Unlocking the Economic Power of Mechanical Contracting in Canada
Introduction
In a recently unveiled report, the Mechanical Contractors Association of Canada (MCAC) has highlighted the vital role of mechanical contracting in the nation’s economy. Contributing over $30 billion to Canada’s GDP and providing employment for more than 205,000 workers, the findings shed light on how essential this sector is to not just construction but also the overall economic health of the country.
An Overview of the Report
Commissioned by MCAC and developed in collaboration with BuildForce Canada and Prism Economics, the report titled Building Canada Now: The Economic Impact of Mechanical Contracting in Canada offers both a national overview and intricate details by province. It examines the sector’s economic output, the size of businesses, employment statistics, and average income levels, painting a comprehensive picture of mechanical contracting across the country.
Contributions to Canada’s GDP
The report underscores the significance of mechanical contractors, asserting that they are responsible for 20% of Canada’s total construction output. When delving into specific areas, it is noted that mechanical contractors contribute 35% to total engineering construction, 21% to non-residential building construction, 7% to repair construction, and 12% to residential building construction. This data reinforces the notion that mechanical systems form the backbone of the construction industry.
Income and Employment Metrics
Beyond sheer output, the sector also plays a crucial role in job creation and wage distribution. With over $14 billion paid in wages and mechanical contractors comprising 16% of all construction establishments, the industry clearly provides significant opportunity and stability for workers. Notably, 76% of contractors operate businesses with fewer than 10 employees, suggesting that a substantial portion of the workforce is engaged in small enterprises.
Bolstering Apprenticeships
The mechanical trades sector—including millwrights, plumbers, pipefitters, steamfitters, refrigeration and air conditioning mechanics, and sheet metal workers—has a positive impact on apprenticeship numbers. Statistics Canada indicates that these trades account for 26% of total registrations and 27% of certifications across key construction trades in 2023, highlighting the importance of the mechanical sector in workforce development.
Sustained Impact on the Built Environment
As stated in the report, the contributions of mechanical contractors extend beyond the creation of new structures; they are vital for the ongoing operation and sustainability of Canada’s built environment. Their roles encompass a variety of construction subsectors, including engineering construction, non-residential buildings, repair construction, and residential projects.
Limitations of the Report
While illuminating many aspects of the mechanical contracting sector, the report does acknowledge its limitations, particularly regarding industrial activities. It points out that mechanical contractors often engage in maintenance, shutdown, and turnaround activities, taking on a disproportionately larger share of work in these areas compared to their counterparts in other contracting disciplines.
Future Discussions and Goals
In light of these findings, MCAC aims to foster ongoing conversations with all levels of government about the crucial role that the mechanical contracting sector plays in the economy. Tania Johnston, MCAC’s Chief Executive Officer, emphasized the need for continued support, remarking, “Every building, business, institution, or industrial facility in Canada requires mechanical systems to operate.” As the government rolls out ambitious construction strategies, reinforcing the mechanical contracting sector will be essential for maintaining a robust and resilient economy.
Conclusion
The new report from the MCAC serves as a wake-up call to policymakers and industry stakeholders about the substantial contributions of mechanical contractors to Canada’s GDP and labor market. As the construction landscape evolves, the mechanical contracting sector is poised to remain a cornerstone of economic stability and growth. Recognizing and supporting this sector will not only enhance job creation but also ensure the sustainability of Canada’s infrastructure and built environment for years to come.
