Business insight – Part IV : Canada Perspective
Many businesses in Canada face dim prospects over the first half of 2021. A successful rollout of vaccines will encourage households to spend some of what they’ve amassed in savings. Household balance sheets are in great shape thanks to government support and travel bans.
The federal and provincial governments are pledging continued support to businesses and households. The pandemic will drive up public debt to record levels, putting a strain on government finances and public spending once the crisis is past.
Real GDP is forecast to post growth of 5.3 per cent in 2021 and 3.5 per cent in 2022. This follows the deepest recession in modern times.
After a turbulent 2020, which forced the industry to adapt on the fly to a series of new on-site safety protocols and an abruptly altered building market, contractors are facing volatility in the year ahead, with growth predicted in some segments of the market and decline in others.
I. Millions of dollars are available to be invested through the Canadian investing plans. All levels of government need to put their political interest aside to move forward as quickly as possible on infrastructure projects to offset the slow down in private sector.
II. Private sector slowed down especially in commercial and residential, government investments should offset this downtrend and keep workers busy.
III. Accelerating government investment:
– To avoid further erosion of skilled workers in the market.
– To retain construction workers in an industry that was already facing skill resources scarcity.
– Updating in more sustainable manner aging infrastructures such as highways, roads, bridges, ports, rails, water supply and sewage.
IV. Rebalance the situation
– We might see medium and smaller contractor disappear in 2021, we need to rebalance the project risk too long supported by contractors and investors vs owners.
– Review policies and assure prompt payment and less administrative red tape. This should help everyone and will most likely last in the after pandemic.
– Trade barriers may eliminate competitiveness and best of the field when comes to major construction projects.
V. Construction did not escape from this transformation. We made the digital adoption faster than ever. We went from traditional ways of working to remote work forcing individual to adapt through technology. This will be beneficial in making the industry more efficient.
VI. Made in Canada is the future to be less dependent to others.
Louis Fortin, Business Development Manager, Canada
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