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Executive Director
Executive Director’s Message
With this year’s construction season wrapping up (hopefully not quickly), most of the feedback I’ve had from members is that it started out slow but got progressively busier over the summer. Some of this may have had to do with the Provincial Budget being delayed because of the election. On a positive note, the Budget emphasized the Liberal Government’s commitment to transportation infrastructure investment.
Over the coming months, ORBA will be developing strategies to work with municipalities on addressing their infrastructure deficits. We need to see more investment across Ontario’s communities on roads, bridges, highways and other transportation infrastructure projects.
Ontario’s municipalities own and are responsible for maintaining almost 50 per cent of Ontario’s public infrastructure including more than 15,000 bridges and large culverts and more than 140,000 kilometres of roads. This is more than double the provincial (12.4 per cent) and federal governments (9.2 per cent) combined. Municipalities are currently facing an infrastructure deficit of over $60 billion, of which $28 billion accounts for the infrastructure gap for roads and bridges alone.
Transportation infrastructure is a critical public asset that affects people’s everyday lives and business competitiveness, while also playing a key role in long-term economic growth and development. Conversely, poorly maintained infrastructure
delivers a lower quality of services, costs more to repair and replace, and can increase risks to health and safety from potential failures. Traffic congestion has become an increasingly devastating issue, particularly in the Greater Golden Horseshoe, where it causes upwards of $11 billion a year in lost economic productivity.
Traffic congestion has become the #1 issue affecting economic growth and social prosperity in Ontario. Eliminating the staggering infrastructure deficit currently facing municipalities as well as expanding our existing transportation infrastructure will place municipalities and Ontario at a competitive advantage.
While we have our work cut out for us in strategizing around municipalities, we are also continuing our work with the MTO on CFAAST. As I have noted in the last number of my articles, CFAAST is focused on improving the MTO’s procurement process to ensure fair, open and equitable policies. I look forward to penning an article soon regarding ORBA and the MTO’s resolution of CFAAST issues and the launch of the implementation process. Unfortunately we still have some hurdles to overcome, including contractors right to unfettered access to arbitration or litigation through the removal of the litigation provision within the exclusion clause.
As we move into winter we are seeing some progress on our winter maintenance issues. We are working together with the MTO on the issues we addressed last winter as significant
concerns of not only our winter maintenance contractors, but to capital construction contractors as well. With the roll out of performance specifications across capital construction projects we need to iron out the problems with the third generation winter maintenance contracts in order for these to be avoided within other contracts. Government and industry must work together in a partnership in order for our relationship to be successful. Again, ORBA is seeing progress in addressing our issues and are optimistic things are looking brighter for our partnership with MTO.
Since our last edition of The Road Builder we have had two very successful networking events. The ORBA Membership Committee was instrumental in bringing the idea of a Summer Roundup to fruition. The September 18 event at the Sarcoa Restaurant and Bar successfully brought together approximately 200 contractors and associate members and we were honoured to have Minister Steven Del Duca attend. This inaugural Summer Roundup was so successful, we are already starting to plan ahead for next year’s event.
In keeping on topic with successful ORBA events, the 2014 Ladies Evening at the Ritz Carleton on October 18 saw an increase in attendance to 280 participants - an increase of 35 per cent over last year. A special thank you goes out to the companies and individuals that attended and to the sponsors that help make this special evening possible.
AAround Queen’s Park
MPPs Return to Legislature for Fall Session
by Ashley De Souza, Director, Government Relations
s of the time of this writing, MPPs are preparing to return to Queen’s Park after a later than usual start to their summer recess. Ministers have all settled into their portfolios (new or existing), staffing in all the Minister’s offices are nearing completion after a post-election, post-Budget staffing transition and individual mandates from the Premier to each Minister have been delivered.
The first couple months after the June election has afforded Premier Wynne the opportunity to put her stamp on the operations and direction of the government for the next four years. In an unprecedented move, the Premier publicly released all mandate letters which were delivered to every Cabinet Minister. The structure of the government has also changed as the government has moved back to a Regional Minister operational system that was utilized before operations were centralized in the Premier’s office in 2007.
With a majority government now in place, the legislative landscape will change significantly from the instability of minority government we have experienced since 2011. The government will look to move on a lot of initiatives outlined in their Budget as well as key promises made in their election platform. The ability for the government to introduce and pass legislative reforms in a timely fashion is more likely with fewer roadblocks than previously experienced.
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ORBA staff have spent the fall months introducing ourselves and our issues to new Cabinet ministers, MPPs, and their staff as well as re-introducing ORBA to Ministers with new portfolios. While ORBA continues to push forward and advocate for progress on our 2014 Priority Issues, I wanted to take this opportunity to update members on a number of different files and issues that are of interest for the industry.
Oversize/Overweight Permits
Last November, MTO centralized permitting operations for O/O applications to its St Catharines office. Previously, applications were handled at the regional office and turnaround times in most cases were 12-24 hours. Despite repeated warnings from ORBA about possible issues, MTO assured the industry that aside from a one week transition last November they did not anticipate any service disruptions this year.
However, this year contractors have seen tremendous delays with many seeing turnaround times on average between 7-10 days, far exceeding the MTO’s internal 72 hour stated benchmark. ORBA staff has been fielding complaints from members from all across the province regarding delays and a lack of customer service when following up with the permits office. This has resulted in constant delays, and multiple lost days of production. Logistical issues have also occurred as contractors are also unable to secure police escorts until permitting has been acquired which further compounds delays.
MTO is currently looking at rolling out a new IT system and process for handling permit applications next year. ORBA was able to put forward several members to participate in a pilot project that is currently underway on the new system and will have more information to share with members once the new system has been finalized.
We would like to encourage all ORBA members to continue to document and log any longer than usual delays that you may have been experiencing this year with obtaining O/O permits as our office continues to track these delays on your behalf as well. Hopefully, through ORBA’s participation in MTO’s new pilot project a new system will emerge that will significantly improve turnaround times for members next spring.
Government to remove exemptions for “Non-Traditional” Road Building Machines
MTO is looking to move forward with amendments to the Highway Traffic Act to remove exemptions on what they consider “Non-Traditional” road building machines. This would include licensing and registering machines such as hydrovacs, mobile cranes and concrete pumpers. MTO would also remove the fuel tax exemption on these machines. It has been estimated that this would generate additional revenue to the province of $50 million.
The larger implication of such a move, which has gone largely unnoticed, is the impact it will have on a company’s CVOR as these vehicles are added onto the system. The MTO changed its CVOR system in 2007 from a fleet based model to a kilometric model which has been to detriment of local operators.
ORBA is a member of the Local Operators Coalition of Ontario (LOCO). LOCO represents a group of organizations – private sector companies, public sector municipalities, and organizations involved in the delivery of goods and services within a low kilometre urban environment. Collectively we have been raising concerns for over four years.
In the pre-2007 system, a truck was a truck and it did not matter if it was driven in the city or on the highway, it was considered to carry the same exposure risk. However in the new CVOR system, the kilometric travel value amplifies the unfairness of the risk exposure curve as it no longer views two vehicles the same way.
For example, if a local fleet typically travels 3,000 km per month per vehicle while a highway fleet travels 20,000 km per month per vehicle. The new thresholds essentially dictate that 20 local vehicles carry the same risk as three highway tractors since they both travel the same 60,000 km per month. Clearly, it is evident that there is something wrong with this approach.
ORBA has requested to the Minister that before the MTO moves forward with changing the definition of a traditional road building machine that it works with industry to address the unfair playing field the CVOR system has created for local operators. We hope to have more to share on this front in the coming weeks and months.
Review of College of Trades
The government in its election platform and in a recent mandate letter has committed to undertaking a review of the operations of the College of Trades. The government will appoint a Special Advisor to review the College of Trades’ application process and scope of practice of trades – including how this scope relates to enforcement.
ORBA and the Ontario Skilled Trades Alliance have been on record since last October calling on the government to pause all ratio and trade status reviews until a full review of the College’s processes and procedures are undertaken.
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Recently, ORBA staff and contractors, alongside other industry partners met with the Premier’s Chief of Staff to discuss the review and its terms of reference. It was conveyed to us that the review is happening to address two real concerns. One is a process question including the processes for trade status reviews and ratio reviews. The second was around enforcement, specifically handling of jurisdictional disputes of trades, ie. what is the jurisdiction of the Ontario Labour Relations Board as opposed to what is the jurisdiction of OCoT officers?
It was also conveyed to us that no new applications for trade status review will be accepted and all existing applications will not proceed until after the review is completed. Construction employers have advocated for a broad terms of reference to also look at the skills promotion piece as well as pushing for a non-biased, impartial individual who is not associated with the College to chair the review.
We expected an announcement on who will lead this review shortly.
WSIB Employer Premium Rates
The Workplace Safety and Insurance Board (WSIB) announced in August that premium rates for all employers, except one rate group, would remain at their current levels for 2015.
As a member of the Construction Employers Coalition (CEC), ORBA has long been advocating for the reduction or maintenance of premium levels on behalf of our members and affiliates. ORBA does not believe that the WSIB’s liabilities are the responsibility of employers to cover. The CEC has been working very closely with the WSIB since 2010 to improve funding levels and this work is paying off. While it is recognized that the Board’s recovery is not complete, WSIB tax rates must be more realistically set moving forward.
Since 2004, construction injuries have declined by 36 per cent, and yet, over the same time period, the average maximum construction premium per worker has increased by 41 per cent. While employers are continually investing in health and safety training and technologies to improve their LTI performance, we have not seen a return for this
investment (through decreasing premium rates) in over a decade.
Following this announcement, ORBA and our partners in the CEC are calling on the WSIB to have premium rates more reasonably reflect employer performance and WSIB funding needs.
Long-Term Stability of the WSIB
According to recently released Mandate Letters, the Ministry of Labour intends to consider such issues as removing the 72 month lock-in provision, enhancing survivor benefits, implementing a long-term strategy to deal with indexation for partially disabled workers and other further reforms. ORBA is in favour of considering such issues but submits that any reform must first and foremost strengthen the WSIB’s long-term stability.
It is widely known that the WSIB is currently dealing with a very significant unfunded liability, currently at $9.56B, and that its reduction (and thus long-term stability and financial viability of the WSIB) is of primary concern.
Depending on what the government intends to do with the 72-month lock-in provision, survivor benefits and other reforms, changes may put the long-term stability of the WSIB system at risk.
ORBA and the CEC will continue to monitor the legislative framework to ensure that reduction or maintenance of premium levels, as well as eliminating the WSIB’s unfunded liability, take priority at the WSIB, at a time it is attempting to get its finances in order. Increasing premiums is not a viable alternative to dealing with the related costs.
As the Government of Ontario enters into a new legislative session, our government relations team here at ORBA will continue to keep members informed of any regulatory changes, policy initiatives, or issues of concern as they arise that may potentially impact our industry.
ORBA’s government relations efforts remain focused on supporting and promoting the growth of Ontario’s transportation infrastructure industry. If there is ever an issue that arises that you feel impacts your company or the industry as a whole, please do not hesitate to call me directly. As always, we are here to help.
Premier’s Mandate Letters
Made Public
The provincial Wynne government, for the first time ever, has released publicly the mandate letters that will guide Ontario’s new government over the next four years.
The letters, 30 in total, outline the specific priorities that each member of Cabinet and their ministry will focus on for the next four years. Mandate letters are essentially the objectives the Minister must achieve in the lead up to the next election.
The public release of the mandate letters is part of Premier Wynne’s Open Government Initiative and reflects the open and transparent theme the government has emphasized. The theme of collaboration, within government and with outside stakeholders, is also strongly woven throughout the letters.
A majority of the items listed are spending initiatives unveiled in the Budget this past May. Highlighted below are some of the specific priorities at Ministries with ORBA-related files.
Ministry of Transportation:
• Working to support Moving Ontario Forward, the $29 billion investment strategy for transit and transportation, through the strategy’s two dedicated funds – the $15 billion Greater Toronto Hamilton Area Fund and the $14 billion fund for projects in the rest of the province;
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• Bringing forward a proposal to implement highoccupancy toll lanes to supplement the dedicated funds allocated in Moving Ontario Forward;
• Working to make progress on Highway 407 East Phase One and the Rt. Hon. Herb Gray Parkway, Highway 407 East Phase 2 and the widening of Highway 69 between Parry Sound and Sudbury;
• Proceeding with several planned projects such as a new four-lane alignment on Highway 7 between Kitchener and Guelph and extending Highway 427 from Highway 7 to Major Mackenzie Drive in York Region.
Ministry of Labour:
• Working with the construction sector, through the Chief Prevention Office, to develop an action plan to strengthen workplace accident prevention in the construction sector;
• Accelerating the transformation of Ontario’s occupational health and safety system, as recommended by the Expert Advisory Panel;
• Working with the Workplace Safety and Insurance Board to consider such issues as removing the 72 month lock-in provision, enhancing survivor benefits, implementing a long-term strategy to deal with indexation for partially disabled works and developing further reforms;
• Working to better protect migrant workers in Ontario.
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Ministry of Economic Development, Employment and Infrastructure:
• Working to secure the passage of Bill 6, the Infrastructure for Jobs and Prosperity Act, which would establish the requirements for long-term infrastructure planning in the province;
• Launching the permanent Ontario Community Infrastructure Fund, which will provide $100 million per year for investment in roads, highways and water infrastructure projects in Ontario’s small and midsized communities;
• Continuing to refine the approach to delivering Ontario’s Alternative Financing and Procurement model.
Ministry of Training, Colleges and Universities:
• Working to ensure the appointment of a Special Advisor to review the College of Trades’ application process and scope of practice of trades – including how this scope relates to enforcement.
• Working with the Ontario College of Trades to improve apprenticeship completion rates and enhance access to apprenticeship and the trades in Ontario.
Ministry of Natural Resources and Forestry:
• Managing aggregates - engaging with stakeholders, Aboriginal communities and other concerned ministers to address the recommendations of the Standing Committee on General Government’s Report on the Review of the Aggregate Resources Act.
• The Minister will also bring forward recommended regulatory and legislative changes to improve the Aggregate Resources Act.
ORBA will continue to identify opportunities to work with the government on policy areas where there are existing synergies and alternatively, will be proactive in developing public policy alternatives and solutions to those which may pose some concern to the industry as a whole.
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ORBA Welcomes Richard Stamper
as Manager, Member Services
ORBA is pleased to announce that Richard Stamper has joined us as our Manager, Member Services. Richard comes to us from the Ontario Association of Certified Engineering Technicians and Technologists (OACETT) where he was the Manager, Business Development. In addition to his association experience, he also has for-profit senior management experience in the fields of sport licensing, retail and promotional apparel and brand consulting.
Richard will oversee ORBA’s membership department focusing on two key strategic areas: member retention
and development; and ORBA products and services including the ORBA convention, Road Building Academy, Road Builder magazine, Information Highway newsletter, Drivers License Status Check, Education and Networking Events.
Richard is an avid golfer, runner and cyclist and has coached his sons’ hockey and soccer teams.
He can be reached at richard@orba.org or 905 507 1107 ext 222.
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Q & A with Steven Del Duca Minister of Transporatation
In June 2014, Steven Del Duca was appointed by Premier Kathleen Wynne as Ontario’s new Minister of Transportation. Now, nearly five months since assuming his new role, Road Builder caught up with the Vaughan MPP to discuss his ministry plans and his ongoing relationship with ORBA and its members.
Q: What is your background, and how will this influence you in this new role?
A: I was first elected to Ontario’s legislature in a 2012 by-election after my predecessor, Greg Sorbara, retired. Prior to that, I served as the director of public affairs for the Carpenters’ District Council of Ontario (CDC) for about five years. Before that, I obtained my law degree and served in politics for a number of years.
In my time with the CDC, I worked with a number of elements from Ontario’s construction industry, and that brought me into close contact with representatives from a wide variety of construction sectors, including road building. My family also has a long history of working directly and indirectly in construction, so while I might not have experience dealing directly with the road building sector, I’ve always had a great deal of respect for the people who provide Ontarians with all forms of physical infrastructure.
Q: From your perspective, what are the most important issues affecting Ontario’s infrastructure?
A: We’re at a critical time right now. We’re dealing with an explosive population growth across the Greater Toronto Hamilton Area (GTHA) and more than a generation’s worth of inattention to our physical infrastructure, which has created a deficit in terms of the state of repair for our roads, highways, and bridges.
That said, there’s no doubt that over the last decade our government has made significant investments in transportation infrastructure and public transit infrastructure. We’ve talked about the need to invest $29 billion over the next decade, which
is $15 billion for the GTHA and another $14 billion for the rest of the province. However, when you look across Ontario – or even Canada – studies show there is a looming infrastructure deficit. That’s not a surprise, and it wasn’t a surprise when I was knocking on doors to hear people speak passionately about the importance of making sure we make these investments.
The reality is our roads are congested, and we have to move beyond endless debates and discussions about what needs to happen and just make it happen. We need to roll up our sleeves and work with our partners – including ORBA – and get on with the job that the people elected us to do.
Q: Speaking of which, what has the job entailed so far?
A: It’s been a bit of whirlwind for me over the last few months. We’ve had a number of exciting announcements in terms of new projects that we are committing to undertake. For example, just recently I was very happy to announce the widening of 427 and 410, which are both significant projects. I was also thrilled to be up in East Gwillimbury to announce that the 13-kilometre stretch of Highway 404 that’s been under construction for the last few years was finally ready to be opened. To be there that afternoon with a number of colleagues and municipal representatives to officially cut the ribbon was a great day.
In my own riding here in Vaughan, there’s been the widening of Highway 427. That’s one thing that took place before I became the Minister of Transportation, and now I’ve had the chance to learn an awful lot more about it. There’s also been the Highway 7 piece we’re doing down in Kitchener, a major highway construction that will take place in northern Ontario, and the projects down in Windsor, to name just a few.
Q: Looking ahead, what are your most immediate priorities?
A: The thing that’s most important for me is achieving balance. We have a very, very ambitious plan to invest in public transit infrastructure; and while that’s critical, we need a multi-faceted approach. We still need to invest billions in public transit, and we will, but we also have to make sure our roads, highways, and bridges are in a state of good repair at all times because it’s about providing people with a wide array of choices. In regards to our Goods Movement strategy, and supporting our economic development, we need to make
sure not only commuters can move around the system with relative ease, but that goods can as well.
I’ve only been at this job for a few months, but the experience of serving as Minister of Transportation has been great so far.
There’s still a lot to learn. It’s a big portfolio and it’s a pressing portfolio in terms of our government’s ambitious plans. I’m really excited to have the chance to work with ORBA and partners across all sectors to deliver positive results for the people of the province.
Q: What about the “big picture”? What are your long-term goals?
A: Here’s my perspective on this: I’ve lived in the GTA for my entire life, and in Vaughan for about 27 years. A decade ago, long before I became an MPP, I was working at Queen’s Park, and my commute was about 45 to 50 minutes each way. Now, a little bit more than a decade later, my distance hasn’t changed but the commute is almost an hour and 20 minutes each way, and it really doesn’t matter what route I take. That’s an extra 40 minutes every day of the week, and that’s the
same for every single person who is striving to create a strong quality of life in the GTHA. It’s also what companies who are trying to move their goods across this region are facing when they’re making decisions about where to invest or how much to invest.
So even though we’ve pumped billions of dollars into transit infrastructure since 2003, we need to make decisions now and get the work done in the shortterm so that people can regain confidence in our transportation system. I feel a very urgent need to roll up our sleeves and get to work, whether its dealing with the
$2.5 billion we’ve earmarked for road, bridge, and our highway upgrades over the course of this year and next; or radically transforming the GO Transit into two-way all-day go service that will give people better choices in communities from Barrie to Durham, Kitchener to Milton, and in between.
Ultimately, if we’re talking both short-term and long-term goals, it’s a mix. I want to do what needs to be done to convince people that our transportation network can work and it can keep our economy moving in the right direction while giving people a better quality of life.
Q: What is your relationship with ORBA, and how will it continue in your new role?
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A: I’m lucky because prior to becoming minister I had strong relationships with various elements of ORBA as an MPP. Now, I’ve had the chance to be involved in a number of discussions with representatives in the association. That said, I’m relatively new on this job and I know there’s been a long-standing and mostly positive relationship between ORBA and Ontario’s Ministry of Transportation. As with any relationship in life, it’s been through its ups and downs, and I understand there have been items over the last couple of years that have provided particular irritants to both parties. What I’ve said to both road builders and my own officials at the ministry is that I want to bring the parties together to find the solutions.
We’re still in our early days, I’m still learning, and the conversations have really only begun in earnest over the last few weeks. I am, however, an optimist by nature and hopeful that based on my historic relationship with the industry and strong personal philosophy about the importance
of customer service, that we can work through those irritants and keep that relationship strong, robust, and healthy for another 100 years.
Q: What role do ORBA members have in strengthening that relationship?
A: It’s important for me to get outside the ivory tower and hear directly from people in the industry who are experiencing the outcome of the decisions we’re making. It’s interesting, I was at an ORBA event in Hamilton this fall and I had the chance to sit down face-to-face with reps from the association, who are the people actually creating the jobs, risking the capitol, and doing all the things they need to be doing to be a very successful entrepreneur.
I could tell the first couple of individuals I spoke to were holding back a little bit, so I reminded them that it’s important to hear their unvarnished opinions and perspective on what’s taken place so that I can work with them and ORBA’s representatives to find those solutions.
Ultimately, I need to hear what the challenges and issues are. It doesn’t mean that every single time an issue is flagged that there will be a resolution that’s entirely satisfying to every single ORBA member. However, what I can commit to, and what I have committed to, is doing my very best to try and find positive solutions for the challenges we all face.
Q: Who is Steven Del Duca outside of the office?
A: I’m a father, son, husband, and brother. I have lots of family and friends who live in this community, and think I’m very blessed. At the end of the day, though, my most important responsibilities I have are as a father to two young daughters. And while I’ve lost some of that free time in the past few months, I still have the chance to drop my daughters off at school most mornings and spend time with them at the end of the day. When I do, it really helps to focus my mind. It helps me understand that the decisions we’re making and investments we’re planning to make will have an impact for them over the long-term. It will give them choices. That’s why I feel a particularly urgent need to get on with the job.
Bridging the Skills Gap
How educators, employers, and industry can build tomorrow’s workforce
by Matthew Bradford
Connecting people to jobs, and jobs to people. This is the challenge facing industries across Ontario as they work to replenish the province’s skilled labour pool – and it’s no easy task. With industry veterans retiring by the thousands, and a luke-warm attitude for trades careers among students, employers are left to contend with the resulting skills gap.
“The skills shortage challenge is as relevant today as it was in 2007,” claims the Ontario Workforce Shortage Coalition in its report, Employment Focused Education for a World-Leading Economy. “A recent study by the Conference Board of Canada estimates that Ontario’s skills mismatch costs its economy up to $24.3 billion in foregone GDP and $3.7 billion in provincial tax revenues annually. Skills gaps are projected to become worse without action to address them.”
Correcting this “mismatch”is a top priority for industry stakeholders. This includes Ontario’s educators who share a responsibility for making a career in the trades more attractive and easier to pursue.
“Addressing the skills gap is absolutely critical,” agrees Linda Franklin, president and CEO of Colleges Ontario. “We’ve been talking about this issue for years now and there are many things that need to be considered. We can’t just match workers to jobs without being sure they have the right skills for the job.”
Certainly, the education system has a major role to play doing just that. It begins, says Franklin, with promoting the trades throughout all grades and convincing parents that a post-secondary apprenticeship or skills training program carries just as much potential as going to university or college. “We need to stop thinking of education as a vertical hierarchy, with university at the top and going right to work after high school at the bottom. To do that, we have to work together to help young people and their parents understand the range and possibilities of post-secondary career options that are available to them.”
For its part, Colleges Ontario collaborates with government and industry partners to increase trades awareness for students throughout the province. Its initiatives include
trade fairs, jobsite tours, and community events designed to link individual colleges to local industry employers.
Still, while enhancing trades awareness at a young age is critical, Franklin adds it’s also important to make it easier for interested students to take the next step. “We need to make the entry point to a trades career look more like post-secondary education. Right now, if a student wants to go to college or university, they go to a website, pick a program, pick an institution, and send off an email to begin the application process. For those who want to be an apprentice, however, they have to find an employer that’s willing to hire them, drag them into a government office, and figure out what college or union training centre they have to go to. And even if they get into one, there’s no telling where that might be or when it might start.”
George Brown College is an example of one institution addressing this skills gap on multiple fronts. From its co-op diploma apprenticeship program to its one-year Construction Trades Techniques program, and jobsite tours to apprenticeship support initiatives, it takes a vested interest in connecting students to opportunities within the trades.
The college is also a supporter of the Ontario Youth Apprenticeship Program (OYAP), which gives grade 12 high school students the opportunity to participate in a co-op placement which combines level 1 training studies within the college and on-site training with partnering employers.
“We have a long tradition of training apprentices, and we work hard to find field placements for students. Not all employers who can take apprentices do, so that link is important,” says Mary Collins, chair of George Brown College’s School of Apprenticeship and Skilled Trades.
Overall, she adds, it’s critical for educators to not only offer support for students entering the trades, but ensure they understand their options as early as possible. “Career clarity is a key component to success for students. A lot of times they don’t really understand what the job is when they select a career program, so it’s important to begin working on this career clarity as early as primary and middle school, so they can make those informed choices when they leave high school. “
Organizational Support
While the education sector has a key role to play in addressing Ontario’s skills gap, so do organizations like Skills Canada - Ontario. Since its establishment in 1989, the non-profit group has worked with skilled trades stakeholders to engage Ontario’s up-and-coming talent. Their work has taken the form of in-school presentations, which reach over 125,000 students a year; trades-based summer camps; and skills competitions for elementary, secondary, college, and apprenticeship students.
“If we don’t address the skills gap, it will have a significant, negative impact on the construction industry,” urges Gail Smyth, executive director of Skills Canada - Ontario,
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explaining, “Construction will be delayed, postponed, or cancelled; and due to the lack of qualified employees, the cost of construction will continue to rise.”
Understanding this, Smyth says organizations like Skills Canada exist to position the trades up front and centre with students, adding, “Our goal with Skills Ontario is to promote careers in skilled trades as a viable, first choice career option.”
The Ontario Civil Construction Careers Institute (OCCCI) is driven by a similar mandate. Founded in 2008 by ORBA and numerous industry partners, it was created to better link available workers to the training, skills, and support they need to pursue a career in the trades.
“By 2023, there will be a shortage of 37,600 individuals in Ontario, creating a significant skilled trades shortage nationally and in the province,” informs Jessica Steffler, Director of Career Promotions with the OCCCI, adding, “The OCCCI fills a need in the province, to promote construction careers to youth, focusing on high school students, but also addressing the need through participation in industry trade shows.”
Government Support
Fixing the skills gap takes work from all parties. This includes the provincial and federal governments which are
in the position to streamline apprenticeship systems and raise the profile of trades careers.
“The government has a key role to play in working with us and the industry to figure out how to make trades careers more understood by the public and more highly regarded as a post-secondary destination of equal value,” says Franklin.
Employers are also on the hook, adds Collins, noting, “Employers need to be encouraged to take on apprentices. Currently, less than 25 per cent of all employers who can take apprentices do, and there’s a lot of reasons for that. As long as we can continue to encourage more employers to recognize the benefits of hiring apprentices, we can entice more young people to pursue a career in the skilled trades.”
Greater awareness. Stronger collaboration. Industry participation. Tackling Ontario’s trade skills gap demands a multi-faceted approach. Thanks to efforts across the board, however, progress is being made.
“It’s a slow process. There’s lessons to be learned from other countries, and we need a made-in-Canada solution, but it’s getting there,” says Franklin. “Word of mouth helps, though. The more young people who join the trades and talk about it enthusiastically, the more ambassadors there are for the trades.”
NAssociate Member Profile: Nortrax Canada Strong history, bright future
ortrax is North America’s largest John Deere construction and forestry retailer. In Canada, the company has about 500 employees spread across its 20 branches, the majority of which (13) are located in Ontario, while the remaining seven are in Newfoundland and Labrador (4), and Quebec (3). In addition to the John Deere line of products they offer, Nortrax also represents John Deere Financial, which custom builds finance plans and programs for its customers.
In Ontario, the company has long been actively engaged with the Ontario Road Builders’ Association (ORBA) in different capacities, including as a member and sponsor. Some Nortrax personnel have also served on ORBA’s board of directors.
Don Switzer, Nortrax Canada’s vice president and general manager, thinks it’s crucial for Nortrax to take such an active role in ORBA. “We think to be in the business, you need to be in the business,” he says. “Things that are
important to our customers or potential customers need to be important to us. It’s a way to make sure we’re aware of what’s going on.” By actively participating in ORBA, it gives Nortrax a more complete picture of what developments or issues are of concern to their customer base. As well, Nortrax likes the networking opportunities the association provides and being able to provide its input on association matters.
Switzer will have been with the company for 30 years come May 2015. He joined the company after university and then took part in a six-month training program where he travelled across the country and got to see the different positions within the company. After the six months were up, he was placed in a product support role in the field and then worked his way up in the company. “Product support is the backbone of the company,” says Switzer.
Looking to the future, Switzer is very optimistic about growth opportunities for Nortrax. “It seems like the wind is going to be in the sails of the industry for the next few years,” he says, pointing to major projects taking place in Ontario such as the $1 billion extension of Highway 407 East from Brock Road in Pickering to Highway 35/115 in Clarington, as well as the $1.4 billion construction of the Rt. Hon. Herb Gray Parkway (formerly known as the Windsor-Essex Parkway) which will be located in Windsor, LaSalle and Tecumseh. Looking outside Ontario, the growth potential is similarly rosy given the natural resource projects expected to take place in provinces like Newfoundland and Labrador.
There are other reasons Switzer is excited about the future. This winter, John Deere will be introducing the 1050K Dozer. Switzer says this is a good example of John Deere meeting a market need in an area where it couldn’t before. “As John Deere expands the product line into the bigger machines, it provides us more ability to satisfy the road builders’ total needs,” he says. The 1050K will compete with Caterpillar’s D8 dozer.
Switzer thinks in the future, John Deere will also offer bigger loaders than it currently does. “Whenever they expand the product line, it allows us a growth opportunity,” he says. “It allows us to satisfy a customer’s complete needs, from top to bottom.”
One of the benefits of the 1050K is it will come with JDLink, John Deere’s advanced telematics system. Telematics allows both the user (and Nortrax) to see what is going on within a machine, as well as allow the machine to communicate with the user and Nortrax to let them know if something is wrong.
Switzer says JDLink allows for equipment optimization, both on a proactive and ongoing basis. This is because it facilitates preventative maintenance, both in that it will send notifications if something is not working optimally, as well as providing a reminder that a certain piece of equipment is due to be soon replaced. In the event of theft, the unit is able to tell its owners where it is.
The way it works is JDLink collects data which is transferred to a data server and people can then access the information through the JDLink website. (In remote areas where cell signals are not available or reliable, the technology will still work if users get an upgraded satellite modem.)
JDLink allows Nortrax to provide better service to its customers. Where it once had to dispatch a technician to look at a problematic machine, it can now dial in remotely to see what the problem is. “We can do the same diagnostics as if the technician was there at the machine plugging his computer in,” says Switzer. Because the technician will likely know what the problem is in advance, he or she can bring the appropriate part(s) along with them.
Where the technician would have then had to leave the site to get the appropriate part and then return to repair the machine in the past, telematics now cuts a few steps out of the process. “It helps us from an efficiency standpoint and it helps our customers from an uptime standpoint,” says Switzer.
JDLink is an example of the value proposition Nortrax offers, a proposition built on three pillars: productivity, uptime and low daily operating costs.
While JDLink is no doubt a huge benefit, it does require a shift in traditional thinking, so for firms (and Nortrax itself) to take full advantage of its benefits, it requires having the appropriate systems and processes in place.
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Re-energizing ORBA Communication
Over the past couple of months, ORBA has been working to re-energize its communication platforms. You will have noticed a fresher face to Information Highway, our bi-weekly electronic newsletter.
“We’re excited to announce we will be re-launching the look of Road Builder (Winter issue) with a sharper masthead, cleaner layout and several new columns and departments. Our activity on social media including Twitter continues to evolve and escalate. New content is being added to enhance the existing website with plans to introduce a new site in 2015,” Richard Stamper, Manager, Member Services
To ensure content across all its platforms is relevant, timely and of value, ORBA requires member support. There is a tremendous opportunity for members to better utilize ORBA’s communication assets for your benefit. Following are a number of ways ORBA suggest members exploit this opportunity.
• Add ORBA to your distribution list so we receive your news releases.
• Follow ORBA on Twitter. Make sure we’re following you.
• Submit ideas and articles for Road Builder
• Tell us about new products and services.
• Share your awards, anniversaries and other forms of recognition.
• Ask about a Member Profile in Road Builder
• Let ORBA know about industry events, seminars, training as we will post these for all members.
If you have any questions or suggestions, please contact Richard Stamper at richard@orba.org or 905-507-1107, ext. 222.
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More than Data Collection
How analytics can improve your bottom line
by Richard Woodbury
When some people hear the word analytics, hits on a website is generally the first thing that comes to mind. This type of analytics is used to calculate things such as how many people visit a site, how long the visitors stay on the individual pages and gives insight into how effective the site is at engaging its visitors.
While there are different forms of analytics, the common theme is it involves collecting data and converting that data into easy-to-read information which allows businesses to make decisions to improve the efficiency of their business.
Within the road building industry, there is much room to embrace analytics in different forms, whether it’s the drive to and from the job site or in the work being carried out on a project.
Technology has caused a massive evolution in the kind of information people can extract from data. “Previously, it was a clipboard and a piece of paper – and you couldn’t really go further than that,” says Lauren Hasegawa, cofounder of Bridgit, a mobile and web communication platform for the construction industry.
Bridgit allows construction companies to track deficiencies and instantaneously communicate that information electronically to the relevant subtrades, thereby facilitating faster and more effective communication, along with better record keeping. This differs from the traditional approach of noting deficiencies by hand and then making phone calls, sending emails or explaining them in person.
As technology improved, people shifted away from clipboards and began using spreadsheets to work with data. One of the challenges is that it resulted in lags between the data being input and being able to extract meaningful information from it. This is because the data would often be input at an office at the end of the day (or even the week or the month), calculations would have to be made and then that information would have to be sent out to the relevant parties.
Thanks to technology today, it is now easier to extract meaningful information from data. This is because in some cases, the data is automatically input and in other cases, mobile platforms just allow for easier data entry. This also means information gets in the hands of decision makers sooner, which is crucial for companies looking to gain a competitive edge.
Perhaps most importantly, technology today is helping make the data easy to comprehend. Take vehicle idling for example. Even though companies have been able to make idling calculations for years, the technology now exists to monitor and remind people about it in real time.
Pinpoint GPS Solutions offers GPS fleet tracking software to do just that. Clients can set time limits and when a vehicle has been idling for a certain period of time, an alarm will beep to notify the driver that they are idling.
“We provide real-time, in-cab alerts so the driver can address them at that particular point,” says Vince Arone, Pinpoint’s general manager. If they don’t stop idling, the alarm will continue to beep.
Even a small change such as reducing idling can have a big impact on a company’s bottom line. This is because idling unnecessarily burns fuel, thereby increasing costs. Another side effect of idling is by burning more fuel, more greenhouse gas emissions are generated.
Pinpoint’s technology can also be used to monitor a driver’s behaviour, such as whether they speed or how often they suddenly brake and accelerate, which are all factors impacting the likelihood they will get into an accident. These things also have an impact on the money that is spent on vehicle maintenance.
For companies looking to make use of analytics, it’s important they give thought to what kind of data they are looking for, says Henry Slofstra, founder of Greycoat Software Inc. He says some companies invest in large software programs which compute a ton of data, but recommends focusing efforts on having better data collection, working with fewer numbers and being able to extract information from the data sooner. “You shouldn’t go implementing a bunch of data collection that is expensive and is not necessarily going to give you what you’re really driving for,” says Slofstra.
He recommends that people ask themselves what information they want to know. The next step is figuring out what information you’ll need to make the appropriate calculations. Essentially, this line of thinking involves working backwards.
Slofstra’s company provides software for companies in diverse industries such as construction, infrastructure development, concrete and aggregate materials to calculate the information they want to know. One of his observations is that the road construction industry tends to get good accounting numbers, “But on a day-to-day basis using the numbers to run the business, they lag significantly behind what we see technology-wise in manufacturing.”
whether the work crew was on site for the time they claimed. As well, it’s even possible to create employee timesheets that would allow for cross validation with the GPS, so if there were any discrepancies in an employee’s hours, that would be flagged.
Within the road building industry, there is much room to embrace analytics in different forms,
whether it’s the drive to and from the job site or in the work being carried out on a project.
While analytics can give a company valuable data, it can also provide important record keeping. For example, Pinpoint’s products can help companies keep track of when their vehicles arrive on site and leave. This is helpful in many ways, such as if a client questions
For Slofstra, the ultimate goal of analytics is to give people the data and output they need to run their businesses in real time. If analytics is used properly, it can even allow for remote management of a project. Slofstra uses the example of a district supervisor. If that person can get the appropriate information in real time, they won’t necessarily have to be on the jobsite to make decisions.
Analytics allows businesses to make better decisions and shows them where they can improve their operations. It raises an important question: how can you improve something if you don’t know there is a problem? “We live by a mantra here: if you don’t measure it, you can’t improve it,” says Arone.
John Blake, General Manager, Norjohn
in the Construction Industry Scientific Research and Experimental Development
by Paul Boucher
The Construction Industry is Currently Facing Unprecedented Challenges.
Economic and Financial Uncertainty is Relentless.
Regulatory Hurdles Continue to Expand and Drive Additional Costs, Particularly as they Relate to the Environmental Attributes of Construction Projects.
Customers are also demanding more from technological innovation in terms of originality, value and environmental design — both in the construction process and final product. As a road builder, developer, contractor, investor, property manager or supplier, your challenges and opportunities in the industry have never been greater. Incentives in support of innovation in this sector are readily available but they are increasingly focused, competitive and time sensitive. Awareness and readiness are essential.
The Canadian Scientific Research & Experimental Development (SR&ED) program offers some of the most generous incentives in the world. A white lab coat generally comes to mind over a hard hat and steel toes, but SR&ED activities go beyond those taking place in a traditional research lab. Construction companies are not typically perceived as being in the “science and technology” business, but they are often paying for and taking the financial risks in respect to engineering development work. Sig-
nificant eligible project incentives are often missed because it is not easy to recognize who is entitled to the claim. In other industries, such as manufacturing and IT, the development risks are spread more evenly throughout the supply chain.
The SR&ED program can be used to help the construction industry with support for innovations ranging from design and development of equipment and structures to building materials and new energy sources. Some areas that may apply include:
• analysis of structural designs related to dynamic structures (retractable roofs, solar energy collection positioning systems)
• design and development of construction equipment, tools and temporary construction structures
• investigations related to the development of new — or the improvement of existing — construction and building materials (metals/ alloys, concrete/ cement, insulation)
• investigations related to the development of new — or the improvement of existing — construction techniques to improve finish quality, durability and efficiency, soil remediation and to achieve environmental certification under programs such as LEED
By way of example, engineering firms hired by construction firms often
undertake SR&ED eligible projects yet are unable to make a claim for their technological advancements. This is because they are paid for their efforts and are not undertaking any financial risk. The construction firms paying for the engineering work are taking such risk but are often unaware of the potential for making a claim themselves. Consequently, significant leakage of potential SR&ED incentives results from the way contracts are formed along the development supply chain.
Contract payment rules in the SR&ED regime are designed to prevent two Canadian companies from claiming incentives on the same project. These rules are among the more complex in the program. Four criteria are examined in order to determine who is allowed to make the SR&ED claim when one Canadian company pays another to perform its SR&ED eligible work:
1. Contractor performance requirements
Does the contract state that the contractor was required to perform specific SR&ED work? For example, “The contractor shall design, provide detailed engineering and verify the performance in accordance with the specifications set out in...” This wording indicates that the contractor had to perform SR&ED work on behalf of the company, meaning that the amount paid is a contract payment and therefore claimable by the payer
– usually the developer or general contractor. This is often overlooked by the developers.
2. Pricing vs. risks assumed
Is there a flat fee or ceiling price under the contract? Would the contractor have been paid if the work did not initially meet the specifications set out under the contract? If yes, it may indicate that the financial risks were taken on by the payer – again typically the developer or general contractor and as such they are entitled to the claim.
3. Intellectual property
If the rights to the intellectual property (IP) of the SR&ED work belong to the payer, this may indicate that the contractor was required to perform SR&ED on their behalf.
4. Contract for service vs. contract for the sale of goods
A contract for service may indicate that the SR&ED work was being performed on behalf of the payer. Changes to the SR&ED program introduced in the March 29, 2012 Federal Budget are beginning to take effect. This includes:
• elimination of capital expenditures, including the expenditures for the right to use capital property, incurred in 2014 and subsequent years
• reduction of the overhead proxy amount from 65 per cent in 2012, to 60 per cent in 2013, and 55 per cent after January 1, 2014
• eligible contract payments limited to 80 per cent of the expenditures paid to eligible arm’s length contractors beginning January 1, 2013
• general investment tax credit rate reduction from 20 per cent to 15 per cent after January 1, 2014
The good news in the budget is that the enhanced rate of 35 per cent remains unchanged for expenditures under the annual expenditure limit for Canadian-controlled private corporations.
The changes to the SR&ED program were required to finance more direct funding programs outside of the income tax system. The government’s intention to improve direct funding to bolster Canadian innovation was reinforced in the recently released 2014 Federal budget. $1.5 billion in funding over the next decade was announced, most of it supporting research at post-secondary institutions. These programs are currently arising with increasing frequency.
The programs are competitive, have a specific dollar amount of funding available and close when the money is gone. It is advised to watch carefully, be prepared, and act fast!
The following are several examples of direct funding initiatives potentially available to the construction sector.
Sustainability and Energy
1. High Performance New Construction Program
2. Retrofit Incentive Program
3. Save On Energy Audit Funding
4. No-tax on gasoline used in Unlicensed Business Equipment Research and Development
1. New Directions Research Program
2. OMAFRA and University of Guelph Research Agreement
3. Industrial Research Assistance Program
Workforce/Labour
1. Canada Summer Jobs
2. Summer Jobs Service (Ontario)
3. Youth Employment Strategy (YES)
4. Apprenticeship Training Tax Credit
Productivity and
Competitiveness
1. Export Market Access: A Global Expansion Program
The National Research Council’s concierge service provides information and assistance to help small- and medium-sized businesses access a myriad of federal and provincial innovation programs. This agency is often a good place to start. Seeking the assistance of a qualified and experienced professional service provider is another great source of advice for program eligibility and application guidelines.
Despite redirecting a portion of the available resources to direct funding initiatives, the SR&ED program continues to be the single largest federal funding source and one of the most generous incentive programs in the world. There is no question that Canadian construction companies are, and will continue to, deliver on innovation and contribute to the future competitiveness and prosperity of the Canadian economy.
Paul Boucher is Partner, Advisory Services Practice, specializing in SR&ED at BDO. Contact him at pboucher@bdo.ca or reach out to your local BDO office.
THE ROAD TO SUCCESS AND GROWTH
BDO's industry professionals have the experience and knowledge to help you devise, plan and implement business and financial strategies to accomplish your goals and build your bottom line. Whether you need assistance with tax minimization strategies, financing, or simply trying to understand evolving accounting standards, BDO has the expertise to offer solutions that work for you.
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On the Road
Premier’s Annual GTA Golf Tournament
September 22, 2014, Rattlesnake Point Golf Club, Milton, Ontario
ORBA Summer Round Up
September 18, 2014, Sarcoa Restaurant & Bar, Hamilton, Ontario
September 22, 2014, Rattlesnake Point Golf Club, Milton, Ontario
Attendees at Round
Hon. Kathleen Wynne, Premier of Ontario with Ashley De Souza, ORBA Director, Government Relations
Andrew Hurd, Transportation Advisor to the Premier, Marlene Yakabuski, Bot Construction, Hon. Charles Sousa, Minister of Finance, Doug Wipperman, Miller Group, Ashley De Souza, ORBA
Hon. Steven Del Duca, Minister of Transportation speaking to attendees
Up
Heavy Construction
Association of Windsor, AGM
September 17, 2014, Fogolar Furlan, Windsor
delivering a presentation to HCAW members
Ladies’ Evening
Saturday, October 18th, Ritz-Carlton Hotel, Toronto 272 members and guests attended for an evening of great food, entertainment, dancing, and socializing.
Windsor-Essex Parkway Tour
Dwayne Dawson, General Manager, Amico Infrastructures with Geoff Wilkinson, ORBA Executive Director and Ashley De Souza, ORBA Director, Government Relations touring the Windsor-Essex Parkway, September 17, 2014.
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