Both RBC and ATB recently cut Alberta’s real GDP growth in half for 2019, with projected growth somewhere between 0.6 and 0.7 percent, behind all other provinces. Growth for 2020 is expected to be between 1.6 to 2.4 percent, still well below trend. Table 1, below, revealed the impact of oil production cuts and a reduction in energy investment on provincial GDP. Although gloomy, we will likely avoid dipping into another recession. Economic growth continues to be hampered by pipeline restrictions, a reduction in capital expenditures and low natural gas prices. Non-residential construction investment is expected to decline 0.9%. A provincial corporate income tax rate cut from 12% to 8% over the next four years may stimulate capital investment over the short to mid-term.
I am pleased to announce that after your request at the AGM to have additional training available we were successful in getting Metl-Span to host a training course in Edmonton this summer. I believe in talking to Metl-Span this could become a regular thing if the interest is there. We need to ensure that we fill the class and the AMBA board will continue with ongoing discussions with Metl-Span.
Marijuana has become a legal substance in Canada. So naturally many employees want to use it recreationally. This can become an issue at work as the THC builds up in a persons system and if a drug test is required the result is positive test readings even though a person is not actually impaired at the time of the test.
Our current business outlook is not very optimistic with regard to new construction. The oil sector is in limbo and until we see a change in the current governments, both provincially and federally, I do not see this improving. We will continue to see projects being priced, as in the past, but the placing of orders will likely remain somewhat dormant until there is confidence in our newly elected officials. As well, the uncertainty of the market due to the fact that we are now facing dumping charges on imports of offshore steel products. I am sure that in order to gain favor with the electorate there will be a number of announcements of projects over the next while to try and sway voters (my personal views).
My name is Roger Geisinger and I have taken on the role of Executive Director for AMBA. I am sure many of you already know me, but for those of you who don’t I will give you a brief history. Prior to retiring in 2016, I spent 39 years in the Metal Building industry. I hold a B. Ed. and an Alberta Journeyman Metal Building Erector trade certificate.
Our industry is still experiencing the volatility of the steel pricing war that is going on between the US and Canada. We, as an industry, need to continue to stand strong and protect ourselves from the market pricing. On another note, there is now one factory in China which is CSA A660 certified and is shipping buildings into Canada. I have been told that there is another one working on it as well. With the summer finally upon us, it’s time to recharge the batteries and get ready for the fall on slot of bidding and orders, or am I just dreaming again?
