Election 2024

Paving the way for Saskatchewan’s construction future

This was an election year for our province, and for the Saskatchewan Heavy Construction Association (SHCA), it’s an opportunity. Elections are a chance to draw attention to significant issues in Saskatchewan’s communities and province. Candidates are busy convincing voters to choose them, and voters are paying attention to decide who to support.

It’s an ideal time to have matters important to the construction industry seriously considered by both. The SHCA board wants all members to know the issues it advocated for during the election campaign and to help add their voices to its calls for change.

There were three primary issues impacting our industry that the SHCA focused on during the lead-up to the 2024 provincial and municipal elections. These issues were chosen by the SHCA’s board because they have the most significant impact on the financial certainty of the industry.

They are:

• Budget planning and procurement
• Inflation
• Labour

What members should know

Before these issues are explained, it’s important for members to understand why the SHCA was active during the election campaign. The SHCA is always working to secure improvements for the construction industry. Members may not see a win every time the SHCA engages with the government, but the SHCA always grows stronger as an association through the effort and collaboration it takes to raise and press an issue. By working together, all members benefit.

Voters should care about the issues raised by the SHCA because the taxes they pay go toward building and maintaining infrastructure. Those taxes should be spent in ways that enhance their quality of life.

The SHCA raised these issues to benefit its members, and also to better the province and the quality of life experienced by those living and working in its communities. That focus helps the industry maintain the respect and appreciation of the public, who politicians must pay attention to if they are to win votes. Addressing these issues strengthens not only the industry, but also contributes to a healthier economy and a growing province that can afford to maintain and improve the quality of life for its residents.

Why voters should care

Voters should care about the issues raised by the SHCA because the taxes they pay go toward building and maintaining infrastructure. Those taxes should be spent in ways that enhance their quality of life.

Ask any voter who lives on a pothole-riddled street if improving that road is worth the local improvement tax they pay. Talk to the Regina resident who uses a filtration system on their tap water because they still have lead pipes, and ask whether replacing those pipes is a good use of public funds. Good underground infrastructure ensures clean drinking water. We saw how quickly underground pipes became a political issue for the City of Calgary this year, and more recently, Montreal faced similar challenges.

Taxpayers should also consider what it means when projects are deferred. Taxes will rise to cover them in the future, and inflation has already driven up project costs.

Construction projects such as new libraries and pools often get attention. The federal and provincial governments partially fund these projects, but unlike good roads and water infrastructure, they become a continuing expense for the municipality because they need ongoing maintenance. Meanwhile, residents wait for improvements to the infrastructure needed to meet their basic needs.

Understanding the issues

All three of these issues – budget planning and procurement, inflation and labour – are interconnected.

Budget planning and procurement

Multi-year budget commitments have been a longstanding request from the industry to the provincial government. Budget assurances allow members to better plan the resources required to complete projects. Year-to-year budgeting creates uncertainty, making it difficult for members to invest in equipment, retain quality employees or hire and train new staff. This drives them to consider out-of-province projects that don’t strengthen Saskatchewan’s economy.

Manitoba and Alberta both follow long-term budget planning cycles. Saskatchewan needs to take a close look at what they’re doing right. A five-year budget cycle would be ideal, but even allowing contractors to carry over work from one year to the next would help. Manitoba already allows this, providing contractors with some certainty of spring work.

Supporting the heavy construction industry means voters get what they want, and candidates benefit from the positive outcomes the SHCA and its members can help create.

The time is right for Saskatchewan to closely look at what other provinces are doing. The province has made a commitment to work with Manitoba and Alberta to improve the transportation system and to strengthen the economic corridors that support supply chains when it signed a memorandum of understanding (MOU) with those two provinces in April 2023.

Planning, investment and partnership opportunities with the private sector as well as harmonizing the regulatory environment are some of the key priorities for the three provinces. So too is advocating for federal investment into economic corridors. So far, not much progress has been made on these priorities because elections were held in Alberta and Manitoba after the MOU signing. Now, Saskatchewan has had its own election. The time is right to get serious about this.

Then there is the release and awarding of work. Contractors need work to be released in September and awarded no later than the end of November for the next construction season. Delays in releasing and awarding contracts adds pressure during the building season.

The SHCA knows of no reason it should now take minimum of five days to award a job that used to be awarded the same day the bids were opened. Most construction projects are standard and are driven by data that SaskBuilds already has. The government has created unnecessary layers of bureaucracy with no advantage to business.

Inflation

Looking at budget planning through the lens of inflation, operational expenses for SHCA members have risen as inflation drives up costs for fuel, materials and labour. Yet, the provincial government’s base capital budget hasn’t been adjusted to reflect today’s realities.

Inflation impacts budget planning when the government fails to properly fund its capital plan to account for the industry’s increased operational costs. This results in fewer projects being tendered, leading to fiercer competition so governments think they are getting sweet deals while it creates increased financial uncertainty for contractors.

Labour

Labour is another critical issue. Training, recruitment and retention within the construction industry are heavily influenced by government decisions. The provincial government needs to acknowledge heavy civil construction as a priority to change how young people view the industry, encouraging them to see it as a career and not just a seasonal job. Reliable funding enables heavy construction employers to build and retain a stable workforce. When funding is unreliable, it leads to a transient workforce.

Manitoba and Alberta both follow long-term budget planning cycles. Saskatchewan needs to take a close look at what they’re doing right.

Saskatchewan also lags in recognizing civil construction as an apprenticeable trade, creating a perception that employment in the industry is less desirable than in other construction sectors. This is despite heavy construction being one of the better-paying sectors in the province, second only to mining. The government could also implement aptitude testing during high school to help identify students interested in a construction career.

Why should elected officials care?

The SHCA expects many of its members will encounter elected officials, and it is providing this information to share with them. It is in the government’s interest to support these calls by the industry. Elected officials need to understand how addressing these issues impacts not only the construction industry, but also the economic growth and quality of life in Saskatchewan. By supporting these changes, they contribute to a stronger tax base through infrastructure development that drives growth and generates revenue.

The construction industry enhances the quality of life for residents through the work the SHCA and its members do. Elected officials should recognize that a partnership with the construction industry will help them deliver on voters’ priorities. People want governments – especially municipal governments – to get back to basics: Provide good roads, clean drinking water and efficient and dependable services such as snow removal and garbage pick-up. All those examples are impacted by the work done by SHCA members.

Supporting the heavy construction industry means voters get what they want, and elected officials benefit from the positive outcomes the SHCA and its members can help create.