firms inSouthwestern Ontario are the least optimistic.
Steady business growth will also lead to jobs in the ICI construction industry as the percentage of firmsexpecting to increase the number of people they employ in 2011 is up modestly from 2010 and stronglyfrom 2009.
2010 was an improved year for contractors as nearly 40% of firms reported performing more work,while the number of contractors reporting less work dropped significantly from 2009s level. As aresult of this improvement, nearly two-thirds of businesses reported hiring new workers in 2010.Regionally, firms in Eastern Ontario were the most likely to have conducted more business in 2010.Conversely, firms in the GTA and Central Ontario were least likely to have performed more work.
While 2010 was a better year for contractors, it appears that the effects of the recession are stilllingering in their minds. Case in point, survey respondents are only cautiously optimistic aboutOntarios economic prospects and the ability of the private sector to be a growth leader.
Ontarios contractors continue to be in a strong financial position, with the strength skewed towardslarger companies. Firms surveyed also expect significant cost inflation - concentrated in transportationand construction materials costs - and expect to increase their prices charged in response.
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4 2011 Survey of Ontarios ICI Construction Industry
8/6/2019 Ontario ICI Construction Survey 2011 OCS
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Contractors Report Moderately Improved Business in 2010
YEARINREVIEW
2011 Survey of Ontarios ICI Construction Industry 5
HIGHLIGHTS
Figure No. 2: Primary Barriers Inhibiting Growth
Q. Overall, what would you say is the one thing that is preventing you
from increasing your business?
Figure No. 1: 2010 Business Climate
Q. In 2010, would you say that your firm conducted more business,
less business or about the same amount of business compared to
2009?
MoreBusiness AbouttheSame LessBusiness
5%
9%
9%
11%
12%
14%
16%
18%
0% 5% 10% 15% 20%
Other
Government PolicesandTaxesPersonalIssues
Availability ofProjectsIndustryCompetition
Costand FinancingIssuesEconomic Issues
Availability ofLabour2010 was a good year, not a fantastic year36% of contractors reported doing more
business in 2010 compared to the
economically depressed 2009
Regionally, Eastern Ontario contractors
were more likely to report increased
activity
Availability of labour and the economy
cited as top barriers to increased
growth
Our annual survey of 1000 contractors indicates that
2010 was a somewhat improved year compared to 2009.
36% of contractors reported conducting more business in
2010 (up a modest 6 points from last year). However,
there was a significant decline in the percentage of firmsreporting that they conducted less business in 2010 (28%
versus 42% in 2009). This indicates that business
conditions did not continue to deteriorate in 2010 and in
fact improved - albeit only moderately.
The availability of labour (skilled workers, supervisory
and management staff) was the key barrier to further
expansion reported by contractors, with issues related to
the economy being the second most cited. This marks an
abrupt change from last year, where economic issues
were far and away the most cited barrier. The availability
of skilled labour continues to be a limiter to continuedexpansion - pointing to the need for further awareness of
career opportunities in the skilled trades and improved
employment opportunities for apprentices with
construction employers.
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6 2011 Survey of Ontarios ICI Construction Industry
Regionally, contractors in Eastern Ontario were morelikely to have conducted more business, with the strengthconcentrated primarily in Ottawa, which saw a healthyamount of commercial activity last year. Outside ofOttawa, firms in Kitchener-Waterloo-Barrie (45%),London (46%) and Northwestern Ontario (44%) are the
most likely to have reported conducting more business in2010. Meanwhile, a higher percentage of contractors inthe GTA reported doing less business than any otherregion, though they were much better off than they werein 2009.
Almost two-thirds (63%) of contractors surveyed
reported hiring new workers in 2010, putting the averagefirm size on par with 2008 levels. Firms in Ottawa,Kitchener-Waterloo-Barrie and the Northwest regionswere the most likely to have hired new workers - anunsurprising result given their greater tendency to haveperformed more work. Meanwhile, firms in the GTA,London, Windsor-Sarnia, and Hamilton-Niagara werethe least likely to have hired more workers.
The majority of contractors continue to employbetween 1 to 9 workers, though there was a modestincrease in the number of firms employing between10-19 and 20-99 workers, compared to 2009.
Unionized contractors did their part to support Ontariosconstruction labour force as nearly 70% of unionizedfirms reported increased hiring in 2010, compared to 60%of non-unionized firms. Unionized firms also tend to belarger, with over half indicating that they employ morethan 20 employees, versus only 20% in the non-unionsector.
Contractors Hire More Workers in 2010
More(Much+S omewh at ) A bo uttheSame Less(Much+Somewhat)
45%
52%
77%
20%
0% 20% 40% 60% 80%
NonUnion
Union
20%
52%
77%
45%
NonUnion Union
MoreThan20
Employees
LessThan20
Employees
34%
34%
40%
40%
41%
34%
35%
34%
31%
37%
29%
30%
26%
27%
20%
Central
GTA
Northern
Southwestern
Eastern
Figure No. 5: Unionized Firms More Likely to Hire Workers
in 2010
Q. Did you hire new employees in 2010?
Figure No. 4: Unionized Firms Support Larger Number of
Employees
Q. On average, how many people were employed by your firm in2010?
Figure No. 3: 2010 Business Climate by Region
HIGHLIGHTS
63% of contractors hired new workers in2010
Regionally, contractors in Eastern andNorthern Ontario were more likely toreport new hires
Unionized contractors tend to work onbigger projects, employ more workersand generate more revenue
69%
60%
NonUnion
60%
69%
Union
0%
20%
40%
60%
80%
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2011 Survey of Ontarios ICI Construction Industry 7
Strong Financial Health Continues to Characterize Ontarios Contractors
Like last years survey, over two-thirds of respondentsreported that they were either in a strong or very strongfinancial position - indicating solid financial health
overall. However, the response results are perhaps not asrobust as in prior years as the percentage of contractorsreporting a very strong position slipped 4 percentagepoints. Meanwhile the percentage of contractorsreporting their position as somewhat weakhas increased -albeit marginally - for 3 straight years. These pointsaside, our survey results suggest good financial health forOntarios contractors, which is a key to continuedemployment growth in the industry.
72% of unionized firms reported being in either strong orvery strong financial health, compared to 66% of
non-unionized firms. Perhaps not surprisingly, firmswith more employees and who generate greater revenuethan their counterparts reported being in a better financialposition.
Figure No. 6: Construction Firms Still Report Strong Financial
Position
Q. How would you describe your firms overall financial health?
Contractors are Tentatively Optimistic about Ontarios Prospects
When asked about the state of Ontarios economy, themajority of contractors were generally positive.However, 51% of respondents described Ontarios econ-
omy as only somewhat goodwhile a mere 4% character-ized it as verygood. After a rough 2009 and only asomewhat improved 2010, it appears that contractorsconfidence levels have not been fully repaired. Interest-ingly, firms who worked primarily in the civil engineer-ing sector were the most optimistic in their characteriza-tion of Ontarios economy, possibly due to that spacebeing partially buffered from the economic downturnbecause of the infrastructure stimulus program.
2%
7%
16%
46%
29%
3%
10%
18%
41%
26%
2%
11%
20%
45%
22%
0% 10% 20% 30% 40% 50
Veryweak
Somewhatweak
Neitherstrongor
weak
Somewhatstrong
Verystrong
2011Survey
2010Survey
2009Survey
Neitherstrongor
weak
Verystrong
Somewhatstrong
Somewhatweak
2011Survey
2010Survey
2009SurveyVeryweak
1%
7%
36%
51%
4%Verygood
Somewhatgood
Somewhatbad
Verybad
(DK/NS)
0% 20% 40% 60%
Figure No. 7: Slim Majority of Contractors Describe Economy as
Good
Q. How would you describe the state of Ontarios economy?
HIGHLIGHTS
Just over half of contractors rate the currenteconomic situation a good
Similarly, 55% believe the private sector isready to lead growth
Ontario c ontrac tors are optimistic
about the future, but a re
c oncerned about how much
business expansion will ac tually
oc cur in the c oming year.
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8 2011 Survey of Ontarios ICI Construction Industry
Likely related to their feelings on Ontarios economy,contractors were tentatively optimistic about the privatesectors ability to lead Ontarios growth. Although thebulk of respondents agreedthat the private sector couldlead growth (55%) only 9% strongly agreedwith thesentiment.
Unionized contractors were almost split on the issuewith 50% of respondents agreeing or strongly agreeingthat the private sector was ready, while 44% eitherdisagreedor strongly disagreed. Their non-unioncounterparts were a little bit more optimistic. Notably,contractors who work primarily in the industrial spacewere the most optimistic about Ontarios private sector,coinciding with a modest increase in manufacturingactivity last year.
Figure No. 8: Tentative Optimism about Private Sectors Ability
to Lead Growth
Q. The private sector is now in a position to lead growth in Ontarioseconomy Do you agree or disagree?
Labour Markets Starting to Tighten
Contractors most often cite employing electricians,mechanical trades, labourers and carpenters. When askedto rank the availability of the trades they employ, mostcontractors reported a tighter labour market in 2010compared to 2009.
The trades most often reported by contractors in shortage(either severe shortage or somewhat shortage) include
Brick Layers (55%), Refrigeration Mechanics (52%),Sheet Metal Workers (46%), Carpenters (43%), CementMasons (42%) and Plumbers and Pipefitters (40%)
Figure No. 9: Skilled Worker Shortages Still Reported for some
Trades
Q. What would you say is the availability of (trade name) today?
7%
11%
25%
2%
46%
9%
0%
StronglyAgree
SomewhatAgree
Neitheragreenordisagree
SomewhatDisagree
StronglyDisagree
(DK/NS)
10% 20% 30% 40% 50%
Shortages Neutral Oversupply
24%
29%
33%
34%
35%
37%
39%
40%
42%
43%
46%
52%
55%
49%
35%
30%
30%
42%
37%
23%
37%
46%
36%
38%
28%
35%
18%
34%
35%
30%
13%
22%
28%
21%
7%
16%
6%
15%
10%BrickLayer(Masonry)
RefrigerationandAirConditioningMechanics
SheetMetalWorker
Carpenter
CementMason
Plumber/Pipefitter/Stemamfitter
IronworkerandStructuralMetalFabricators
Electrician
OperatingEngineers
Labourer(ConstructionCraftWorker)
RoofersandShinglers
Painter
Plasterer,DrywallandFinishers
0% 20% 40% 60% 80% 100%
HIGHLIGHTS
Most contractors report a tighterlabour market in 2010 compared to2009
Just over half of the contractors that hireBrick Layers and Refrigeration/ACMechanics report some degree ofshortage
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2011 Survey of Ontarios ICI Construction Industry 9
Unionized Contractors Are The Backbone of Ontarios Apprenticeship System
Despite contractors reporting trade shortages over thepast few years, not all contractors are committed totraining new workers. Less than half (43%) of
construction contractors reported employing apprentices,a decrease from 57% in 2009. Unionized contractorscontinue to be strong supporters of apprenticeship asthey are considerably more likely than non-unionizedcontractors to hire apprentices. In fact, 68% of unionrespondents indicated that they employed apprenticescompared to 32% of non-union contractors. Unionizedfirms are also considerably more likely to hire moreapprentices on average than their non-union counterparts(8.2 apprentices vs. 3.5 apprentices).
Figure No. 11: Union Forms the Backbone of the Apprenticeship
System
57%
47%
43%
60%
40%
20%
0%
2009 2010 2011
43%47%
57%
Figure No. 10: Number of Contractors Employing Apprenctices
Declines
Q. Does your firm employ apprentices?
80%
68%
32%
60%
40%
20%
0%
68%
32%
Union NonUnion
Regionally, contractors in Central and SouthwesternOntario are somewhat less likely to employ apprenticesthan the provincial average. Only 36% of contractors inCentral Ontario and 41% in Southwestern Ontarioreported hiring apprentices. Eastern Ontario contractorscontinue to be strong supporters of apprenticeship.
Among those firms that do employ apprentices, almostone-third (29%, up 5 points) rate their skill level as verygoodand 70% provide a very goodor goodrating of theirskill level. When asked about their investment inapprenticeship training, 71% of contractors indicatedtheir investment would stay the same. Only one-quarter(23%) noted plans to increase their investment inapprenticeship.
The dec line in ap prenticeship em ploym ent over the past few yea rs
ma y be a ttributed to the ec onom ic downturn and unce rtainty about future
construc tion op portunities. With inc reased c onfidenc e in the ec onomy,
we hope to see an uptick in apprentic eship hiring and investment.
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10 2011 Survey of Ontarios ICI Construction Industry
Federal Infrastructure Stimulus
The $4 billion Federal Infrastructure Stimulus Fund wasdesigned to provide short-term stimulus to the economyby funding construction-ready infrastructure projects.This funding has now been extended by a full
construction season to October 31, 2011.
Contractors were fairly strong in their support for theinfrastructure stimulus fund and its success at generatingnew work in the construction industry and stimulatingeconomic growth. The majority of firms (69%) agreethat the stimulus package was successful at generatingnew work in the construction industry, with a full 25% ofcontractors strongly agreeing with the positive impact ofthe funding on construction activity. Moreover, nearlytwo-fifths (39%) reported that they personally realized anincrease in business as a result of the infrastructure
funding. The survey data suggests that those firms whoemployed more people and/or earned higher revenueswere more likely to agree that the stimulus funding wasbeneficial to the economy, construction industry and theirown business.
Figure No. 12: Infrastructure Stimulus Program Good For Econ-
omy and Construction
Q. Please indicate whether you strongly agree, somewhat agree,
somewhat disagree with the following statements.
Myfirmhasexperiencedan
increase
in
business
as
aresultofthefederalinfrastructure
stimuluspackage
Thefederalinfrastructure
stimuluspackagewassuccessfulin
stimulatingeconomicgrowth
Thefederalinfrastructure
stimuluspackagewassuccessfulat
generatingnewwork
in
the
construction
industry
69%
65%
39%
0% 20% 40% 60% 80%
39%
65%
69%
Strongly Agree/SomewhatAgree
Ontarios Green Energy Act
Ontarios Green Energy Act was introduced in 2009 withthe goal to increase investment in renewable energy pro-jects and conservation. These initiatives would creategreen jobs, boost economic growth and position Ontarioas a leader in the green economy. When asked about theimpact of the Green Energy Act on business opportuni-ties, 22% of contractors reported it had increasedbusiness opportunities. An additional 16% of contractorshad not yet experienced any increase, but expected to inthe future. However, more than half of the contractors(55%) indicated no increase in business opportunities as aresult of the Green Energy Act.
Counter-c yc lic al spending
plays an important role in the
construc tion industry and Ontariosec onom y. A ma jority of c ontrac tors
believe the Infrastruc ture Stimulus
Prog ram played an important role
in stimulating the ec onomy a nd
generating opportunities for the
c onstruction industry.
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2011 Survey of Ontarios ICI Construction Industry 1
CONTRACTORS OUTLOOK FOR 2011
Contractors Expect Continued Business Growth
Contractors in the province are expecting continuedbusiness growth in 2011 as a shade under half (44%) ofrespondents expect to conduct somewhator muchmorework this year. This is down slightly from last yearssurvey though still up solidly from 2009. The proportionof contractors expecting somewhatand much less workthis year is unchanged from 2010. Overall, these resultsare very similar to last years survey and point to anotheryear of steady construction growth.
Regional Variations and
Union/Non-Union Expectations
Like last years survey, firms in the GTA were the mostlikely to report expecting to conduct more work this year.On the opposite end of the spectrum, contractors inSouthwestern Ontario were the least likely to reportanticipating more work in 2011, with the Windsor-Sarniaregion providing the biggest damper on expectations.Meanwhile, firms in Stratford-Bruce, the City of Torontoand the Toronto Suburbs were most likely to declare anexpectation ofmore work for this year.
Union and non-union expectations for 2011 are closelyaligned. 42% of unionized firms expect to see an in-crease in their business versus only 14% anticipating adecline. 44% of non-unionized firms expect more busi-ness this year, versus 12% who predicted a drop.
Expectations by Sector
Similar to 2010, contractors expect to conduct the mostwork in the commercial sector in 2011, with Eastern On-tario and Toronto being the key regions driving the result.
The percentage of contractors expecting to conduct morework in the institutional sector dropped 5 points from2010. This is consistent with the perception that govern-ment funding for institutional projects will be pulled backgoing forward. Meanwhile, the number of contractorsexpecting to conduct more work in the industrial sectorwas relatively unchanged while the percentage of con-tractors expecting to conduct less work declined 4 pointsfrom last years survey. This suggests less pessimismabout industrial construction in 2011.
Figure No. 15: 2011 Business Outlook By Sector
Q. Which, if any, market segments do you expect to conduct more/
less work in 2011?
2009
2010
Figure No. 13: Continued Business Growth Expected for 2011Q. Do you expect to conduct more business, less business, or about
the same amount of business in the next 12 months compared to
2010?
Figure No. 14: 2011 Business Outlook by Region
11%
27%
40%
15%
5%
3%
8%
39%
35%
14%
3%
8%
40%
30%
14%
2011
2010
2009
2011
2010
2009
MuchMore
SomewhatMore
AbouttheSame
SomewhatLess
MuchLess
0% 10% 20% 30% 40% 50%
3%
3%
11%
8%
8%
27%
14%
14%
5%
30%
35%
15%
40%
40%
39%
35%
38%
42%
43%
48%
40%
39%
41%
39%
40%
21%
22%
11%
12%
8%GTA
Eastern
Central
Northern
Southwestern
ConductMoreBusiness Same ConductLessBusiness
Sector & Segment Conduct
More WorkConduct
Less WorkNET
Difference
Commercial 39% 24% +15
Industrial 19% 14% +5
Institutional 12% 9% +3
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12 2011 Survey of Ontarios ICI Construction Industry
Anticipation of Continued Growth Leads to Increased Hiring Expectations
Consistent with the expectation of steady businessgrowth, 34% of firms anticipate increasing (substantiallyor modestly) their workforces this year. Meanwhile,only 7% of firms expect to decrease their workforce in
2011. This is down slightly from last year`s survey,where 10% of respondents were ready to trim theirpayrolls. Roughly two-fifths (39%) of unionizedcontractors expect to increase the size of their workforce,while 31% of non-unionized firms anticipate increasingtheir headcounts.
Firms located in the GTA were the most likely to expectan increase in the size of their workforce, which isconsistent with their forecast for an improved level ofbusiness. Given a tougher year expected by contractorsin Southwestern Ontario, it is not surprising that firms in
that region are least likely to anticipate expandingpayrolls in 2011.
16%
30%
31%
10%
34%
7%
201
20
Decrease
Increase
0% 10% 20% 30% 40%
2011
20102009
Figure No. 16: Employment Expectations
Q. Over the next year, do you expect the number of peopleemployed by your firm will ...
34%
38%
31%
28%
28%
21%
58%
55%
61%
62%
54%
64%
7%
4%
6%
9%
17%
11%
Ontario
GTA
Central
Eastern
Northern
Southwestern
Increase Same Decrease
Availability of Skilled Workers, Supervisory and Management Staff
For the third year in a row fewer contractors expect theavailability of skilled labour and supervisory staff toincrease. With improving market conditions andcontractors expectations for new business opportunities(47% expect opportunities to increase in 2011),contractors are increasingly concerned about theavailability of labour. As previously noted, contractorscontinue to cite the availability of labour as a key barrierto growth.
Figure No. 17: Employment Outlook by Region
Q. Over the next year, do you expect the number of people employed by your firm will. .?
Ava ilab ility of skilled workersand supervisory staff is an
increasing c onc ern for many
c ontrac tors. Only 18% exp ec t
labour availability to inc rease
in 2011.
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2011 Survey of Ontarios ICI Construction Industry 1
Overall, the distribution of the cost outlookfor this year is very similar to last years
survey, with the lions share of contractors(70%) expecting an increase in transportationcosts - in line with steadily increasing gasolineprices.
What is significantly different from last yearssurvey is that, on a net basis, only 32% ofrespondents expect the cost of skilled workersto increase, down from 40% last year. Onepossible explanation is that with the latestcollective bargaining round finished,uncertainty surrounding the magnitude of
wage changes has been removed. In addition,a lower percentage of firms are expecting thecost of financing or credit to be higher thisyear versus 2010 - consistent with otherindications of looser credit standards and acontinued low interest rate environment.
68%
59%
56%
41%
32%
31%
30%
28%
Net
Figure No. 22: Outlook for Construction Input Costs
Q. Do you expect that the cost of will increase substantially, increase modestly,
stay the same, decrease modestly, or decrease substantially?
Transportation
ConstructionEquipment
ConstructionMaterials
Skilledtradesworkers
Overhead
Financingorcredit
Supervisorsandforeman
Biddingorestimating
59%
68%
32%
41%
56%
31%
30%
28%
Net
CostWill
Increase
CostsWill
Decrease
Figure No. 18: Contractors Expectations for Increased Availability in 2011 of Various Factors
Q. Thinking about 2011, do you expect that will increase, decrease or stay the same?
42%
13%
47%
29%
20%
20%
22%
23%
23%
45%
15%
15%
18%
22%
47%
2011
2010
2009
Amount of new business opportunities
Availability of materials and equipment
Availability of skilled construction workers
Access to financing or credit
Availability of supervisors/formen
0% 10% 20% 30% 40% 50%
20112010
2009
Cost Outlook
10% 0% 10% 20% 30% 40% 50% 60% 70% 80%
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14 2011 Survey of Ontarios ICI Construction Industry
Given their expectations of cost inflation, contractorsexpect to increase the price they charge for theirservices. In fact, 43% of contractors anticipateincreasing their prices, up from 39% in 2010 and 21% in2009. This comes despite roughly half of firms (46%)expecting the level of competition they face to increasethis year.
Regionally, contractors are mostlikely to anticipateincreasing their prices in Northern Ontario while thosein Southwestern Ontario are the leastlikely to expect anincrease in the price they charge. These results are thesame as last years survey.
PriceWillIncr ease StayTheSame PriceWillDecrease
Figure No. 20: Average Project Price Outlook by Region
Q. Generally speaking, do you think the price you charge for construc-
tion services over the next year will increase, decrease or stay the
same?
43%
36%
42%
43%
54%
49%
49%
54%
49%
50%
39%
45%
5%
10%
6%
4%
7%
2%Eastern
Northern
GTA
Central
Southwestern
OntarioAverage
47%
Net
Increase
46%
39%
37%
27%
38%
HIGHLIGHTS
2011 business outlook is positive with44% of contractors expecting toconduct more work
Nearly half of contractors predict anincrease in new business
opportunities
Most firms (92%) plan to maintainor increase employment
Construction costs projected to increasein line with increases in transportationand construction material costs
The OCS Construction Outlook Index is derived fromopinions expressed through our survey of 1000 contrac-tors who work in the non-residential ICI constructionsector. An analysis of their views reveals that four keyfactors drive contractors outlook New Opportunitiesand Financing; Business Momentum; Costs; and La-
bour Availability.
As the Ontario economy continues along its path ofrecovery, the overall OCS Construction Outlook Indexremains unchanged from 2010. Contractors anticipa-tion of a stronger business momentum (anticipation ofmore work) in 2011 is modestly tempered by concernsabout availability of labour and access to financing.
The stability of the Index from 2010 to 2011 indicatesthat the most influential factors driving new businessopportunities are expected to remain consistent through
2011. It also shows that the industry has rebounded,and stabilized, from a very difficult year in 2009.
OCS Construction Outlook Index
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2011 Survey of Ontarios ICI Construction Industry 1
INDUSTRY PROFILE
Figure No. 21: Distribution of Contractors by Type
Q. Are you a GENERAL or TRADE CONTRACTOR?
Figure No. 23: Percentage of Contractors Signatory to Union
Collective Agreements by Region
8%
15%
25%
19%
12%
6%
6%
7%
32%
29%
20%
11%
3%
2%
2%
1%
0% 10% 20% 30% 40%
1to4
5to9
10to19
20to49
50to99
100to199
200to499
500ormore Firms,bySize(2009)
0% 10% 20% 30% 40%0% 20% 40% 60% 80%
Figure No. 25: Distribution of Firms by Revenue
Q. What was your companys total revenue for 2010?
Figure No. 26: Distribution of Firms by Project Value
Q. Typically, what would be your companys average project value?
$1Mtoless
$500,000toless
than$1M
$100kto$499K
$1to$99K
$50M
$10Mtoless
than$50M
$2Mtoless
than$10M
$500ktoless
than$2M
$100ktoless
than$500k
Lessthan
$100k
Figure No. 22: Percentage of Contractors Signatory to Union
Collective Agreements
Q. Is your firm signatory, or bound to any construction collectiveagreements?
TradeContractor GeneralContractor NotStated NonUnionContractor UnionContractor NotStated
6%
13%
13%
15%
16%
20%
21%
22%
23%
25%
31%
MuskokaKawarthas
KitchenerWaterlooBarrie
Ottawa
London
Northeast
WindsorSarnia
HamiltonNiagaraPeninsula
Kingston Pembroke
Toronto905
Toronto
Northwest
8%
11%
26%
30%
12%
3%
2%
5%
29%
26%
22%
14%
2%
2%
1%
1%
0% 5% 10% 15% 20% 25% 30% 35%
1to4
5to9
10to19
20to49
50to99
100to199
200to499
500ormoreNonUnion
Union
Figure No. 28: Distribution of Firms by Employment
Q. On average, how many people were employed by your firm in
2010?
2%
11%
20%
37%
8%
9%
8%
23%
35%
15%
4%
1%NonUnion
Union
30%
27%
9%
5%
17%
59%
15%
2%
2%
5% No
Un$2Mormore
0% 10% 20% 30% 40%
Non-Union
Union
Non-Union
Union
Non-Union
Union
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16 2011 Survey of Ontarios ICI Construction Industry
ABOUTTHE SURVEY
In November and December 2010, the Ontario Construction Secretariat, with the assistance of Ipsos-Reid
conducted a survey of senior executives from Ontarios non-residential construction industry. A total of 1000telephone (CATI) interviews were conducted with general and trade contractors in Ontario. The marginoferror for a sample of 1000 interviews is 3.1%, nineteen times out of twenty. The margin of error forsub-sections (ie. region) of the sample is larger, depending on the sample size. The final data was weightedaccording to the number of contractor establishments working in the ICI sector per economic region within theprovince of Ontario according to the latest Statistics Canada data.
The survey was designed to capture individual and collective perceptions on the current business climate of theindustry, barriers to growth as well as contractors views on the short-term outlook for the industry. Conductedannually, this survey produces a broad-based summary of business opinion regarding construction activity, in-vestment and labour market conditions. This data is particularly valuable in identifying turning points in thebusiness cycle.
About OCSThe Ontario Construction Secretariat (OCS) was established in 1993 under provincial legisla-tion to represent the collective interests of the organized building trades unions and their signa-tory contractors in the Industrial, Commercial and Institutional (ICI) construction industry. TheOCS works, with our labour-management-government partners, to enhance Ontarios union-ized ICI construction industry by developing relationships, facilitating dialogue, providingvalue-added research, disseminating information and promoting the value of unionized ICIconstruction.Visit www.iciconstruction.com
About Ipsos-ReidIpsos Reid is Canada's market intelligence leader and the countrys foremost provider of publicopinion research. With operations in eight cities, Ipsos Reid employs more than 500 researchprofessionals and support staff in Canada. The company has the biggest network of telephonecall centres in Canada, as well as the largest pre-recruited household and on-line panels. IpsosReids Canadian marketing research, advertising, loyalty, media and public affairs practices are
staffed with seasoned research consultants with extensive industry-specific backgrounds, offer-ing the premier suite of research vehicles in Canada - including the Ipsos Trend Report CanadaOnline, the leading source of public opinion in the country.Visit www.ipsos-pa.com
Report Cover Design & Formatting: Ryan Isojima 2O11 (OCS)
2O11 SURVEY OF ONTARIOS ICI CONSTRUCTION INDUSTRY
MARCH 2O11 - Ontario Construction Secretariat
Ontario Co nstruction Secretariat 2O11
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2O11 SURVEY OF ONTARIOS ICI CONSTRUCTION INDUSTRY
MARCH 2O11
www.iciconstruction.co
940 The East Mall, Suite 120, Etobicoke, ON, Canada M9B Tel: 416.620.5210 Fax: 416.620.53
Toll Free: 1.888.878.88