High Inflation Bankrupting Construction Companies In Canada

[Economy 52,838]

https://betterdwelling.com/greater-toronto-real-estate-development-files-insolvency-after-inflation-squeeze/

 

Another Construction company in Canada is filing for insolvency given surging costs from labor shortages, rising material costs and other delays. 

 

Construction costs in Canada have increased 35.1% since 2019

 

Despite very expensive real estate Canada's Construction Companies often face thin profit margins as a slow approval process faced with many delays, stringent inspection standardards and high labor costs in the industry make Canada one of the most expensive places in the world to build

 

The unexpected surge in inflation is pushing many over the edge. Because many units often get sold before completion of the project in order to help finance it, if costs rise a lot faster than anticipated it is no longer possible to pass it down to the consumer, a downside of the practice of selling units before they are actually finished

[Economy 52,838]

Failing construction companies...

 

This is really gonna help Trudeaus Governments pledge to double the pace of home construction in the country by 2030 to alleviate the housing Crisis

 

@PartySick how do construction companies in Florida make money when ur realestate costs like not even 1/4 of ours? What is ur secret??? Do u not pay ur workers like Trump? 

[Mother of Puppies 36,615]

13 minutes ago, Economy said:

Because many units often get sold before completion of the project in order to help finance it, if costs rise a lot faster than anticipated

This is exactly the problem. My parents work in that field and it's so hard to plan because costs are rising like crazy... and it's also so difficult to get materials in time.

[PartySick 172,394]

13 minutes ago, Economy said:

Failing construction companies...

 

This is really gonna help Trudeaus Governments pledge to double the pace of home construction in the country by 2030 to alleviate the housing Crisis

 

@PartySick how do construction companies in Florida make money when ur realestate costs like not even 1/4 of ours? What is ur secret??? Do u not pay ur workers like Trump? 

I'm not sure

I know construction workers here make poverty wages  something like $20k. Which is a lot less than I make with a LOT more risk to health and wellness 

[Economy 52,838]

1 hour ago, PartySick said:

I'm not sure

I know construction workers here make poverty wages  something like $20k. Which is a lot less than I make with a LOT more risk to health and wellness 

Wtf???? Construction wages here are like $80k a year (can be more or less depending on experience and occupation) 

 

Edit: I guess for Canada as a whole they make less than in my Province. Everyone I know in construction makes $30 to $40 an hour but here is what a Google search popped up:

 

"Canadian construction workers earn the third-highest average salary in the world ($55,927) which is behind only Switzerland ($79,159) and the United Kingdom ($57,957)"

 

My Province (Ontario) is growing faster than most Provinces and has a chronic severe shortage in the industry for many years so I suspect Ontario, Alberta and British Columbia are all above this National average of $56,000 while all the other Provinces are probably below that line

[Economy 52,838]

1 hour ago, Mother of Puppies said:

This is exactly the problem. My parents work in that field and it's so hard to plan because costs are rising like crazy... and it's also so difficult to get materials in time.

I can only imagine. And I bet everyone thinks your just drowning in money too.

 

Ppl dont understand profit margins. They think every company is like Apple or Walmart or one of the Big Banks with big margins even tho companies with margins like that are like 1% of companies/corporations  

[PartySick 172,394]

5 hours ago, Economy said:

Wtf???? Construction wages here are like $80k a year (can be more or less depending on experience and occupation) 

 

Edit: I guess for Canada as a whole they make less than in my Province. Everyone I know in construction makes $30 to $40 an hour but here is what a Google search popped up:

 

"Canadian construction workers earn the third-highest average salary in the world ($55,927) which is behind only Switzerland ($79,159) and the United Kingdom ($57,957)"

 

My Province (Ontario) is growing faster than most Provinces and has a chronic severe shortage in the industry for many years so I suspect Ontario, Alberta and British Columbia are all above this National average of $56,000 while all the other Provinces are probably below that line

You would think operating heavy machinery in potentially unsafe conditions would lead you to earning more but no. I also don't know if American construction workers are unionized or prohibited from unionizing like a lot of other professions.

They certainly aren't efficient either though 

It seems like any building project takes FOREVER to finish. They started building a bank about a mile from my house a year ago and they're only just now pouring cement for the parking lot with no announced opening date.

There's also a neighborhood behind a few restaurants that, get this, was started when I was in middle school  that's like 14 years and all they've done is level the trees and put down frames for the houses that will eventually be there 

[Economy 52,838]

16 hours ago, PartySick said:

You would think operating heavy machinery in potentially unsafe conditions would lead you to earning more but no. I also don't know if American construction workers are unionized or prohibited from unionizing like a lot of other professions.

They certainly aren't efficient either though 

It seems like any building project takes FOREVER to finish. They started building a bank about a mile from my house a year ago and they're only just now pouring cement for the parking lot with no announced opening date.

There's also a neighborhood behind a few restaurants that, get this, was started when I was in middle school  that's like 14 years and all they've done is level the trees and put down frames for the houses that will eventually be there 

Don't talk to me about building efficiency. In Toronto a condo project may still be in a beaurocratic approval process after several years of an application first being put in. I saw a study once that ranked Canada 34 out 35 Nations studied for building efficiency . Although this was more to do the the laws and approval processes than the actual workers building

 

I think the reason construction wages are so high here is cuz Canada has an unusually fast growing population for a developed Nations making construction chronically always in high demand. Construction is 6% of our GDP while in a typical developed Nation it's 3%... Combined with the fact that a high education rate (highest in the world by some measures) means not many people want to do that kind of job so you have to offer money for them to do it

 

In Canada especially Provinces like Ontario construction is kind of like the fail safe backup career for those who do not wanna go to school but still wanna make good money. If your not school material but your willing to do some hard physical labor you got yourself a good paying career

 

I find interesting the difference in pay for some industries between the US and Canada.

 

For example Teachers make more in Canada and so do construction workers... Doctors/Nurses, Lawyers or IT and Software programmers on the other hand make more in the US...