The future of trade for Canada remains up in the air as the country’s biggest trading partner has imposed tariffs on what we export to the United States.
Many in the heavy construction industry may view this as a doomsday scenario for the Canadian economy. However, there are others within the industry who see this as an opportunity for Canada to wake up and do business differently.
Two-thirds of Canada’s national income comes from trade. With a vast land mass, Canada has had to rely on stable infrastructure to get its goods to market. This is a challenge, especially when it comes to getting goods out of remote areas within the country. Taking goods from the Canadian north to markets in the south and beyond requires a high level of co-ordination, relying on reliable infrastructure systems.
In 2010, Canada’s trade infrastructure was listed in the top 10 of all jurisdictions in the world. By the time 2019 came around, the country had dropped to 32nd place. Canada’s ability to be competitive drastically dropped during this period and requires a co-ordinated effort by sectors and government to get it back to where it was not that long ago.
Canada has not adequately co-ordinated between federal, provincial and municipal governments and the private sector to build a system of trade infrastructure that enables the economy to reach its full potential.
John Law, senior executive in residence with the Canada West Foundation and former Deputy Minister of Highways for Saskatchewan, was recently interviewed in the media on how it is necessary to build up our infrastructure to remain competitive in the world. Law stated in that interview, “If you can’t move it, you can’t sell it.”
Law also stated that there are three kinds of infrastructure projects. First is the “want” infrastructure, which includes hockey rinks, community centres and similar facilities. The second was the “need” infrastructure, which includes facilities such as hospitals and schools. The third and most important form of infrastructure build is trade and transportation. Trade and transportation infrastructure projects are the ones which help to pay for the “wants” and the “needs” by enabling the economy.
Law points out that Canada has not adequately co-ordinated between federal, provincial and municipal governments and the private sector to build a system of trade infrastructure that enables the economy to reach its full potential. Both the United Kingdom and Australia have created ways to help co-ordinate their long-term infrastructure planning to create a successful environment of trade.
We have to break the cycle of planning around elections to address our infrastructure needs. By planning long-term, we can identify the crucial projects that will help us as a province and a country meet the demands of our trading partners.
– Shantel Lipp, SHCA
Infrastructure Australia was established in 2008 to be the Australian Government’s independent adviser on nationally-significant infrastructure investment planning and project prioritization. Infrastructure Australia conducts independent analysis of all infrastructure needs which are then put on an infrastructure priority list. The United Kingdom has the Infrastructure and Projects Authority (IPA), which is classified as the government’s centre of expertise for infrastructure and major projects. The IPA works across government to support the successful delivery of all types of major infrastructure projects.
Both entities offer the government expert advice on the needs of infrastructure investment with the recommendations based on long-term needs that fall beyond the natural election cycles of the government of the day.
“This is something that is definitely needed here in Saskatchewan and here in Canada,” said Shantel Lipp, president of the Saskatchewan Heavy Construction Association. “We have to break the cycle of planning around elections to address our infrastructure needs. By planning long-term, we can identify the crucial projects that will help us as a province and a country meet the demands of our trading partners.”
If Canada is to explore new trading partners beyond the United States, then it must have the infrastructure backbone supported by long-term planning to meet the demands required by that diversity in trade.
Martin Charlton Communications is the largest public relations company in Saskatchewan and one of the largest in western Canada.