We all want to accummalte some volume of wealth. Each of us have our goals and this is a personal decision. The thing that gets me is that so many people think that getting rich is somehow easy. Every day I get phone calls from people wanting to start a business, find work or get training and it surprises me how many people think that financial independence is something that is handed to them and not worked for.
Edmonton and indeed most of Canada owes its existance to people who set out onto the frontier in search of a new life and fortune. The history of North America is littered with gold rushes, some person who finds a treasure in the wilderness and then the masses flock seeking their own mass of gold nuggets. But anything in history goes much deeper than that. The original prospector probably looked for years in that area before he struck it rich. Most of the people who flocked to the site of gold strike left empty handed.
For Canadians, Alberta in the last 10 years was the new gold rush. And there was certainly money to be made. Alberta had an unemployment rate around 3-6% and the Atlantic provinces had a rate in the teens. Whole towns from down east flocked over here to work in the oilfield, oil sands and petro-chemical plants. At first a lot of the work was temporary, the workers could work for a few months, make some cash and go home. I remember this back in 1998 when my dad got me a summer job working at a plant turn around (shut down) at his old employer. I was one of the few guys who lived in Red Deer. I remember how awesome it felt to make $14/hr, a lot of money for a young University student. As our economy grew the demand for workers grew. Alberta became even more of a destination and the wages only went up.
There was certainly some demand for semi-skilled workers. But the real shortage was for skilled trades, something the province neglected to train people for from the last crash in the early 80's to the new development in later 90's. Alberta until last year was an awesome place for skilled tradesperson to make some money. But to be a skilled tradesperson takes 3-4 years of training through the apprenticeship system. A lot of people didn't bother, taking $20-25/hr now rather waiting 3-4 years to make $35-40/hr.
When the housing bust hit the United States in 2007, Alberta thought it would be immune to it. After all oil was reaching record heights and development in the oil sands was going full speed ahead. The oil sands were huge construction projects employing 2-3000 workers at a time. This employed people in all areas. By 2008 the construction projects at several sites were starting to wind down, but not to worry - the companies promised that more projects were just around the corner and ready to break ground. Then October happened. Oil dropped from $140 a barrel to $40. Those projects on the drawing board stayed there. And a lot of people were out of work. Some of the skilled trades moved into maintenance. Others skilled trades took a break. But the hardest hit were those who had little training. They were the first to get the boot and had the hardest time finding anything else. After all, why would a company hire a heavy equipment operator with 5 years experience when they had 5 guys applying for the position with 15+ years driving a heavy machine.
Before October I had many people from Ontario and the maritimes asking how to get a job in Fort McMurray (the site of the oil sands construction). Those that were calling me had no training in the trades. They thought they could just show up and, boom, get a 25-30/hr job without trying. Even during the boom, this seldom happened unless you knew someone. I had a hair dresser from Toronto insisting that his buddy got off the plane in Fort McMurray and was working before he got to his housing. He was asking me how his buddy did that. I told him to ask his buddy. Of course his buddy wasn't telling any secrets.
Whole families showed up from across Canada hoping to strike it rich here. Now, if they had the training, they may have been able to secure a position during the boom. But it was much harder if they didn't have a skilled trade. Fort McMurray was particularly a very hard place to settle because there was no housing unless you got a camp job - and most camp jobs were reserved for the skilled trades. But the rents across Alberta were skyrocketing until 2007 as well, and those who got jobs in the semi-skilled jobs found it difficult to make ends meet.
After October, I got few requests about jobs in Fort McMurray or much of anything from inter-provincial migrants. (Although I got a call the other day from someone asking if he could get a job in a manufacturing plant out here, but the news always travels slow for some people). Now people want training. The provincial and federal governments offer up to 2 years of training (plus the possibility of high school upgrading, if required on top of that) at a technical, private vocational or community college, if you can find a spot. This is not a new program, regardless what the Tories want to tell you. They opened up the requirements somewhat, but the program has been in place for as long as I know. But what are the two most popular requests I get for training? For men -Heavy equipment operator and truck driver. For women - administrative assitant or something in health care. Usually short courses, and something that doesn't require a whole lot of study. The thing is, there are a lot of truck drivers and administrative assistants unemployed. Heavy equipment operators don't even need any training - although there are schools that are willing to take your money. The demand for the skilled trades are greatly diminished (although I don't get a lot of calls from journey people, a lot are still working) and if you're looking to get apprenticed you're probably SOL. What a change from a year ago when the employers couldn't find anyone wanting to start as a first year apprentice.
A lot of people have been hurt because of this bust. But the thing is I think some people could have prevented the damage they caused themselves if they would have remembered this - making money is never easy.
I have a 4 year degree. My dad is a journeyman pipefitter. All the people in my life I would consider successful all follow these simple steps- if you want to make money it requires you to dig in, get trained, start at the bottom and work your way up in your career. But I see so many people who would rather skip the hard work and go straight for the money. They would rather gamble it all on striking gold rather than having some patience and make some money in the next 20 years rather than trying to make it all in 5.
I have no interest in making a million bucks. I am interested in making a comfortable living for my family and hopefully when I'm 50 or 60 I don't have to panic when my kids hit me up for some money to go to school. Yep, times are a little tough right now. But my wife and I are willing to make some sacrifices and I know that if I work hard, develop my skills and keep honest with my employers that I will move up. Is it easy, no. But will it be worth it? If I've learnt anything from my parents and their peers, I truly believe it will be.
No comments:
Post a Comment