Category: Economy

Key Takeaways:

• The Holdom Overpass project aims to address two main goals: increasing rail capacity for the Port of Vancouver and improving traffic flow and safety for the Burnaby community. 
• The overpass will create safer and more reliable travel options for pedestrians, cyclists, commuters, and emergency responders. It will also improve connections to the Holdom Skytrain station and greenway areas south of the rail tracks.
• The rail corridor moves more than 40 million metric tonnes of export cargo, accounting for more than 40% of the port’s total international exports in 2023. 
• Work will begin later in late 2024.

The Whole Story:

Work will soon begin on a $200-million overpass project in Burnaby, B.C.

The Port of Vancouver announced that the construction of a new four-lane overpass crossing the rail lines at Holdom Avenue in Burnaby will begin in late 2024. The Vancouver Fraser Port Authority is delivering the Holdom Overpass project in partnership with the City of Burnaby, CN, and the Government of Canada.  

The overpass will extend Holdom Avenue south over the rail corridor and Still Creek, connecting it with Douglas Road. Once complete, there will be an increase of rail capacity for Port of Vancouver terminals, supporting the reliable movement of goods through the region, and improved traffic flow and safety for the Burnaby community.   

“By investing in projects like the Holdom Overpass, we’re addressing current transportation needs, supporting our supply chains to make life cost less for Canadians, and also building the infrastructure to support vibrant, growing communities that are great places to work, live, and raise a family,” said Pablo Rodriguez, minister of transport.   

The rail corridor through Burnaby is the only rail connection to transport goods and commodities to and from port terminals located in North Vancouver, a vital link in the national supply chain that connects Canadian products like grain and fertilizer to global markets. The rail corridor moves more than 40 million metric tonnes of export cargo, accounting for more than 40% of the port’s total international exports in 2023. 

The City of Burnaby identified the Holdom Overpass as an important solution to provide better access and improve safety for cyclists, pedestrians, commuters, and first responders as part of its transportation plans. The Holdom Overpass active transportation facilities will improve connections to the Holdom Skytrain station, which is a main hub for cyclists and pedestrians, making travel from the Skytrain station to areas south of the rail tracks — such as the Central Valley Greenway — safer, faster, and more reliable. 

Canada’s trade through the region is growing, and the project is designed to mitigate the impacts of trade on those who live, work and commute in Burnaby. It will provide significant community benefits, including improved safety and traffic flows, reduced greenhouse gas emissions from less idling traffic at the existing crossing, better community access by creating more reliable travel times, and better emergency response options.  

The project will add to the rail improvements completed by CN in 2022, which included updates to the Thornton Tunnel to reduce the time between trains travelling through the tunnel and a new rail siding track running from Willingdon Avenue to Piper Avenue.  

The port authority has previously completed two phases of public engagement and continuous First Nations consultation, and input from these efforts has helped shape the overpass design. Public space surrounding the overpass will include First Nations cultural recognition, public art, and improved landscaping in the Still Creek and Beecher Creek areas. 

The road enhancements are part of the Burnaby Rail Corridor Improvements Project, a series of road and rail improvements to increase transportation efficiency and trade capacity through Port of Vancouver terminals on the North Shore. The Burnaby Rail Corridor Improvements Project is funded by the Government of Canada, through its National Trade Corridors Fund, the port authority, and CN.  

A great idea isn’t worth much if you don’t have the resources to make it a reality.

That’s a problem venture capital firms solve. They invest in young companies with high growth potential, and often can provide guidance to help them succeed. Recent years have seen many firms rise up with a specific focus on fostering innovation in the construction sector, highlighting how much opportunity exists.

Be sure to take note of the companies on this list as there is a decent chance construction’s next big tech breakthrough comes from one of them.

Ironspring Ventures

Based in Austin, Texas, Ironspring Ventures focuses on companies across the industrial supply chain, including construction, manufacturing, transportation & logistics, and alternative energy. Founded in 2020, they’ve raised over $160 million across two funds to invest in Seed and Series A rounds. They look for companies with the potential to improve productivity and solve challenges in these industries through automation and technology. They partner with their portfolio companies by leveraging their network of industrial experts and strategic investors.

Notable investments:

• ICON
• Fast Radius (Exited)
• Harbinger
• Plus One Robotics
• OneRail
• Assignar

Brick & Mortar Ventures

Brick & Mortar Ventures is a venture capital firm headquartered in San Francisco, California, founded in 2015. They focus on investing in early-stage companies that develop innovative software and hardware solutions for the industries that make up the built world. This includes Architecture, Engineering, Construction, and Facilities Management (AEC/FM). They aim to disrupt the traditional methods used in these industries by backing entrepreneurs who are creating new technologies. Brick & Mortar Ventures has a notable track record with past investments in companies like PlanGrid, BuildingConnected, and BuildZoom. Their funding comes from institutional investors, and they have a dedicated team with experience in both venture capital and the AEC/FM industries.

Notable investments:

• PlanGrid
• BuildingConnected
• BuildZoom
• Fieldwire
• Levelset (formerly Zlien)
• Rhumbix

Builders VC

Founded in 2014, Builders VC is another San Francisco venture capital firm specializing in early-stage investments. They target tech startups aiming to modernize established industries (construction included). Builders VC focuses on Seed and Series A funding rounds, but also participates in later stages. Their sweet spot lies in Enterprise Applications and high-tech solutions, although they also invest in sectors like healthcare, sustainability, and food & agriculture technology. For their efforts in the construction world, they have brought on venture partners with deep construction industry experience. Steve Dell’Orto, formerly a senior executive at Clark Construction, joined Builders VC to leverage his expertise and guide construction investments.

Notable investments:

• Fieldwire
• Modumate
• Camino Technologies
• DOZR
• Mercator.ai
• Foresight
• Bowery

HOLT Ventures

As the investment arm of HOLT Cat, the largest Caterpillar tractor and engine dealer in the U.S., HOLT Ventures aims to be an engine that powers construction innovation. in early-stage technology companies that can benefit the industrial and manufacturing sectors, particularly those that can optimize and improve the services offered by Holt CAT. This includes areas like construction technology, manufacturing process improvement, rental/distribution solutions, business productivity software. Their team primarily focuses on Seed and Series A funding rounds. They look for companies with innovative solutions that address challenges faced by their parent company, Holt CAT, and its customers. They also have active partnerships with many others on this list, including Ironspring, Building Ventures and Blackhorn Ventures

Notable investments:

• Document Crunch
• Skillit
• PLNAR
• Streamline
• Suppli
• RodRadar
• Voze
• Camp Six
• Document Crunch

Fifth Wall

Fifth Wall is one of the world’s leading venture capital firm dedicated to propelling the real estate industry forward through technology. Based in Los Angeles, they focus on innovative companies tackling critical challenges that impact the built environment. Climate change, aging infrastructure, inaccessible housing markets, and unreliable supply chains are just a few areas they address. Fifth Wall is backed by a global mix of more than 100 strategic limited partners from more than 15 countries, including BNP Paribas Real Estate, British Land, CBRE, Cushman & Wakefield, Hilton, Host Hotels & Resorts, Kimco Realty Corporation, Lennar, Lowe’s Home Improvement, Marriott International, MetLife Investment Management, MGM Resorts, Related Companies, Starwood Capital, Toll Brothers, and others.

Notable investments:

• Aurora Solar
• ICON
• SPAN
• VTS
• SOLARCYCLE
• NZero
• SPAN
• Soly
• Pacaso

MetaProp

Founded in 2015, MetaProp’s investment team has invested in over 150 technology companies across the real estate value chain. They claim to be the world’s largest early-stage PropTech portfolio. The firm manages funds for both financial and strategic real estate investors that represent a pilot- and test-ready sandbox of 20+ billion square feet across every real estate asset type and global market. Their partners include construction gians like Bosa Properties and Altus Group. They also run the MetaProp Bridge at Columbia University program. Each year, between six and eight of the best technology-driven real estate industry ideas are selected to participate in intensive education, mentorship, and growth hacking programs, culminating in exclusive Graduation Defense panels, Roadshows, and Demo Days for partners, investors, VCs, and media. 

Notable investments:

• Skillit
• Briq
• AirWorks
• Trestle
• BuildOps
• OnsiteIQ
• TracFlo
• Urbint
• Mapped
• Kwant

Building Ventures

Building Ventures is a venture capital firm with a specific focus on the built environment. More specifically, they target companies that develop solutions that impact how we design, build, operate, and experience our physical surroundings. This could include anything from construction technology to sustainable building materials. Building Ventures doesn’t just want cookie cutter companies. They say they prioritize companies that have the potential to create a transformative impact.

Notable investments:

• Work & Mother
• SmartPM Technologies
• Dandelion Energy
• Measurabl
• Built Robotics
• Mosaic
• SKILLIT
• SmartPM
• Blokable

Formwork Labs

Formwork Labs, a collaborative accelerator program, has a simple goal: to be the foundation for entrepreneurship and innovation for the construction industry. Their team focuses on nurturing early-stage startups in the Architecture, Engineering, and Construction (AEC) industry. Launched by Brick & Mortar Ventures and BuiltWorlds in 2022 as the first accelerator of its kind, they provide funding, mentorship, and industry connections to help these young companies refine their products and go-to-market strategies. Recently, they announced the launch of their third cohort, selecting five promising startups from a pool of over 70 applicants.

Current cohort:

• Flowlly
• MatBook
• Pivla
• Silo-in
• TerraScape AI

EllisDon ConTech Accelerator

EllisDon’s ConTech Accelerator acts as a launchpad for innovative construction technology startups. The program identifies promising young companies with solutions that address challenges in the construction industry. These startups receive mentorship, potential funding, and industry connections from EllisDon to help them refine their ideas and develop go-to-market strategies. Successful participants may even collaborate with EllisDon on real-world construction projects to test and improve their solutions, accelerating their growth and impact on the industry.

2023 program finalists:

• SiteLink
• The Link
• Provision

Blackhorn Ventures

Founded in 2017 in Denver, Colorado, Blackhorn Ventures is a venture capital firm that invests in early-stage companies using software solutions to improve efficiency and decarbonize industrial sectors like energy, construction, and transportation. They target companies that leverage digital tools to minimize resource use and environmental impact while aiming for strong financial returns. Just this month they announced the close of their third fund, Blackhorn Ventures Industrial Impact Fund II, LP (IIF II) which garnered $150 million in new commitments. The fund’s focus is seed and Series A stage investments into capital-efficient software solutions, vertical SaaS companies, and AI applications that address the urgent need for industrial resource efficiency and decarbonization at scale.

Notable investments:

• Aperia Technologies
• EcoWorks
• Briq
• Agorus
• Amperon
• Circuit Mind
• Datch
• QuoteToMe
• Hyperframe

Shadow Ventures

Founded in Atlanta, Georgia in 2017, Shadow Ventures is a venture capital firm focused on seed-stage startups that bring innovation to the built environment. They target companies using technology to tackle challenges in real estate and construction, with a specific interest in sustainable solutions. Their investments aim to transform how we design, build, and operate buildings. They recently announced their new $34 million Seed Fund II. This fund aims to continue their mission of financing ambitious entrepreneurs with frontier technologies for the global infrastructure sector.

Notable investments:

• Okibo
• Constructn.ai
• BotBuilt
• jet.build
• Green Badger
• Ecobot
• billy
• Rabbet
• Aren
• ICON
• Konstru
• Hummingbird Kinetics

Energize Capital

Formerly Energize Ventures, this firm wants to make the world a healthier place. A leading climate software investor, Energize Capital partners with with innovators to accelerate the sustainability transition. Their team has decades of experience in the climate technology space, and they leverage that deep industry and operational expertise to guide a research-based, proactive and thorough investment approach. They support companies at various stages of maturity by helping them scale and realize their full potential, from early commercialization to the public markets. They have several areas of focus: renewable energy, industrial operations, electrification/mobility, infrastructure resilience and decarbonization

Notable investments:

• Amperon
• Urbint
• Sitetracker
• Aurora Solar
• Handle
• PVcase
• SINAI

*Editor’s Note: Emails, video calls, regular calls, paperwork, site visits—most construction professionals don’t have hours to go through press releases and news articles detailing the latest business deal in the industry. But we do. Each month we distill all that information into a pure, concentrated syrup called Business Moves. This month was big for sustainable companies, Indigenous partnerships, tech funds and more.

Buffalo River Developments LP has acquired majority interest in Threeosix Industrial Services Inc. The groups reached an agreement where Buffalo River Dene Nation, via its development corporation Buffalo River Developments LP, completed a significant investment in Threeosix in exchange for a majority stake in the group of companies. Threeosix is a multi-discipline industrial solutions provider based in Saskatoon, Sask. Buffalo River Developments is the wholly-owned economic development corporation of the Buffalo River Dene Nation.

Volvo Group and Westport Fuel Systems Inc. have formed joint venture to promote, develop and further accelerate the commercialization of the high pressure direct injection (HPDI) technology—a fuel system used to reduce CO2 in long-haul trucking and other high-load and off-road applications.

Parity, a remote HVAC optimization as a service company for multifamily buildings and hotels, announced today the successful closing of its USD $19M Series B funding round. Parity aims to limit energy waste and maximizes demand response performance by remotely operating existing heating, ventilation, and cooling systems in real-time. The round was completed by Idealist Capital, joining existing investors ArcTern Ventures, Wyse Meter Solutions Inc., and RET Ventures.

The Hillcore Group, an independent Canadian investment firm, successfully completed the acquisition of CEDA, which has been majority-owned by OMERS since 2005. CEDA specializes in providing industrial maintenance, turnaround and environmental services to clients in the oil and gas, pipeline, power, pulp and paper, chemical, mining, municipal and steel markets.

Schneider Electric, a global digital energy management and automation company, is transforming its Digital Buildings business in Canada with the launch of the SMART Buildings Division. The company stated that this evolution marks a strategic move to deliver comprehensive solutions and services that support building owners and operators in achieving their decarbonization and sustainability goals.

Through our SMART Buildings division in Canada, we’re set to enhance efficiency, sustainability, and occupant comfort. Our goal is to empower building owners and operators to create smarter, more efficient spaces for a sustainable future

Emily Heitman, President of Schneider Electric Canada

Backwoods Energy Services, one of the largest and most sophisticated Indigenous-owned contractors in Western Canada, has formed a strategic partnership with Kihew Fabco, an Indigenous-owned fabrication shop in Saskatchewan. The partnership is poised to strengthen the capacity of both organizations through the creation of employment opportunities, training programs, and revenue streams that directly contribute to community initiatives.

Canada-based companies Stantec and WSP have both made Time Magazine’s first list of the world’s 500 Most Sustainable Companies. The top spot on the list went to a company previously mentioned in this month’s edition of business moves, Schneider Electric, which is based in France. Stantec ranked 14th and WSP ranked 54th.

Electrical distributor EECOL Electric announced that it has acquired Independent Electric Supply of Toronto. Independent, with its 40 team members, has been serving customers in the Toronto area market since 1921. Officials said the acquisition underscores our dedication to serving customers across Canada with unparalleled service and top-quality products from hundreds of premier manufacturers

Pembina Gas Infrastructure Inc. (PGI), a gas processing entity in Western Canada jointly owned by Pembina and KKR, has entered into a purchase and sale agreement with Whitecap Resources Inc. to acquire a 50% working interest in Whitecap’s 15-07 Kaybob Complex as well as executed an agreement to support the future infrastructure development for Whitecap’s Lator growth area. Gross proceeds related to the transaction are $420 million ($252 million, net to Pembina).

Aecon Utilities, a subsidiary of Aecon Group, has acquired a majority stake in Xtreme Powerline Construction, a Michigan-based electrical distribution utility contractor, for $73 million. The acquisition will allow Aecon Utilities to expand its U.S. presence and services offered, particularly in repairing and upgrading electrical grids. Xtreme’s management will retain a minority ownership and leadership roles, while Aecon Utilities gains access to Xtreme’s expertise and client relationships.

Blackhorn Ventures has announced the close of its third fund, Blackhorn Ventures Industrial Impact Fund II, LP (IIF II). With $150M in commitments towards the new fund, Blackhorn says its team is exceptionally well-positioned to partner with world-class founders. Its focus is seed and Series A stage investments into capital-efficient software solutions, vertical SaaS companies, and AI applications that address the urgent need for industrial resource efficiency and decarbonization at scale.

e-Zinc, a company focused on long-duration energy storage with its zinc-air battery, announced it has raised an additional USD $31 million in follow-on funding to its $25 million Series A round. This oversubscribed Series A2 round was led by Evok Innovations, with additional investments from Mitsubishi Heavy Industries, Export Development Canada (EDC), and Ultratech Capital Partners. e-Zinc’s existing shareholders also participated, including Toyota Ventures, Eni Next, Anzu Partners, BDC, and Graphite Ventures. e-Zinc plans to use this financing to accelerate product development and complete the construction of its 42,000 sq. ft pilot manufacturing facility in Mississauga, Ont.

Ironspring Ventures has announced $100 million in new funds to continue partnering with early-stage founders who are creating change and catalyzing innovation across the industrial supply chain. Ironspring officials stated that there’s never been a better time to invest in these critical industrial industries. They added that infusion of new capital will fuel their ability to back the entrepreneurs and teams who are revolutionizing the way the world designs, builds, distributes, and operates in the physical world.

Ramudden Global has announced the acquisition of RSG International, a group of road safety businesses based in Toronto. With this acquisition, Ramudden Global surpasses $1.74 billion in revenue and more than 5,000 employees in 12 countries.

I see this as a breakthrough for our business and a great opportunity for our staff to embark on an exciting journey. Combining forces enables us to gain the strength needed to realize our expansion plans. By combining European and North American expertise, we aim to bolster our offerings and deliver superior infrastructure safety solutions in our region

Lisa Laronde, President or RSG

Steelhead LNG, a Vancouver-based developer in the liquefied natural gas (LNG) industry, announced the recent award of patents in the U.S. and South Korea in relation to its proprietary near-shore floating LNG production facility system. The patents cover pivotal aspects of Steelhead’s approach to liquifying natural gas for export and are in addition to the patents already issued to Steelhead LNG in Canada, Australia and Mexico.

Pennsylvania-based infrastructure product provider JENNMAR has acquired Dumotech Industrial Products in Quebec. JENNMAR said that Dumotech complements JENNMAR’s offering of infrastructure products and specialized services to the civil, solar, mining and construction industries, and strengthens its presence in Quebec through an expanded product range and local proximity to the region’s mines.

DC Equipment has opened a new manufacturing facility in Prince George, B.C. marking the return of Madill equipment production to B.C. The first machines to be produced at this facility will be the Madill 3000B Log Loaders.

Advanced Construction Robotics (ACR), announced it has entered into an agreement with Nucor Rebar Fabrication, Inc. (Nucor), North America’s largest fabricator and installer of rebar. This partnership will introduce cutting-edge technologies into Nucor’s operations.

Key Takeaways:

• CIBC is offering a new banking program specifically designed for skilled trades students and apprentices.
• This program includes free everyday banking, a credit card with special offers,and a line of credit up to $80,000 to help cover the costs of training and tools.
• There’s also contest open to registered apprentices who open a CIBC account. The grand prize includes a three-year truck lease and $10,000 worth of tools.

The Whole Story:

CIBC has announced a new banking offer for apprentices in skilled trades.

The bank says its goal is to support this underserved population at a time when skilled tradespeople are in high-demand across the country.

The CIBC Skilled Trades Banking solutions are the first of their kind in Canada and provide skilled trades apprentices with free everyday banking with CIBC Smart Account, access to special offers with the CIBC Dividend Platinum Visa credit card, and a CIBC Education Line of Credit of up to $80,000 to support training and tools. Specialized banking products and services are also available to skilled trades students and certified professionals.

CIBC’s Skilled Trades Banking solutions can currently be accessed by skilled trades students, apprentices and professionals during three distinct points in the skilled trades journey: while enrolled in an accredited trades college, throughout their registered apprenticeship program, and support extends to skilled trades professionals upon becoming a certified member of their respective trade association or union.

“CIBC recognizes the increasing importance that professionals in the skilled trades are bringing to the country and economy, and also understands that it takes an investment of time and money to become certified in a trade,” said Jeff Smith, senior vice-president, client segmentation and franchising, CIBC. “The Skilled Trades Banking solutions are unique and will help make career ambitions of skilled tradespeople more attainable – especially at a time when skilled trades workers are needed across the country.”

According to a recent survey conducted by CIBC, nearly half (45%) of skilled trades professionals don’t feel confidence in their financial situation. CIBC hopes to provide support to help apprentices successfully complete their training.

The bank also announced that it has partnered with the Skilled Trades College of Canada (STC) as their financial services title sponsor to ensure trades students have access to financial advice and products to succeed throughout their journey. The bank will be providing 15 $15,000 scholarships over the next three years to STC students.

“We are thrilled that CIBC is now the official banking partner of Skilled Trades College because a strong financial background is imperative to any successful tradesperson and entrepreneur,” says Mike Di Donato, chief operating officer, Skilled Trades College of Canada. “CIBC will provide our student base with financial advice and access to banking products and services, helping them on their path to be journeypersons and future business owners. In an effort to assist in addressing the skilled trades shortage CIBC has generously committed five, full-ride scholarships to STC students per year for the next three years, valued at $225,000.”

To further help support those who are considering a career in the skilled trades, CIBC will also be providing 15 $2,000 scholarships over three years to the Southern Alberta Institute of Technology (SAIT), and five, $2,000 scholarships to Northern Alberta Institute of Technology (NAIT) for the 2024 academic year.

Registered apprentices who open a new CIBC account and/or product can enter the ‘Build your Future‘ contest by October 31, 2024 for a chance to win $35,000 towards a three-year truck lease and $10,000 in tools.

Key Takeaways:

• The VRCA’s Constructive Conversations is a platform for industry stakeholders to engage with decision-makers and discuss solutions for a sustainable future for the construction sector.
•  The first event, held on April 11, welcomed Premier Eby as the inaugural guest. The third edition of the series is scheduled for August 28, with BC Conservative Leader John Rustad as the guest speaker.
• Kevin Falcon, BC United Leader, emphasized the need for collaboration between government and industry to address these challenges. He highlighted attracting more youth to skilled trades and prompt payment legislation as key areas needing attention. 

The Whole Story:

The Vancouver Regional Construction Association (VRCA) hosted its second Constructive Conversations event last week featuring BC United leader Kevin Falcon. This event brings together VRCA members, industry leaders and stakeholders to address critical issues impacting the construction sector in B.C. The province will be holding an election this October.

“I think sometimes legislators, certainly at the provincial level, feel a little untouchable and out of reach and we want to let our members know that these are the people we need to be talking to about construction and what’s going on in construction,” said Jeannine Martin, VRCA president. “Construction is 10% of our GDP and the fact that construction isn’t getting more attention from legislators is surprising to me.”

Martin added that these conversations are a great opportunity to understand what a candidate’s views are on the construction sector and let them know the major issues the industry is thinking about.

The 90-minute conversation with Falcon covered various crucial topics related to the growth and sustainability of the construction industry.

These included elevating the brand of construction to attract more individuals to skilled trades, addressing the housing crisis and its impact on drawing people to B.C., the necessity for targeted immigration, short- and long-term infrastructure funding, and the importance of affordable childcare for working families.

Do you support prompt payment?

When asked about his stance on prompt payment, Falcon noted that he has heard the stories of developers taking advantage of contractors. He expressed his support for implementing some form of prompt payment, but wanted to make sure time was taken to structure it well.  

“You have to pay your people so it doesn’t take long before you can find yourself in a whole world of hurt. How will it be structured? I would take a lot of guidance from you on how to get it right,” said Falcon. “I would look at who does it best in Canada. Alberta? Ontario? And why they do it best. But I 100% agree that we need some form of prompt payment legislation. I know what it’s like to be an entrepreneur, you’ve got those receivables and you are waiting on some big payments that are due. That just doesn’t work.”

BC Construction Association President Chris Atchison responded to Falcon, noting that cross-jurisdictional analysis is currently being done on prompt payment language and processes that work best. He also reminded Falcon of his previous comments around developers. 

“You mentioned one thing that is an irony when we are talking about prompt payment,” said Atchison. “We recognize that they are all different, but when you say we need to make the developers whole if we are introducing a program to inspire building. You can’t on one hand make the developers whole and offer to make tradespeople whole if you don’t connect the dots to make sure payment flows to the people.”

How do we attract and retain more workers?

Falcon lamented that B.C. was becoming a harder and harder place for young people to succeed, adding that this is particularly challenging for B.C.’s construction sector which is looking to recruit the next generation for workers. 

“One in three British Columbians is looking to move outside the province,” he said. “We lost 70,000 people to Alberta last year. Right now B.C. is a really tough sell. It’s tough for you to attract and retain employees. Even more concerning, of 18- 35-year-olds, 50% are looking at leaving British Columbia. That terrifies me.” 

He believes that improving healthcare, bringing down home and rental prices, and providing affordable childcare can help prevent more young families and workers from leaving.

“When you talk to workers and people in the trades, they say ‘I can’t make it here. I can’t ever dream of owning a home in British Columbia,” said Falcon. “At least I can go to Alberta and have a chance.’”

Falcon also believes more work needs to be done to educate young people in school about trades opportunities and to honour trades workers.

“Not every child should go to university. We need to do a better job of letting young women and men know that there is great opportunity,” said Falcon. “We have given parents the mistaken impression that somehow every child must go to university or they will be less than successful. We have to change that. Many of them graduate and still have no jobs or opportunity”

He recalled that during his time as minister of transportation, he would go around to major projects with plaques, medals and ceremonies to celebrate workers.

“We have to do a better job of celebrating the trades and make people proud to be trades people like they are in Europe,” said Falcon.

He also plans to pressure the federal government on immigration to prioritize more skilled trades immigration. And he wants to work to immediately funnel immigrants toward the construction sector by providing them with language and skills training, 

Does construction get the attention it deserves?

Martin explained that construction drives more than 10% of GDP in B.C. but rarely is in the limelight. She asked if Falcon thought there should be a government official or department that could focus on the sector and its issues.  She was curious what Falcon’s thoughts on the construction sector were and if he feels like it needs more attention.

“I think the construction industry is a huge, important part of the economy and they did such a great job for us when we were in government,” said Falcon. “I was minister of transportation and infrastructure for six years and was responsible for over $14 billion in capital projects, many of them built by your members. The vast majority were delivered on schedule and on budget, granted those were different times with different challenges. I don’t know if we need a minister of construction, but we need a minister responsible that understands the importance of the sector.”

Key Takeaways:

• Bird Construction plans to acquire privately-owned, B.C.-based civil infrastructure contractor Jacob Bros for $135 million.
• Jacob Bros has a workforce of over 350 salaried, hourly and craft personnel. For full year 2024, Jacob Bros is expected to generate approximately $300 million of revenue and $37 million of Adjusted EBITDA. 
• Jacob Bros’ two shareholders, Scott Jacob, CEO and Todd Jacob, COO, will join Bird to lead the combination of Bird’s Western Infrastructure business and their existing business. 

The Whole Story:

Bird Construction has announced plans to acquire B.C.-based civil infrastructure contractor Jacob Bros for $135 million. 

The transaction, pending relevant regulatory approvals and the satisfaction of other customary closing conditions, is expected to be completed early in the third quarter of 2024. 

Headquartered in Surrey, B.C., Jacob Bros is a privately-owned civil infrastructure construction business with self-perform capability, serving public and private clients across the region with a workforce of over 350 salaried, hourly and craft personnel. Jacob Bros’ two shareholders, Scott Jacob, CEO and Todd Jacob, COO, will join Bird to lead the combination of Bird’s Western Infrastructure business and their existing business. 

“Today is a momentous day for Jacob Bros as we become part of the Bird Construction team – one of Canada’s oldest and most respected brands in the construction industry,” stated Scott Jacob, president and CEO of Jacob Bros. “Bird shares many of our core values and our cultural attributes, and will be a great fit for our people and our clients. With access to Bird’s resources, we will be able to build on our success and accelerate our growth and capacity as one of Western Canada’s most respected builders of public and private infrastructure”.  

Jacob Bros specializes in civil infrastructure construction across a wide array of projects, such as airports, seaports, rail, bridges and structures, earthworks, energy projects, and utilities. Additionally, Jacob Bros delivers expertise in specialized projects that require innovative, purpose-built, custom solutions that leverage their suite of comprehensive services.  

“We are really pleased that Scott and Todd Jacob will be bringing their comprehensive experience to the Bird team. The acquisition of Jacob Bros, a full-service infrastructure provider in BC, represents a significant milestone in the evolution of our business, establishing a broader and more diversified operation. The company brings a strong market reputation, highly skilled team, and proven track record for delivering complex projects to sophisticated, long-term clients,” stated Teri McKibbon, president and CEO of Bird. “The combined company will have a greater platform from which it will be able to access larger-scale projects and expand career opportunities for employees. The acquisition will enable Bird to advance our strategic focus on complex work in high-demand, higher-margin self-perform sectors, which we expect will contribute to continued margin enhancement.”   

Bird offered the following reasoning for the acquisition: 

• Aligns with M&A criteria: The acquisition supports Bird’s M&A strategy of targeting high-performing, culturally aligned, complementary businesses with strong cross-sell opportunities and developing a national civil infrastructure vertical. 
• Increases exposure to key secular tailwinds: Positions the combined company to capitalize on opportunities related to electrification, the growing demand for low-carbon and green infrastructure solutions, and transportation infrastructure requirements. 
• Adds civil infrastructure expertise: Jacob Bros augments the strong Bird team with a highly experienced leadership team and skilled workforce with the ability to execute civil infrastructure and special projects of varying size, complexity, and scope. 
• Enhances core Infrastructure vertical: Significantly increases revenue generated by Infrastructure projects, which advances Bird’s strategy to balance its portfolio across its three core verticals, Industrial, Buildings, and Infrastructure. 
• Expands scale and geographic reach: Together with other recent acquisitions in Ontario, Jacob Bros brings Bird closer to its goal of establishing a national full-service civil infrastructure footprint through the expansion of civil capabilities into the largest market in Western Canada.  
• Anticipated contribution to margin accretion: The combined company will leverage Jacob Bros’ capabilities in higher margin self-perform and special projects areas, in addition to its robust backlog with a diversified project mix and fleet of modern equipment to further pursue profitable growth. 

For full year 2024, Jacob Bros is expected to generate approximately $300 million of revenue and $37 million of Adjusted EBITDA. 

The Jacob brothers were raised in a construction family. The Jacob brothers established three individual careers within different sectors of the construction industry. In 2008, they decided to collaborate, combining years of experience and individual specializations into one multi-faceted firm—Jacob Bros Construction. Jacob Bros has grown rapidly over the past decade and recently expanded into a new office and maintenance facility that was designed and built by its own team.

One of Jacob Bros’ biggest projects in recent years was the Centerm Expansion Project in Vancouver. Their team was involved the design and construction of a container terminal expansion and improvements to surrounding port road infrastructure for the Vancouver Fraser Port Authority. The project was carried out by Centennial Expansion Partners, a joint venture that included Jacob Bros, Dragados Canada Inc., and Fraser River Pile and Dredge (GP) Inc.

Time will tell what the root causes were that led to the main water feeder breaking, but we can all agree today that its failure has provided another significant example of the need to plan, design, maintain, and invest in critical infrastructure. While capital planning often favours more visible assets (i.e., recreation centres, fire stations, affordable housing) that lead to political photo ops, ensuring the services that fuel a city can continue to function should always be a top priority.

What should be next for municipalities and businesses that own real estate and infrastructure assets to deliver services?

First, they should identify critical components and ensure they can function as intended. This involves conducting thorough assessments to pinpoint vulnerabilities and potential failure points within their infrastructure. Regular maintenance schedules and proactive upgrades should be implemented to address issues before they escalate into major failures.

Additionally, municipalities and businesses should invest in modernizing their infrastructure with resilient and sustainable technologies. This includes adopting smart technologies that can monitor and manage infrastructure health in real time, allowing for swift responses to emerging issues. Collaboration between public and private sectors is also essential to pool resources, share expertise, and create comprehensive strategies for infrastructure resilience.

Finally, it’s crucial to foster a culture of continuous improvement and preparedness. This means staying informed about the latest advancements in infrastructure technology, engaging in ongoing training for personnel, and developing robust emergency response plans to mitigate the impact of any unforeseen events. By prioritizing these actions, municipalities and businesses can ensure their infrastructure remains robust and capable of supporting essential services for their communities.

We’ve seen bridges fall in Montreal and Saskatoon, and a previous pipe burst in Calgary (2009, Mount Royal). Let’s hope the Gardiner can stay up a little longer. As we inherit assets from generations before us, I don’t think we will have the resources to support them all. It’s time for us to be innovative, explore private and public innovation, and reconsider the levels of services we expect for our cities.

About the author

Scott Pickles is a seasoned real estate professional with over 20 years of experience in various sectors (public, non-profit, and private). Combining his background as a registered architect with consulting and client-side experience, he has a successful record of delivering complex real estate projects. His expertise spans strategic advisory, financial analysis, planning, and various building types.

Key Takeaways:

• A report by Resource Works and the First Nations LNG Alliance (FNLNGA) examined the economic benefits of liquefied natural gas (LNG) projects in B.C.
• A $4.1 billion investment in engineering/construction leads to a $4.5 billion increase in GDP and creates over 35,000 jobs.
• Engineering/construction in B.C. generates 8.9% more GDP compared to the average investment project in Canada.
• B.C. and Alberta capture most of the benefits (90.6%) from engineering construction projects in B.C.
• LNG projects also benefit from lower liquefaction costs due to B.C.’s cool climate and lower shipping costs due to its proximity to Asian markets.

Investment in LNG projects in B.C. can generate massive economic benefits, a new report found.

The study, prepared by Resource Works and the First Nations LNG Alliance (FNLNGA), investigates the economic impact of LNG projects with the goal of offering a clear, data-driven view of how LNG development can lift up the economics of B.C. and Indigenous peoples.

Using Statistics Canada’s Input/Output model, the paper reveals that LNG investments substantially boost the provincial and national economy, generating more GDP and jobs compared to other investment projects in Canada. A $4.1 billion investment in engineering construction, closely related to LNG projects, yielded a $4.5 billion increase in GDP and created over 35,000 jobs. The study also shows how these benefits ripple out to provinces outside of British Columbia.

To create the report, the groups enlisted the help of Philip Cross, a career statistical scientist who does research for various institutes across Canada and is a member of the Business Cycle Dating Committee at the C.D. Howe Institute. He has written extensively on natural resources and the Canadian economy. Before that, he spent 36 years at Statistics Canada, the last few as its Chief Economic Analyst, where he researched various economic and statistical issues and wrote its monthly assessment of the economy.

The study comes at a time when billions have already been invested in B.C.’s LNG sector. After years of planning and construction, the province’s first major LNG facility—LNG Canada—is about to be completed, followed by the smaller Woodfibre project. The LNG Canada $18 billion investment is supplied by TC Energy’s 670-kilometre Coastal GasLink pipeline connecting northeastern BC to Kitimat. LNG takes natural gas and cools it in terminals to –162 degrees Celsius so that it becomes a liquid, which requires 600 times less volume in tankers that transport it to overseas markets, where another terminal
converts it back to gas to be shipped by pipeline to customers.

It might not stop there. Here are other LNG projects with their eye on B.C.:

• Cedar LNG: A joint venture between the Haisla Nation and Pembina Pipeline Corp., located at Kitimat.
• Ksi Lisims LNG: A floating LNG project on Pearse Island, currently undergoing environmental assessment.
• LNG Canada Phase 2: A potential expansion of the existing LNG Canada project.

The report concludes that LNG projects offer significant economic benefits for BC and Canada. By overcoming regulatory hurdles and capitalizing on global market opportunities, Canada can become a key player in the international LNG market.

“As we launch this report, we aim to engage with policymakers, industry stakeholders, and the communities affected by these projects,” wrote officials from Resource Works and FNLNGA. “The findings underscore the critical need for thoughtful regulatory frameworks that support the growth of the LNG industry while balancing environmental considerations and the well-being of our communities. Together, let us move forward with the knowledge and insights gained here to harness the opportunities that LNG projects present for British Columbia and Canada.”

*Editor’s note: Business Moves is a new regular feature from SiteNews that collects all the major corporate announcements impacting Canadian construction. If you have an announcement you want to make, email us at hello@readsitenews.com

Béton Provincial, the largest Canadian-owned company in the concrete and cement industry, has acquired assets from CRH Canada in Quebec, Newfoundland, Labrador and New York. Béton says this strengthens its distribution network, product offerings, and supply chain. The acquisition is expected to benefit the region’s economy and allows Béton Provincial to invest in green concrete initiatives.

Delta Water Products Group is consolidating its position in the water industry through a strategic rebranding and acquisitions. They’ve recently acquired WaterTec Irrigation Ltd., Arndt Motor & Pump Service, and Aquateck West, folding them into their existing Delta Water Products and Delta Irrigation brands under the new umbrella of DELTA WATER PRODUCTS GROUP. This unification aims to provide a wider range of irrigation, pumps & motors, waterworks, wildfire response, and HD conduit solutions across Western Canada and the Pacific Northwest.

CarbonCure, a Halifax-based clean technology company, has officially launched its operations in the United Arab Emirates. According to CarbonCure, the rapidly growing market is valued in the tens of billions annually and presents a significant opportunity for its technology. To solidify their presence,CarbonCure has secured partnerships with key players in the region, including Emirates Beton Ready Mix, Tremix, and industrial gas supplier Gulf Cryo. This collaboration was formally acknowledged during a signing ceremony held at the UAE government’s Make It In The Emirates Forum.

Enbridge Inc., a multinational pipeline and energy company based in Calgary, has acquired Questar Gas, a natural gas distribution company serving 1.2 million customers in Utah, Wyoming and Idaho. Questar Gas will join Enbridge’s Gas Distribution and Storage Business Unit and is expected to contribute significantly to Enbridge’s long-term dividend growth.

Barnhart Crane and Rigging, a major North American lifting and logistics company, has acquired NCSG, a leading crane and heavy haul services provider in Western Canada. This marks Barnhart’s first international expansion and its largest acquisition to date. NCSG brings a strong network of branches and roughly 400 employees with expertise in various industries, significantly boosting Barnhart’s presence in Canada.

Anthem Properties and Streamliner Properties have jointly acquired Carlingwood Mall, a shopping center in Ottawa. The mall sits in a growing area with limited housing and will be redeveloped in phases to incorporate new residential units while maintaining commercial space and serving the community.

Reconciliation Energy Transition Inc. (REIT) has entered into a joint development agreement with Sumitomo Corporation, a leading global trading company based in Tokyo, Japan, through its subsidiary Ammolite Carbon Sequestration (collectively known as Sumitomo Corporation Group). RETI and Sumitomo Corporation Group have finalized the terms under which Sumitomo Corporation Group will acquire a significant equity interest in the RETI East Calgary Region Carbon Transportation and Sequestration Hub project. The Hub is an open access CO2 sequestration-as-a-service solution for industrial emitters within the greater Calgary region and beyond with potential storage capacity of up to 10 million tonnes per annum.

Atlas Engineered Products (AEP), known for acquiring and operating operations in Canada’s truss and engineered products industry, is partnering with Westhaven Builders to supply materials for a senior living project in Michigan. AEP says the project is valued at $800,000 and strengthens its presence in the U.S. market while showcasing its ability to handle large-scale construction projects. 

AtkinsRéalis, a project management company, has welcomed Bird Construction, Millwright Regional Council and AECON as ambassadors of the Canadians for CANDU campaign. This campaign promotes the use of CANDU nuclear technology in Canada and abroad to fight climate change and strengthen the domestic nuclear industry.

GMS Inc., a building product distributor, is acquiring Yvon Building Supply, a company offering various construction materials in Ontario. This acquisition will expand GMS Canada’s services and product offerings in the province, allowing them to better serve their growing customer base. Yvon’s team will join GMS upon closing and continue operating under the Yvon brand name while integrating with GMS’s existing services.

Colliers, a diversified professional services company, is acquiring Englobe, a Canadian engineering and environmental services firm, for $475 million. This move expands Colliers’ presence in Canada and aligns with their strategy of growing recurring revenue streams. Englobe will be rebranded as Colliers in 2025 but will maintain its leadership team under Colliers’ partnership model.

Buffalo River Dene Nation (BRDN) partnered with Threeosix Industrial to launch Buffalo Contracting, an Indigenous-led company providing contracting services for Saskatchewan’s growing industrial and mining sector. This partnership aims to create high-quality jobs, training opportunities, and economic development for the community while promoting diversity and inclusion in the workforce.

Relay Transition Partners has announced that Pacific Radiator Mfg. Ltd. has been acquired by Petwin Private Equity. Pacific Radiator is the largest manufacturer of replacement copper-brass radiator cores and tanks in Western Canada. Servicing clients across Western Canada and the Pacific Northwest, the Company is known for its high-quality products, excellent customer service, and fast turnaround times. Relay Transition Partners acted as financial advisor to Pacific Radiator.

The Hoffmann Family of Companies (HFOC), a U.S.-based family owned private equity firm, has acquired majority ownership of CDN Controls (CDN)—a leading player in electrical and instrumentation maintenance, automation, communication and renewable/solar services. CDN operates across 10 branches, employs over 700 professionals and manages an expansive fabrication facility. 

SiteMax has announced a strategic partnership with The Net Effect, a digital business consulting firm for construction companies. The partnership brings together SiteMax’s construction management platform with The Net Effect’s expertise in digital business consulting for the construction industry. By joining forces, the two companies stated that they aim to offer comprehensive solutions to construction businesses, empowering them to streamline their processes, enhance efficiency, and achieve sustainable growth.

EllisDon has launched a new sub-brand, Building Digital, to provide technology services and products specifically for the AEC industry. With their experience in EllisDon’s Digital & Data Engineering Division, the Building Digital team aims to bridge the gap between the potential of technology and its usage in AEC by offering consulting services and developing tech products to help professionals adopt new technologies.

The Universal Group announced the latest expansion of its group of companies through the acquisition of Energetic Traffic Control Ltd. (ETC), a provider of comprehensive traffic management solutions based in Fort St. John, B.C. Universal also recently announced its entry into the U.S. through the acquisition of Advanced Traffic Control (ATC). ATC is based in Auburn, Washington and was founded by Jeff McLaughlin and Darrin Tish in 2015. ATC is primarily focused on providing traffic control services for large multi-year infrastructure projects on interstates and freeways across Washington State.

SitePartners, a marketing agency that specializes in the industrial sector, has announced the creation SiteHQ, the first industrial studio in Canada. The 10,000-square-foot space was custom built in Abbotsford, B.C.’s growing Rail District. SitePartners Founder and President Andrew Hansen stated that Site wanted a hybrid space: a production studio and office that would allow the firm to grow with its clients and create industry-leading work. The new space will be a place for the construction industry to connect, gather and build community.

Key Takeaways:

• A new report has found that Toronto needs to invest $4 billion annually to maintain its infrastructure.
• The city is currently only investing $1.4 billion per year, creating a gap of $2.6 billion per year or $26 billion in the next decade.
• Recently, the city dedicated $26 billion (52%) of the 10-Year Capital Budget and Plan to SOGR needs, nearly doubling SOGR investments over the past 10 years.

The Whole Story

Toronto is billions of dollars behind on infrastructure spending and wants to get caught up.

The city’s 2024 Corporate Asset Management Plan (AMP) was recently adopted by Toronto City Council. It identifies the value of non-core infrastructure assets at $73 billion and forecasts that an average annual investment of $4 billion is needed to maintain these assets in good condition to provide their current levels of service to Torontonians.

Officials say this contrasts with the average annual planned state of good repair (SOGR) funding of $1.4 billion in the city’s 2024 budget, revealing an investment gap of approximately $2.6 billion per year or $26 billion in the next decade.

Officials say the findings of the city’s 2024 Corporate Asset Management Plan are consistent with the city’s Long Term Financial Plan and past budget process where investments in SOGR have been a priority. Recent actions taken by the city to address asset renewal needs include:

• Dedicated $26 billion (52%) of the 10-Year Capital Budget and Plan to SOGR needs, nearly doubling SOGR investments over the past 10 years.
• Added $1.6 billion in additional SOGR funding to the 10-Year Capital Budget and Plan during the 2024 Budget process.
• Eliminated the city’s single largest SOGR liability with the Ontario-Toronto New Deal’s upload of the Gardiner Expressway to the province that saves nearly $2 billion which will be allocated to critical asset renewal guided by a capital prioritization framework and asset management plan.
• Developing a capital prioritization framework that will be integrated with the City’s 2025 Corporate Asset Management Plan to enhance the City’s existing prioritization processes and strategic decisions on when and where to prioritize capital infrastructure investments.
• The city’s 2024 Corporate AMP builds upon previous divisional asset management plans and includes all municipal infrastructure assets under the direct ownership of the City, excluding core infrastructure assets such as water, wastewater, stormwater, roads, bridges and culverts, which were reported in the City’s 2021 Core Infrastructure AMP.

To comply with provincial regulations, the city’s 2024 Corporate AMP reports on the costs required to maintain current levels of service. The forthcoming AMP will report on the costs to provide proposed levels of service to manage future growth including recommended funding strategies aligned with the final provincial regulation milestone on July 1, 2025.

Key Takeaways:

• The city-wide zoning decision aims to speed up housing development, reduce costs, and remove barriers to building new homes.
• Homeowners can now build duplexes, fourplexes, or row houses on their properties without a separate approval process. This increases housing variety within existing neighborhoods.
• The original proposal was modified after extensive public feedback (longest public hearing in Calgary history) to address concerns regarding parks, parking, and backyard suites.

The Whole Story:

After record-breaking public hearings, Calgary has approved citywide rezoning.

The decision was a response to Calgary’s housing crisis and officials say the changes will significantly speed up the time to deliver homes, remove barriers and uncertainty, and reduce costs.

The decision will switch Calgary’s base residential zoning to R-CG, or residential grade-oriented infill. This means homeowners can now redevelop their properties with duplexes, fourplexes, or row houses without going through a separate land-use approval process. The new zoning will be in effect across Calgary starting from August 6.

“Before the public hearing began, it was clear that housing is the top issue on Calgarians’ minds and is truly the problem of our time. The stories Calgarians shared over the past few weeks painted a stark picture of the housing challenges being faced in this city,” Mayor Jyoti Gondek said. “Council’s decision confirms our commitment to meet that problem with the tools and plan we have. While today’s decision is just one of the actions in the Housing Strategy, we will continue our work in implementing the entire strategy.”

This decision was made after a 15-day Public Hearing in which 736 Calgarians verbally gave their feedback and 6,101 Calgarians submitted a written statement, which resulted in the largest and longest public hearing in the city’s history.

“City council and administration heard from thousands of Calgarians during this record-breaking public hearing,” said City of Calgary Chief Administrative Officer David Duckworth. “I would like to thank everyone who took the time to participate in this incredibly important public input and decision-making process.”

A fundamental change administration recommended prior to the public hearing, which was approved by council, was to make it easier for Calgarians to provide input during the development permit process in their communities.

Many themes emerged from feedback given during the public hearing, and council said it has made changes to the original proposal to address concerns on issues such as parks, parking, and backyard suites associated with rowhouses and townhouses. 

“We heard clearly from Calgarians that they care about the state of housing citywide, and also about what gets built next door,” said Tim Keane, general manager of Planning & Development Services. “Both of these matter to The City too. We are committed to enabling more homes and making sure they fit well into our communities.”

Rezoning for housing is one of 98 actions in Home is Here: The City of Calgary’s Housing Strategy. Citywide rezoning is a change to the low-density residential zoning across Calgary. In addition to single detached houses, other types of low-density housing including semi-detached, rowhouses and townhouses are now allowed in new and established areas of the city, effective August 6, 2024.

Key Takeaways:

• The parliamentary budget officer says 1.3 million new homes must be constructed by 2030 to bridge the nation’s housing deficit.
• The achieve this, Canada must build 181,000 more homes annually compared to current construction rates.
• The total vacancy rate in Canada (the number of vacant units, for sale or rent, relative to the housing stock) reached a record low of 5.1 per cent in 2023

The Whole Story:

The latest analysis from the parliamentary budget officer (PBO) underscores the pressing need for additional housing in Canada.

According to the report, an estimated 1.3 million new homes must be constructed by 2030 to bridge the nation’s housing deficit. Officials say this figure is crucial for restoring Canada’s vacancy rate to its historical average.

Based on PBO estimates, the total vacancy rate in Canada (the number of vacant units, for sale or rent, relative to the housing stock) reached a record low of 5.1 per cent in 2023—1.8 percentage points below its 2000-2019 average of 6.9 per cent.

Under the PBO’s status quo baseline outlook, over 2024 to 2030, household formation outpaces net completions (272,000 households versus 255,000 units annually, on average). This imbalance pushes the total vacancy rate lower to 3.9 per cent in 2025, before stabilizing at around 4.0 per cent by 2030.

Yves Giroux’s office considered various factors, including the projected increase in households if adequate housing options were available. Consequently, the PBO suggests that Canada should aim to build 181,000 more homes annually compared to current construction rates.

Despite recent federal initiatives to boost housing supply and the implementation of Ottawa’s temporary resident cap, these efforts were not factored into the report’s calculations.

The Canadian Mortgage and Housing Corp. echoed the urgency in their data as well, advocating for the construction of 3.5 million homes by 2030 to restore affordability levels to those of the early 2000s.

Giroux’s estimate diverges from CMHC’s, as he primarily focused on closing the gap between housing demand and supply. Meanwhile, the Liberal government has announced a series of housing measures ahead of the federal budget. These proposals primarily aim to increase rental construction by providing substantial low-cost loans and offering infrastructure funding to provinces and municipalities.

Key Takeaways:

• The federal government plans to top-up its Apartment Construction Loan Program with $15 billion to build at least 30,000 new apartments. They hope to build more than 131,000 in the coming decade.
• There are also plans to reform the program with extended loan terms, easier access to financing, introducing a “portfolio approach” to eligibility requirements and fast-tracking applications for proven builders.
• Trudeau says he will be launching Canada Builds. Similar to BC Builds, it will be a program that partners with provinces and territories to build more rental housing.

The Whole Story:

Canada’s upcoming budget will include billions for apartment construction, Prime Minister Justin Trudeau announced.

Trudeau says the budget will deliver a $15 billion top-up to the Apartment Construction Loan Program to build a minimum of 30,000 new apartments. With this top-up, officials say the program’s financing is on track to build over 131,000 new apartments within the next decade.

Trudeau also announced a series of new reforms to the Apartment Construction Loan Program to increase access to the program and make it easier for builders to build. These reforms include:

• Extending loan terms;
• Extending access to financing to include housing for students and seniors;
• Introducing a portfolio approach to eligibility requirements so builders can move forward on multiple sites at once;
• Providing additional flexibility on affordability, energy efficiency, and accessibility requirements; and
• Launching a new frequent builder stream to fast-track the application process for proven home builders.

“With Budget 2024, we’re making it easier, cheaper, and faster to build more homes in Canada. Today’s announcement will cut red tape, speed up development, and build more homes, so that Canadians – from teachers, to nurses, to construction workers – can afford to stay in the communities where they work. It’s making the housing market fairer for every generation,” said Trudeau.

The federal government also has been taking note of efforts in B.C. Trudeau says he will be launching Canada Builds – a program that will partner with provinces and territories to build more rental housing across the country. The federal government is leveraging its $55 billion Apartment Construction Loan Program by making it available to support partnerships with provinces and territories that launch their own ambitious housing plans, similar to the recently announced BC Builds initiative. In order to access federal financing, provinces and territories will be expected to meet the benchmarks set by BC Builds and deliver action to build even more homes. These actions include:

• Complementing federal funds with provincial or territorial investments into housing;
• Building on government, non-profit, community-owned, and vacant lands;
• Streamlining the process to cut development approval timelines to no longer than 12 to 18 months; and
• Meeting all criteria included in the Apartment Construction Loan Program, including affordability requirements.

The announcement comes just one day after officials revealed a new $6 billion Canada Housing Infrastructure Fund and a $400 million top-up to the Housing Accelerator Fund.

“Today’s announcement marks another step in our work to end Canada’s housing crisis once and for all,” said Sean Fraser, minister of housing. “ It will speed up development, make construction cheaper, get projects off the shelves, and shovels in the ground. It will mean more homes for middle-class Canadians at prices they can afford.”

Key Takeaways:

• Officials have released several key budget items ahead of the full budget release, including a new $6 billion fund to speed up home construction and upgrade critical housing infrastructure.
• The government also plans to top up the Housing Accelerator Fund with $400 million.
• However, officials noted that to access the new fund and other funds, local governments will have to agree to bold changes designed to encourage housing development.

The Whole Story:

Prime Minister Justin Trudeau travelled to Halifax this week to announce plans to launch a new $6 billion Canada Housing Infrastructure Fund to accelerate the construction and upgrade critical housing infrastructure. The news comes just weeks before Ottawa is set to release the full federal budget.

These measures include topping-up the Housing Accelerator Fund with an additional $400 million and launching the new $6 billion Canada Housing Infrastructure Fund to accelerate the construction and upgrading of critical housing infrastructure. This includes water, wastewater, stormwater, and solid waste infrastructure to support the construction of more homes.

“We need more affordable homes, and we need the infrastructure to help build these homes,” said Trudeau. “That’s why in Budget 2024, we’re building more infrastructure, building more homes, and helping more Canadians find a place to call their own. This is about fairness ‒ making sure communities have the safe, quality housing they need to get ahead.”

The new fund will include $1 billion available for municipalities to support urgent infrastructure needs that will directly create more housing and $5 billion for agreements with provinces and territories to support long-term priorities. Provinces and territories can only access this funding if they commit to key actions that increase housing supply.

These actions include:

• Broadly adopting four units as-of-right and allow more “missing middle” homes, including duplexes, triplexes, townhouses, and other multi-unit apartments.
• Implementing a three-year freeze on increasing development charges from April 2, 2024, levels for municipalities with a population greater than 300,000.
• Adopting forthcoming changes to the National Building Code to support more accessible, affordable, and climate-friendly housing options.
• Requiring as-of-right construction for the government’s upcoming Housing Design Catalogue.
• Implementing measures from the Home Buyers’ Bill of Rights and Renters’ Bill of Rights.

Provinces will have until January 1, 2025, to secure an agreement, and territories will have until April 1, 2025. If a province or territory does not secure an agreement by their respective deadline, their funding allocation will be transferred to the municipal stream. The federal government says it will work with territorial governments to ensure the actions in their agreements are suitable to their distinct needs.

Trudeau also announced that the upcoming budget will include requirements to access the federal government’s forthcoming public transit fund. This includes measures to:

• Eliminate all mandatory minimum parking requirements within 800 metres of a high-frequency transit line.
• Allow high-density housing within 800 metres of a high-frequency transit line.
• Allow high-density housing within 800 metres of post-secondary institutions.
• Complete a Housing Needs Assessment for all communities with a population greater than 30,000.

“Since we launched the Housing Accelerator Fund last year, we have cut enough red tape to build 750,000 new homes over the next decade,” said Chrystia Freeland, deputy prime minister and minister of finance. “It is working, so we are investing another $400 million to build even more homes, faster in more communities across the country. Alongside these essential zoning reforms, we are helping communities build the infrastructure needed to build more homes, by investing $6 billion through our new Canada Housing Infrastructure Fund. We are putting homeownership back within reach for every generation, and especially for Millennials and Gen Z.”

Key Takeaways:

• Canada’s construction sector is poised for growth through 2033, with differing trends between the residential and non-residential sectors driving employment projections.
• Regional variations in construction activity highlight diverse outlooks across provinces, with some experiencing growth while others face declines, particularly in the non-residential sector.
• To address labor shortages and sustain a skilled workforce, the industry emphasizes diversification and inclusion efforts, aiming to recruit from traditionally underrepresented groups such as women, Indigenous Peoples and newcomers to Canada.

The Whole Story:

BuildForce Canada has released its latest national forecast, predicting construction sector growth through 2033.

The sector experienced a slight contraction in 2023, as growth in the non-residential sector was offset by a moderate decline in activity in the residential sector. Despite this trend, the industry continues to perform at an elevated level, and is poised to grow in the coming decade.

BuildForce Canada has released its 2024–2033 Construction and Maintenance Looking Forward national forecast, finding that activity in the residential and non-residential sectors will chart different courses across the short term. The country’s residential sector, which peaked in 2021 under historically low interest-rate conditions, is expected to contract again in 2024 before experiencing an upward trend between 2025 and 2029 and then stabilize toward the end of the forecast period.

The initial period of growth is driven by a rebound in the new-housing component, which is followed in the later years by strong demand for renovation activity. These trends combine to increase employment to a peak of 6% above 2023 levels in 2028. Contractions in later years leave employment 2% above 2023 levels by 2033.

Activity in the non-residential sector is projected to remain strong across the forecast period, given the high volume of large projects planned and underway in most regions of the country. Engineering construction demands are projected to cycle lower in the short term before rebounding in middle years, in line with the schedule of planned transit projects in Ontario and B.C., as well as utility projects in New Brunswick, Nova Scotia, and B.C.

Meanwhile, investment in industrial, commercial, and institutional building projects is anticipated to see a steady upward curve through the decade. Demand is created by high levels of investment in the construction of institutional and government buildings, and by a rebound in commercial building construction as the economy returns to growth. Non-residential employment is projected to grow almost continuously across the forecast period, reaching a peak of 7% above 2023 levels by 2033.

These numbers are based on existing known demands and do not take into account public-sector initiatives to address housing affordability challenges, nor the anticipated increase in demand for construction services related to the retrofit of existing residential, industrial, commercial, and institutional buildings to accommodate the electrification of the economy. Both scenarios are addressed in separate reports to be released by BuildForce at a later date.

“Construction is a key contributor to Canada’s gross domestic product, and an employer of approximately one out of every 13 working Canadians. Employment has increased by about 80% since 2002, and now counts about 1.5 million people,” said Sean Strickland, Chair of BuildForce Canada. “With further growth projected across the forecast period, the challenge before our sector is how to manage labour force pressures.”

Although labour market conditions eased in many provinces in 2023, pressures were alleviated most in the residential sector. Non-residential market conditions remained challenging in Prince Edward Island, Nova Scotia, Ontario, Quebec, Manitoba, and B.C.

“Market pressures may be easing in the residential sectors of many provinces in the short term, but even this relief may be short lived,” said Bill Ferreira, Executive Director of BuildForce Canada. “Our outlook calls for growth to return in the residential sector in 2025 and through the middle years of the forecast in many regions. Coupled with the strong outlook for non-residential construction, labour market challenges are likely to persist throughout much of the forecast period.”

Growth forecast across most provinces into the late 2020s

Construction activity was mixed across the Atlantic provinces in 2023. Gains in the non-residential sectors in New Brunswick and Newfoundland and Labrador offset residential-sector contractions created by rising interest rates. In Prince Edward Island and Nova Scotia, however, residential contractions slightly surpassed non-residential gains.

The outlook calls for the provinces’ respective residential sectors to either contract or record very small gains in the near term, before returning to growth between 2025 and 2028. Prince Edward Island in particular is expected to report significant gains across this period. Renovation investment levels are also projected to increase.

Activity in the provinces’ respective non-residential sectors will fluctuate in line with various large-scale projects such as the refurbishment of the Mactaquac Dam in New Brunswick, a major hydrogen project and the Bay du Nord project in Newfoundland and Labrador, and a number of civil and health care projects. New Brunswick, Nova Scotia, and Newfoundland and Labrador are all expected to report employment growth across the forecast period.

Construction activity in Quebec is expected to generally decline across the forecast period, with the residential and non-residential sectors charting different courses. The former will see activity stabilize as strong growth in residential renovations offsets contractions in new housing. The non-residential sector is projected to rise to a peak in 2024 before experiencing moderate reductions to 2030 as currently known major healthcare, education, transit, manufacturing, and utilities projects are completed.

Ontario’s construction sector experienced a marginal decline in 2023 and is projected to do so again in 2024 as its residential sector recedes from recent highs. The contractions are short lived, however, as the sector returns to growth between 2025 and 2028, and remains high through 2033. The non-residential sector continues to be driven by a large inventory of major infrastructure projects and a projected recovery in commercial-building construction. These carry through until at least 2029. With employment projected to reach peak levels in the residential and non-residential sectors in 2028 and 2029, many trades and occupations could experience strained conditions.

In Manitoba, construction will be principally driven by activity in the non-residential sector. Growth will be greatest in the construction of industrial, commercial, and institutional buildings, and strong output in engineering construction in later years. Residential sector activity is projected to contract across the forecast period, with losses greatest in the new-housing component.

The outlook for Saskatchewan’s construction sector is dominated by growth in the residential sector, which is projected to strengthen between 2025 and 2028 and remain elevated to 2033. The non-residential sector, however, is projected to see little growth across most of the forecast period, and declines in later years as the current inventory of known projects is completed. A younger demographic is well positioned to replace retiring workers.

Alberta’s residential and non-residential construction sectors are both projected to record growth across the forecast period. Non-residential activity is anticipated to chart a steady trend up to the end of the decade, with growth in the oil and gas sector, as well as in engineering construction and the construction of industrial, commercial, and institutional buildings. Meanwhile, the residential sector is expected to cycle up in the short term before contracting modestly in the long run.

The outlook for B.C.’s construction sector sees varying trends. Non-residential activity is projected to experience a modest decline in the short term as several major projects reach conclusion or move past peak construction activity levels. Investment is then sustained into 2026 before work begins on a number of major engineering construction projects that carry through to 2029. Residential sector activity is expected to remain unchanged in 2024 and 2025 before the market sees a moderate up-cycle to 2029. By 2033, renovation activity is projected to surpass new-housing construction as the key driver of residential demands.

“With many provinces experiencing similar growth patterns across the forecast period, it will be challenging for employers to recruit workers from other regions or other parts of the country to fill labour gaps,” said Warren Douglas, vice-chair of BuildForce Canada. “The challenge is compounded by Canada’s aging demographic. It’s not just that more than one-quarter million workers are projected to retire from the construction sector over the forecast period. It’s also that there is a smaller pool of younger workers from which to draw their replacements. This challenge isn’t unique to construction. That means that other sectors will also be competing for the same smaller pool of new workers, thereby intensifying competition.”

Diversification will be key to addressing labour shortages

The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program. Replacing retiring workers typically requires several years of pre-planning to avoid the creation of skills gaps.

By 2033, the industry’s overall hiring requirements are expected to reach 351,800 due to the retirement of approximately 263,400 workers, or 21% of the current labour force, and growth in worker demand of more than 88,000.

Based on historical trends, Canada’s construction industry is expected to draw an estimated 266,300 first-time entrants aged 30 and younger, leaving the industry with a possible retirement-recruitment gap of 85,500 workers. According to BuildForce, an ongoing commitment to apprenticeship development in both compulsory and non-compulsory trades will be necessary to ensure there are sufficient numbers of qualified tradespeople to sustain a skilled labour force over the long term.

“The construction industry remains focused on building a more diverse and inclusive labour force,” said Strickland. “The industry has been working hard to enhance the recruitment of individuals from groups traditionally under-represented in the construction labour force, such as women, Indigenous People, and newcomers to Canada. Creating greater awareness of the tremendous career opportunities for these individuals within the construction sector will be critical to ensuring the sector is able to meet its future workforce needs.”

In 2023, there were approximately 210,800 women employed in Canada’s construction industry. Of them, 28% worked directly in on-site construction. However, as a share of the total 1.18 million tradespeople employed in the industry, women accounted for just 5% of the on-site construction workforce.

The Indigenous population is another under-represented group that presents recruitment opportunities for the construction industry. In 2021, Indigenous People accounted for 5.1% of Canada’s construction labour force, which is a slight decline from the share of 5.2% observed in 2016, but is notably higher than the share of Indigenous workers represented in the overall labour force (4.1%). As the Indigenous population is the fastest growing in Canada and Indigenous workers seem predisposed to the pursuit of careers within the sector, there may be scope to further increase the recruitment of Indigenous People into the construction workforce.

The construction industry may also leverage newcomers over the coming decade to meet anticipated labour market requirements. Based on current trends, Canada is expected to see elevated levels of immigration over the forecast period. BuildForce stated that this will make newcomers a key contributor to the industry’s labour force. In 2022, newcomers comprised about 19% of the total construction labour force. That figure is notably lower than the 27% share newcomers make up of the overall labour force.

Increasing the participation rate of women, Indigenous People, and newcomers could help Canada’s construction industry address its future labour force needs.

The report was produced with the support and input of a variety of construction and maintenance industry stakeholders, and was funded in part by the Government of Canada’s Sectoral Workforce Solutions Program.

Key Takeaways:

• Saskatchewan’s latest budget is proposing $4.4 billion to go towards capital projects.
• Much of the spending will focus on schools, roads and hospitals.
• It is part of nearly $18 billion more over the next four years that will be spent on major capital projects.

The Whole Story:

Saskatchewan plans to invest an all-time high $4.4 billion in capital projects to support schools,  healthcare, roads, power facilities and more.

This includes nearly $1.9 billion in capital projects across executive government and approximately $2.6 billion in capital projects by the province’s commercial Crown corporations.

“Saskatchewan’s economy and population are growing rapidly and with that growth comes a need for new, expanded and renewed infrastructure,” Deputy Premier and Finance Minister Donna Harpauer said. “This year’s investment of $4.4 billion, part of nearly $18 billion more over the next four years, ensures we will continue to build the classrooms, health facilities and other infrastructure to support our province’s growth for years to come.”  

The 2024-25 Budget includes the largest investment ever in health capital of more than $516.8 million, an increase of nearly $180.0 million compared to the previous year. This will support a number of ongoing major projects, including:

• $180.0 million for construction of the Prince Albert Victoria Hospital redevelopment project;  
• $55.0 million for construction of the Weyburn General Hospital replacement project;
• $27.0 million for construction of the La Ronge long-term care (LTC) project;
• $21.9 million to complete construction of the Regina General Hospital parkade project;  
• $20.0 million to support procurement and design activities on the Regina LTC specialized beds project;
• $10.0 million for construction of the Grenfell LTC project;  
• $4.0 million for procurement of Regina LTC standard beds;  
• $3.0 million to continue work on the Saskatoon Urgent Care Centre;
• $2.8 million for the St. Paul’s Front Entrance Expansion project;
• $2.5 million to advance the Estevan LTC redevelopment project;
• $1.5 million to advance the Watson LTC project;  
• $1.0 million for planning for the Yorkton Regional Health Centre replacement project; and
• $750,000 to advance planning on various projects, including St. Anthony’s Hospital in Esterhazy, Rosthern Hospital and the Battlefords District Care Centre.

The budget invests $216 million in school infrastructure, including:

• $165.9 million to support ongoing projects, including 11 new or consolidated school projects and three major renovations in Lanigan, Carlyle, La Loche, Saskatoon, Moose Jaw, Regina, Prince Albert, Balgonie and Wilcox
• $28.5 million for the Relocatable Classroom Program to support enrolment growth.  
• $8.8 million in funding to begin planning for nine new schools and two renovations.
• $12.8 million for minor capital renewal projects that allow school divisions to address structural repairs and renovations to prolong the life of schools across the province.

“This year’s Capital Budget supports classrooms, care and communities through health and education projects in dozens of communities across Saskatchewan,” SaskBuilds and Procurement Minister Joe Hargrave said. “Thanks to this year’s investment in infrastructure, we are not only on track to exceed our Growth Plan goal of investing $30 billion by 2030, but we have also now invested approximately $47.2 billion since 2008-09 to serve the growing infrastructure needs of families and communities.”

Budget 2024-25 invests $59.0 million in Saskatchewan’s post-secondary infrastructure, including:

• $24.6 million for maintenance and upgrades to help meet the needs of students and staff;
• $8.7 million for an electrical infrastructure upgrade at the University of Saskatchewan;
• $7.8 million to support new domestic health care training programs (Occupational Therapy, Speech Language Pathology and Physician Assistant programs);
• $6.3 million for cooling tower replacement at the University of Regina;
• $6.0 million for planning work for Saskatchewan Polytechnic’s new Saskatoon campus;
• $3.5 million for further expansion in health care training programs; and
• $610,000 to expand the student health care centre at the University of Regina.

The 2024-25 Budget invests $417.3 million in transportation infrastructure, providing $403.9 million to improve more than 1,100 kilometres of Saskatchewan’s provincial highway network, including continued construction and design of passing lanes and twinning projects to increase safety and improve traffic flow, as well as repairing or rebuilding 17 bridges and replacing roughly 100 culverts around the province.  

This budget provides $350.1 million in transfers to municipalities for infrastructure projects through several programs, including the Investing in Canada Infrastructure Program, Canada Community-Building Fund and the New Building Canada Fund.  

Budget 2024-25 invests $301.9 million in government services infrastructure, including:  

• $78.9 million in various water-related infrastructure projects;  
• $60.8 million for courts and correctional facilities and equipment, including continued construction of the remand expansion at the Saskatoon Correctional Centre;
• $21.7 million for the development of supportive housing spaces in Regina and Saskatoon, and to repair, maintain and replace provincially owned housing units; and
• $13.3 million for capital projects throughout the parks system to improve visitor experience, including construction of a new service centre at Nut Point Campground in Lac La Ronge Provincial Park. Improvements and upgrades will also take place at Pike Lake, Narrow Hills, Moose Mountain, Rowan’s Ravine and Crooked Lake provincial parks, as well as Cypress Hills Interprovincial Park.

Saskatchewan’s Crown corporations will spend approximately $2.6 billion on capital projects this year to support economic growth and maintain and improve utility infrastructure. This includes:

• Approximately $1.6 billion investment in SaskPower’s electricity system;
• $416.9 million through SaskEnergy for the province’s natural gas transmission and distribution system; and
• $570.8 million through SaskTel, SGI Canada Auto Fund, SaskWater, SaskGaming and Crown Investments Corporation.

Cooper Equipment Rentals Limited, a Canadian-owned and operated construction equipment rental company, has purchased 100% of the shares of Alberta-based Action Equipment Rentals Inc.

Action was formed in 1991 by Reginald Bloomfield and his father Ray Bloomfield in Sundre, Alta. to serve the central Alberta market. The company opened a second location in Red Deer about a year later. In 2015, Action consolidated operations in Red Deer, and under the leadership of general manager, Gabriel Castella-Chin, embarked on an ambitious plan to renew their rental fleet and grow their market share.

“Joining a Canadian-owned company with an excellent reputation was important in our decision to join the Cooper family. We are looking forward to continuing to serve Central Alberta with the benefits and resources that allow us to expand our presence and continually improve our already excellent service,” said Castella-Chin.

Cooper officials explained that Action’s prime location and facility in Red Deer intensifies their coverage in the important Alberta market, and Action’s strong presence in Alberta enhances Cooper’s ability to serve customers better in Western Canada.

“I was once told that ‘if you build it, they will come’. That was our charge for Action Rentals from the start, and this is the next natural step going forward. Cooper will take what we built and continue to build so they will come. And if we treat them right, they will stay,” said Reginald Bloomfield, founder, Action.

Action joins the Cooper family as the Red Deer branch and will continue to be led by Gabriel Castella-Chin, supported by Action employees.

“Action has built a fine business with a reputation for quality and integrity in the construction equipment industry, and we are proud to welcome them into the Cooper family as we continue to grow our Company across Canada,” said Doug Dougherty, CEO, Cooper.

British Columbia and Alberta have some things in common. Both are unusually dependent on natural resource-based industries to drive their economies and supply the exports that are vital to sustaining prosperity. Both have been experiencing robust population growth over the last few years. And neither has been well-served by a distant national government in Ottawa with a policy thrust focused more on keeping natural resources in the ground than on harnessing them in an environmentally sustainable way for the benefit of all Canadians.

Recently, B.C. Premier David Eby and Alberta Premier Danielle Smith released their budgets for the coming year, and it is here where it becomes clear that other than sharing a border and natural resource advantages, not much else binds the two provinces together. Perhaps the greatest schism is the difference in the two premiers’ economic vision.

To begin with, Alberta’s updated fiscal plan aims to stay in the black, with small operating surpluses expected over the forecast horizon. B.C. is taking a different path, one featuring unprecedented annual deficits as the NDP government ramps up spending in advance of the fall 2024 election and gives free rein to its ideological inclinations to expand the size and reach of government. The Fraser Institute recently reported that in the three years from the onset of the COVID-19 pandemic in 2020 to Q2 of last year, 94% of net new payroll jobs created in B.C. were in the public sector. This lopsided labour market is one sign of B.C.’s deteriorating business climate.

Returning to the fiscal outlook, B.C. is planning to incur a combined operating deficit of $28 billion from 2023/24 through 2026/27, which is a marked departure from the surpluses posted over most of the preceding dozen years. For its part, Alberta is banking on continued budget surpluses, albeit significantly smaller than the $5.2 billion in black ink projected for the current fiscal year (2023/24).

It is worth noting that Alberta’s surpluses are set to shrink beyond 2023/24 in part because of assumed softer global oil markets – the province garners up to one-quarter of its revenues from energy royalties. Should oil prices trade higher than the government’s forecast, the small surpluses pencilled into Budget 2024 would increase significantly, further strengthening Alberta’s financial position over the medium-term.

Turning to government spending, while both provinces are facing pressure in areas like heath care and housing costs, owing in part to surging populations, the idea of spending restraint is clearly less popular in Victoria than Edmonton. The B.C. NDP government intends to boost expenditures by 8% in 2024/25. In Alberta, expenditure growth next year will come in at roughly half of that figure.

The two provinces have both embraced ambitious capital spending plans, which involve long-term borrowing outside of the confines of the annual operating budget. Total B.C. public sector capital spending will climb to $18-19 billion per year over 2024/25-2026/27. Alberta’s revised capital plan foresees $25 billion being spent on infrastructure and other public sector capital assets in the next three years. Public sector capital outlays in B.C. include borrowing undertaken by large Crown corporations like B.C. Hydro and ICBC – which don’t exist in Alberta.

Alberta also has structural advantages over B.C. and the rest of the country in the form of lower tax rates and lower debt levels. Alberta has no provincial sales tax and a lower business income tax rate (8% vs 12% in B.C.). And Alberta’s public sector debt is roughly 9.3% of GDP and on track to decrease in the coming years, whereas B.C.’s is currently 17.6% of GDP and expected to climb to 27.5% by 2026/27.

Overall, the two budgets suggest Alberta is very well-positioned to continue to lead the country in economic growth, business investment, and wage increases in the next few years. Albertans already enjoy an average GDP per person almost $28,000 higher than the comparable figure in B.C. Alberta should continue to reap the advantages of lower taxes and healthier provincial finances.

The extraordinary growth in government in B.C., combined with its large operating deficits and fast-rising debt/GDP ratio, mean that taxpayers should brace themselves for the inevitability of significant tax hikes and lagging investment and lower incomes in the future.

The Independent Contractors and Businesses Association (ICBA), the largest construction association in Canada, represents more than 4,000 members and clients through chapters in Alberta and British Columbia. ICBA is one of the leading independent providers of group health and retirement benefits in western Canada, supporting more than 170,000 Canadians. ICBA is also the leading sponsor of trades apprentices in B.C. www.icba.ca and www.icbaalberta.ca

Key Takeaways:

• TC Energy is selling its shares in the Prince Rupert Gas Transmission Project to Nisga’a Nation and Western LNG.
• The proposed project is a 900 kilometre natural gas pipeline running from Hudson’s Hope to Lelu Island, near Prince Rupert.
• The Nation and Western believe that as other B.C. pipeline contracts come to a close, experienced contractors will become available to work on the project.

The Whole Story:

TC Energy Corporation announced it has entered into a binding letter agreement with Nisga’a Nation and Western LNG regarding the purchase and sale of all outstanding shares in Prince Rupert Gas Transmission Holdings Ltd. and the limited partnership interests in Prince Rupert Gas Transmission Limited Partnership (PRGT). 

PRGT is a wholly owned subsidiary of TC Energy and the developer of a natural gas pipeline project in B.C. The proposed project is a 900 kilometre natural gas pipeline running from Hudson’s Hope to Lelu Island, near Prince Rupert. The pipeline route would include both terrestrial and marine sections and would have a proposed capacity of 2-3.6 billion cubic feet per day (Bcf/day).

“Today is a historic day for the Nisga’a Nation and represents a sea change in major industrial development in this country,” said Eva Clayton, president of the Nisga’a Lisims Government. “In taking an equal ownership role in this pipeline, we are signalling a new era for Indigenous participation in the Canadian economy. First Nations are no longer being left behind as generational wealth is built from the resources of our lands. At long last, hop and optimism are returning to Indigenous communities across northern B.C.”

TC Energy stated that the transaction demonstrates its resolve toward delivering its 2024 strategic priorities while facilitating the development of critical energy infrastructure. TC Energy’s strategic priorities are focused on staying within its $6 to $7 billion annual net capital expenditure limit, post-2024, maximizing the value of its assets and further enhancing the strength and flexibility of its balance sheet.

“We are pleased to see this important project move forward while remaining firm on our commitment to our strategic priorities. This is an important agreement that will see Indigenous co-ownership and development of an integrated LNG project. Enabling LNG development in British Columbia is good for Indigenous communities, our customers, supports the long-term growth of the WCSB and global emissions reduction through the export of responsibly produced Canadian natural gas,” said François Poirier, president and CEO, TC Energy.

As part of the letter agreement, TC Energy has committed to provide transition services, on a reimbursable basis, to facilitate the seamless transition of the pipeline project and support development work planned for this year. Subject to the execution of definitive agreements and customary closing conditions, the transaction is expected to close in the second quarter of 2024. Initial proceeds from the transaction are not expected to be material to TC Energy, with the potential to receive additional payments contingent upon the project achieving final investment decision and commercial operation.

The Nisga’a Nation and Western LNG stated that they plan to enter into an agreement with an internationally respected construction manager to build the pipeline. The Nation and Western believe that as other B.C. pipeline contracts come to a close, experienced contractors will become available to work on the project.