New Brunswick Sector Profile:
Industrial Fabrication
June 2012
New Brunswick Career Development Action Group
(Funded by the Government of Canada and the Province of New Brunswick
through the Canada-New Brunswick Labour Market Development Agreements)
Prepared by: InPro Solutions
New Brunswick Sector Profile: Industrial Fabrication
i June 2012
Table of Contents
1 Executive Summary ............................................................................................... 1
2 Introduction ............................................................................................................ 8
2.1 Purpose and Scope ........................................................................................... 8
2.2 Objectives ........................................................................................................... 8
3 Methodology .......................................................................................................... 8
3.1 Primary Research................................................................................................ 9
3.1.1 Contact List .................................................................................................. 9
3.1.2 Interviews ................................................................................................... 10
3.2 Secondary Research ....................................................................................... 10
4 Sector Definition ................................................................................................... 11
4.1 About the Definition ......................................................................................... 12
5 Sector Profile ......................................................................................................... 13
5.1 The New Brunswick Context ........................................................................... 13
5.2 Structure of the Sector ..................................................................................... 15
5.3 Capability .......................................................................................................... 17
5.3.1 Company Size ........................................................................................... 17
5.3.2 Facility Size ................................................................................................. 18
5.3.3 Lifting Capacity ......................................................................................... 18
5.3.4 Heavy, Medium, or Light Duty ................................................................ 19
5.3.5 Manufacturing Materials, Processes, and Technologies .................... 20
5.3.6 Design ......................................................................................................... 22
5.3.7 Certifications .............................................................................................. 22
5.3.8 Capability Analysis .................................................................................... 24
5.4 Regional Distribution ........................................................................................ 26
5.5 Markets .............................................................................................................. 27
5.5.1 Market Segments Served......................................................................... 27
5.5.2 Geographic Reach .................................................................................. 28
5.5.3 Outlook ....................................................................................................... 29
5.5.4 Market Barriers ........................................................................................... 31
5.6 Transportation Infrastructure ........................................................................... 31
5.6.1 Land ............................................................................................................ 31
5.6.2 Sea .............................................................................................................. 32
5.7 Sector Development ....................................................................................... 33
6 Human Resources Profile..................................................................................... 35
6.1 Human Resource Practices ............................................................................ 35
6.2 Workforce Composition .................................................................................. 36
6.3 Unionization ....................................................................................................... 38
6.4 Wages ................................................................................................................ 39
6.5 Demographics .................................................................................................. 40
New Brunswick Sector Profile: Industrial Fabrication
ii June 2012
6.6 Future Hiring Plans ............................................................................................ 41
6.7 Staffing and Hiring Issues ................................................................................. 43
6.8 Recruitment Methods ...................................................................................... 43
6.9 Challenges in Recruiting ................................................................................. 44
6.10 Skill Deficiencies with New Hires ..................................................................... 45
6.11 Needed Skills for the Future ............................................................................ 46
7 Training Capacity................................................................................................. 47
7.1 Defining Educational Capacity in a Time of Change ................................ 47
7.2 Primary Trades Utilized in the Sector .............................................................. 47
7.3 Paths for New Entrants into the Fabrication Trades .................................... 49
7.4 New Brunswick Trades Colleges ..................................................................... 50
7.4.1 NBCC .......................................................................................................... 51
7.4.2 CCNB .......................................................................................................... 52
7.4.3 BayTech College ....................................................................................... 52
7.4.4 Eastern Trades College ............................................................................ 53
7.4.5 ReadyArc Welding ................................................................................... 54
7.5 Atlantic Canada Public Trades Colleges ..................................................... 54
7.6 Other Canadian Trades Colleges ................................................................. 55
7.6.1 Welding programs .................................................................................... 56
7.6.2 Fabricator / Fitter Programs ..................................................................... 57
7.6.3 Machinist Programs .................................................................................. 57
7.7 New Brunswick Apprenticeship ...................................................................... 58
7.8 Projected Need vs. Educational Capacity .................................................. 60
7.9 Summary of Findings Regarding Educational Capacity ........................... 61
Appendix A: Acronyms ................................................................................................ 1
Appendix B: Catalog of College Programs ................................................................ 1
B1.1 Welding Pre-Employment Programs .................................................................. 1
B1.2 Welding Technology Programs ........................................................................... 9
B1.3 Steel Fitting/Fabrication Pre-Employment Programs ..................................... 11
B1.4 Machinist Pre-Employment Programs .............................................................. 15
B1.5 CNC Machinist Pre-Employment Programs .................................................... 17
List of Tables
Table 1: Manufacturing Sector and Metal Working Subsector (NB 2009).............. 14
Table 2: Capability Analysis Assessment Criteria ........................................................ 24
Table 3 : Selected Comparison of Survey Responses To COPS Data ..................... 37
Table 4: Wage Rates Reported by Respondents (n=51) .......................................... 39
Table 5: Wage Rates From “Working in Canada – HRSDC” .................................... 39
Table 6: NBCC Yearly Seat Capacity for Primary Fabrication Trades ..................... 51
Table 7: CCNB Yearly Seat Capacity for Primary Fabrication Trades ..................... 52
Table 8: BayTech Pre-Employment Welding Program Seat Capacity ................... 53
Table 9: Eastern Trades College Welding Program Seat Capacity ........................ 54
New Brunswick Sector Profile: Industrial Fabrication
iii June 2012
Table 10: ReadyArc Welding Program Seat Capacity ............................................. 54
Table 11: College Educational Capacity - NS/PEI/NL ............................................... 55
Table 12: Welding Pre-Employment Programs in Canada ....................................... 56
Table 13: Metal Fitter/Fabricator Pre-Employment Programs .................................. 57
Table 14: Machinist Pre-Employment Programs ......................................................... 57
Table 15: CNC Machinist Pre-Employment Programs ............................................... 58
Table 16: NB Apprenticeship ......................................................................................... 59
Table 17: Age Distribution of Active Apprentices ...................................................... 59
Table 18: Summary of Educational Capacity (Yearly Seats Available) ................. 60
Table 19: Projected Need vs. Educational Capacity................................................ 60
List of Figures
Figure 1: Regional Distribution of the New Brunswick Labour Force ....................... 13
Figure 2: PWC Modular Fabrication Supply Chain Model ........................................ 15
Figure 3: Structure of the Industrial Fabrication Sector in New Brunswick .............. 16
Figure 4: NAICS Classification of New Brunswick IF Companies .............................. 17
Figure 5: Make Up of IF Sector by Establishment Size Categories (n=62) ............... 18
Figure 6: Size of Manufacturing Space in Square Feet (n=51) ................................. 18
Figure 7: Shop Crane Lifting Capacity of NB IF Companies (n=51) ........................ 19
Figure 8: Self-assessment of Light, Medium, and Heavy Duty Capability (n=51) .. 20
Figure 9: Metals Routinely Used for Manufacture (n=51) .......................................... 20
Figure 10: Use of Advanced Manufacturing Technologies (n=51) ......................... 21
Figure 11: Welding Certifications (n=51) ...................................................................... 23
Figure 12: Quality Program Certifications (n=50) ....................................................... 24
Figure 13: Capability Analysis of New Brunswick IF Companies Surveyed ............. 25
Figure 14: Location of IF Companies in New Brunswick ............................................ 26
Figure 15: Regional Distribution of IF Establishments and Employment (n=62) ...... 27
Figure 16: Market Segments Accounting for 10% of Corporate Revenue (n=51) 27
Figure 17: Top Three Markets by Value of Revenue .................................................. 28
Figure 18: Largest Portion of Revenue – By Geography (N=50) .............................. 29
Figure 19: New Brunsiwck Metal Working Sector International Export History ....... 29
Figure 20: Perception of Past and Future Economic Performance of the Sector 30
Figure 21: Diversification Markets Targeted By Respondents (n=34) ...................... 30
Figure 22: Land Transportation (Road and Rail) Infrastructure in New Brunswick . 32
Figure 23: New Brunswick Ports ..................................................................................... 33
Figure 24: Ratio of Core IF Occupations to Non-Core Occupations ...................... 36
Figure 25: Employment of Selected IF Occupations (n=51) ..................................... 37
Figure 26: Unionization in the Sector (n=51) ................................................................ 38
Figure 27: Age Distribution of IF Core Fabrication Occupations (n=50) ................. 40
Figure 28: Vacant Positions Reported by Respondents (n=49) ................................ 42
Figure 29: Respondent Hiring Expectations in the Next 2 Years (n=49) .................. 42
Figure 30: Challenges Recruiting Selected Occupations (n=51) ............................ 44
Figure 31: Paths to Occupational Certification .......................................................... 50
New Brunswick Sector Profile: Industrial Fabrication
1 June 2012
1 Executive Summary
The New Brunswick Industrial Fabrication (IF) sector is comprised of metal
fabrication companies that manufacture industrial equipment or systems to
support the construction of large industrial projects common in industries such as
petrochemical, mining, pulp and paper, and utilities. The sector holds many
opportunities to grow the New Brunswick economy, yet also holds many
challenges in meeting workforce and other needs. This report provides a profile
of the sector based upon information gathered from secondary research as well
as interviews with 51 employers, six economic development agencies, and
every relevant training institution in the Province.
SECTOR PROFILE
The sector is made up of a relatively small but influential group of companies,
about 60 – 70, representing 80% of employment within the broader Metal
Working/Metal Fabrication sector (well over 250 companies). As such, the IF
sector employs approximately 10% of all people working in manufacturing, and
just less than 1% of the entire New Brunswick workforce. The study identified 62
New Brunswick companies as being “in-scope”.
From a global perspective, the New Brunswick IF sector is comprised primarily of
smaller companies. However, there are a number of companies capable of
pursuing major industrial projects on their own. A snapshot of sector capability
(capacity + expertise) in New Brunswick is shown below.
Exp
ert
ise
Capacity
New Brunswick Sector Profile: Industrial Fabrication
2 June 2012
This analysis attempts to identify, within the confines of the New Brunswick sector,
the relative position of industry players. To help put this in context, there are no
Engineering, Procurement and Construction (EPC) leaders in New Brunswick.
However, those companies residing in the upper right quadrant are well
positioned to become strategic partners to EPC firms who manage large
industrial mega projects and subcontract work (modular and otherwise) in this
region and beyond. Upper-right-quadrant companies also have the opportunity
to partner with each other, as well as with the skilled niche metals companies
that make up the sector supply chain in the province. All of these companies, as
well as the infrastructure and labour force supporting them, are key to New
Brunswick’s success in this sector.
Lifting capacity, facility size, and workforce size are major indicators of a
company’s ability to compete in the Industrial Fabrication sector. Approximately
73% of the companies identified employ less than 50 people, accounting for
only 23% of total sector employment. Conversely, just over one quarter of the
companies employed three quarters of the labour force. Only 4% of companies
operated facilities larger than 100,000 square feet, and only 10% reported lifting
capacity over 50 tons. These larger companies are typically upper right
quadrant companies that have both the capacity and expertise to compete
and lead in the pursuit of work from industrial mega projects.
The sector, as a whole, has extensively adopted advanced manufacturing
technologies. Almost all (92%) reported having Computer Aided Design (CAD)
software and over 60% reported having Computer Numerical Control /
Computer Aided Manufacturing (CNC/CAM) capabilities. Overall, 80% of IF
companies have the ability to offer clients design services on a routine basis -
over half (55%) using in-house resources, and 25% through contractual
relationships with external engineers, technicians, or design firms.
Shown below is the regional distribution of the 62 Industrial Fabrication
companies identified as “in-scope”. The “Campbellton – Miramichi” and the
“Saint John – St. Stephen” economic regions account for almost 50% of
establishments and almost 70% of sector employment, yet account for only 43%
of the total provincial labour force.
New Brunswick Sector Profile: Industrial Fabrication
3 June 2012
The mining industry is by far the primary source of revenue for most New
Brunswick IF companies. Not surprising, the construction, petrochemical, pulp
and paper, and utility industries are also major sources of revenue. Many
respondents qualified their responses indicating that revenue sources change in
relation to the economy. For example, companies that mainly serve the
petrochemical market today may have principally relied on the pulp and paper
market 10 years ago.
From a geographic market perspective, a significant portion of the companies
interviewed (60%) indicated that the largest portion of their revenue originated
from within New Brunswick (8% from Atlantic Canada, 22% from Canada,
and10% from international markets). It is important to note that this does not
imply that 60% of sector revenue originates from New Brunswick, but rather only
60% of the companies indicate that it is their major source. No major projects
have been announced, or are planned in New Brunswick. If this sector is to
grow, it must seek work from beyond New Brunswick borders. In fact, New
Brunswick stakeholders have identified significant and viable opportunities that
extend from northeastern Canada in the mining sector to southeastern USA in
the oil and gas sector.
5-9
10-49
50-250
250+
New Brunswick Sector Profile: Industrial Fabrication
4 June 2012
Collectively respondents viewed the past performance of the sector over the
last two years as being “somewhat strong” (average rating of 5.3 out of 9).
However, there was much greater optimism for the next 2-5 years where
respondents see performance appreciably increasing (average rating of 6.4 out
of 9). There is no single specific indicator or project that employers pointed to
that would improve business, but rather this positive outlook was a combination
of a recovering economy in the USA, shipbuilding in Nova Scotia, resource
extraction opportunities in northern Canada, and general entrepreneurial
enthusiasm.
A large percentage of respondents (69%) claim to have taken concrete steps to
diversify their markets although many struggled to identify specific capital
expenditures in this regard. It is not surprising, given the recent announcement of
the $25-billion Irving contract to build the next generation of combat ships, that
the majority of respondents (approximately 38% of those claiming diversification
efforts) identified shipbuilding as a diversification area. Despite this, mining
continues to be a market focus for companies. Aerospace and defence are
also high ranking target markets - likely fuelled by the shipbuilding buzz.
While individual companies may face a number of market barriers depending
upon their unique circumstances, there was really only one sector-specific
market barrier identified: access to free and open trade. This is a significant
hurdle since most opportunities in the sector, particularly if growth is to continue,
exist beyond the borders of New Brunswick. It was suggested that the bi-lateral
government agreements between Newfoundland and Labrador with the
Government of Nova Scotia and the Government of Canada are a major
barrier to New Brunswick companies wishing to pursue these regional markets.
Similarly, the union influence and control over construction sites in Quebec
creates challenges for New Brunswick companies that wish to build, ship, and
install modular components in that province. Impacted industry players suggest
that the Provincial government needs to continue to press this issue with other
provinces and the federal government.
Infrastructure, particularly sea ports, are very important to the sector when large
prefabricated industrial modules are required to be exported to distant markets.
Two of the larger Ports, Belledune and Saint John, have undertaken specific
efforts to support and pursue the sector in New Brunswick. In 2010 $13.2 million
was invested in the “Belledune Modular Fabrication Facility” to specifically
position the region to pursue this sector. In 2012 the facility welcomed its first
tenant. In the Saint John area it has been proposed to construct, at a cost of
approximately $6 million, a barge loading terminal to support companies
pursuing the sector. At this point, the project remains unfunded and advocates
continue to seek funding.
New Brunswick Sector Profile: Industrial Fabrication
5 June 2012
In terms of sector development, clustering activities have been initiated in both
the private and public domains in New Brunswick. In the public domain, a
“Provincial Modular Fabrication Committee” with representation that includes
the Department of Business New Brunswick has been established. In the private
sector, the Associated Manufacturing Marketing Group (AMMG) is a consortium
established to specifically pursue this sector. The organization represents six
private companies under one marketing umbrella to pursue business
development opportunities directly in the industrial fabrication sector.
HUMAN RESOURCES PROFILE
Investigation into workforce issues focused on the 21 occupations core to the IF
sector. These occupations were broadly categorized as: Welders, Fitters,
Machinists, Machine Operators, Labourers, Shop Supervisors, Technologists,
Drafters and Engineers. Excluded from the analysis were employees that worked
in management roles, administration, sales, or who were otherwise employed in
trades not directly involved with metals work.
The majority of employers (78%) operated with a non-unionized workforce. Only
16% of companies were unionized, and many of these were based in the Saint
John area where heavy industrial trades have been in existence since the 1950s.
A small number of companies (6%) employed both union and non-union trades.
Findings related to demographics were consistent to what would be expected
of a trade-intensive sector. Only 1.9% (43) of the workforce were female. Only
10% of companies reported employing landed immigrants, and in total only 10
(0.4%) were actually employed in the sector. Only one employer reported hiring
a single temporary foreign worker. Employers who engaged foreign and female
workers all reported positive experiences in relation to their skills and
performance. These underrepresented workforce segments could be key to
further developing the sector workforce.
Many employers did raise concerns about the aging workforce and out-
migration of workers (especially younger workers to Alberta) as being a
significant challenge. However, the survey data collected suggested that a
significant number of younger workers, proportionally similar to their older co-
workers, still remain in New Brunswick.
In terms of skill gaps, the majority of respondents (55%) reported that new
employees lacked the skills required to take on the duties of the workplace.
However, the deficiencies identified were more generic in nature (i.e. common
to many trades in many industries) and not specific to the IF sector. Similarly, very
few respondents identified any skill requirements “new to the sector”.
New Brunswick Sector Profile: Industrial Fabrication
6 June 2012
Fitter/Fabricators, Welders, and Machinists collectively made up 50% of the 2,250
workers employed in the core IF occupations. Wages for these occupations
exhibited a less than 10% variation across the trades; however senior employees
were paid 35-42% higher than their entry-level counterparts. Wages were
generally consistent, with a less than 10% variance, with national database
figures for the region. It was interesting to find that wages for Welders in the
northeastern region were over 20% higher than in the southeastern region, likely
due to the need to attract and retain skilled workers. As expected, wages in
Alberta were considerably higher for all trades.
The table below shows some of the key workforce characteristics provided by
survey respondents for the three occupations Fitters/Fabricators, Welders, and
Machinists.
Employment Current
Vacancies
% of Companies
Experienced
Difficulty Hiring
2-yr Hiring
Expectations
Fitter/Fabricator 511 29 31% 175
Welder 431 26 29% 156
Machinist 157 18 24% 73
TRAINING CAPACITY
The annual seat capacity of post-secondary training institutions in New
Brunswick, and the rest of Atlantic Canada for the Fitter/Fabricator, Welder, and
Machinist trades is shown in the table below.
NB Colleges
Annual
Capacity
Combined
2-Year
Capacity
Other Atlantic
Colleges Annual
Capacity
Combined
2-Year
Capacity
We
ldin
g
NBCC 95
710
NSCC 91
428 CCNB 52 Holland College 15 BayTech 100 CNA 108 Eastern 36
Ready Arc 72
Fitte
r /
Fa
br.
NBCC 14 56
NSCC 38 424 CCNB 14 Holland College 90
CNA 84
Ma
ch
inis
t
Trad. NBCC 21
110
Holland College 12
162 CCNB 14 CNA 32
CNC NBCC 12 NSCC 37 CCNB 8
New Brunswick Sector Profile: Industrial Fabrication
7 June 2012
The “combined 2-year capacity” values were simply calculated by doubling the
annual capacity values at time of writing and do not take into account any
expansion or contraction of program seats. Assuming that the capacity in the
other three Atlantic Provinces would be largely unavailable to the New
Brunswick Industrial Fabrication sector, because of demands outside of New
Brunswick, there is a potential short-fall in educational capacity required to
meet the employer-projected need for Fitters/Fabricators.
Economic development advocates within the province naturally hold different
perspectives on the scope of the opportunity, limitations and labour force issues
faced by New Brunswick in developing the IF sector and modular fabrication
subsector. In southern New Brunswick, the need for a barge terminal is top
priority. In northeastern New Brunswick, attracting and retaining skilled labour
and the need to close deals with EPC players are top priorities.
New Brunswick Sector Profile: Industrial Fabrication
8 June 2012
2 Introduction
2.1 Purpose and Scope
Industrial Fabrication has been identified as a strategic sector in New Brunswick1.
Through the New Brunswick Career Development Action Group (NBCDAG),
InPro Solutions was commissioned to study and develop a fact-based profile of
the Industrial Fabrication (IF) sector with a focus on the metal working labour
force.
The study was intended to provide information that can be used by
stakeholders, policy makers, and training institutions to support their respective
goals and objectives.
The scope of the study is limited to companies participating in the Industrial
Fabrication (IF) sector as explicitly defined in Section 4. In addition, analysis is
confined to the geography and issues faced by the sector in the province of
New Brunswick.
2.2 Objectives
The overall objective of the study was to provide a detailed sector profile, with a
focus on the labour market, of the Industrial Fabrication sector in New Brunswick.
To support this, four sub-objectives were identified:
1. Develop a clear definition of the sector, followed by an identification of
which companies in New Brunswick fall within the sector;
2. From secondary data sources, develop a summary profile of the sector (i.e.
number of companies operating in this sector, those not in the sector but
which employ similarly-skilled workers, the size of the workforce in this sector,
revenues, etc.);
3. Conduct a survey to gather detailed information about the workforce of this
sector (age, occupation, skills, education, etc.), and skills they will require to
work in this sector in the near to medium-term future (2 to 5 years); and
4. Conduct a review of the educational capacity for skills related to this sector
in the province, and in a less comprehensive manner, the rest of Canada.
3 Methodology
Study methodology was based on a combination of both primary and
secondary research activities as described below. The focus however was on
1 Department of Business New Brunswick, (December 2011). 2010-2011 Annual report. Fredericton
NB: Department of Business New Brunswick.
New Brunswick Sector Profile: Industrial Fabrication
9 June 2012
primary research efforts where a census survey of Industrial Fabrication
companies was intended.
3.1 Primary Research
3.1.1 Contact List
One of the greatest project challenges was the development of a reliable
contact list. Because a census survey was intended, great efforts were made in
an attempt to ensure that all “in-scope” companies were captured.
The starting point was a composite list provided by LMAB which was compiled
from a number of sources including Service Canada and the Department of
Business New Brunswick (BNB). The list was then augmented with:
1. Canadian Welding Bureau (CWB) (n=109): Downloaded from the CWB
website listing all New Brunswick organizations with certification
(downloaded January 2012).
2. Yellow Pages (n=63): An online search for New Brunswick companies using
“welding” as a keyword (downloaded January 2012). A manual
elimination of duplicate companies was conducted before integrating
into the list.
The Master Contact List was thus created when all of the sources identified
above were merged and “cleaned” into a single worksheet (n=329). All
information for a particular company, as listed by the multiple sources, was
integrated into a single record.
Through an iterative process involving both secondary (websites, directory
listings, Google Maps, etc.) and primary (phone interviews) research efforts, the
Master Contact List was filtered for “in-scope” companies (n=62). Inclusion
criteria included:
Company must be a manufacturer (ex. repair-only companies excluded);
Company must fit the sector definition;
Company must employ five or more staff; and
Company must still be in business.
In total 267 companies were determined to be out of scope based on these
criteria.
The Master Contact List was validated by cross-referencing it against recently
compiled reports related to the sector:
New Brunswick Sector Profile: Industrial Fabrication
10 June 2012
2010 PWC Report2 (x=43);
2011 New Brunswick Community College (NBCC) Report3 (x=49); and
2007 Metal Working Association of New Brunswick (NWANB) Directory4
(x=127).
Where appropriate, additional information related to an already captured “in-
scope” company was added to the spreadsheet. The “x=” notation in the
above list refers to the number of companies common to the respective list and
the Master Contact List. No additional “in-scope” companies were identified.
3.1.2 Interviews
To support interview activities, three discussion guides were designed for
telephone interview purposes. Once drafted, they were submitted for review
and approval by the project Steering Committee. They included:
1. Employer Survey (56 questions);
2. Economic Development Organizations (EDO)/Association Survey (20
questions); and
3. College/Training Institute Survey (14 questions).
Interviews were conducted by four interviewers, in English and French as
required, during the period of February-March 2012. In total 63 interviews were
completed:
1. Employers: 51 completed (82%)5, 8 refused to participate (13%), and 3
were unable to be reached (5%);
2. EDO/Associations: 6 completed (100%); and
3. College/Training Institutes: 6 completed (100%).
3.2 Secondary Research
Secondary research efforts contributed significantly to the study. Numerous
sources were accessed and are appropriately referenced throughout this
document. Research activities include:
o Literature search of related studies;
o General internet search for sector information, industry directories, etc.;
o Review of IF company websites;
o Statistics Canada data sources; and
o Industry Canada data sources.
2 PricewaterhouseCoopers LLP, (2010, October 20). Comparative benchmarking study – modular
fabrication facility. Beldune, NB: Enterprise Chaleur. 3 Mackellar Cunningham & Associates Ltd., (2012, February). Labour market analysis: metals
processing. Fredericton, NB: New Brunswick Community College. 4 The Metal Working Association of New Brunswick. 2006-2007 New Brunswick directory of metal
working companies. Moncton, NB: The Metal Working Association of New Brunswick 5 Two employers chose to complete the survey themselves - one on line, and the other by fax.
New Brunswick Sector Profile: Industrial Fabrication
11 June 2012
4 Sector Definition
The Industrial Fabrication sector is comprised of metal fabrication companies
that manufacture industrial equipment or systems to support the construction
and erection of large industrial projects in sectors such as petrochemical,
mining, pulp and paper, and utilities. A key capability of companies in this sector
is the ability to manufacture large “modular” components that can be
transported and integrated into the mega-project site. In this definition, these
firms are deemed to be “primary” metal fabricators for heavy industry and
generally have the capacity to supply modular fabricated products to large
industrial projects.
Also of interest, particularly in the New Brunswick context, are companies whose
focus is currently not in this sector, but have the capability in terms of
equipment, facilities, and workforce to supply to the sector. Also within this
categorization are smaller firms with unique capability to supply and
subcontract and thus round out the supply chain. Under this definition these
firms are deemed to be important suppliers to the sector, and are labelled as
“secondary” metal fabricators for heavy industry.
Common processes used in the sector involve the cutting, bonding, forming,
machining, and assembly of metal products – usually on a large scale.
Equally important to the definition is the exclusion of metal fabrication firms not
involved in such industrial projects. This includes companies that manufacture
products primarily for the commercial or consumer markets. Also not included
are companies with metal manufacturing capabilities not likely to be interested,
or skilled, in large industrial project work. For the purposes of this study these firms
are labelled as “non-industrial” metal fabricators.
Companies within scope, as defined above, typically supply to large
multinational organizations known as Engineering Procurement and
Construction (EPC) companies who usually lead these large industrial projects.
Using the North American Industry Classification System (NAICS 2007), the sector
is defined as encompassing companies classified according to the following 4-
digit industry groups:
1. 3323 Architectural and Structural Metals Manufacturing;
2. 3324 Boiler, Tank and Shipping Container Manufacturing;
3. 3327 Machine Shops, Turned Product, and Screw, Nut and Bolt
Manufacturing;
4. 3329 Other Fabricated Metal Product Manufacturing;
5. 3331 Agricultural, Construction and Mining Machinery Manufacturing;
6. 3332 Industrial Machinery Manufacturing;
New Brunswick Sector Profile: Industrial Fabrication
12 June 2012
7. 3334 Ventilation, Heating, Air-Conditioning and Commercial
Refrigeration Equipment Manufacturing;
8. 3336 Engine, Turbine and Power Transmission Equipment Manufacturing;
and
9. 3339 Other General-Purpose Machinery Manufacturing
While there are in the vicinity of 150 different occupations within this sector (as
defined above), the following occupations6 have been determined to be core
to the industry and are the focus of this study:
1. 2131 Civil Engineers
2. 2132 Mechanical Engineers
3. 2141 Industrial and Manufacturing Engineers
4. 2142 Metallurgical and Materials Engineers
5. 2231 Civil Engineering Technologists and Technicians
6. 2232 Mechanical Engineering Technologists and Technicians
7. 2233 Industrial Engineering and Manufacturing Technologists and
Technicians
8. 2253 Drafting Technologists and Technicians
9. 7211 Supervisors, Machinists and Related Occupations
10. 7231 Machinists and Machining and Tooling Inspectors
11. 7232 Tool and Die Makers
12. 7261 Sheet Metal Workers
13. 7262 Boilermakers
14. 7263 Structural Metal and Platework Fabricators and Fitters
15. 7264 Ironworkers
16. 7265 Welders and Related Machine Operators
17. 7266 Blacksmiths and Die Setters
18. 9511 Machining Tool Operators
19. 9514 Metalworking Machine Operators
20. 9516 Other Metal Products Machine Operators
21. 9612 Labourers in Metal Fabrication
4.1 About the Definition
The concept of an “Industrial Fabrication (IF)” sector was born out of the
modular fabrication trend that has been gaining traction in the construction
industry. New Brunswick stakeholders for this project had the intention of
focussing on “heavy industrial” development projects versus “building
envelope” construction projects. This focus swayed the emphasis toward metal
fabrication and away from other building materials such a precast concrete
and wood.
6 as defined by the National Occupation Classification (NOC 2006)
New Brunswick Sector Profile: Industrial Fabrication
13 June 2012
As such, some of the larger players in the IF sector using metal-working
processes, equipment, and skilled employees have become a hybrid of
classical manufacturing (NAICS 33) and construction (NAICS 23) companies.
Some companies integrate both shop (manufacturing) and field (construction)
staff under one homogenous entity, while others have created distinct divisions,
and yet others have created separate legal operating entities.
This report attempts to look at all companies serving this sector and looks at
some of the characteristics and skills issues affecting their entire metal-working
labour force.
5 Sector Profile
5.1 The New Brunswick Context
In order to gain an appreciation of the scope and impact of the Industrial
Fabrication sector it is first useful to understand the size and composition of the
New Brunswick economy.
In 2011, New Brunswick’s population was estimated to be 755,5007 with 619,400
individuals aged 15 and older making up the working age population. The total
labour force was comprised of 389,200 individuals where 352,000 found
employment, leaving 37,100 to the ranks of the unemployed8. The regional
distribution of the entire New Brunswick labour force is shown in Figure 1.
Figure 1: Regional Distribution of the New Brunswick Labour Force
7 Source: Statistics Canada, CANSIM, table 051-0001. Last modified: 2011-09-28. (accessed: 2012-
03-28) 8 Source: Statistics Canada. Table 282-0055 - Labour force survey estimates (LFS), by provinces,
territories and economic regions based on 2006 Census boundaries. (accessed: March 27, 2012)
20%
27% 23%
19%
11% Campbellton-Miramichi [1310]
Moncton-Richibucto [1320]
Saint John-St. Stephen [1330]
Fredericton-Oromocto [1340]
Edmundston-Woodstock [1350]
New Brunswick Sector Profile: Industrial Fabrication
14 June 2012
As seen in Table 19, the entire New Brunswick
manufacturing sector in 2009 was comprised of
approximately 1,400 establishments generating $14.8
billion in revenue and accounting for just over 8.5%
(29,973) of total employment in New Brunswick.
According to Statistics Canada, the Metal-Working
segment (NAICS 332 and 333) generated $645 million
in annual revenue from 230 establishments
employing 3,170 individuals – about 10.6% of the
manufacturing sector, and just under 1% of New
Brunswick employment.
Table 1: Manufacturing Sector and Metal Working Subsector (NB 2009)
Industry Segment No.
Establishments
Total Revenue
(x 1,000)
Total Employment
Production Non-Mfg.
All Manufacturing
(NAICS 31-33) 1,413 $14,758,114
29,973
23,268 6,705
Metal Working
(NAICS 332 & 333)
226 $644,562
3,167
2,357 810
The Canadian Occupational Projection System (COPS), based on the 2009
scenario, predicts that the “Metal Fabrication and Machinery (excluding
electrical)” industry would employ 4,245 individuals in 2011 (4,259 in 2009).
However it is important to note that this industry definition is much broader and
based on the 1980 Standard Industry Classification (SIC) system. While there is no
official concordance between SIC 1980 and NAICS 2007, it roughly includes
NAICS 331, 332, and 333.
Based on the above, and as defined in Section 4, the Industrial Fabrication
sector is in fact only a segment of the larger Metal Working/Metal Fabrication
sector. However, as will be described in the balance of this report, this segment
represents a very influential group of companies. Made up of relatively few
companies, about 60 - 70, they represent 80% or more of all individuals
employed in the Metal Working/Metal Fabrication sector - depending upon the
statistical reference.
9 Source (unless otherwise specified): Statistics Canada. Table 301-0006 - Principal statistics for
manufacturing industries, by North American Industry Classification System (NAICS), annual
(dollars unless otherwise noted), CANSIM (database). (accessed: 2012-03-28).
There is no universally
accepted definition for the
Metal Working industry. For
statistical purposes, some
studies include NAICS 331,
332, 332, and 336, while others
include only NAICS 332 and
333. Unfortunately, data for
NAICS 331 and 336 in New
Brunswick has been
suppressed by Statistics
Canada therefore limiting
analysis of the broader
definition.
New Brunswick Sector Profile: Industrial Fabrication
15 June 2012
5.2 Structure of the Sector
There are a number of ways that the structure of a sector can be viewed. For
example, Figure 2 shows a supply chain model developed by PWC2 for the
Modular Fabrication sector. As can be seen it is based on key inputs, or
activities, required to produce a “module”.
Figure 2: PWC Modular Fabrication Supply Chain Model2
Another way to view sector structure is through the lens of business-to-business
relationships, or more specifically how companies interact with each other.
Where Figure 2 identifies ‘what is to be done’, Figure 3 identifies ‘who will do it’.
The focus of this study, as the title suggests and as defined in Section 4, are New
Brunswick metal fabrication companies with an industrial focus. In the context of
the relationships depicted in Figure 3, this study focuses on companies at the
centre of the supply chain (red block). Companies with the capability and
interest to participate in this sector currently number between 60 to 70 in New
Brunswick.
Customer Requirements
Manufacturing and Assembly
• Fabrication• Piping• Machining• Assembly• Welding• Finishing and
Painting• Electrical and
Instrumentation
Labour• Skilled Labour• Project
Management• Engineering• Drafting and
Detailing• Quality Assurance• Other Trades
Design• Engineering
Planning and Management
• Estimation• Project
Management• Scheduling• Risk Management
Materials• Steel• Pipe• Electrical• Valves• Paint and
Finishing• Equipment• Sheet Metal
Quality Assurance and Safety
• Quality Programs• Audit• Inspection• Safety Program• TestingTransportation
• Specialty Trucking• Port Facilities• Rail
Assu
rance
and
Qu
ality Co
ntro
l
Ch
ange
/ Co
nfigu
ration
Man
agem
en
t
Pro
ject M
anage
me
nt / R
isk Man
agem
en
t
Module
Key Inputs
ThroughoutEntire Process
New Brunswick Sector Profile: Industrial Fabrication
16 June 2012
Figure 3: Structure of the Industrial Fabrication Sector in New Brunswick
Of the New Brunswick companies identified to be in-scope, over 80% were
classified as; “NAICS 3329 Other Fabricated Metal Product Manufacturing”
(57%), “3323 Architectural and Structural Metals Manufacturing” (15%), and
“3327 Machine Shops, Turned Product, and Screw, Nut and Bolt Manufacturing”
(10%). The entire breakdown is shown in Figure 410.
10 NAICS assignments were determined through assessment by the author based on a number of
factors including but not limited to; company self identification, listings on the Industry Canada
Canadian Company Capability website, as identified in the Service Canada regional database,
company website information, and responses to survey questions (where applicable).
VALUE CHAIN SUPPLIERS
NB INDUSTRIAL FABRICATION SECTOR
EPC COMPANY
LARGEINDUSTRIAL
PROJECT
Drafting & Detailing Co’s
Ind. Comp. Supply Co’s.
Design Service Co’s
MODULARFABRICATIONCOMPANIES
Primary Secondary
Capable Metal Fab. Co’s:• Welding
• Machining• Plate Work• Sheet Metal
Plating and Painting Co’s
Inspection and NDT Co’s
Raw Material Supply Co’s
Electrical & Control System Co’s
Hyd . & Pneu. System Co’s
New Brunswick Sector Profile: Industrial Fabrication
17 June 2012
Figure 4: NAICS Classification of New Brunswick IF Companies
5.3 Capability
The intent of this section is to provide an overview of the spectrum of capability
offered by New Brunswick IF companies. It is based on, and includes information
collected from, survey respondents (over 80% of IF companies).
5.3.1 Company Size
The New Brunswick IF sector is comprised primarily of smaller companies. On
average NB IF companies employ 60 full time equivalents (FTEs) per company.
When the two largest employers are excluded, the average employee count
per company is closer to 45.
Figure 5 shows that 73% of the sector companies have less than 50 employees,
accounting for only 23% of total sector employment. Conversely, only 27% of
companies have more than 50 employees which represent 77% of total sector
employment.
1.6%
3.3%
3.3%
3.3%
6.6%
9.8%
14.8%
57.4%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
3334 Ventilation, Heating, Air-Conditioning and Commercial Refrigeration Equipment Manufacturing
3331 Agricultural, Construction and Mining Machinery Manufacturing
3332 Industrial Machinery Manufacturing
3324 Boiler, Tank and Shipping Container Manufacturing
3339 Other General-purpose Machinery
Manufacturing
3327 Machine Shops, Turned Product, and Screw, Nut and Bolt Manufacturing
3323 Architectural and Structural Metals
Manufacturing
3329 Other Fabricated Metal Product Manufacturing
New Brunswick Sector Profile: Industrial Fabrication
18 June 2012
Figure 5: Make Up of IF Sector by Establishment Size Categories (n=62)
5.3.2 Facility Size
Another factor affecting capability, specifically capacity, is facility size. It is an
indicator of the size of products/equipment that a company is able to handle
within their shop. Just less than 70% of respondents reported that their
manufacturing space totalled less than 30,000 square feet. Nearly half (45%)
operated facilities in the 10,000 to 29,999 square foot range. About 30% reported
facilities with 30,000 to 100,000 square feet, and only 4% operated facilities larger
than 100,000 square feet.
Figure 6: Size of Manufacturing Space in Square Feet (n=51)
5.3.3 Lifting Capacity
In Modular Fabrication “lift capacity of shop cranes is an industry standard
measure typically used as a pre-qualifying criterion for bidding purposes”2. In the
context of this study, companies able to perform true modular fabrication would
represent the higher end of capability. As such, lift capacity is an important
factor toward assessing capability.
Figure 7 shows the breakdown of shop crane lifting capacity of surveyed
companies.
19
26
14
3137
725
1668
1300
0
200
400
600
800
1000
1200
1400
1600
1800
0
5
10
15
20
25
30
<10 10-49 50-250 250+
Emp
loym
en
t
Esta
bli
shm
en
ts
Company Size Category (Employment)
22%
45%
29%
4%
0% 10% 20% 30% 40% 50%
< 10,000
10,000 - 29,999
30,000 - 100,000
> 100,000
New Brunswick Sector Profile: Industrial Fabrication
19 June 2012
Figure 7: Shop Crane Lifting Capacity of NB IF Companies (n=51)
Many companies, through the use of mobile cranes, had the ability to lift
greater tonnage than rated above; however the intent was to examine in-shop
fabrication capacity. Where applicable, total lift capacity was reported. For
example, if a company had two 10 ton cranes that were configured to provide
a combined lift capacity of 20 tons – 20 tons was reported.
A distinct gap above 30 tons is apparent where relatively few companies have
this ability. In fact, these same companies have the ability to lift over 50 tons.
5.3.4 Heavy, Medium, or Light Duty
When asked “How would you characterize the capacity of your staff skills and
facilities in relation to the size of materials and projects your company can
reasonably manage?” respondents were given three options:
1. My company has heavy duty capacity and can easily handle the
heaviest and largest materials that are to be manufactured in the region
typically found in very large industrial projects.
2. My company would be considered a medium duty shop that can do
large projects as found in commercial or industrial job sites.
3. My company is a light duty metal shop and usually works with lighter
materials typically found in light industrial and commercial projects such
as miscellaneous metals.
Almost half (49%) of the respondents self identified as “Heavy Duty”, 43% as
“Medium Duty”, and only 8% as “Light Duty”, as shown in Figure 8.
33%
20%
25%
12%
0%
10%
0% 10% 20% 30% 40%
1-5
6-10
11-20
21-30
31-49
50+
Percentage of Companies
Ton
nag
e
New Brunswick Sector Profile: Industrial Fabrication
20 June 2012
Figure 8: Self-assessment of Light, Medium, and Heavy Duty Capability (n=51)
It is the opinion of the authors that a few responses were inflated, and perhaps
skewed the aggregate results more towards Heavy Duty than what was reality.
This was likely due partly to the ambiguous nature of the question, but also to the
“salesmanship” of some respondents. For example, at least two respondents
with less than 10,000 sq. ft. of manufacturing facilities self-identified as Heavy
Duty.
5.3.5 Manufacturing Materials, Processes, and Technologies
Not surprisingly, and as shown in Figure 9, all companies routinely worked with
steel. In addition, most routinely use stainless steel and aluminum. However, only
33% routinely manufacture with other metals such as titanium, copper, brass and
magnesium. Most were either machine shops, or possessed machining
capability.
Figure 9: Metals Routinely Used for Manufacture (n=51)
Questioning related to “standard” metal working processes (ex. cutting,
bending, welding, etc.) was purposefully omitted from the survey since by virtue
of being determined to be “in-scope”; a company would naturally possess
49%
43%
8%
0%
10%
20%
30%
40%
50%
60%
Heavy Duty Medium Duty Light Duty
33%
71%
78%
100%
0% 20% 40% 60% 80% 100% 120%
Other Metals
Aluminum
Stainless Steel
Steel
New Brunswick Sector Profile: Industrial Fabrication
21 June 2012
these basic capabilities. Instead companies were polled about their in-house
capability regarding special processes.
Painting - By far the most common (63%) special process was in-house
painting capability;
Plating/Coating - Only a few companies (about 8%) indicated the ability
to perform other in-house plating/coating processes. Responses included
chrome plating, galvanizing (either hot dip or cold spray), and hard
coating;
Heat Treating – Roughly 13% reported an ability to perform heat treating
in-house;
Sand Blasting - A commonly reported (unsolicited) response to the special
process question was sand blasting.
It is important to note that most companies have access to special processes
through subcontract relationships with suppliers when required.
The intent of the investigation was not to conduct a detailed analysis of
technology adoption in the sector, but rather to get a sense of what advanced
manufacturing technologies are commonly used by companies in the sector.
The results are shown in Figure 10.
Figure 10: Use of Advanced Manufacturing Technologies (n=51)
Almost all (92%) reported having Computer Aided Design (CAD) software. While
some extensively used CAD for design activities (see next section), others simply
used it to work with “drawings” provided by other sources.
Over 60% reported having Computer Numerical Control / Computer Aided
Manufacturing (CNC/CAM) capabilities. This primarily included CNC equipment
used for machining (ex. turning, milling, etc.), cutting tables (ex. plasma, water
jet, etc.), and to a lesser extent punching, bending, and shearing.
92%
63%
6% 4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CAD CAM/CNC Robotics None
New Brunswick Sector Profile: Industrial Fabrication
22 June 2012
The few respondents (6%) that reported having robotic capability use it for
welding processes.
Only two companies reported not using any of the above mentioned
advanced manufacturing technologies. It would appear that the sector, as a
whole, has extensively adopted advanced manufacturing technologies. It is
worth noting that small companies with fewer than 5 employees were
considered out of scope and not surveyed. Smaller operations are less likely to
have expensive automated equipment.
5.3.6 Design
Design capability was singled out as an offering that could potentially
differentiate one IF company from another by offering a greater breadth of
service. Overall, 80% of IF companies polled have the ability to offer clients
design services on a routine basis, whereas 20% do not. A wide spectrum of
design capabilities exists within the sector; ranging from companies with fully
rounded engineering departments to companies with a single employee that
might create a sketch for the shop floor.
Over half (55%) of respondents reported having in-house design capabilities,
whereas the remaining 45% have access to external engineers, technicians, or
design firms through contractual relationships.
5.3.7 Certifications
The two most common and most relevant areas of sector certifications relate to
welding and quality.
Welding: The welding certification environment is relatively complicated.
Certification applies to process (ex. SMAW, GTAW, PAW, etc.)11, material (ex.
steel, aluminum, etc.), application (ex. structural, high pressure, etc.), and
other factors. Within New Brunswick, the Canadian Welding Bureau (CWB)
certifies both companies and individual welders according to standards
established by the Canadian Standards Association (CSA). The New
Brunswick Department of Public Safety certifies welders according to ASME12
standards for pipe and pressure vessel welding.
Individual welder certifications or “tickets” are mandatory based on the
specific technologies, substrates, positions and techniques required for the
type of work/product being produced. Welders require certifications for the
11 SMAW=Shielded Metal Arc Welding, GTAW=Gas Tungsten Arc Welding, PAW=Plasma Arc
Welding 12 The American Society of Mechanical Engineers
New Brunswick Sector Profile: Industrial Fabrication
23 June 2012
processes utilized by their employer. The “mix” of required certifications varies
from company to company based on industries served and products
produced.
The intent of the investigation was not to conduct a detailed examination
and classification of IF company welding certification in New Brunswick, but
rather to identify if companies have actually achieved welding certification
and if so, what “type”. As shown in Figure 11, over ¾ of respondents possess
some form of structural welding certification. Of these, all possessed
Canadian Welding Bureau (CWB) certification, and 13% also had
certification with the American/Canadian Institute of Steel Construction
(AISC/CISC).
Figure 11: Welding Certifications (n=51)
Approximately one third (35%) of the companies interviewed possess pressure
welding certifications (ASME - pipe or pressure vessel). With few exceptions,
companies with this certification also possess structural welding certifications.
Only two companies reported achieving welding certification for nuclear
applications. A surprising 16% have not achieved any welding certification
(or were unable to accurately report). However, over half of these were
machine shops.
Quality: Certification of quality programs is another differentiating factor in the
sector. As shown in Figure 12, almost half (48%) of respondents reported
having an externally certified quality program. ISO 9001 (including AS9100 in
a few instances) made up most (79%) of the external certifications while
AISC/CISC quality certification made up the balance (21%).
16%
4%
35%
76%
0% 20% 40% 60% 80% 100%
None
Other: Nuclear
Pressure (ex. ASME)
Structural (ex. CWB, AISC/CISC)
New Brunswick Sector Profile: Industrial Fabrication
24 June 2012
Figure 12: Quality Program Certifications (n=50)
Another 42% of respondents reported having a documented in-house quality
program, and 10% had no formal quality program in place.
5.3.8 Capability Analysis
To provide insight into the relative capability of IF companies, and the New
Brunswick sector as a whole, an algorithm was developed to quantitatively
assess companies against a number of relevant factors unique to the IF sector.
Shown in Figure 13 is a plot of IF companies based on values calculated for
Capacity (X-Axis) and Expertise (Y-Axis). Coordinates for each company were
calculated based on a weighted average of numerical values assigned to
selected survey responses as outlined in Table 2 below13:
Table 2: Capability Analysis Assessment Criteria
Factor Weight
Ca
pa
city
Ax
is
Size of Shop 25%
Shop Lift Capacity 25%
Heavy, Medium or Light Duty 20%
Total Number of Employees 20%
Revenue Range 10%
Ex
pe
rtis
e
Ax
is
Participation in Industrial Markets 25%
Welding Certifications 25%
In-House Design Capability
Engineers/Technicians on Staff (10%)
CAD Capability (5%)
Offer Design Services (5%)
20%
Geographic Market Reach 10%
Quality Program Certification 10%
Ratio of Production to Total Employment 5%
Metals Routinely Worked With 5%
13 Sections 5.3 and 5.5 provide greater insight into the various factors.
Externally Certified
48%In-House Program
42%
No Formal Program
10%
New Brunswick Sector Profile: Industrial Fabrication
25 June 2012
Figure 13: Capability Analysis of New Brunswick IF Companies Surveyed
It must be clearly stated that it is not the intent of this analysis to make an
unequivocal assessment of a company’s capability and definitively plot it on a
chart14. Rather it is intended to provide a relative assessment to get a sense of
the collective New Brunswick IF sector landscape.
It should also be noted that this analysis is focussed on, and thus “scaled” to, the
New Brunswick situation. For example, an average “global” modular fabrication
company would employ 550 people while a large global modular fabrication
company would employ upwards of 1750 people2. The two largest New
Brunswick employers interviewed had less than 500 full time staff. If Figure 13 was
plotted on a global scale, the net effect would be to shift the data points
toward the lower left quadrant.
The upper right quadrant would represent capability of “primary metal
fabricators for heavy industry” as defined in Section 4. As shown in Figure 13,
14 There are obvious limitations to such an analysis. As well, the assessment is dependent entirely
upon survey responses, most of which have not been explicitly investigated and verified.
Exp
ert
ise
Capacity
New Brunswick Sector Profile: Industrial Fabrication
26 June 2012
there are relatively few companies in this quadrant who would have the
capacity and expertise to “go it alone” when pursuing mega project
prefabricated modules.
Anecdotal evidence established through interviews indicated that a number of
smaller companies are currently supplying products and services to larger New
Brunswick companies in the sector. For smaller progressive companies wishing to
pursue the sector, the situation presents potential partnering opportunities. Due
to this reality, specific sector development efforts are taking place in the
province by both private and public stakeholders (see Section 5.7).
5.4 Regional Distribution
Figure 14 shows the regional distribution of 62 Industrial Fabrication companies in
New Brunswick.
Figure 14: Location of IF Companies in New Brunswick
5-9
10-49
50-250
250+
New Brunswick Sector Profile: Industrial Fabrication
27 June 2012
The “Campbellton – Miramichi” and the “Saint John – St. Stephen” economic
regions, as shown in Figure 15, are most prominent in the sector accounting for
almost 50% of establishments and almost 70% of employment.
Figure 15: Regional Distribution of IF Establishments and Employment (n=62)
5.5 Markets
5.5.1 Market Segments Served
Figure 16 shows the ranking of market segments identified by survey respondents
that account for at least 10% of corporate revenue.
Figure 16: Market Segments Accounting for 10% of Corporate Revenue (n=51)
11
12
8
12
19
1302
512
255
415
1186
0 500 1000 1500
0 5 10 15 20
Saint John - St. Stephen
Moncton - Richibucto
Fredericton - Oromocto
Edmundston - Woodstock
Campbellton - Miramichi
Employment
Establishments
4%
4%
6%
8%
10%
10%
24%
31%
39%
43%
43%
47%
59%
59%
0 5 10 15 20 25 30 35
Water and Sewage
Waste Management
Aquaculture
Shipbuilding
Other
Aerospace/Defence
Land Transportation
Food Processing
Petrochemical
Power Generation including Nuclear
Agriculture and Forestry
Pulp and Paper
Construction
Mining
New Brunswick Sector Profile: Industrial Fabrication
28 June 2012
The most common market segments served (59%) are mining and construction.
The significant participation in construction illustrates the “cross-industry” nature
of companies in this sector.
Figure 17 drills down further and shows how respondents identified the top 3
industrial markets served, by revenue. In viewing the data it is important to note
that while all respondents identified their primary (n=51) market, not all identified
their secondary (n=41) and tertiary (n=37) markets.
Figure 17: Top Three Markets by Value of Revenue
The mining industry is by far the primary source of revenue for most New
Brunswick IF companies. Not surprising, the construction, petrochemical, pulp
and paper, and utility industries are also major sources of revenue. Most
respondents did qualify their responses indicating that revenue sources change
in relation to the economy. For example, companies that mainly serve the
petrochemical market today may have principally relied on the pulp and paper
market 10 years ago.
5.5.2 Geographic Reach
As shown in Figure 18, a large portion (60%) of the companies interviewed
indicated that the largest portion of their revenue originates from within New
Brunswick. It is important to note that this does not imply that 60% of sector
revenue originates from New Brunswick, but rather only 60% of the companies
indicate that it is their major source. The same companies are likely to have
interprovincial and export revenue as well. It should be noted that respondents
indicated that the percentage of their revenue coming from various
0 5 10 15 20
Other
Shipbuilding
Land Transport
Agriculture and Forestry
Aerospace/Defence
Food Processing
Pulp and Paper
Power Generation including Nuclear
Petrochemical
Construction
Mining
Primary
Secondary
Tertiary
New Brunswick Sector Profile: Industrial Fabrication
29 June 2012
geographic regions can shift, sometimes dramatically, from year to year, based
on contract wins.
Figure 18: Largest Portion of Revenue – By Geography (N=50)
To gain insight into actual export values, Figure 19 shows the history of
international exports for the broader New Brunswick Metal Working Sector
(NAICS 332 and 333).
Figure 19: New Brunsiwck Metal Working Sector International Export History
An obvious and significant negative trend, $245.6 million in 2002 to $85.3 million
in 2011, characterises export activity of the metal working sector. A steep
decline during the recession in 2008-2009 is especially apparent. International
exports in 2009 ($132.7 million) represented approximately 21% of total NB Metal
Working revenue ($644.6 million from Table 1).
5.5.3 Outlook
Collectively respondents (n=51) generally viewed the past performance of the
sector over the last two years as being “somewhat strong”. However, there is
much greater optimism for the next 2-5 years where respondents (n=50) see
performance appreciably increasing as shown in Figure 20.
60%
8%
22%
10%New Brunswick
Atlantic Canada
Canada
Inernational
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
NAICS 333
NAICS 332
New Brunswick Sector Profile: Industrial Fabrication
30 June 2012
Figure 20: Perception of Past and Future Economic Performance of the Sector
A large percentage (69%) of respondents (n=51) claim to have taken concrete
steps to diversify their markets. Figure 21 shows the most common responses
relating to market diversification.
Figure 21: Diversification Markets Targeted By Respondents (n=34)
It is not surprising, given the recent announcement of the $25-billion Irving
contract to build the next generation of combat ships, that the majority of
respondents (approximately 38% of those claiming diversification efforts)
identified shipbuilding as a diversification area.
0% 10% 20% 30% 40%
(Extremely weak) 1
2
3
(Somewhat weak) 4
5
(Somewhat strong) 6
7
8
(Extremely strong) 9
Next 2-5 Yrs
Last 2 Yrs
0 2 4 6 8 10 12 14
Other
Pulp and Paper
Power Generation including Nuclear
Land Transport
Construction
Agriculture and Forestry
Petrochemical
New Geographies
Aerospace/Defence
Mining
Shipbuilding
New Brunswick Sector Profile: Industrial Fabrication
31 June 2012
Despite this, mining continues to be a market focus for companies. Aerospace
and defence are also high ranking target markets - likely fuelled by the
shipbuilding buzz.
Although not asked specifically, only three respondents identified that they will
be pursuing new geographic markets.
In terms of expansion or contraction plans (machinery or buildings), none of the
respondents indicated that they plan to contract. Forty-nine percent (49%)
indicated that they plan to expand, whereas the remaining 51% plan to
maintain current operations.
5.5.4 Market Barriers
While individual companies may face a number of market barriers depending
upon their unique circumstances, there was really only one sector-specific
market barrier identified – access to free and open trade. This is a significant
hurdle since most opportunities in the sector, particularly if growth is to take
place, exist beyond the borders of New Brunswick.
It was suggested that the bi-lateral government agreements between
Newfoundland and Labrador with the Government of Nova Scotia and the
Government of Canada are a major barrier to New Brunswick companies
wishing to pursue these regional markets. Similarly, the union influence and
control over construction sites in Quebec creates challenges for New Brunswick
companies that wish to build, ship, and install modular components in that
province.
New Brunswick government officials acknowledge there are challenges in this
area, and that the New Brunswick government must continue to raise these
issues with their provincial and federal counterparts.
5.6 Transportation Infrastructure
Transportation infrastructure is critically important to the New Brunswick IF sector.
The nature of business – fabrication of large metal products for installation at
distant industrial sites – demands appropriate transportation infrastructure to
move goods to distant markets. Infrastructure to support land (road and rail)
and sea transportation in New Brunswick is briefly discussed below15.
5.6.1 Land
New Brunswick’s land transportation infrastructure is shown in Figure 22.
15 Unless otherwise specified, information in this section is taken primarily from the New Brunswick
Department of Economic Development website -
http://www2.gnb.ca/content/gnb/en/departments/economic_development/Export_Trade.html
New Brunswick Sector Profile: Industrial Fabrication
32 June 2012
Figure 22: Land Transportation (Road and Rail) Infrastructure in New Brunswick
New Brunswick’s modern toll-free highways are fully integrated with U.S. and
eastern and central Canadian networks. Interstate-95 continues in New
Brunswick, connecting to the four-lane Trans-Canada Highway that runs through
the province.
The only transcontinental rail network in North America - Canadian National
Railways - links New Brunswick with both the Atlantic and Pacific U.S. seaboards,
Central Canada, and the Gulf of Mexico. Networked railways include:
CN: Canadian National MM&A: Montreal, Maine & Atlantic
CP: Canadian Pacific GSR: Boston & Maine (Central)
NBSR: New Brunswick Southern Railway EMR: Eastern Maine Railway
NBEC: New Brunswick East Coast Railway Via Rail Canada Inc.
5.6.2 Sea
Being a coastal province, New Brunswick is gifted with ample coastal access
and five ports (Figure 23) that permit inexpensive and convenient shipping of
raw materials and finished goods to the United States, Europe, the Caribbean,
and beyond.
New Brunswick Sector Profile: Industrial Fabrication
33 June 2012
Figure 23: New Brunswick Ports
Sea ports are particularly important to the sector when very large prefabricated
industrial modules are required to be exported to distant markets. Two of the
larger Ports, Belledune and Saint John, have undertaken specific efforts to
support and pursue the sector in New Brunswick.
Belledune: In 2010 the Port of Belledune and the Provincial Government formed
a strategic partnership to construct the “Belledune Modular Fabrication
Facility” with $13.2 million in funding from the Federal and Provincial
governments. The endeavour included the construction of a new 40,000
square foot facility and the acquisition for another 90,000 square foot facility.
The first tenant of the facility was announced in March 2012.
Saint John: In 2010 Saint John Industrial Park Ltd. commissioned an engineering
study for a site review of a barge loading facility in Saint John16 citing that:
“Metal fabricators in Saint John are seeking to provide a barge loading
facility that will allow the proponents to ship (or receive) large components
that exceed rail and truck capability or limitations.” In 2012 a news report17
indicated that the $6 million project was supported by local companies such
as Lorneville Mechanical and that construction could begin in the fall of
2012.
5.7 Sector Development
As presented in Sections 5.3.1and 5.3.8, the very nature of the New Brunswick IF
sector (comprised primarily of smaller companies) presents opportunities for,
16 “Site Reviews for a Barge Loading Facility in Saint John, NB for Fabricated Steel Modules for
Heavy Industry”, Cormier Management Consulting Ltd. in association with Fundy Engineering Ltd,
June 2010 17 “Proposed barge docking site could boost business”, CBC News, March 7, 2012
New Brunswick Sector Profile: Industrial Fabrication
34 June 2012
and in some cases necessitates, partnering to pursue larger projects. A logical
extension would be to take deliberate steps toward cluster development. PWC
in their 2011 modular fabrication report2 determined that there were “no major
gaps of service” and “that the supply chain exists. It just needs to be organized
and coordinated”. They go on to say that the coordination role is usually played
by industry associations in mature clusters, and by government in early stage
cluster development. Industrial Fabrication sector clustering activities are in fact
happening in both the private and public domains in New Brunswick.
In the public domain, a “Provincial Modular Fabrication Committee” with
representation that includes the Department of Business New Brunswick18 has
been established. While the committee was originally created to pursue efforts
at the Port of Belledune (see above), interview discussions have indicated that it
is evolving to take a broader provincial approach.
In the private sector, the Associated Manufacturing Marketing Group (AMMG) is
a consortium established to specifically pursue this sector. The organization
represents six private companies under one marketing umbrella to pursue
business development opportunities directly in the industrial fabrication sector.
It was the opinion of most economic development advocates that New
Brunswick was well positioned to take advantage of opportunities in the
industrial metal fabrication sector. Access to deep water ports, a skilled
workforce, and a proven track record in delivering on other major infrastructure
projects in the past were all cited as key strengths that will help the Province
become successful in this effort.
Most believe that New Brunswick is currently, or could become, a respected
player in this market place and needs to continue to develop relationships with
EPC contractors responsible for project management and delivery of major
projects. On the other hand, the enthusiasm of some was tempered by the
perception that New Brunswick is not currently a major player in the sector, and
that most opportunities for this type of work exist beyond its borders where New
Brunswick companies face both global competition as well as barriers to free
and open trade (see Section 5.5.4).
A total of six interviews were conducted with individuals involved in economic
development activities related to the sector. Some individuals were charged
with a regional mandate, some represented specific industrial sites, and some
had a Province-wide mandate for economic development. Not surprisingly, a
wide variety of perspectives were shared, with varying opinions likely forged in
the execution of the different roles and mandates of those interviewed.
18 Recently renamed and reorganized into the Department of Economic Development.
New Brunswick Sector Profile: Industrial Fabrication
35 June 2012
Advocates for modular fabrication in the northern part of the Province saw
Belledune as the best location in the Province for fabricating and delivering
industrial modular components from New Brunswick. Proponents cited
economic opportunities generally in the mining sector of northern Quebec and
Labrador. Companies in the region have expertise in this sector and access to
the facility at the Port of Belledune and elsewhere in northern New Brunswick.
The group has identified 43 major mining projects that total more than $47 billion
as potential target markets.
Yet, it was the perspective of those interviewed from southern New Brunswick
that the Saint John area was the best location in the Province for delivering
industrial modular components from New Brunswick. Factors in support of Saint
John were: access to a major deep sea port with ice free waters, a highly skilled
labour force, and a culture of heavy industry. Opportunities from Newfoundland
and Labrador to Texas, mainly in the oil and gas industry, were cited as potential
market areas.
Although, regional economic development strategies were not a central focus
of the study, the issue did surface in interviews with leaders in this sector. It might
appear there are differing views for economic development for modular
fabrication within the Province, and perhaps even competitive concerns. One
interviewee noted: “We need to be careful not to create an unnecessary
competitive environment within the Province when we have the infrastructure in
place here.”
It is the authors’ opinion however, that the differing visions are more
complementary than competitive. All those interviewed agreed that there are
major opportunities to build modular components for large industrial projects
and agreed that the New Brunswick labour force and companies are prepared
to exploit these opportunities. Companies in the north of the Province have an
interest and expertise in the mining sector and are geographically positioned to
exploit these interests. Companies in the south have expertise in oil and gas and
stakeholders there have identified 70 oil refineries16 on the eastern seaboard
that require modernization and operational support.
6 Human Resources Profile
6.1 Human Resource Practices
Forty-one percent of 51 respondents indicated that they had no dedicated
human resource staff. Often, it was the company owner who hired, fired and
managed payroll and other aspects of the workforce, in addition to running the
business. About half of the companies (47%), reported having a full or part time
New Brunswick Sector Profile: Industrial Fabrication
36 June 2012
person to help with these functions. Only 12% of companies had a human
resources department with two or more employees.
When asked about human resource plans that address labour force planning,
recruitment, training, performance management, and exit interviews, 63% had
no plan in place. The remainder (37%) had at least a partial or a full plan on file.
When questioned about succession planning for the ownership and / or
management of the company, 35% indicated that they had a formal plan in
place, while 45% indicated they did not have a formal plan, but were mentoring
employees for management roles. The remaining 20% did not have a plan, or
declined to say.
As expected, larger companies and companies that were part of
multidisciplinary organizations were more likely to have a plan for the
development of their workforce than smaller owner / operator companies. In
such instances full time human resources staff were available to support this
work.
6.2 Workforce Composition
It was determined that companies in this sector (n=62) employed approximately
3,440 total staff. About 2,550 (65%) made up the metal fabrication and
processing occupations that are the focus of this study (Section 4).
Figure 24: Ratio of Core IF Occupations to Non-Core Occupations
The relative distribution of each occupation is shown in Figure 25.
Core Metal Fab, 65%
Other, 35%
New Brunswick Sector Profile: Industrial Fabrication
37 June 2012
Figure 25: Employment of Selected IF Occupations (n=51)
According to the Canadian Occupational Projection System (COPS), the
broader New Brunswick metal fabrication industry employs 134 different
occupations and 4245 people. As such, this study has effectively captured over
80% of the employment within the industry.
It should be noted that COPS data is not entirely consistent with survey data as
shown in Table 3. Interviews with employers uncovered significantly more Fitters /
Fabricators and moderately more Welders working in this sector than in the
broader Metal Fabrication industry (as defined by SIC 1980) reported by COPS.
Table 3 : Selected Comparison of Survey Responses To COPS Data
Occupation Employer Responses 2011 COPS DATA
Machinists 157 415
Fitters / Fabricators 511 49
Welders 431 399
Workforce issues in the Employer interviews focused on the 21 occupations core
to the IF sector as defined in Section 4, namely: Welders, Fitters, Machinists,
Machine Operators, Labourers, Shop Supervisors, Technologists, Drafters and
Engineers. Excluded from the analysis were employees that worked in
0%
0%
0%
0%
0%
0%
1%
1%
1%
1%
1%
1%
2%
6%
7%
8%
9%
10%
11%
19%
22%
0% 5% 10% 15% 20% 25%
Metallurgical & Materials Eng (2142)
Blacksmiths and Die Setters (7266)
Machining Tool Operators (9511)
Ind and Mfg Eng (2141)
Tool and Die Makers (7232)
Mechanical Eng (2132)
Ind Eng & Manuf Eng Techs (2233)
Civil Eng Techs (2231)
Other Metal Production Machine Ops (9516)
Civil Eng (2131)
Drafting Techs (2253)
Mechanical Eng. Techs (2232)
Sheet Metal Workers (7261)
Metal-working Machine Operators (9514)
Machinists and Tooling Inspectors (7231)
Labourers in Metal Fab. (9612)
Supervisors - Machinists & Related (7211)
Ironworkers (7264)
Boilermakers (7262)
Welders and related Machine Workers (7265)
Structural Metal Fitters & Fabricators (7263)
New Brunswick Sector Profile: Industrial Fabrication
38 June 2012
management roles, administration, sales, or otherwise employed in trades not
directly involved with metals work.
At first glance it would appear there are an unusually high number of employees
not directly involved in the production process. However, it should be noted that
some companies were multidisciplinary and employed trades people in other
disciplines such as electrical, instrumentation, hydraulics or construction.
Fitter/Fabricators and Welders were the two occupations with the largest
employment. Together they made up 41% of the sector workforce. An analysis
of these employment numbers to the post-secondary training capacity in the
Province, and future staffing needs is discussed further in Section 7.8.
Trades people in the small- to medium-sized companies commonly perform
more than one role. Fitters may also be Welders and Machinists may be certified
in welding operations while also operating metal-working machines such as
brakes and shears. This was a common story, and something valued by
employers. In very large or unionized shops it was more likely to find trade-
specific practices where, for example, a Fitter would set up the fabricated
component to be welded but would not do the actual welding.
6.3 Unionization
The majority of employers (78%) operated non-union shops. Only 16% of
companies were unionized, and many of these were based in the Saint John
area where heavy industrial trades have been in existence since the 1950s. A
small number of companies (6%) employed both union and non-union trades. In
these circumstances, it was determined that companies may have had non-
union shop employees and unionized field workers or installers.
Figure 26: Unionization in the Sector (n=51)
16%
78%
6%
Unionized
Nonunionized
Hybrid
New Brunswick Sector Profile: Industrial Fabrication
39 June 2012
Employers that were unionized had considerably different practices and
attitudes towards recruitment, professional development, training and
succession planning than companies that were non-unionized. Unionized
employers worked closely with union leaders on these issues and called upon
union halls for labour when staff were required and laid off employees when the
work was complete. Non-union shops generally took more of a custodial view of
their employees, their development, and progression within the company.
Employees in the non-unionized environment were compensated less based
upon hourly wages but might spend a major part of their career with one
employer.
6.4 Wages
Wage rates were only requested on three occupational profiles for both entry
level apprentice employees and for those at the top skill level of their trade.
Wages for Welders, Machinists and Machine Operators were surveyed. There
was less than a 10 percent variation across the trades, however senior
employees were paid 35-42% percent higher than their entry-level counterparts.
Table 4: Wage Rates Reported by Respondents (n=51)
Occupation Junior Senior Average
Welder $16.26 $22.66 $19.46
Machinist $15.14 $21.60 $18.37
Machine Operator $15.17 $20.55 $17.86
According to the HRSDC19 database Working in Canada20, wages paid by
surveyed employers were consistent with less than 10 percent variance
compared to the national database figures for the region. One interesting
finding, as shown in Table 5, was that wages in the northeastern region of New
Brunswick for Welders were over 20% higher than in southeastern New Brunswick.
This is consistent with anecdotal feedback from employers in the north who
indicated there were challenges finding and keeping skilled workers in their
region, and as a result they had to offer more competitive wages. As expected,
wages in Alberta were considerably higher for all trades.
Table 5: Wage Rates From “Working in Canada – HRSDC”
Occupation Calgary Moncton N-E NB Region
Welder $27.97 $18.00 $22.03
Machinist $26.22 $17.64 N/A
Machine Operator $21.37 $17.88 N/A
19 HRSDC=Human Resources and Skills Development Canada. 20 http://www.workingincanada.gc.ca
New Brunswick Sector Profile: Industrial Fabrication
40 June 2012
6.5 Demographics
The majority of workers in the core occupational groups were 25 to 44 years of
age, representing just under half of the sample size. Workers aged 45 to 54 were
the second largest group followed by those 24 years and under. Only about
15% of workers were over 55 years old. There were very few metal workers over
65 years of age active in the labour force.
Figure 27: Age Distribution of IF Core Fabrication Occupations (n=50)
When considering the fact that the 25-44 year old category spans a 20 year
time period while the 45-54 age period spans 10 years and the 24 and under
period is typically less than 5 years in the workforce, there is a fairly even
distribution of workers by age within the New Brunswick sector.
Many employers raised concerns about the aging workforce and out-migration
of workers (especially younger workers to Alberta) as being a significant
challenge. However, the data would suggest that a significant number of
younger workers remain in New Brunswick companies, proportionally similar to
their older coworkers. Adjusting the results to account for the differing number of
years within each group, there is a relatively even distribution of workers at every
age profile within a margin of plus or minus 3 percent (assuming an even
distribution in the 25-44 age category). The exception to this is the group aged
65 and over.
Of the 2,250 workers employed in the core IF occupations, as identified by
respondents, only 1.9% (43) were female. Metal fabrication remains a male-
dominated field and there is likely no change in sight. Despite this bias, some
employers commented that their female employees exhibited better skills in
12%
47%
25%
15%
1%0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
-24 25-44 45-54 55-64 65+
New Brunswick Sector Profile: Industrial Fabrication
41 June 2012
some areas than their male counter parts. Their attention to detail, high
productivity and reliability were all cited as valuable traits.
Only 5 respondents (10% of n=50) reported employing landed immigrants. In
total only 10 (0.4%) landed immigrants were employed as part of this workforce.
Only one employer reported hiring a single temporary foreign worker. Most
respondents, when further questioned on this subject, had never considered the
option of hiring from outside Canada and relied on traditional recruitment
methods (including internet job sites) to find new employees. One large
employer residing in a rural area is increasingly looking at immigration to help fill
his labour needs, as it has been difficult to find employees willing to move to the
more remote area where they are located. Employers that did employ landed
immigrant workers offered the commentary that their skill sets were usually far
better than their Canadian-trained co-workers. This is especially the case with
immigrants from Europe where the training of trade skills begins in the early to
mid teens and the entire path to becoming a journeyperson takes 10 to 15
years. It was noted that Europeans hold a different perspective regarding the
trades compared to those in the western world. Journeypersons are respected
by society on a par with engineers, doctors and other professionals. Here, trades
are regarded as a path for those graduating from high school who do not have
the academic aptitude for university.
Should New Brunswick become successful in becoming a centre of expertise in
building, shipping and installing major modular components for industry, workers
from other countries could not only become part of the solution to filling its
labour needs, but also may bring with them new skills such as diverse cultural
and linguistic knowledge that could be beneficial in the export business.
6.6 Future Hiring Plans
Employers were questioned about current vacancies as well as their hiring
predictions over the next two years for the core IF occupations. Shown in Figure
28 were current vacancies reported by respondents.
New Brunswick Sector Profile: Industrial Fabrication
42 June 2012
Figure 28: Vacant Positions Reported by Respondents (n=49)
Figure 29 shows hiring expectations for the core IF occupations over the next
two years.
Figure 29: Respondent Hiring Expectations in the Next 2 Years (n=49)
Employers generally noted that longer-range hiring plans would be a result of an
increase in business rather than a loss from the current workforce through
retirements or termination of employment. The top three occupations in
demand, consistent with current vacancies as well as anticipated hiring, were
Welders, Fitters and Fabricators, and Machinists / CNC Operators.
0
1
1
2
3
5
9
12
18
26
29
0 5 10 15 20 25 30 35
Engineers
Machine Operators
Sheet Metal Workers
Technologists
Draftspersons
Other
Shop Supervisory Staff
Labourers
Machinists/CNC Operators
Structural Fitters & Fabricators
Welders
9
11
12
12
13
26
29
45
73
156
175
0 50 100 150 200
Sheet Metal Workers
Engineers
Technologists
Draftspersons
Shop Supervisory Staff
Machine Operators
Other
Labourers
Machinists/CNC Operators
Structural Fitters & Fabricators
Welders
New Brunswick Sector Profile: Industrial Fabrication
43 June 2012
6.7 Staffing and Hiring Issues
The reasons that led to the hiring of metal-working employees over the past five
years were explored with respondents (n=50). Only 43 positions had to be filled
because of retirement. Another 241 replaced those that had quit, or were fired.
The majority of the new hiring in the past five years was a result of growth in
business where companies reported hiring 482 new employees.
Caution should be used in interpreting these numbers since this does not mean
the sector’s labour force grew by 500 employees during this period. The numbers
do not account for employees who quit one company and were hired by
another. Also, respondents indicated that over the past few years they have
observed a number of competitors going out of business. Some new hires are
likely a result of these displaced workers joining other companies.
Only eight landed immigrants (permanent residents) were hired by respondents
in the last five years.
Within the unionized companies, there was no way to track these numbers at
the employer level since the companies requisitioned employees from the union
hall, and were not able to track worker movement within the labour force.
6.8 Recruitment Methods
All respondents (n=51) hired new staff over the past five years. Most use multiple
methods to find new employees. Two-thirds of companies hire employees who
have forwarded their resume or filled out an application form. Forty-five percent
of companies advertise in newspapers. One-third have hired from referrals
through government programs or lists. Fifty-three percent of companies use the
internet to find employees including use of their own website as well as
specialized third-party providers such as Career Beacon, Workopolis, etc.
Twenty-nine percent found employees through “other” means. Unionized
companies hired trades staff exclusively through the union hall. Some employers
developed a relationship with a college and hired directly from the graduating
class, often hiring a student placement after completion of a formal on-the-job
training session.
No companies reported using any means to specifically target foreign workers.
Only 12% used a professional recruiter to find workers. This approach was
sometimes used to obtain employees with special skill sets.
New Brunswick Sector Profile: Industrial Fabrication
44 June 2012
6.9 Challenges in Recruiting
Twenty-nine percent (29%) of respondents had no problem finding employees in
their local labour market over the past five years as shown in Figure 30. However,
slightly more (31%) found it challenging to find Fitters / Fabricators.
Figure 30: Challenges Recruiting Selected Occupations (n=51)
Welders ranked second in difficulty to recruit with 29% of respondents indicating
that this was a challenge. Survey respondents often qualified their remarks,
mentioning that Welders were difficult to find a few years ago but that the
problem has largely been solved with additional training provided at the post-
secondary level. They further clarified their responses, stating that Welders with
special certifications in high pressure welding and the welding of stainless steel
and other metals were in demand. “Run of the mill” Welders were not hard to
find in today’s labour market.
Nearly one-quarter (24%) of employers reported difficulty in finding Machinists
and CNC Operators. This number should not be dismissed even though three-
quarters of employers report not experiencing any problems in this area, since
many of these companies, by virtue of their work, do not employ many or even
any Machinists, nor do they have CNC capability. For those employers that do
rely on this skill set, significant difficulty recruiting is being experienced.
Respondents did not report a problem finding Engineers and Technologists (only
2% and 4% respectively). However, 8% of employers expressed problems in
finding CAD Drafters. Lower numbers in these categories are likely a result of
some companies not performing in-house design work and the low ratio
12%
2%
2%
4%
6%
8%
8%
24%
29%
31%
4%
29%
0% 10% 20% 30% 40%
Other
Engineers
Sheet Metal Workers
Technologists
Machine Operators
Draftspersons
Shop supervisory staff
Machinists and CNC Operators
Welders
Fitters / Fabricators
Have not hired in last 5 years
No trouble recruiting in last 5 years
New Brunswick Sector Profile: Industrial Fabrication
45 June 2012
requirement of design staff to production staff. Anecdotal comments suggest
that CAD Drafters with a high degree and breadth of software knowledge and
understanding of the metals industry were not available right out of trade
school.
When employers were given the opportunity to provide their own rationale why
the local labour market was not able to fulfill their needs, a wide variety of
responses were received. The most frequent response was out-migration of
younger workers to western Canada. However the issue is far more complex
than this single factor.
A number of employers cited geographic challenges in finding labour. Workers,
especially younger workers, want to be near larger centres where their spouses
can find work and their families have access to a wider range of employment,
entertainment and social services. One insightful respondent felt it was in
everyone’s best interest to try to develop communities from a cultural and social
standpoint rather than to focus only on economic and employment issues.
Some respondents observed generational challenges with employees from the
younger demographic: “The younger people don't see welding as a life-long
profession.”
Many comments were made about the educational system and its failure to
develop the workforce in all trades disciplines. References were made to the
“old” system where students were exposed to the trades at an early
impressionable age in school and were offered a career path to study.
Employers commented that the system is geared to send students to university
and “those that can’t” end up at trade school.
Many respondents felt that colleges needed to do a better job by better
communicating with employers about their needs and delivering better trained
students in fields that are in demand, although 45% of respondents indicated
new graduates had the skills they expected. Often, the demand for Fitters and
Fabricators and Machinists was noted, along with the need for Welders with
advanced skills who can pass exams to maintain their welding tickets.
6.10 Skill Deficiencies with New Hires
The majority of respondents (55%) reported that new employees lacked the skills
required to take on the duties of the workplace. However, the deficiencies
identified were more generic in nature (i.e. common to many trades in many
industries) and not specific to the IF sector. Examples of deficiencies cited
include:
New Brunswick Sector Profile: Industrial Fabrication
46 June 2012
A number of employers noted that basic safety training required in a
modern industrial work environment was lacking;
It was often noted that new graduates lacked practical experience and
employers carried the burden of training individuals in skills that should be
a prerequisite for graduation;
Workers, especially Fitters and Fabricators, lacked the ability to read and
interpret drawings;
Poor math, physics and literacy skills with some graduates was a concern
to some respondents;
Programming at the post-secondary level does not address the labour
market need for training for advanced skills. Common examples were:
welders trained for specialty metals or processes, CNC skills specific to
certain machines, and CAD Drafters with knowledge of multiple software
platforms; and
A few employers noted the lack of professional skills from new graduates
such as time-keeping, work ethic, and willingness to take instructions.
6.11 Needed Skills for the Future
When asked, “Do you believe there are any new skills that will be needed to
compete and grow your business over the next 2 to 5 years?” there were very
few respondents that identified any skills “new to the sector”. Most responses
related to skills “new to the company” such as the need for;
CNC/CAM programmers and, to a lesser extent, CNC operators;
Mechanical Engineers and Draftspersons;
Skills unique to a particular piece of equipment;
Skills in advanced welding techniques and technologies;
Expertise in the areas of Lean Manufacturing, Six Sigma and ISO quality
management; and
Specific trades such as Industrial Mechanics, Millwrights, Electricians, and
Hydraulic Technicians that can support system integration capabilities to
produce more complex industrial modules.
However, there were also a couple of instances where skills unique to the sector,
versus unique to the company, were identified. These included:
Expertise in new software (SpoolGen and ISOGen), which can take 3D
engineering drawings and turn it into specifications for component
sections of mechanical modules, and ultimately into specs for the pipe
spools to be manufactured; and
Addressing the lack of training related to skills required for industrial
painting applications such as the use of high-pressure airless systems for
industrial coatings. In-house training is currently the only means of
teaching such skills.
New Brunswick Sector Profile: Industrial Fabrication
47 June 2012
7 Training Capacity
A catalog of New Brunswick training institutions and courses is provided in
Appendix 1. Included in the listing are basic program parameters, such as:
yearly seat capacity, course length, summary of curriculum, articulation
agreements, and potential certifications the student may challenge.
The scope and mandate of this study was to determine training capacity, and
therefore does not include qualitative comparisons or recommendations
regarding the various training programs. Similarly, since the focus is educational
capacity to support the sector, the exploration of the training programs is
primarily forward-looking. That is, the findings provided are based on the current
programs offered and any intended change in the capacity or nature of the
programs. The study, therefore, does not examine data regarding past
graduates.
7.1 Defining Educational Capacity in a Time of Change
Gaining insight into the ability and readiness of educational services to support
an industry sector is always strategic. However, when that sector is seeking to
change and adapt in response to rising global opportunities presented by the
emergence of new technologies and supply chain paradigms, it is critical to
gain an understanding of the educational system’s capacity to support the
needed evolution. Times of great change highlight the importance of the
educational partners’ essential role in helping to effect that change.
During such periods of significant adaptation and growth within an industry
sector, the consideration of educational capacity must include:
1. The ability to train students (new entrants and apprentices) in foundational,
relevant skills to their chosen occupation in a quantity that can help meet
the prospective increase in labour demand; and
2. The evidence of willingness and ability within the education system to
respond to and support the learning of advanced skill demands in a timely
manner.
The primary and secondary research looked for evidence of both these factors.
7.2 Primary Trades Utilized in the Sector
The primary research with employers regarding their work force and practices
provided guidance as to how to focus the review of training capacity to the
trades most utilized in the sector and which are estimated to require the largest
growth within the sector’s labour force.
New Brunswick Sector Profile: Industrial Fabrication
48 June 2012
Interviews with New Brunswick employers explored their current work force and
future staffing needs within occupations and trades that are directly involved in
the production process – from design to fabrication. These included: Engineers,
Technologists and Technicians, Supervisors, Machinists, Tool and Die Makers,
Sheet Metal Workers, Boilermakers, Structural Metal and Platework
Fitters/Fabricators, Ironworkers, Welders, Blacksmiths and Die Setters, and various
lower-skilled positions such as Labourer, Metal working Machine Operators,
Machining Tool Operators, and Other Metal Production Machine Operators.
Part of this method was to obtain a clear picture of the current work force profile
and in-house expertise contributing to each company’s overall capabilities. In
addition, immediate new staffing requirements and projected hiring needs over
the next two years were explored. Some of the findings relevant to this study’s
approach to examining training capacity are:
Engineering: Though integral to the functioning of the sector, many of these
skilled professionals reside in engineering firms and large EPC (Engineering,
Procurement and Construction) companies, which generally manage large
industrial projects. New Brunswick has a very strong set of engineering programs
in its universities to support these needs with full capacity.
Lesser-skilled labour: These entry-level positions do not generally require pre-
employment training – the labourers are trained on the job. Having said this,
operation of some metal-working/forming equipment is part of the training for
some of the trades, for example Fitter/Fabricator. Some companies prefer to hire
“green” labourers from high school and train them, then apprentice them into
one of the trades. Others like to hire those who have gone through a pre-
employment program. In any case, these lower-skilled jobs fall outside of this
exploration of training capacity for the fabrication sector.
Trades largely practiced in the Construction Sector: Although there are
exceptions, the primary focus of the Sheet Metal Workers, Boilermakers, and
Ironworkers in the New Brunswick labour force is within the Construction Sector.
Very few were found on the manufacturing floors of New Brunswick fabrication
shops. Indeed, all Ironworkers were identified as being utilized exclusively for on-
site construction/installation work.
Civil and Mechanical Technicians and Technologists: The current capacity
within the NBCC and CCNB programs is well-suited to meet the projected needs
for new hires over the next 2 years as reported by the companies interviewed. It
should be noted, however, that Mechanical Technology is an area reported
among employers where new skills are expected to be needed moving forward.
The colleges’ mechanisms for engaging companies in the sector can be utilized
to identify and provide for these new training requirements.
New Brunswick Sector Profile: Industrial Fabrication
49 June 2012
Drafting Technicians: It should be noted that interviewed employers in the sector
utilize Drafting Technicians and project the need for an additional 12 over the
next 2 years. There currently are no programs for the role of Drafting Technician
in New Brunswick. The estimated requirement does not likely justify the costs of
offering a regular program for this occupation, unless other sectors utilizing
drafting technicians, such as the construction sector, have similar needs.
Primary Fabrication Trades: The “big three” skilled and/or apprenticeable trades
supporting the fabrication process in the companies interviewed were Welders
(19% of production staff), Fitters/Fabricators (22%), and Machinists (7%) –
reference Figure 25. These occupations also represented the largest portion of
current vacancies, as well as projected hires – reference Figure 28 and Figure 29
respectively.
Therefore, the assessment of training capacity is focussed on these three trades.
This assessment also includes a review of CNC Machinist and Welding
Technology programs.
7.3 Paths for New Entrants into the Fabrication Trades
The primary model for preparing individuals to enter a trade is centuries old and
has been proven as highly effective: the mentoring of apprentices by those
experienced in the trade – journeypersons. This method includes both learning
the theory, and the guided use and development of the specific skills required.
An individual may be indentured as an apprentice by a company having come
into employment with no previous skills, or may be employed and indentured by
a company (or a trade union) having completed pre-employment training at a
public or private college. For those colleges meeting the standards set by the
Apprenticeship branch, graduates may challenge the Block I exam and upon
indenturing into an apprenticeship program may apply to have their in-school
hours credited toward completion of the apprenticeship program. Some
college programs, by design, may cover additional theory and practice beyond
Block I requirements in their courses.
In the case of the Welding, Machining and Steel Fabrication/Fitting trades,
completing the apprenticeship path successfully leads to a Certificate of
Qualification with a Red Seal endorsement, which is recognized throughout
Canada. In addition, based on experience gained and the ability to
successfully challenge the certification exam, an individual can acquire a Red
Seal endorsement.
These alternative paths to certification are represented in Figure 31.
New Brunswick Sector Profile: Industrial Fabrication
50 June 2012
Figure 31: Paths to Occupational Certification
7.4 New Brunswick Trades Colleges
NB Crown Corporation Colleges New Brunswick is served by the multiple campuses of the New Brunswick
Community College (NBCC) and the Collège communautaire du Nouveau-
Brunswick (CCNB). These colleges not only offer pre-employment programs in
several of the trades and occupations necessary to this sector, they also provide
all Block classroom training for the New Brunswick Apprenticeship program. The
pre-employment courses offered are all designed to provide a path into the
apprenticeship programs for the student, and to provide a pre-skilled employee
to New Brunswick companies.
Cert.
Exam
Obtain Employment
Certificate of Qualification & Diploma of Apprenticeship
Register as an Apprentice
Complete On-the-Job Hours
Attend Block Training
Apprenticeship
Process Repeats forBlocks 3-5
Cert.
Exam
Work Required Hours
(3,600 – 10,800)
Certificate of Qualification
Apply to Challenge Cert. Exam
Provide Proof of Hours
Trade Qualification /
Occupational Certification
Complete Pre-Employment Course
at College
Obtain Employment
Challenge
Block 1
Exam
Attend Block Training
Obtain High School Diploma
or Equivalent
Register as an ApprenticeBlock 1
Exam
Return to work
Attend Block Training
Block 2
Exam
Return to work
Attend Block Training
Complete On-the-Job Hours
New Brunswick Sector Profile: Industrial Fabrication
51 June 2012
7.4.1 NBCC
NBCC offers the following 40-week pre-employment programs for trades
applicable to the Industrial Fabrication sector:
Welding;
Steel Fabrication;
Sheet Metal Fabrication; and
Machinist.
Successful graduates from these programs may challenge the Apprenticeship
Block I exam, and are credited1,200 hours toward the Block I work requirements.
The college also offers several technology programs that support this sector’s
needs:
CNC Machining (also a pre-employment program with advanced
placement into Block III of the apprenticeship program);
Welding Technology (this program expands the welding student’s skills for
work in weld inspection, quality control, and assisting Welding Engineers);
Mechanical Engineering Technology;
Mechanical Technician;
Civil Engineering Technology; and
Civil Technician.
NBCC has developed an advisory and feedback methodology that utilizes
many touch points with companies within the sector. This provides a mechanism
for insuring that the programs offered remain relevant to employers’ needs. This
will be especially important as companies in the sector stretch and adapt to
serve new market segments.
At time of writing, the college did not offer contract training in response to
employer-specific requests for advanced training.
NBCC’s yearly seat capacity for the primary trades utilized in the sector is
represented in Table 6.
Table 6: NBCC Yearly Seat Capacity for Primary Fabrication Trades
Program Yearly Seat Capacity
Welding 95
Steel Fabrication 14
Machinist 21
CNC Machinist 12
New Brunswick Sector Profile: Industrial Fabrication
52 June 2012
7.4.2 CCNB
CCNB offers the following 40-week pre-employment programs for trades within
the Industrial Fabrication sector:
Welding;
Metal Shaping and Erecting (Steel Fabrication/Fitting); and
Material Machining.
Successful graduates from these programs may challenge the Apprenticeship
Block I exam, and are credited1,200 hours toward the Block I work requirements.
The college also offers technology programs in:
CNC Machining (also a pre-employment program with advanced
placement into Block III of the apprenticeship program);
Engineering Technology Building (mechanical, electrical, structural and
architectural design); and
Civil Engineering Technology.
CCNB also employs consultation with employers to adapt its programming
content.
At time of writing, the college did not offer contract training within this sector.
CCNB’s yearly seat capacity for the primary trades utilized in the sector is
represented in Table 7
Table 7: CCNB Yearly Seat Capacity for Primary Fabrication Trades
Program Yearly Seat Capacity
Welding 52
Metal Shaping and Erecting 14
Material Machining 14
CNC Machining 8
NB Private Colleges New Brunswick has three private colleges offering welding programs: BayTech
College of Moncton, Eastern Trades College of Saint John, and ReadyArc
Welding of Saint John.
7.4.3 BayTech College
BayTech College was established eight years ago and offers a 16-week pre-
employment course in welding. The course was developed specifically at the
request of employers to offer an accelerated path to employment and
New Brunswick Sector Profile: Industrial Fabrication
53 June 2012
apprenticeship. The approach is similar to the 16-week courses offered in
Alberta.
The program was developed to fully meet and exceed the apprenticeship
curriculum standards. Successful graduates may challenge the Block I exam,
and are credited 640 hours toward the Block I work requirements.
BayTech maintains very close ties with employers within the sector, and can
adapt its welding course to meet employer-specific needs for graduates with
certain skill sets and/or with specific CWB tickets. Students can currently
challenge up to 4 CWB certifications; however, the college is looking at
expanding this to 8 in order to meet the particular needs of a large employer.
Feedback coming from the Apprenticeship branch’s Program Advisory
Committee (PAC) are also incorporated as needed.
Table 8: BayTech Pre-Employment Welding Program Seat Capacity
Program Yearly Seat Capacity
Welding 100
BayTech also designs and delivers individualized contract training programs to
meet the needs of employers for instruction in specific welding methods.
Employers reportedly utilize this contract training, most often to help employees
reach standard welding ticket levels.
BayTech has an in-house capacity for contract training of 384 student days
(days of training times number of students) per year. The college can expand its
complement of instructors, when needed, to meet the needs of companies for
on-site training. Journeypersons skilled in the welding techniques to be taught
are put through Instructor training to prepare them for teaching.
7.4.4 Eastern Trades College
Eastern Trades College began offering a 28-week welding pre-employment
course three years ago. It was designed in cooperation with the Apprenticeship
branch to insure that the curriculum met and exceeded the requirements for
Block I training. Successful graduates may challenge the Block I exam, and
receive credit for 1,120 hours toward the Block I work requirements.
The college modifies its curriculum as needed based on feedback from
employers and from the Apprenticeship branch’s Program Advisory Committee.
New Brunswick Sector Profile: Industrial Fabrication
54 June 2012
The school is currently in the planning stage to offer contract training to meet
specific needs identified by employers. The college is actively exploring
opportunities to meet requirements rising within the sector.
Table 9: Eastern Trades College Welding Program Seat Capacity
Program Yearly Seat Capacity
Welding 36
7.4.5 ReadyArc Welding
ReadyArc Welding began offering a 24-week course on pressure welding six
years ago. It was designed to enable the successful graduate to challenge and
obtain the F4 pipe ticket from the Department of Public Safety. The first instructor
was previously an instructor at the Northern Alberta Institute of Technology
(NAIT), and the curriculum took as its starting point an Alberta program model.
There is no agreement currently in place with the Apprenticeship branch to
certify the curriculum and allow graduates to challenge the Block I exam.
ReadyArc is considering expanding the course to 28 weeks to give greater
coverage to production welding, and to branch out into more CWB methods
and certifications. The college would also like to add a work term.
Table 10: ReadyArc Welding Program Seat Capacity
Program Yearly Seat Capacity
Welding 72
ReadyArc also provides contract training to meet the specific needs of
employers. ReadyArc has an in-house contract training capacity of 480 student
days per year. The college also has a current capacity of approximately 100
student days for contract training on employer premises. The college could add
instructors to expand this to 180 student days, if needed.
7.5 Atlantic Canada Public Trades Colleges
Table 11 represents an overview of the yearly seat capacity within the Nova
Scotia Community College (NSCC), Holland College, and College of the North
Atlantic (CNA) programs for Welding, Steel Fabrication and Machining. A
catalog of these courses may be found in Appendix 1.
New Brunswick Sector Profile: Industrial Fabrication
55 June 2012
Table 11: College Educational Capacity - NS/PEI/NL
Trade/Program College Yearly Seat Capacity
Welding NSCC 91
Holland College 15
CNA 108
Total 214
Steel Fabrication NSCC 38
Holland College 90
CNA 84
Total 212
Machining Holland College 12
CNA 32
Total 44
CNC Machining NSCC 37
Total 37
In addition, there are two private colleges offering welding programs in New
Brunswick’s neighbouring provinces:
Academy Canada Career College of Newfoundland and Labrador offers a 37
week diploma program.
New Dawn College of Nova Scotia offers a 42 week diploma program.
Seat capacity for these programs was not available.
7.6 Other Canadian Trades Colleges21
Secondary research indicated that there are approximately 52 public colleges
and 15 private colleges throughout Canada that offer pre-employment
programs in one or more of the welding, steel fabrication, and machining
trades. These run between 16 weeks to 2 years long.
Twenty of these institutions also deliver the technical training for the
apprenticeship programs in their respective provinces. For the purposes of this
study, colleges that provide apprenticeship training, but do not offer pre-
employment programs were not included in the data.
21 Extensive secondary research from many sources was conducted, and, while presented with
confidence, the data should not be considered exhaustive.
New Brunswick Sector Profile: Industrial Fabrication
56 June 2012
7.6.1 Welding programs
Table 12 details the number of colleges in each province offering pre-
employment programs in welding.
Table 12: Welding Pre-Employment Programs in Canada
Province/Territory Public Colleges Private Colleges Apprenticeship
Articulation
British Columbia 13 0 9
Alberta 8 1 9
Saskatchewan 7 0 7
Manitoba 3 0 2
Ontario 16 10 13
Quebec 0 3 0
Yukon 1 0 1
Totals 48 14 41
Some of these schools offer more than one pre-employment course based on
focus (for example, pipe vs. structural plate, or both). Several institutions offer
welding technologist or technician programs as well.
Many of these schools also provide welding upgrade courses. In addition, there
are some private institutions that offer training in specific welding techniques,
but do not offer any pre-employment courses. For the purposes of this study,
these schools were not included in the data.
Six of these colleges combine their Welding and Metals Fabrication training into
a single program. In most cases these have extended curriculum to cover more
welding techniques than is normally part of the training received in Metals
Fitter/Fabricator programs.
Some interesting and innovative practices that various institutions have
implemented to deal with industry needs and concerns include:
4.5 hour days with a choice of 3 shifts, including evenings;
Evening-based apprenticeship training;
Continuous or rolling intake (as opposed to semester-based offerings). New
students may be added each Monday, or every 3 weeks. In many cases this
approach necessitates a self-directed program design;
New Brunswick Sector Profile: Industrial Fabrication
57 June 2012
In British Columbia, some institutions are partnered with secondary schools to
allow for the completion of the fundamental C-level22 welding program
concurrent to their grade 12 studies; and
One public college in British Columbia that uses a self-directed learning
model allows apprentices to leave for periods of heavy work demand and
come back at any time. This same school recommends that during
employer-projected slow-downs, apprentices should consider taking their
next two blocks of technical training back-to-back.
7.6.2 Fabricator / Fitter Programs
Table 13 details the number of colleges in each province offering pre-
employment programs in Metal Fabricator / Fitter.
Table 13: Metal Fitter/Fabricator Pre-Employment Programs
Province/Territory Public Colleges Private Colleges Apprenticeship
Articulation
British Columbia 6 0 6
Saskatchewan 1 0 1
Manitoba 1 0 1
Ontario 9 3 8
Quebec 0 0 0
Totals 17 3 16
7.6.3 Machinist Programs
Table 14 details the number of colleges in each province offering pre-
employment programs in Machinist.
Table 14: Machinist Pre-Employment Programs
Province/Territory Public Colleges Private Colleges Apprenticeship
Articulation
British Columbia 3 0 3
Alberta 1 0 1
Saskatchewan 1 0 1
Manitoba 1 0 1
Ontario 2 0 2
Quebec 0 2 0
Totals 8 2 8
22 British Columbia has 3 provincial certification levels in welding: C, B and A. C-level comprises
the fundamentals of welding skills. B and A-level certifications are progressively more advanced.
Pre-employment college programs in British Columbia prepare students for C-level certification.
New Brunswick Sector Profile: Industrial Fabrication
58 June 2012
In the West, three of these pre-employment programs combine Machinist and
Millwright training.
Table 15 details the number of colleges in each province offering pre-
employment programs in CNC Machinist.
Table 15: CNC Machinist Pre-Employment Programs
Province/Territory Public Colleges Private Colleges Apprenticeship
Articulation
British Columbia 1 0 0
Alberta 1 0 0
Manitoba 1 0 1
Ontario 1 1 0
Quebec 0 1 0
Totals 4 2 1
7.7 New Brunswick Apprenticeship
When evaluating educational capacity, it is necessary to consider the
Apprenticeship program separately from the college pre-employment programs
due to its unique nature:
1. Unlike pre-employment training, the Apprenticeship yearly block training is
not limited to a specific number of seats offered. Instead, Apprenticeship
trains as many apprentices as industry can supply.
2. Apprentices are all, by nature, employed. They are already part of the labour
force and do not factor into new entrants potentially available to the labour
force, except at the point they are indentured after having completed a
pre-employment course at one of the colleges.
3. The greater risks to the capacity of the Apprenticeship program are factors
like the outward migration of journeypersons to other regions of the country.
If, for example, the draw to Halifax for the pending shipbuilding project is
great enough it could put at risk the apprenticeship of those currently in the
program who must be mentored by experienced journeypersons. This is a
significant concern.
The following table presents an overview of the NB Apprenticeship programs for
Welder, Steel Fabricator (Fitter), Machinist and CNC Machinist.
New Brunswick Sector Profile: Industrial Fabrication
59 June 2012
Table 16: NB Apprenticeship
Trade # of Training
Blocks
Required Hours
Work
Experience
# of Active
Apprentices
Welder 3 5400 191
Steel Fabricator 3 7200 56
Machinist 4 7200 54
CNC Machinist 4 7200 29
Approximately 40% of apprentices enter the program after completion of pre-
employment college programs and entry into the work force. The majority, 60%,
are apprenticed directly by employers.
The number of active female apprentices within these trades was:
Welder: 5
Steel Fabricator: 1
Machinist: 1
CNC Machinist: 2
This represents 2.7% of these trade apprentices, roughly in line with the average
of 3% females among all active apprentices in the Province. The primary
research yielded a similar ratio of female workers (1.9%) among the core IF
occupations.
The age distribution of active apprentices is represented in Table 17. That the
average entry age of an apprentice is 26 years seems to indicate that the
trades are not capturing high school graduates as they leave school. This may
support the view that the trades continue to suffer from an image problem, and
are not seen as desirable and respected career paths.
Table 17: Age Distribution of Active Apprentices23
Age Group % of Total
< 20 years old 2.94%
20 – 30 years old 64.68%
31 – 40 years old 21.20%
Over 40 years old 11.11%
Age Unknown 0.07%
Totals 100% Average entry age of an apprentice is 26 years
23 Apprenticeship “Fact Sheet as of 2011/09/15”
New Brunswick Sector Profile: Industrial Fabrication
60 June 2012
Approximately 66% of all apprentices work with non-union employers; 34% with
unionized companies.
The Welder program is the 6th largest among New Brunswick apprenticeship
programs, by number of active apprentices.
7.8 Projected Need vs. Educational Capacity
Table 18 summarizes the yearly educational capacity (yearly seats available)for
the trades of Welding, Machining/CNC Machining and Steel Fabricator in New
Brunswick and the rest of Atlantic Canada.24
It should be noted that yearly seat capacity does not infer that that number of
students will enter the programs. It only represents the present capacity of the
educational system to take on new students.
Table 18: Summary of Educational Capacity (Yearly Seats Available)
Trade NB Educational Capacity
Additional Educational
Capacity in Atlantic
Canada
Welding 355 214
Machining/CNC Mach. 55 81
Steel Fitter/Fabricator 28 212
It should be assumed that the capacity present in the other 3 Atlantic Provinces
will be largely unavailable to support New Brunswick’s Industrial Fabrication
sector. Indeed, the opposite is likely true. Primary research among the NB
colleges indicated that most (especially the private colleges) are exploring how
they can adapt their offerings to meet the needs of the shipbuilding sector, for
example.
Table 19 compares the employer-projected need for new hires in the 3 primary
fabrication trades over the next two years to the educational capacity
(available seats in pre-employment training) over the same period.
Table 19: Projected Need vs. Educational Capacity
Trade Employer Estimated 2-
year Labour Demand
NB Educational Capacity
(2-year)
Welding 175 710
Machining/CNC Mach. 73 110
Steel Fitter/Fabricator 156 56
24 See Sections 6.4 and 6.5
New Brunswick Sector Profile: Industrial Fabrication
61 June 2012
The potential short-fall in training capacity is for the trade of Steel
Fitter/Fabricator. This is not a new problem. One-third (33%) of the companies
interviewed indicated that they have had difficulty finding Fitters. Several
indicated this to be an on-going problem for them. At least one employer
commented that New Brunswick trains more Welders than needed and far too
few Fitters.
For many employers who utilize trades people for more than one role in
production, Fitters are potentially more versatile, as they have welding skills;
Welders, however, do not always have the skills needed to perform the
Fabricator’s role, although their welding skills may be broader and deeper.
Even if the employers’ projections prove doubly optimistic, the current
educational capacity could not meet the need. It is likely that Fitters will need to
be brought in from other regions, or the positions will be filled by less qualified
individuals.
7.9 Summary of Findings Regarding Educational Capacity
The existing capacity for pre-employment training in Welding is more than
sufficient for the projected new hires in the sector.
There is also significant capacity in contract training available
(approximately 1,000 student days per year) to provide for employers’
specific needs with regards to welding upgrade instruction. While this
appears to be sufficient for current demand, it is currently unknown what
capacity may be required to support the move of the sector’s employers into
specific new industrial sectors.
The present capacity for pre-employment training in Machining is sufficient
for the estimated new hires in the sector. However, employers did indicate
that it has been difficult for them to find the kind of skills and experience that
they are looking for.
There is a projected short-fall in educational capacity required to meet the
employer-projected need for Steel Fitters/Fabricators. If employers’
projections for new hires are substantially true, it is unlikely that adding
capacity in the pre-employment programs alone will be sufficient to meet
the need. It will need to be paired with an influx of experienced
journeypersons from other regions to mentor apprentices.
A1 June 2012
Appendix A: Acronyms
AISC – American Institute of Steel Construction
ASME - American Society of Mechanical Engineers
BNB – Business New Brunswick (New Brunswick Government Department)
CAD – Computer Aided Design
CAM – Computer Aided Manufacturing
CCNB - Collège communautaire du Nouveau-Brunswick
CISC – Canadian Institute of Steel Construction
CNA - College of the North Atlantic
CNC – Computer Numerical Control
COPS – Canadian Occupational Projection System
CSA – Canadian Standards Association
CWB – Canadian Welding Bureau
ELTT - Entry Level Trades Training
GMAW - Gas Metal Arc Welding (A.K.A. MIG - Metal Inert Gas welding, or Metal
Active Gas (MAG) welding)
GTAW - Gas Tungsten Arc Welding (A.K.A. TIG - Tungsten Inert Gas welding)
HRSDC – Human Resources and Skills Development Canada
IMF – Industrial Metal Fabrication
LMAB – Labour Market Analysis Branch (Branch of PETL)
NAICS – North American Industry Classification System
NBCC – New Brunswick Community College
NOC – National Occupational Classification
NSCC - Nova Scotia Community College
PAC - Program Advisory Committee (Apprenticeship)
PAW - Plasma Arc Welding
PETL – Post-Secondary Education, Training and Labour (New Brunswick
Government Department)
SIC – Standard Industry Classification
SMAW - Shielded Metal Arc Welding (a.k.a MMA - Manual Metal Arc welding, or
Stick Welding)
B1 June 2012
Appendix B: Catalog of College Programs
B1.1 Welding Pre-Employment Programs
New Brunswick - Welding – Pre-Employment Programs
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview25
Available
Apprenticeship
Articulations
Certification
Testing Offered Contract
Training
NBCC 40
weeks 95
Bench Work
Shop Safety
Oxy-Fuel Cutting
Shielded Metal Arc Welding
Gas Metal Arc Welding
Flux-Cored Arc Welding
Blueprint Reading
Metallurgy
Mathematics for Welders
Related Subjects
Work Practicum
Students may
challenge the
Apprenticeship
Block I exam;
credited1200
hours toward
Block I work
requirements
Students may
challenge up to
4 CWB tickets –
most will
challenge at
least one;
Students also
challenge the
Class B – F3
certification from
the Dept of
Labour
25 Please note: the curriculum overviews provided in the following program summaries are taken from each organization’s web site and may represent the coursework
in a condensed or more detailed manner.
B2 June 2012
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview25
Available
Apprenticeship
Articulations
Certification
Testing Offered Contract
Training
CCNB 40
weeks 52
Computer Basics Blueprint reading and
interpretation of welding
symbols Mathematics Metallurgy Health and safety Welding and thermal cutting Welding techniques Technical sheet metal
Same as NBCC Same as NBCC
B3 June 2012
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview25
Available
Apprenticeship
Articulations
Certification
Testing Offered Contract
Training
BayTech
College 16
weeks 100
Safety, tools & weld faults Oxy-Fuel/Plasma cutting Trade math Shielded metal arc welding
(SMAW) Flux core arc welding Gas Metal Arc
Welding/GMAW Pulse Blueprint Reading Introduction to Fabrication Distortion Control/Jigs and
Fixtures Overview of applicable
Standards Productivity/Employability
Skills Workmanship/Material
Finishing Work term
Students may
challenge the
Apprenticeship
Block I exam;
credited 640
hours toward
Block I work
requirements.
Students
challenge 4
CWB tickets:
Shielded Metal
Arc Welding in
flat and
horizontal
positions; and
Flux Core Arc
Welding in flat
and horizontal
positions.
In response to
specific industry
requests,
BayTech is
currently
considering
adding
challenges for
the vertical and
overhead
positions for both
processes, for a
total of 8
potential tickets.
Contract
training
designed to
meet specific
employer
training needs
is available.
Modifications
to the pre-
employment
course to meet
specific
employer
needs is also
available.
B4 June 2012
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview25
Available
Apprenticeship
Articulations
Certification
Testing Offered Contract
Training
Eastern
Trades
College
28
weeks 36
Student Success Strategies Welder Apprenticeship
Orientation Safety Guidelines Welding Safety Power Tools Hand Tools Oxyfuel Equipment Oxyfuel Welding, Brazing and
Braze Welding Oxyfuel Cutting Materials Handling / Rigging SMAW Equipment Mild Steel Electrodes Basic Joints and Weld Types Shop / Lab Practices: SMAW
Welds on Mild Steel Plate Arc Cutting and Gouging Gas Metal Arc Welding
(GMAW ) Equipment GMAW Filler Metals, Shielding
Gases and Safety GMAW Equipment
Maintenance and
Troubleshooting Weld Faults Flux Cored Arc Welding
(FCAW) Submerged Arc Welding
(SAW ) Blueprint Reading 1
Students may
challenge the
Apprenticeship
Block I exam;
credited 1120
hours toward
Block I work
requirements.
Contract
courses
currently being
explored to
meet sector
needs.
B5 June 2012
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview25
Available
Apprenticeship
Articulations
Certification
Testing Offered Contract
Training
Blueprint Reading 2 –
Welding Symbols Shop / Lab Practices: GMAW
Welds on Mild Steel Shop / Lab Practices: FCAW
Welds on Mild Steel Shop / Lab Practices:
Combined GMAW and
FCAW Welds on Mild Steel Mathematics Fractions Decimals Percentages and Ratios Geometric Formulas Metric and Imperial
Measurement Production and Properties of
Metal Distortion Metallurgy Heat Treatment Professional Skills Work Placement Workplace Standard First Aid
WHMIS Essential Skills Assessment and
Support
B6 June 2012
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview25
Available
Apprenticeship
Articulations
Certification
Testing Offered Contract
Training
ReadyArc
Welding 24
weeks 72
Pressure Welding Course
420 Hours of Practical Time consisting
of:
• Oxygen / Acetylene - Cutting
& Brazing
• Shield Metal Arc Welding - Fillet
Welds & Butt Welds
• Flux Core Arc Welding - Fillet
Welds & Butt Welds
• Overhead Crane Operation
• Iron Worker Operation
• Horizontal Bandsaw Operation 360 Hours of Class Time consisting of:
• Blueprint Reading for Welders
• Math for Welders
• Welding Theory:
• Shield Metal Arc
• Metallurgy
• Basic Shop Safety
• Communications
• Flux Core Metal Arc
• Rigging
• Welding Safety
• WHMIS
None at
present
Students
challenge ASME: F3B Plate Test
(4 Position) F3 Pipe Test
(6G Position) F3/F4 pipe Test
(6G Position))
Contract
training
designed to
meet specific
employer
training needs
is available.
B7 June 2012
Nova Scotia, Prince Edward Island and Newfoundland - Welding – Pre-Employment Programs
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview
Nova
Scotia
Community
College
(NSCC)
2 years 91
Communications I Communications II Computer Applications I Introduction to WHMIS (Workplace Hazardous Materials Information Systems) Introduction to NS OH&S Act Occupational Safety Fundamentals Work Experience I Blueprint Reading I Shielded Metal Arc Welding I (SMAW) Shielded Metal Arc Welding II (SMAW) Gas Tungsten Arc Welding I (GTAW) Semi-Automatic Wire Welding Processes I Math I Oxy-Fuel Cutting and Welding Exotic Metals Blueprint Reading II Shielded Metal Arc Welding III (SMAW) Gas Tungsten Arc Welding II (GTAW) Semi-Automatic Wire Welding Processes II Math II Work Experience II
B8 June 2012
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview
Holland
College 9
months 15
Shielded Metal Arc Welding II Practicum I Trades Awareness and Safety Orientation Lift Truck Training Essential Skills Math I Computer Literacy Oxy-Acetylene Cutting Procedures Oxy-Fuel Welding Gas Tungsten Arc Welding I Shielded Metal Arc Welding I Carbon and Plasma Arc Cutting Procedures Blueprint Reading I Materials and Metallurgy Gas Metal Arc Welding I Communications I Gas Tungsten Arc Welding II Rigging I Flux Cored Arc Welding I Layout I Hand Measuring and Layout Tools I Component Assembly Power Tools Stationary Power Equipment
College of
the North
Atlantic
(CNA)
1 year 108
See: http://www.cna.nl.ca/programs-courses/current_programs/CNA Welder.pdf
B9 June 2012
B1.2 Welding Technology Programs
This Canadian Council of Technicians and Technologists (CCTT) accredited program prepares the student to
find employment in roles such as a welding engineering assistant, a robotic welding programmer, a welding
inspector, or welding supervisor.
NB Welding Technology Programs
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview External Certifications
NBCC 80
weeks 12
Welding Inspection Methods Welding Processes Metallurgy Non-destructive Examination Engineering Drawing Codes and Specifications Welding Safety Welding Electricity Welding Economics Weld Design Fundamentals of Quality Assurance Mathematics Human Relations Computer Skills for Technologists Report Writing and Presentations Weld Automation Fabrication Techniques Work Practicum
Graduates may acquire
the following certifications
upon meeting the external
agencies’ certification
requirements:
CWB: Level 1 Welding
Inspection Examination
New Brunswick Society of
Certified Engineering
Technicians and
Technologists (NBSCETT):
certification with two years
of acceptable work
experience
B10 June 2012
NS/NL Welding Engineering Technician / Welding Inspection & Quality Control
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview
Nova
Scotia
Community
College
(NSCC)
2 years ?
Computer Aided Drafting I - AutoCAD Level I Communications I & Communications II Fundamentals I Introduction to WHMIS (Workplace Hazardous Materials Information Systems) Introduction to NS OH&S Act Occupational Safety Fundamentals Engineering Drawings I Oxy-Fuel and Plasma Cutting Welding Processes and Procedures I (SMAW) Computer Fundamentals Quality Systems and Standards I Metallurgy I Metrology and Calibration Welding Processes and Procedures II (GMAW/FCAW) Math Fundamentals II Work term I Welding Processes and Procedures III (GTAW/SAW) Engineering Drawings II Technical Communications Welding Inspection and Testing I (Visual) Welding Automation and Procedures IV (Orbital GTAW, STT Transfer, Tracking
Systems) Welding Inspection and Testing II (Visual) Quality Systems and Standards II Metallurgy II Applied Mathematics Welding Inspection and Testing III (LPI) & Welding Inspection and Testing IV (MPI) Work term II Engineering Drawings III
CNA 2 years 20 Not available on CNA website – broken link
B11 June 2012
B1.3 Steel Fitting/Fabrication Pre-Employment Programs
New Brunswick - Steel Fabrication – Pre-Employment Programs
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview
Available Apprenticeship
Articulations
NBCC 40
weeks 14
WHMIS General First Aid and CPR Occupational Health and Safety Portable and Stationary Power Tools Shop Safety Benchwork Fabrication Equipment Material Preparation Metallurgy SMAW Welding Groove Welds in Flat and Horizontal Position SMAW GMAW Layout and Developments Blueprint Reading Mathematics Communication for Trades Work Practicum Related Subjects
Students may challenge
the Apprenticeship Block I
exam; credited1200 hours
toward Block I work
requirements
CCNB 40
weeks 14
ESL Shaping profiles and pipes Computer Basics Reading and interpreting plans Mathematics Assembly and assembly of metal parts Machine setting Welding techniques
Same as NBCC
B12 June 2012
NS/PEI/NL - Steel Fabrication – Pre-Employment Programs
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview
NSCC 2 years 38
Computer Aided Drafting I - AutoCAD Level I Communications I Communications II Computer Applications I Math I Math II Shielded Metal Arc Welding III Blueprint Reading III Layout and Fabrication III Rigging and Material Handling II Marine Applications Blueprint Reading IV Work Experience Semi-Auto Wire (4-Pos Fillet) Numerical Control-Cutting Introduction to WHMIS (Workplace Hazardous Materials Information Systems) Introduction to NS OH&S Act Safety Fundamentals Oxy-Fuel Processes Shielded Metal Arc Welding I Blueprint Reading I Rigging and Material Handling I Semi-Automatic Wire Welding Processes I Blueprint Reading II Layout and Fabrication I Shielded Metal Arc Welding II Layout and Fabrication II Gas Tungsten Arc Welding I
Holland
College 2 years,
7 90
Shielded Metal Arc Welding II Practicum I
B13 June 2012
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview
months Practicum II Practicum III Practicum IV Shielded Metal Arc Welding III Shielded Metal Arc Welding IV Practicum V Welder Interprovincial Preparation Trades Awareness and Safety Orientation Lift Truck Training Essential Skills Math I Computer Literacy Oxy-Acetylene Cutting Procedures Oxy-Fuel Welding Gas Tungsten Arc Welding I Shielded Metal Arc Welding I Carbon and Plasma Arc Cutting Procedures Blueprint Reading I Materials and Metallurgy Gas Metal Arc Welding I Communications I Gas Tungsten Arc Welding II Rigging I Flux Cored Arc Welding I Layout I Hand Measuring and Layout Tools I Component Assembly Power Tools Stationary Power Equipment Communications II Project Management
B14 June 2012
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview
Specialty Welding Basic Drafting and Design Blueprint Reading II Computer Aided Design Software Destructive and Non-Destructive Testing Rigging II Gas Metal Arc Welding II Gas Tungsten Arc Welding III Layout and Installation Math II Finishing and Installation
CNA 1 year 64 See: http://www.cna.nl.ca/programs-
courses/current_programs/CNA%20Metal%20Fabricator%20(Fitter).pdf
CNA 2 year 20 See: http://www.cna.nl.ca/programs-
courses/current_programs/CNA%20Welder%20Metal%20Fabricator%20(Fitter).pdf
B15 June 2012
B1.4 Machinist Pre-Employment Programs
New Brunswick - Machinist – Pre-Employment Programs
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview
Available Apprenticeship
Articulations
NBCC 40 21
Safety Practices including First Aid, CPR, and WHMIS Layout and Benchwork Lathes Saws and Drill Presses Milling Machines Grinders Welding Metallurgy Mathematics Blueprint Reading Physics Communication Computerized Numerical Control (CNC) Work Practicum
Students may challenge
the Apprenticeship Block I
exam; credited1200 hours
toward Block I work
requirements
CCNB 40 14
Quality Assurance Computer Basics Reading and interpreting plans Mathematics Metallurgy Physical Health and safety Basic welding Turning, drilling, milling and machining by computer
Students may challenge
the Apprenticeship Block I
exam; credited1200 hours
toward Block I work
requirements
B16 June 2012
PEI/NL - Machinist – Pre-Employment Programs
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview
Holland
College 9
months 12
Occupational Health and Safety Optional courses Precision Machinist OJT Computer Literacy Communications I Precision Trade Math CAD I Blueprint Fundamentals Mill Operation I Mill Operation II Lathe Operation I Lathe Operation II CNC Fundamentals Precision Measurement Introductory Welding and Metallurgy Machine Shop Practices Optional course: Introductory Mastercam
CNA 1 year 32 See: http://www.cna.nl.ca/Programs-Courses/current_programs/CNA%20Machinist.pdf
B17 June 2012
B1.5 CNC Machinist Pre-Employment Programs
NB CNC Machinist – Pre-Employment Programs
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview
Available Apprenticeship
Articulations
NBCC 2 years 13
Safety Practices including First Aid, CPR, OHS, and
WHMIS Layout and Benchwork Mathematics Physics Lathes Saws and Drill Presses Milling Machines Grinders Welding Blueprint Reading Introduction to CAM Machine Tool Theory Elements of Quality Management Geometric Dimensioning and Tolerancing Communication and Human Relations Jigs and Fixtures Metallurgy Computerized Programming Coordinate Measuring Machine Machining Centre Turning Centre Work Practicum
Upon successful
completion of this
program, graduates are
eligible to challenge Block
III of the CNC Machinist
license.
B18 June 2012
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview
Available Apprenticeship
Articulations
CCNB
80 weeks: 40 weeks
Machining
+ 40
weeks
CNC
Machining
8
Adjustment, turning and milling of metals Quality control Interpretation of engineering drawings Application software Mathematics Mounting Statistical Process
Upon successful
completion of this
program, graduates are
eligible to challenge Block
III of the CNC Machinist
license.
B19 June 2012
NS CNC Machinist – Pre-Employment Programs
School Program
Length
Yearly
Capacity
(Seats) Curriculum Overview
NSCC 2 Years 37
Communications I, Communications II Computer Applications I General Safety Introduction to Hand Tools Introduction to Measuring Tools I Basic Sawing and Grinding Operations Drilling Operations Turning Operations I Engineering Drawing I Mathematics I Introduction to Measuring Tools II Engineering Drawings Mathematics II Basic Milling Operations I Basic Threading Operations I Turning Operations II Work Experience - MACD CNC Fundamentals CNC Process Planning CNC Programming CNC Operations Machining CAD Advanced Milling Operations Advanced Turning Operations I Geometric Dimensioning and Tolerancing Work Experience - MACD Introduction to WHMIS (Workplace Hazardous Materials Information Systems) Introduction to NS OH&S Act