by SHCA SHCA

Ritchie Bros. Issues Market Trends Year-in-Review Report for Earthmoving Equipment

Used equipment and truck prices reached unprecedented levels in 2021. With its January Market Trends Report, Ritchie Bros. looks closely at earthmoving and aerial equipment sales last year, with in-depth charts outlining volumes, median pricing and more by asset category.

The January 2022 46-page Market Trends Report highlights sales of excavators, dozers, wheel loaders, motor graders, articulated dump trucks, loader backhoes, multi-terrain and skid steer loaders…To download the free report, visit rbassetsolutions.com/market-trends-report

“We attracted a record number of bidders in 2021, resulting in the strongest equipment pricing we have ever seen,” said Doug Olive, senior vice president (Pricing), Ritchie Bros. “It’s a seller’s market and consignors around the world are taking advantage by turning their surplus assets into cash.”

by SHCA SHCA

Premier Commits to Completing Saskatchewan’s Portion of the La Loche to Fort McMurray All-Weather Road

The Government of Saskatchewan will complete the remaining nine kilometres on the Saskatchewan side of the border of the La Loche to Fort McMurray all-weather road, Premier Scott Moe announced on January 20, 2022. Premier Moe also sent a letter to Alberta Premier Jason Kenney asking that his province make a similar commitment to complete the Alberta side.

“An all-weather road between these two northern communities will give employers access to a valuable workforce in northern Saskatchewan, while providing gainful employment and economic development opportunities for the people and communities of this region,” Moe said. “We recognize the need for our governments to work together on completing this project to ensure people in the north benefit from this vital economic and transportation link.”

“This is one more example of our government’s strong commitment to the north,” Moe said.

“There is real economic optimism in our northern communities and the transportation system is a vital part of that from resources associated with mining, forestry, tourism, fishing and other employment and development opportunities,” Highways Minister Fred Bradshaw said.

The road was originally announced as a project to commemorate the two province’s centennials in 2005. Saskatchewan broke ground on Highway 956, its portion of the project, in 2007 and completed 44 of the total 53 kilometres in 2008.

Pre-construction work on the remaining nine kilometres near Garson Lake to the Alberta border will begin this year, with construction expected to be complete by the end of 2023. Alberta has not yet begun construction of its portion of the road.

The Highway 956 project is on top of the nearly $68 million the province is investing in northern transportation infrastructure in the current fiscal year.

by SHCA SHCA

Don’t miss this opportunity!

RDIEC’s YouTube Channel provides an opportunity for business and industry to reach students all over Saskatchewan and beyond promoting high demand occupations and profiling their best and brightest by providing them with the opportunity to talk about the contribution they make, while sharing their career journey.

by SHCA SHCA

WCB Extends COVID-19 Cost Relief for Employers

As the Omicron variant of the COVID-19 virus continues to spread in the province, the Saskatchewan Workers’ Compensation Board (WCB) is further extending cost relief to June 30, 2022, for employers to cover costs for accepted work-related COVID-19 claims.

by SHCA SHCA

SHCA Annual Convention – Book Your Hotel Rooms

The SHCA Annual Convention is taking place April 7–8, 2022, at the Delta Hotels Bessborough in Saskatoon.

SHCA members are encouraged to book their room at the Delta Hotels Bessborough as soon as possible; SHCA has secured a special room rate of $154 per night.

Members need to book their room before March 7, 2022.

Book your group rate for the annual Saskatchewan Heavy Construction Association Convention.

Sponsorships are also available – contact Jennie Avram for more information.

by Shantel Lipp Shantel Lipp

President’s Message – Upcoming Events in April

While there is still plenty of snow on the ground this month, it won’t be long before it has melted away and another busy road construction season is here.

Between now and then, there are some back-to-back April events I’d like to invite you to join. One is through a brand-new partnership that the Saskatchewan Heavy Construction Association has formed and another is a tradition I look forward to continuing this year.

The first event I’d like to invite you to is possible because of a partnership that has been developed between SHCA and the Asphalt Institute, an association that promotes the safe use, benefits and quality performance of petroleum asphalts. The Asphalt Institute describes itself as the international trade association of petroleum asphalt producers, manufacturers and affiliated businesses. One of its areas of strategic focus is to support its members with technical leadership and educational expertise.

Through this partnership, a training session for Pavement Inspection Certification will be taking place April 6–7. The course will run from 8 a.m. to 4 p.m.

These 16 hours of instruction will provide valuable information that will help owners and employees understand how to construct high-quality asphalt pavement by ensuring that every stage of the operation includes effective inspections.

This training would be useful to new employees who are learning the basics of asphalt construction and the inspection duties that are part of it, so as you are hiring for this upcoming construction season, keep this opportunity in mind for those people.

The certification will also be beneficial for those with more road construction experience to review their knowledge of all aspects of asphalt materials and paving. Employers who have their staff take this training can be assured that those doing asphalt inspection for them have proven their competency to do these duties so the pavement they construct is high-performing.

The course will be open to members and non-members who wish to receive the certification. It is a great opportunity for contractors to elevate their staff’s knowledge and skills as well as for consultants and Ministry of Highways employees inspecting paving projects across the province to raise the standard and quality of our pavements. It’s my hope that more training sessions like this can be offered in the future.

Then, a few hours after the course wraps up, the SHCA convention festivities will kick off at 6 p.m. with a welcome reception.

Over the two days of the convention at the Delta Bessborough Hotel and Convention Center in Saskatoon, we will be hearing from two wonderful speakers, Darci Lang and retired Colonel Mark Gasparotto.

Darci will bring her message of “Focus on the 90%” to help others find the positives at work, rise above adversity and triumph in their lives.

Meanwhile, Mark is passionate about self-reflection and personal development. He emphasizes results, teamwork and effective communications, which is how he was able to elevate to the upper ranks of the Canadian Armed Forces.

And since the event is being held in the spring, which is when SHCA’s annual general meeting is typically held, these two events will be combined. Finally, the convention will wrap up with the Chairman’s Banquet.

Details about registering for both the training and the convention will be sent out the week of Feb. 13–19.The deadline for booking hotel rooms is March 7, so make your plans soon to join us in Saskatoon. I look forward to seeing you there!

by SHCA SHCA

In the Grip of a Boom

SaskaBoom 2.0 is just a bit more evident now that we’ve seen the mid-year accounting of the provincial government’s income and expenditure.

The big story emerging from the Q2 summary is on the revenue side.

Tax revenues – income and sales levies – rose sharply, more than $600 million ahead of the budgeted estimate only six months ago. Add to that a dramatic rise in resource royalties. They were up $669 million. All other income streams – Crown corporation profits, transfers from Ottawa and other own-sources – were also ahead of estimate.

On the downside, spending on healthcare due to COVID was up and the drought triggered payments of $2.4 billion directly to farmers from the provincial treasury. That cash flow will no doubt result in further sales tax revenues down the road, when the bills for crop year 2021 are paid.

The underlying story in this, though, is the upward trend line. Droughts, while financially painful, tend to be short-lived (the Dirty Thirties excepted) so the next 18 months should be interesting. And here’s what to watch.

Government accounts are an indicator of an economy’s direction but they are a lagging indicator. When tax revenues, for example, are rising, it signals growth in income levels across the economy. But it can take a while for the numbers to show up. Consider this: A dollar of income earned in January is included in the annual total which is tallied at the end of December of that year, and then reported on a tax return the following April. So, that dollar generated in January doesn’t show up in the government’s books until at least 16 months after it is earned … a lagging indicator. Technically, it is a bit longer, but you get the drift.

Resource revenues tend to have shorter reporting cycles but are still a trailing indicator.

Nonetheless, what the mid-year report with a $2.4 billion increase in revenue compared to the spring budget shows is that the boom has been entrenched for months. We’re just getting the numbers to define its magnitude now.

Many in commodity-based industries in this province – sectors such as mining – operate on a theory that commodity cycles tend to last 15 years … seven up, seven down and one in transition. History tells us that the last downturn came in November of 2014, exactly seven years before the Finance Minister tabled her mid-year report.

In other words, we’re in the early stages of a cycle that shifted our economy from the doldrums to the upcycle and now we have the numbers to prove it. Enjoy the ride. 

The boom has been entrenched for months. We’re just getting the numbers to define its magnitude now.