Photo courtesy Doka

Transportation and other infrastructure projects will reap the immediate effects from the proposed federal budget, but all aspects of construction are likely to indirectly benefit.

In the face of the global financial crisis, the Canadian budget includes billions of dollars dedicated toward infrastructure funding over the next few years.

Described by Finance Minister Jim Flaherty as "one of the largest building projects in Canada's history," there will be investment at all levels of government.

"In the next few months, we will start construction of roads, bridges, public transit, broadband Internet access, schools, and social housing in every region of the country," he said.

This includes:
• $4 billion (over two years) for renewing existing water lines, sewers, roads, and bridges;
• $1 billion (over five years) for the Green Infrastructure Fund (i.e. sustainability-related energy projects);
• $500 million (over two years) for new/renovated recreational facilities;
• up to $1 billion (over two years) for so-called "ready-to-go" projects under the provincial/territorial base funding initiative;
• $515 million (over two years) for ready-to-go First Nations projects related to schools, water, and critical community services;
• up to $2 billion to repair, retrofit, and expand facilities at post-secondary institutions;
• $250 million (over two years) to address deferred maintenance at federal laboratories; and
• specific funding on transportation projects, such as VIA Rail Canada expansions, the creation of First Nations railways, border crossings, harbours, and a renewal of Montreal's Champlain Bridge—the busiest bridge in the country.

The infusion comes at a time when the non-residential construction industry seemed to be losing momentum. According to Statistics Canada, the total volume of commercial, institutional, and industrial projects fell in Alberta and Ontario over the fourth quarter of 2008. Nevertheless, rises in non-residential building investment could be found in Manitoba, Saskatchewan, and the Atlantic provinces. Prior to the announcement of the budget, the situation was expected to be bleaker by the middle of the year due to the current economic climate.

Construction Specifications Canada (CSC) President Thomas Dunbar, FCSC, RSW, said he sees myriad new opportunities.

"The new and renewed infrastructure will include roads, bridges, marine facilities, and utilities," he said. "This may seem to suggest only one or two sectors of the construction industry will be affected, but we will see a domino effect take place since all the new and updated infrastructure will require massive amounts of support and maintenance facilities. This means new and renovated building construction."

Still Dunbar said there are other challenges on the horizon.

"Our biggest problem is not going to be funding new infrastructure and facilities, but meeting the need in the current situation of labour shortages at every level of construction. Not only are there shortages of skilled trade labour all across Canada, but there are shortages of architects, engineers, specification writers, contract administrators and technical representatives."