Thank you, Tania, and thank you, members of the committee.
I am Ralph Suppa, president and general manager of the Canadian Institute of Plumbing and Heating.
Our national chair organization was founded in Montreal in 1933 to provide members with the tools for success to make them more competitive in the manufacture and distribution of plumbing, heating, pipe valves and fittings, waterworks and other mechanical products. Our members provide the supplies that Tania's members install and service. Our 283 member companies operate more than 800 warehouse locations and showrooms across Canada, employ more than 20,000 Canadians and contribute over $9 billion to the economy each year.
I want to thank the committee for taking the time to understand more deeply the challenges facing small and medium-sized enterprises in Canada. In our sector, we experienced major supply chain challenges, especially during the early stages of the pandemic, as a significant portion of the work we do supports the delivery of clean, safe drinking water to places like hospitals, long-term care facilities and, of course, homes.
The problems we face now are potentially more serious. They do not result from the rapid increase in demand for products, but rather from structural problems, like regulatory fragmentation, which limits our members' ability to deliver goods to markets in an efficient and cost-effective manner.
While we are dealing with the same supply chain challenges as other manufacturers and wholesale distributors, like overtaxed ports and expensive shipping containers, we face unique challenges that put added pressure on small businesses. The most problematic is regulatory fragmentation across provinces and municipalities.
Practically, regulatory fragmentation hurts businesses, workers and consumers. For example, rapidly advanced timelines for plumbing or heating products mean that the products do not have the time to be fully tested for efficiency, durability and fit for given markets. We also see that tradespeople need to upgrade their skills and knowledge more quickly and with different focuses in provinces, territories and even municipalities.
As two national associations involved with Canada's construction industry, CIPH and MCA Canada firmly believe that net-zero buildings will not be achieved on the government's timelines without major new investments in training, incentives and promotions to attract new workers. Doing so will help small and medium-sized businesses adapt to the rapid growth in demand we expect to see over the decades ahead.
When our industry is consulted early in developing policies and incentives programs, we can achieve better results. We need departments to work closely together and to encourage alignment between provinces on adopting a national building code and model codes at the same time, not on alternating cycles.
It is concerning that different approaches are required between some provinces and territories, and even within their borders. Some municipalities are creating demand today for products that are months away from being market-ready or scalable.
We cannot afford the inefficiencies of the past while we chart a path to a more energy-efficient future. The burdens we face now will only be amplified as more housing and ICI buildings are brought online and as consumers race to upgrade their homes and businesses.
We need regulatory frameworks that balance costs and measurable benefits, using good, solid data.
We need clear, manageable timelines with appropriate commitment and advance notice from governments that are making these changes.
We need decisions to be made with a deep understanding of the full business and supply chain infrastructure that considers how each building is a contained system.
Only then will our sector be able to deliver the products needed for market transformation at the right price to encourage consumer adoption.
With that, I thank you for your time. Tania and I will be available for questions after this session.