This saying dates back to the days of the Silk Road, when China was the world’s dominant economic power. It underscores a basic reality for those who trade for a living: you must be able to reach your customers easily and efficiently.
The 2026 provincial budget sparked fresh debate about meaningful investment in Saskatchewan’s trade infrastructure. While nominal spending on highways and roads has remained relatively stable – avoiding the sharp swings seen in other sectors – inflation, tariff pressures and shifting revenue streams mean those dollars aren’t stretching as far as they once did.
As SHCA president Shantel Lipp and business commentator Paul Martin discussed in a post-budget conversation, the real question isn’t just “how much is being spent?” but whether the level of funding is sufficient to maintain critical trade corridors, sustain industry capacity and support the province’s commodity-driven export economy.
Inflation, tariffs and the revenue squeeze
Inflation continues to erode purchasing power across government budgets. Settlements in health and education have claimed larger shares of revenue, while corporate profitability has softened, reducing corporate tax inflows. Population growth has helped boost personal income tax revenue, but it hasn’t fully offset inflation or generated the surplus needed to expand infrastructure aggressively. External shocks compound the pressure. U.S. tariffs remain a wildcard pending renegotiation of the Canada-U.S.-Mexico Agreement, while Chinese tariffs on canola have already stung.
Although Saskatchewan is less directly exposed than manufacturing-heavy Ontario and Quebec, the ripple effects are real: reduced purchasing power in central Canada weakens demand for Saskatchewan’s potash, grain and other commodities. Interprovincial trade data shows Ontario as a major customer – second only to Alberta – making any slowdown there a direct hit to Saskatchewan producers.
Saskatchewan remains a trading province. With just over a million residents, domestic consumption is small; the economy depends on exports far more than on consumption. Most major commodities move in bulk by rail, but roads serve as the essential “gathering system” that feeds product to railheads, ports and markets. Decades of consolidation – grain elevators that once appeared every seven miles are now gone – have made fewer corridors more critical. Maintaining these arteries in good condition is no longer optional; postponing maintenance only raises long-term costs.
Industry capacity at risk
Lipp highlighted a growing concern among SHCA members: stagnant or flat highway funding since pre-COVID-19 levels threatens the very capacity to deliver future projects. Companies that have operated for decades are being bought out or closing. Succession is faltering; few second or third-generation operators are stepping up. The result is industry consolidation, reduced competition and, inevitably, higher costs down the road. Compounding the problem is the government’s project-flow pattern.
Work is often held back and released in a rush during the second half of the fiscal year, forcing frantic bidding that drives prices down in the short term but creates cash-flow nightmares and workforce instability. This “peaks and valleys” approach does not reflect the industry’s true capacity when governments later assess what was delivered the previous year. Not only does it make business planning more challenging for industry players, but it also risks losing prime construction weather and often leaves businesses carrying underutilized personnel and equipment as they await project authorizations.
A call for smarter procurement and broader thinking
Rather than simply asking the government for more money, both Lipp and Martin advocated reframing the conversation. Construction should no longer be viewed solely as a Highways Ministry expense. A “holistic procurement” model that factors in revenue returned to the provincial treasury through payroll taxes, fuel taxes, PST and especially corporate taxes could give Saskatchewan-based firms a competitive edge. An Alberta or out-of-province bidder pays its corporate tax elsewhere; a locally headquartered firm keeps more of that revenue in Saskatchewan.
Demographics, tariffs and fiscal realities are not going away, but Saskatchewan has historically punched above its weight by thinking big and acting smart.
This approach aligns with New West Partnership principles while encouraging companies to locate their headquarters here. It shifts the industry’s role in government eyes from a cost centre to a revenue generator – precisely the language that captures the Ministry of Finance’s attention. The discussion also highlighted big-picture opportunities. Saskatchewan’s gathering network must support not only today’s commodities but also tomorrow’s intensified agriculture.
Ideas such as pipelines (rather than open channels) from Lake Diefenbaker to support irrigation in the west-central and southwestern regions could dramatically increase production per acre, shifting from low-margin, high-volume farming to higher-value output. More cattle, more processing, more trucks on the roads: all of it depends on reliable first-mile access. Martin noted that such intensification, paired with new north-south or energy corridors, could justify user-pay elements, such as tolls on major trade routes, while still crediting local users. Creative financing models, including separating capital from operating budgets, could also stretch limited dollars further.
Missed opportunities and the path forward
The budget had been described by some as protectionist and cautious. Yet in a world hungry for stable commodities, protein and reliable supply chains, Saskatchewan has a rare chance to stand out. Premier Scott Moe’s trade missions to China and India underscore the ambition; reliable trade corridors must support it. Flat funding may allow survival for another couple of years, but it risks eroding industry capacity and deterring new investment.
The heavy construction sector is ready to move beyond being seen as a “squeaky wheel.” By building coalitions with trucking, cattle producers, potash and grain producers, petroleum producers and the broader business community, it can present a unified, positive vision: stable base funding for sustainability, procurement reform that rewards local economic contribution and integration into a provincial growth agenda that treats roads as market-access tools rather than mere maintenance line items.
Demographics, tariffs and fiscal realities are not going away, but Saskatchewan has historically punched above its weight by thinking big and acting smart. The heavy construction industry is now inviting government and fellow stakeholders to do exactly that together. The alternative is clear: delay maintenance, lose capacity and watch opportunities pass to more aggressive neighbours.
Now is the time to invest in the arteries that feed Saskatchewan’s future.
Martin Charlton Communications is the largest public relations company in Saskatchewan and one of the largest in western Canada.