April 29, 2009
Low interest rates may not boost privately financed construction in 2009
Despite historically low interest rates, privately financed construction will be depressed well into 2010, says CanaData chief economist Alex Carrick. He believes falling corporate profits, weak product demand and the credit squeeze are all contributing to the cyclical malaise.
He expects public sector investment demand will fill in part of the gap. But how effective this investment will be depends on success in resolving three issues.
- There must be effective co-ordination of financing between two and sometimes three levels of government: federal, provincial and municipal.
- Shelf-ready work does not always mean what it implies. There may still be delays for some of these projects based on neighbourhood impact and environmental studies.
- Some local governments will initiate projects without being sure that the funding will come through. Therefore, they are likely to give priority to work that has already been planned or is absolutely essential. This is not the long-term forward-planning intent of the federal and provincial government programs.
Alex Carrick discusses these issues in more detail and construction costs, regional issues and U.S. protectionism in Major Issues Facing Canada’s Construction Industry to the End of this Year.
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?
