Industry groups across Saskatchewan wrote a letter to Prime Minister Justin Trudeau regarding recent statements made by the Federal Minister of Environment and Climate Change regarding the funding of road infrastructure projects in Canada. As we know, our province’s economy heavily relies on a robust network of roads. The statements made by the minister and the federal government have left many in Saskatchewan feeling uncertain about the future of road construction funding.
Government of Saskatchewan Signs Contract with PCL Construction Management Inc. to Construct the New Prince Albert Victoria Hospital
The Prince Albert Victoria Hospital project continues to progress with the award of the design-build agreement to PCL Construction Management Inc. (PCL). The value of the construction contract is $898 million and is inclusive of the Design and Early Works agreement awarded through a public procurement to PCL in December 2022.
The Victoria Hospital agreement includes design and construction of a new acute care tower connected to, and directly north of the existing facility. The new tower features a heliport on the roof, an expanded emergency department, larger operating rooms, pediatrics, maternity, NICU, new medical imaging, and a First Nations and Métis Cultural space, among other key services. Overall capacity at Victoria Hospital, between the new tower and existing facility, will increase 40 per cent, from 173 to 242 beds.
“The Victoria Hospital project is a significant investment in Prince Albert and surrounding area and will go a long way to accommodate the growing needs of the northern communities it serves,” Health Minister Everett Hindley said. “I want to personally express my sincere gratitude to Boreal Healthcare Foundation for their continued efforts and support to help make this project a reality.”
Boreal Healthcare Foundation’s valuable philanthropic partnership on this project will have a lasting impact on the wellbeing of the community. Their significant contribution toward the furniture, fixtures and equipment needs for the hospital will elevate the care provided by staff and physicians, resulting in better patient outcomes. The addition of MRI and a second CT scanner will improve access and allow for highly complex diagnostics to occur closer to home for residents in northern communities.
“I am proud that our government is getting this project done and that it is the largest single investment, private or government, in the history of Prince Albert,” SaskBuild and Procurement Minister and MLA for Prince Albert Carleton Joe Hargrave said. “This hospital will bring expanded and state of the art service to Prince Albert and the North and will benefit all of Saskatchewan upon completion.”
“It is so exciting to see this much needed project for Prince Albert and all of Saskatchewan moving forward, I want to specifically thank the Prince Albert Grand Council for their partnership in getting us to where we are today,” MLA for Prince Albert Northcote Alana Ross said. “This new hospital will be in the heart of the community I represent, and it brings me pride to know that our government is making the investments needed for Prince Albert and the North to grow.”
Prince Albert Grand Council (PAGC) is working with the Government of Saskatchewan and the Saskatchewan Health Authority (SHA) on designing the cultural space that will be central to the new main entrance. PCL will engage with local and Indigenous vendors to deliver services for the construction.
“Residents in Prince Albert and throughout the North will benefit from enhanced care that is available closer to home, made possible by the expansion of the Prince Albert Victoria Hospital,” Saskatchewan Health Authority Chief Executive Officer Andrew Will said. “This important project provides the opportunity for the SHA to deliver expanded services for Northern residents in key areas, including intensive care, medical imaging, adult mental health treatment, and children’s and maternal services.”
PCL and the SHA will work to ensure minimal disruption to staff and visitors to the hospital during construction and renovation phases. Patient care is not expected to be impacted.
The design build agreement includes an option to retain services for phased future renovations to the existing facility.
“On behalf of PCL Construction and the extended Design Build team, we would like to express how proud and excited we are to deliver the Victoria Hospital project for the Prince Albert, Northern Saskatchewan and Indigenous communities that this hospital serves,” PCL District Manager Mike Staines said.
Site preparation/early works included construction of a new parking lot, which will be paved this spring. Construction on the new tower is expected to begin in spring 2024 with anticipated completion in 2028.
Saskatchewan’s Housing Starts Up 62 Per Cent Over Last Year While Ranking Third in the Nation in Building Investment Growth
According to Statistics Canada, Saskatchewan continues to see remarkable growth with housing starts increasing by 62.1 per cent over the last year. Saskatchewan also saw impressive figures in building construction investment as the province is third in the nation from December 2023, compared to December 2022.
“This growth does not just happen on its own,” Trade and Export Development Minister Jeremy Harrison said. “It is a reflection of an economic climate where individuals and businesses are confident making long-term investments based on a stable and reliable regulatory regime coupled with confidence in our provinces steady growth trajectory. This continued surge in building construction highlights Saskatchewan’s strong economy, fostering opportunities for individuals, investors and communities.”
In December 2023, compared to December 2022, investment in building construction increased by 13.9 per cent (seasonally adjusted) which ranked third best among the provinces.
These numbers show the continuous growth of Saskatchewan’s economy. Recently, the total value of building permits in the province reached $249 million in November 2023 (seasonally adjusted). This is an 83.9 per cent increase from November 2022, and the highest increase in all of Canada. Saskatchewan also experienced notable month to month growth, showing an increase of 19.3 per cent compared to October 2023.
SHCA Attending An Evening in Greece
SHCA is about community, so it’s wonderful to see Saskatchewan’s small and medium-sized businesses coming together for the greater good of all those who need medical care throughout this province! Thank you to our fellow businesses for letting SHCA tag along with you this year as you support a critically important charity.
Saskatchewan Starting 2024 Strong: 12,900 Jobs Added Year-Over-Year, Unemployment Rate Falls to 4.7 Per Cent
Newly released numbers from Statistics Canada show Saskatchewan’s labour market is off to a strong start in 2024, with 12,900 new jobs added last month when compared to January 2023, an increase of 2.2 per cent. The provincial labour force also reached 623,300 in January, a record high for the month.
“Saskatchewan continues to excel in 2024, with strong job growth, a low unemployment rate and a growing labour force,” Immigration and Career Training Minister Jeremy Harrison said. “Building our labour force to support our economy is a top priority to our government. This is why the province is consistently making strategic investments to promote economic growth and is actively supporting employers to help them train, recruit and retain the talent needed to fill job vacancies and build a skilled workforce.”
The provincial seasonally adjusted unemployment rate was 4.7 per cent, ranked third amongst the provinces, remaining consistently below the national average of 5.7 per cent.
Saskatchewan saw both an all-time historical population (aged 15 and over) high of 938,900, and an all-time historical off-reserve Indigenous population (aged 15 and over) high of 112,300.
The province also saw record highs for the month of January (aged 15 and over), including:
- Total Saskatchewan employment: 591,500
- Saskatchewan male employment: 313,900
- Saskatchewan female employment: 277,600
- Off-reserve Indigenous employment: 62,400
Off-reserve Indigenous employment was up 2,600, an increase of 4.3 per cent, and Indigenous youth employment was up 3,300, an increase of 33.3 per cent, marking the fourth consecutive month of year-over-year increases for both.
Both of Saskatchewan’s major cities saw job growth compared to last January as well, with Regina’s employment up 10,100, an increase of 7.3 per cent, and Saskatoon’s employment up 10,800, an increase of 5.8 per cent.
Major year-over-year gains were reported for professional, scientific and technical services, up 9,500, an increase of 32.8 per cent; educational services, up 4,300, an increase of 8.2 per cent; and wholesale and retail trade, up 2,900, an increase of 3.0 per cent.
Saskatchewan has continued to see growth across several other key indicators. Urban housing starts in Saskatchewan were up 86.4 per cent in December 2023, when compared to December 2022, ranking second in growth among provinces. The value of building permits reached $249 million in November 2023 (seasonally adjusted), an increase of 83.9 per cent from November 2022, the highest increase in all of Canada.
What Matters to Our Industry in 2024
Saskatchewan has a big job ahead of it. Getting on top of it will take someone speaking up to say we need to do better.
That someone will be us – the Saskatchewan Heavy Construction Association. The SHCA board met in November, the day before the SHCA Infrastructure Summit & Trade Show started. During that meeting, the challenges facing the heavy construction industry were discussed, as were the priorities of the association during 2024. We recognized that all the issues seemed to have one theme in common: Saskatchewan is not keeping up. We see it in the lack of long-term planning for infrastructure, funding for that infrastructure as well as a lack of government policy renewal. This is impacting industry in Saskatchewan, which is lagging due to a lack of government commitment.
Plans were put in place during that November board meeting for how our association will address these priorities and work to overcome the challenges. We will be speaking up – outlining for our stakeholders and the provincial government what needs to be done to meet the demands of growth. We will be communicating the message that Saskatchewan is not keeping up throughout the year in a staged process. Each stage will have its own focus that addresses a key issue important to our members.
Better long-term planning and multi-year funding commitments will be one focus. Investment commitments of multiple years (which both Manitoba and Alberta are doing) will allow our industry to become even more efficient and productive. Our members will be able to see what opportunities are available and the level of investment being projected so decisions can be made about priorities and plans. Businesses in our industry can decide on their own investments in equipment and labour.
Consistent investment also means allowing for carryovers, which is something the Manitoba government does. Allowing contractors to carry over a portion of the Ministry of Highway’s budget would mean some certainty of work in the next construction season.
Improved procurement practices are another focus. Politicians and bureaucrats need to hear how details in the procurement process impact and even burden industry. They need to be reminded of how efficient and effective relationships with industry generate results quicker. The Ministry of Highways needs to look at how it tenders projects. Saskatchewan’s government simply must do better when it comes to getting work out in a timely fashion. Tenders continue to hit the market too late, impacting not just contractors, but those in design and engineering, materials, fuels, aggregates, oils and equipment supply.
Another issue is the need for greater government transparency. In fall 2023, we learned from the government how to assess the quantity of projects in the tender schedule, which was a significant insight. Projects that are tendered with a two-year completion date have all production quantities linked to the year it was tendered. So, for example, projects on the 2022 Fall Tender Schedule with a 2024 completion date shows all quantities in 2022 (this is why we see the same projects announced multiple times in the budget speech).
What this does, from our perspective, is skew the overall budget numbers and mislead our industry when it comes to the overall quantities shown on the tender schedule. We have asked the ministry to better display these types of jobs to paint a more realistic picture of what’s coming onto the market.
While we will be paying a lot of attention to the government during 2024, we remain committed to providing more than advocacy for our members. We will be looking at several programs and services we can bring into our affinity program suite to better serve you.
The board and I know it can be challenging to find the labour you require and that too will be a focus. We know you will be sharing employment opportunities within your own company as the construction season nears. We will be working with others as we draw attention to the reasons why those looking for work should consider our industry – that heavy construction employers offer training to those with an attitude that is a good fit and typically pay better than many other industries in the province.
We know it is not just our goal to build and maintain infrastructure necessary for this province to prosper. This goal is shared by our partner organizations who we will be working with throughout 2024 to deliver this message. As we get closer to the elections, both provincial and municipal, we will elevate this communication. The provincial election is expected to be held on or before Oct. 28, 2024. Meanwhile, those voting for mayors and councillors in urban municipalities, as well as reeves and councillors representing odd-number divisions in rural municipalities, go to the polls on Wednesday, Nov. 13, 2024.
We intend to make these issues for our industry into campaign issues. We will draw attention to them during the campaign, so the political parties and municipal candidates feel compelled to address them with voters.
As members prepare for each construction season, it is important for us to learn where the government is at and share with the government what matters to our industry. This year, we want voters to be aware of the issues that matter to industry. That is because those issues are about more than our industry. They are about the future of our province. Quality infrastructure helps Saskatchewan’s business community operate, prosper and grow. When local businesses prosper, we all prosper and the quality of life in Saskatchewan grows.