Never been better for the British Columbia Construction Industry

by Martin van den Hemel

There's never been a better time to be in the construction industry, with unprecedented demand and booming real estate prices combining with a strong economy chugging mightily along toward the 2010 Olympic games.

This perfect building storm hasn't gone unnoticed by the men and women who are the electricians, plumbers, gas fitters and carpenters. Many are taking up the entrepreneurial spirit by venturing out on their own and hanging out their own shingles rather than working for someone else.

It's the owners of these fledgling firms, who have been in business a couple of years and have about three of four employees, who comprise the typical new member of the Independent Contractors and Businesses Association.

But why join an association?

Philip Hochstein, president of ICBA, said there's plenty his association has to offer, such as bridging the knowledge gap, providing new owners with management insight that will help them better run their business.

There's an apprenticeship program for members, where the association subsidizes tuition to the tune of $200 per year.

As well, there's a management training program for estimating projects costs, first aid training, workplace hazardous material information system training, traffic control certification and WorkSafeBC courses.

But the main reason small companies jump aboard is the health plan coverage the association can provide at a relatively low cost.

"Young families come to us for health and medical coverage," said Hochstein, adding that one of the association's plans has more than 7,000 individual employees signed on.

By representing so many people working for nearly 1,000 member firms, the association is able to offer prices for coverage that their members might otherwise not be able to obtain.

Hochstein said the association's membership has in recent years been growing about 25 per cent annually, and he attributes that to the unique services his association provides in the construction industry.

The association also does advocacy work, ensuring that the positions of its members are heard by government.

What also sets it apart, he said, is that the association isn't afraid to take a strong position on issues.

"What separates us from others is our willingness to advance our position," Hochstein said.

The typical member has 10 employees in various trades, such as electrical, plumbing or air conditioning, as well as a couple of apprentices. They are registered to a health plan and are taking management training.

"If he or she does all that, they are getting full value for their membership fee," Hochstein said, noting that annual membership is $600, and with two apprentices taking classes, a member firm qualifies for $400 in tuition reimbursement.

What the public has been witnessing in the past five years is unprecedented demand for construction services.

This, coupled with depressed wages throughout the 1990s and an NDP government that scared away investment, resulted in a major gap.

And so in the last few years, the industry has been playing catch-up in terms of wages and supply costs.

"That's why construction inflation is the talk of the town."

But Hochstein believes that the catch-up cycle has completed itself.

And so job estimates made today are going to be more accurate.

As a result, Hochstein sees blue skies ahead for the industry which he believes will continue to flourish.

For start-up firms, Hochstein said his association can put owners in touch with similar contractors, provide networking opportunities, as well as medical and dental coverage, life insurance and long term disability coverage, among other things.

There are a myriad training courses and mentoring opportunities which can give new firms direction when it comes to project negotiations to help them become more successful.

So where does Hochstein see the association going in the coming years?

Hochstein said he knows the future is internet-based. Where insurance agents once knocked on doors, today, someone can do all that searching and purchasing online.

Five years down the road, Hochstein sees the services ICBA offers going national, with other similar organizations sprouting up in each of the provinces.

He sees health plans going national, with everything administered in either B.C. or Alberta.

And he sees ICBA as the largest construction association in British Columbia

Copyright 2008

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