The head of Hamilton’s major home-grown building supply company is sounding a serious note of warning about the dire state of the new housing industry in the area. Peter Turkstra, the third-generation owner of the more than 70-year-old Turkstra Lumber Company says high development charges are making up too large a proportion of the cost of housing, and that, coupled with the recent tariff threats from the Trump government have placed the house construction business in a precarious position.
In an open letter to the Mayors of Hamilton, Burlington and most municipalities in the immediate region Turkstra stated, “This emergency request is to support our industry and all employees involved in construction, whether directly or downstream. If you don’t respond, we expect a catastrophic level of unemployment in construction and an immediate impact on all those supplying the construction industry.”
“To be specific, we are asking you to consider cutting the price of Development Charges and all forms of construction permitting fees. At the provincial and federal levels, support with any other measures will be crucial to the survival of construction in Ontario.”
Turkstra supported his presentation with charts that showed Development charges have increased by almost 250 percent in the last ten years, while the cost of living increase for the same period running at a fraction of that amount.
The open letter continues, “We live in a fantastic country, Canada. Still, the general trend of municipal governance seems to have shifted from “serving ratepayers, businesses and customers” to ballooning expenditures “without a notion of fiscal responsibility and accountability.” Municipalities have “taxed” and “tariffed” construction directly and indirectly. The result is that you are in the process of “killing the goose,” the industry that creates employment, provides for families, and supports the communities where people live, work, and shop.”
Turkstra also posted videos for both municipal councils and his own staff. He promised his staff that there would be no layoffs in the current year, but that wages and new hiring would be frozen. Quoting his namesake grandfather who founded the company in the 1950’s, Turkstra wrote, “We have adapted and survived several severe recessions. While it is never enjoyable, we persevere, focusing on what we do well. In terms of business, Peter (grandfather) had a saying: “When I eat, they (employees) feast. When I starve, they eat.” By this statement, he implied that the employee’s welfare came first. This commitment to our employees also extends to charitable giving in the communities where we live and work. Even during the recessions, we supported charitable causes. If anything, the need will be greater,” the employee letter continued.
About 60 percent of Turkstra Lumber’s business is servicing the new home industry, the rest is split between renovation contractors and Do-it-Yourselfers. Its manufacturing division produces specialty products such as roof trusses, fencing, doors and windows. With an average 300 employees, the company has been listed as one of Canada’s Best Managed Companies as identified by the Globe and Mail for the seventh consecutive year, making the company a Platinum member, a designation reserved for companies that have consistently demonstrated excellence in business practices for over six years.
Peter Turkstra’s message to municipal Councils
Peter Turkstra’s message to staff.
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