BCBusiness

12 BCBUSINESS MAY 2019 S O U R C E S : C R T C , C B C N E W S, S TAT I S T I C S C A N A D A , C A N A D I A N W I R E L E S S The B.C. prefabricated hous- ing sector, which consists of a couple of dozen companies, got a huge kick-start last year. The province committed $291 mil- lion to building 2,000 modular units, mostly for housing home- less people. Horizon North, which is based in Calgary but manufactures in Kamloops and Aldergrove, is projecting $150 million in sales of its modular housing in 2019, partly thanks to that government boost. In its February budget, the NDP committed another $76 million for more modular housing for the homeless. Gov- ernment agency BC Housing is starting to see non-proŠts, whose new projects it funds, turn to modular to reduce costs. It can save as much as 25 percent compared to tradi- tional methods of building, CEO Shayne Ramsay says. That's key when many cit- ies' ambitious plans to solve homelessness and housing shortages are being hit hard by challenges on many fronts. "There's a lack of skilled trades, an escalation of the cost of materials, and there's risk because you have to build to deadlines," says Craig Mitchell, director of innovative solutions at Penticton-based Metric Mod- ular. Metric, which also has a plant in Agassiz, was formed two years ago when Britco, the powerhouse company that has produced work-camp lodg- ing for years, split into two. Mitchell estimates that it's now making $60 million worth of manufactured homes a year. Producing modules in a factory helps solve some of the problems the building industry is facing. With their assembly- line approach, Horizon and Metric have access to a bigger pool of employees than tradi- tional construction companies. They employ more Indigenous sta——who make up some 10 percent of the payroll at Metric and about 15 percent at Horizon North—and more women than the norm for their industry. Both can also produce housing year-round, storing units in plastic wrap until sites are ready. Modular housing is rela- tively popular in Europe, but it only accounts for 3 percent of construction in North America, according to Mitchell. On this continent, it's mainly been relegated to work camp–type digs or cheap units for trailer parks. Until Alberta's oil crash, Horizon North focused on work-camp accommodations. It pivoted to social housing to avoid layo—s, just as the NDP government was ramping up its program. This booming new B.C. industry is one the provincial government is overtly thrilled to support. Housing Minister Selina Robinson and Premier John Horgan have toured the factories, which use B.C. spruce, pine and Šr—wood that will get value added to it here instead of being shipped to an- other country as raw logs. That assistance is propel- ling the province's modular housing builders to look at other markets eyeing Vancou- ver's solutions to housing. In 2017, those companies sold $21 million worth of pre- manufactured homes to buy- ers outside Canada. Now they're hoping for more. Industry researcher David Fell thinks this province has an advantage: "In B.C., the sector as a whole is small now, but for the companies, [the sudden growth] is huge." Fell, a lead scientist in busi- ness innovations for FPInnova- tions, a forest sector research non-proŠt with a lab at UBC, says Canada in general, and B.C. in particular, is ahead of the North American trend toward more prefab housing because it's so experienced in building multifamily. "As we get bigger buildings, the need for precision goes up," he explains. "Prefab plays well in that world." Fell says the boom isn't over, since China has mandat- ed that 30 percent of all new buildings be prefab by 2025. "We've had inbound calls from the housing o¤cers in San Francisco and Seattle," says Horizon North CEO Rod Graham. "Now we say, Let's go to Vancouver. We're building a brand-new product here." As a Šfth telephone area code debuts in B.C. this month, we look at how the prov- ince is dialling it in by Melissa Edwards Welcome to the 672 ( the informer ) G O F I G U R E DO THIS Want to know what's on B.C.'s mind? Get the lowdown from our partner the BC Chamber of Commerce, hosting its 2019 AGM & Conference in Burnaby. Themed Better Together, the gathering features keynote speaker Rex Murphy, never shy to say what he's thinking. There are also talks by JP Gladu, president and CEO of the Canadian Council for Aboriginal Business; and B.C. researcher Vivian Krause, who claims there's a U.S.-backed campaign to shut Can- ada out of the oil market. Panel discussions include a look at up-and-coming Generation Z and its economic impact. Hilton Vancouver Metrotown Hotel and Element Hotel, Burnaby; May 23-25 Tickets at bcchamber.org 2021 When B.C. is expected to run out of phone numbers using all of the current four area codes 50 Years between the launch of 604 and a second area code (250) 6 Years between this month's new code (672) and the previous addition (236) Market share of mobile subscribers in B.C., 2017 Telus: 41.2% Rogers: 37.6% 63% Share of B.C. households with a landline in 2016 9.1% Share that only had a landline 56,732 Estimated number of mobile devices recycled in B.C. in 2017 Bell: 20.9% Other: 0.3%

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