The Low Down on Construction – December 20
The Saskatchewan construction industry received some encouraging news from RBC’s recent economic forecast. RBC experts are predicting that Saskatchewan will lead the country in GDP growth in both 2018 and 2019. That’s not only good for Saskatchewan, it’s good for construction!
The projection of 2.7 per cent growth in both years is based on Saskatchewan getting a boost from the agriculture sector, with some assistance from a rebounding energy sector. RBC feels that this growth will mean an increase in capital spending, which will ultimately benefit the construction industry and our MERIT members.
Combine that news with the Provincial Government’s announcement of the 2018 construction season tenders and we have plenty of reasons to be optimistic. According to the Ministry of Highways and Infrastructure media release, these tenders are worth an estimated $220 million to the Saskatchewan construction industry. With this investment in infrastructure it would appear the government is diligently working to stimulate economic growth. In addition, I am pleased they have released this tender information early as it allows our members to plan for the upcoming construction season.
From a MERIT perspective, we have a few more positive signals.
- October reported hours increased by 14% over the same month last year. That’s the 5 consecutive months where hours grew over the same month in 2017.
- Based on our September survey of members it would appear that confidence is building, albeit marginally
We fully realize that there are still some sectors of our industry that continue to struggle with lagging demand while others are indicating that business is picking up. The only conclusion that we can draw is that if there truly is a recovery occurring, it’s not province or industry wide.
As we head into 2018, our MERIT team is looking forward to projected growth and assisting our members in new and innovative ways as they build on the momentum started this year.