The Residential Construction Council of Ontario (RESCON) and several industry representatives recently hosted federal Housing and Infrastructure Minister Gregor Robertson and Canada’s Secretary of State for Labour John Zerucelli, to discuss challenges facing the industry.

Potential effects on the economy

The group toured the H+ME Technology Plant in Etobicoke, and later the minister and secretary of state met with the group to discuss the challenges facing Ontario’s residential construction sector and the potential effects on the economy. The group also had a wide-ranging conversation about initiatives that need to be put in place to spur new residential building.

Attendees discussed the need to accelerate both PropTech and ConTech, as well as the state of offsite construction and what can be done to accelerate growth and increase production and delivery of housing. RESCON says it appreciates that Robertson and Zerucelli took time out to meet and look forward to working with the federal government to spur construction of more housing.

“Immediate bold and concerted action is needed to get more shovels in the ground for housing projects,” says RESCON President Richard Lyall. “The residential construction industry is in dire straits, and new housing starts and sales are grim. We need to lower development charges, reduce red tape which only adds to approval timelines, and speed up the approvals process. Without a healthy residential construction industry our economy will suffer.”

Swift action necessary

The association warns that a decline in residential construction has the potential to devastate Ontario’s economy. A 30-per-cent drop in industry activity, for example, could result in 121,500 total job losses; a 50-per-cent drop would result in 202,500, and an 80-per-cent dip would total 324,000.

“The entire economy of Ontario would feel the effects of such an industry employment decline,” says Lyall. “Industries that supply the new home market with everything from lumber to drywall and windows would also be affected. A decline in the construction workforce would result in hardship for many families. It is critical that we take swift action to boost homebuilding in Ontario.”