January 18, 2010

Western Canada leads in growth of fixed assets

VANCOUVER

Alberta and British Columbia led the country in terms of the growth of fixed assets between 1999 and 2009, according to Statistics Canada.

The agency reported that fixed assets or the stock of buildings, structures and equipment in Alberta increased by 72 per cent in this period, a much faster pace than any other province.

As a result, the value of its assets increased to $379 billion in 2009 from $221 billion in 1999. The mining and oil and gas extraction sector accounted for nearly half of Alberta’s total fixed assets in 2009.

This sector was the main contributor to the large increase, despite a slowdown in capital expenditures intentions in 2009.

British Columbia had $194 billion worth of fixed assets in use in 2009 — an increase of 21 per cent from 1999. This is the second fastest rate of growth in the country. During this period, increases in mining and oil and gas extraction, and transportation and warehousing were partly offset by decreases in the manufacturing and real estate sectors.

Fixed assets in the mining and oil and gas extraction sector nearly doubled over the decade to $281 billion in 2009, with Alberta accounting for two-thirds of the sector’s assets.

The mining and oil and gas extraction sector owned 19 per cent of the total fixed assets in the economy in 2009, up from 11 per cent in 1999.

This sector replaced utilities as the largest sector in Canada.

Ontario had the nation’s largest fixed capital stock at $524 billion in 2009. This grew by a modest 13 per cent over the decade. Quebec’s capital stock rose 11 per cent to $309 billion. Alberta has replaced Quebec as the second largest asset holder in Canada.

The manufacturing sector slid from the third largest in 1999 to the fifth in 2009. The capital stock in manufacturing declined 15 per cent over the last 10 years.

Petroleum and coal products was one of the few industries in manufacturing in which net stock increased during the decade.

As a result of their lower rates of growth, the shares of Ontario and Quebec in Canadian fixed assets declined from 1999 to 30 per cent and 18 per cent respectively in 2009.

DCN News Services

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