A Calgary-based provider of workforce housing says that Canadian efforts to approve and build nation-building infrastructure projects are boosting the need for their modular accommodations. 

Black Diamond currently has about $2 billion worth of bids submitted around the country to provide housing for work projects, said the company’s chairman and CEO Trevor Haynes. 

“We've gone through various cycles where we get very busy,” Haynes told RENX Homes in an interview. “Typically, it aligns with a particular industry sector; think of oil sands growth in the mid-2000s. What's interesting this time is (there are) so many different sectors and so many different projects.”

"We use single-storey relocatable structures," he said. They are complexed together to create what Haynes compared to a three-star hotel living environment.

Haynes said they had $2 billion worth of open bids at the end of the second quarter on projects that are fairly advanced. "We've got a much wider bid pipeline and funnel, (and) these correlate with a number of nation-building projects."

'Changed my view' on nation-building potential

In June, the Canadian government passed the Building Canada Act “to enhance Canada’s prosperity, national security, economic security, national defence and national autonomy, by ensuring that projects of national interest get built faster.”

The government is aiming to catalyze about a trillion dollars in investments in Canada — from public, private and institutional investors nationally and internationally — over the next five years. 

Just a year ago, Haynes was skeptical that any nation-building investments would get done. "I've changed my view," he said. "Based on what we're seeing factually with these projects, and the actual volume of contracts we're picking up, activity is picking up." 

Haynes said Black Diamond’s customers seem to have a level of conviction that impediments are being removed by the current government and the projects will get greenlighted and financed.

It's probably a stretch that we'll see all of the projects of national interest get approved, financed and built, but there should be enough that proceed to activate the economy, especially in Western Canada, Haynes said. "I'm highly optimistic." 

Workforce housing inventory could shrink fast 

Haynes said national capacity in modular workforce accommodation could shrink quickly if substantial new demand materializes. 

"Right now, in our Canadian operation, we've got about 13,000 rooms of capacity, and currently it's reducing fairly quickly here, but we've got about 5,000 of spare capacity," he said. "We think the industry has somewhere just under 10,000 rooms of spare capacity. These are relocatable dormitories. When we look at the projects that are in advanced stages right now, there is not enough capacity to meet the demand."

The housing units and their components themselves are produced in Canada, the U.S. and in Australia, Haynes said.  

"Each bedroom has its own private attached washroom," he said, and the large kitchen, dining and recreation facilities are in the centre.

The complexes have dormitory wings that link to a common core that houses restaurant facilities, entertainment and fitness spaces. Haynes said they are designed to provide everything a worker needs while they are on shift in these typically remote projects.

About Black Diamond

Black Diamond is a Canadian public company that has been in business for 20 years. In addition to their workforce housing business stream, they also provide modular classrooms and office buildings.

"We also have a very large travel tech platform called LodgeLink," Haynes said. "We manage the movement of people, and most of that is booked into hotels. Already, we're seeing towns that are just (booked) out of hotel rooms and for extended periods. Those are the towns that correlate to high activity around these type of projects or resource areas."

In the past, Black Diamond has provided services for projects including the construction of the TMX pipeline expansion, the phase one Coastal GasLink pipeline, and the construction of the massive Site C Dam in Northern B.C.

Their current bids involve energy projects, including national gas export facilities in B.C. Black Diamond is also hoping to secure national defence construction projects, and a variety of mining projects in Saskatchewan, Quebec and Atlantic Canada. 

"I think we're very well positioned to service multiple aspects of these projects that look like they're going to get built," Haynes said. "So, we're really excited."