Saskatchewan's construction industry hits an economic downturn - Action News
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Saskatchewan

Saskatchewan's construction industry hits an economic downturn

A little more than a year ago, oil prices were peaking, the housing market was booming and it was nearly impossible to find an electrician or carpenter to do work on new renovations. Now, that's all changed.

'We've had swings like this in the past,' says local construction superintendent

Rod Schreffler says big corporate construction companies are now pricing smaller companies out of the market. (CBC)

It's a trying time in Saskatchewan for people looking for work in the trades.

Recently, the province's market has been flooded with real estate properties. Online classifieds, like Kijiji, have been inundated with ads of people looking for work as electricians or carpenters in Saskatoon.

RodSchrefflerhas been ajourneyman carpenter since 2011. He joined the industry after many years of work in transportation. Prior to last April, his employer was turning away work because they were so busy.

"The province was in a position where wewere short carpenters andlabourers; we wereworking really hard at keeping up,"he said during an interview CBC'sSaskatoon Morning.

Unsustainable boom

Then, between April and October last year things changed and contracts became tighter and tighter, he said.

"Thebig boys, the larger construction companies, theymoved down into our market placeand priced us out of the market:the bids we were doing, we were doing it to make a small margin; andthey're doing it for lessthan cost," he said. "My employer was forced to lay me off."

Once we get through this, it'llbe a good learning lesson for people to make do with what they have, and not try to expand too fast.- RodSchreffler

Schrefflersaid others like him, site supervisors, were laid off along with apprentices and labourers. He's now on employment insurance (EI), looking for work.

And while there is work out there available, especially job postings on Kijiji, it's work that pays half of what could be earned a year and two years ago, he said. "To raise a family on that you can't afford that."

"You're forced to be picky with the jobs you want.You mightbe forced to take a job out of town, maybe work weekends and evenings, and sacrifice family life to make money to support a family," he explained.

Schreffler said he believes perseverance and focusedjob searching will land him a job in the next few months.

"Once we get through this, it'llbe a good learning lesson for people to make do with what they have, and not try to expand too fast," he said. "Trying to get too many tradesmen here and trying to keep up with the boom that wasn't going to sustain us for long enough has been a challenge."

Market due for a correction

Scott Werner says the market was due for a correction after 10 years of growth. (CBC)

ScottWerner is a site superintendent for a commercial construction company.

He said that despite the tough reality nowadays, It's an up and down industry.

"We've had swings like this in the past. We've gone on such a long positive streak that when we get a correction like we have now, people forget it's cyclical."

Some of the factorshe said he's seen contributing to the downturn aren't all directly tied to the housing and construction industry.

"[There's]lots of residential inventory out there; the oil industry has slowed down, the federal election and provincial election. All those things cause uncertainty," he explained.

"Onceyou hear that there isuncertaintyin any facet,bigcorporatecompanieshave the money, they just don't want to spend it."

But he cautioned,"I'm no expert."

"It's nothingwe should be ringing alarm bells on; it's just one of thosethingswhere you can't not have a plateau, a correction to that growth," he said.