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Trade Contracting
September 29, 2009
CanaData Conference 2009
2010 will be busy with stimulus, Canadian Construction Association says
The Canadian Construction Association reports that its members are starting to see the benefits of federal stimulus spending.
“We are starting to see a lot of competition for infrastructure projects,” said Bill Ferreira, CCA director of government relations and public affairs. “We expect to see most of the benefit next year and the year after. Many of our members say they are very busy and it will be one of the busiest seasons on record.”
Ferreira delivered an update on federal government infrastructure spending at the 24th annual CanaData Construction Industry Forecasts Conference in Toronto.
He noted that infrastructure spending is one key tool the federal government can use to “prime the pump” and move an economy to fight an economic slowdown.
Despite an increase in activity, the recession has impacted the construction industry’s workforce, said Ferreira. The Canadian construction industry has lost approximately 116,000 jobs from its pre-recession workforce of about 1.26 million workers.
“That is (a significant percentage) of our pre-recession workforce,” he said.
The impact of Ottawa’s stimulus plan is not the only program coming on line that is benefitting the construction industry, explained Ferreira. The Building Canada Fund, announced in the Conservative’s March 2007 budget, is now starting to show dividends, he said. The $33 billion fund over seven years had its last provincial-federal framework agreement signed in September 2008.
“It took 16 months to sign all the provincial-federal frameworks and this is really the first construction season for the Building Canada Fund,” said Ferreira. “It is radical and is making a significant difference in the remaking of our public infrastructure.”
Progressive infrastructure funding is critical, Ferreira said, because Canada’s increasing urbanization has placed incredible pressures on its infrastructure.
From 1961 to 2001 Canada’s population increased from 18 million to 32 million. Roughly 83 per cent of that population now resides in and around urban centres. Meanwhile, 28 per cent of Canada’s current public infrastructure is more than 80 years old and 31 per cent of it is between 40 and 80 years of age.
“It is old, getting older and needs to be replaced,” he said.
Critical to addressing the infrastructure deficit is helping municipalities who have seen their share of infrastructure responsibility grow to 55 per cent since 1955 when it sat at just 30 per cent. During that time the federal government’s portion has decreased to less than 10 per cent.
Cities are “eager to get on with the business of dealing with infrastructure” but need help and support to increase their ability to fund infrastructure work, Ferreira said. Using property tax revenue is just not enough for them to tackle a $128 billion municipal infrastructure deficit.
“We are concerned that there is not a proper funding mechanism for infrastructure funding.”
Check out the executive summary from the 2009 CanaData Conference.
The head of the Ontario General Contractors Association is praising a report from Workers Safety & Insurance Board chair Steven Mahoney that looks at ways to reform the WSIB
‘You don’t create job opportunities by cutting off business:’ Canadian Manufacturers & Exporters CEO
The new Buy America agreement between Canada and the U.S. doesn’t offer Canadian firms access to stimulus contracts that have already “gone out the door,” says the head of the Canadian Manufacturers & Exporters.
WSIB shouldn't rush rate hikes to cover unfunded liability: COCA president
In its effort to eliminate the unfunded liability, the Workers Safety & Insurance Board should not hike premiums too quickly or it could make Ontario an unattractive place to do business, says the president of the Council of Ontario Construction Associations.
Canadian Construction Association strengthening research and innovation efforts
The Canadian Constrruction Association has made progress in the past year in its efforts to nurture connections with educational and research institutions across the country, reports CCA chair Brad Greene.
Construction worker’s fatal fall didn't involve swing stage
A construction worker is dead after falling as much as six storeys from a building in east Toronto Thursday. Police say a piece of metal may have fallen and hit the worker, knocking him off the building.
Is the U.S. recovery sustainable?
The U.S. might be starting to mend its economy, but there are still a number of uncertainties about whether a recovery will be sustainable, says CanaData chief economist Alex Carrick.
Ontario Road Builders’ Association launches green award
The Ontario Road Builders’ Association has announced a new green award to recognize efforts made by the industry to protect the environment.
Canadian Construction Association eyes international reciprocity for Gold Seal
The Canadian Construction Association plans to explore the idea of negotiating international reciprocity agreements for its Gold Seal certification.
What the latest U.S., Canada GDP numbers mean for the recovery
New gross domestic product figures for the U.S. and Canada are strong, says CanaData chief economist Alex Carrick. But what do they say about the state of economic recovery in both countries?
