An immigration push by Sault Ste. Marie contractors and labour to attract foreign workers has attracted only a dribble of new recruits from the United States.
A growth spurt across all construction sectors in the Sault has put a ton of pressure on local companies to supply out mechanical trades people for out-of-town contractors working on a new hospital and industrial expansion at Essar Steel Algoma.
Understandably, the local industry is struggling to catch up. The Sault Area Hospital construction project has been gobbling up plumbers, pipe and steamfitters, and the city's biggest private employer, Essar Steel Algoma, has aggressive plans to spend $160 million US to expand its production by million tonnes next year.
It includes a slew of new projects and upgrades, including a co-generation plant and coke oven work.
"It's a perfect storm, but a good one to have," says Sault Ste. Marie Construction Association manager Rick Thomas.
To address the critical labour shortage, Human Resources and Social Development Canada gave approval under their foreign worker program for more than 100 slots to be filled for construction projects in the Sault. An application was jointly filed by four companies and local trade unions.
As a way of protecting Canadian jobs, rules dictate it's an employer and program-specific application process. Foreign workers with temporary work permits can't be shuffled to other projects, and other companies.
"We also knew if we put foreign workers into other slots, we would free up some people to go to hospital from other sites."
The Sault applicants were grant 104 slots, but only a dozen have been filled. They were sourcing workers in northern Michigan where there are sister trade locals.
Inter-provincial regulations to improve labour mobility have not really improved the manpower supply situation.
"The average well-skilled pipefitter can have his choice of employment anywhere in this country."
The open call for labour in Alberta has made any recruiting efforts meaningless.
"We know who's scheduling work and we're not completely aware of what's going on in other parts of the country."
To try to close the gap on the skilled trades shortage, the local industry has resorted to the apprenticeship route. Fifty three new plumbing and steamfitting apprentices have been started in the last two to three years in the Sault.
It takes four to five years to create a journeyman. "That's one avenue to fight the problem but it's long-term payoff."
Hopefully, the ton of experience many local tradespeople are seeing will keep them in the Sault for a long time to come.
Thomas is excited and encouraged about the diversity of projects being constructed locally and the quality work by local contractors in meeting the challenge.
"To be able to do most of the mechanical and electrical work on a $480-million hospital with contractors from this community is thrilling."
Major sub-trades from southern Ontario, have dipped heavily into the local labour pool.
Thomas isn't phased by Essar's decision to "bank" its recently refurbished No. 6 blast furnace because of the steelmaker's order book suddenly drying up this fall.
Once the U.S. economy straightens out and companies feel confident to spend on projects, he doesn't foresee any long-term ripple effects through the Sault's economy.
"We continue to believe they are going to be a great client for this industry locally for a long time to come."
Aside from the new hospital rising in the city's north end, the most visible signs of construction is on the retail side.
Great Northern Road continues to be a hot bed of activity with new retail strip mall space going up and an office complex under construction, all clustered around the Wal-Mart/Home Depot shopping district. A Fairfield Inn and Suites hotel is being proposed nearby on the site of a former mini-putt.
In the city's east end a new grocery store is being built on Trunk Road.
Local school boards are making the most of the province's $700 million capital investment fund with new construction in the offing.
A consortium of MGP Architects Engineer Inc. of Sault Ste. Marie and Toronto's ZAS Architects has been selected to build a new high school in the Sault. It will consolidate two aging schools and is slated for a 2011 opening.
The proposal by Dave Ellis Architect Inc. and Teeple Architect Inc. has been accepted to build a new elementary school and for the design of an addition to a public school in Hornepayne.
While Thomas is hesitant to use the word 'boom' to describe the local construction scene, he says the market has enough legs to last for a few years.
City-issued building permits for upcoming construction dipped dramatically in August of this year, compared to the same month last year. But still remains healthy.
Commercial, industrial and institution construction all declined from more than $191 million in August 2007, to $40.3 million this year.
Residential construction values increased slightly from $24.4 million in August 2007, to $30.9 million during the same period this year.
Overall, the accumulated total construction values decreased from $215,612,516 to the end of August 2007, to $71,296,771 during the same period this year.
