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Regions (���AED Directors Report on Regional Conditions��� continued from page 53) prices and the slowing of the global economy, which has had a negative impact on government revenues. The Western Canadian region has a resource base economy, and as long as commodity prices remain relatively strong and global demand continues then market growth should remain stable. Rental activity and product support revenues have continued to grow over last year to date, and dealers have replenished their rental fleets. Dealers continue to be actively recruiting for service technicians to support increased product support activity, and experienced technicians are in great demand throughout the region ��� this trend will continue into the foreseeable future. The Saskatchewan and Alberta economies continue to experience steady growth and are two of the fastest growing regions in the country. Continued development of the potash industry, steady expansion in oil and gas extraction, as well as infrastructure development, all continue to fuel this growth even while activity has been slowing in the latter part of 2012. The mining and forestry market segments in the area also continue to strengthen from prior years, which has resulted in increased equipment sales to these market segments. Lumber sales year to date have increased as the U.S. housing market has improved, making up for the recent softening in housing demand in Canada and weakness in the Chinese lumber market. Overall sales activity within the forestry industry continues to improve and the short-term looks strong, especially if the U.S. housing recovery continues to gain momentum. A number of Western Canada pipeline projects continue to be hot topics of discussion and under increased public scrutiny, while federal and regional governments, as well as aboriginal groups, negotiate for additional royalties. Lobby groups also continue to assess environmental and safety concerns relating to these mega projects. While year to date the region continues to experience retail sales growth over last year, activity has certainly slowed down in the last quarter in most segments of the market, and we will be entering 2013 with a mood of cautious optimism given the level of economic uncertainty and the potential impact on the end use markets. n Eastern Canada Despite Debt, Infrastructure is Still a High Priority Rick Van Exan AED Regional Director Vice President, Marketing, Toromont Industries, Ltd. The headlines in the business of Canada���s Municipal Infrastructure section read that fatigued Canadian households and debt-laden governments are focusing their attention on restraint; a weak global environment and high Canadian dollar are taking their toll on the export sector; the housing market is under pressure and overall economic growth and job creation will remain subpar. With this as the backdrop, business has remained surprisingly good. The market for construction equipment in Eastern Canada is up more than 15 percent year over year, and the outlook going forward is one of cautious optimism. Governments, while mired in debt, continue to be committed to infrastructure. They understand that it is both an immediate stimulus, but more important, they see it as the kind of investment that pays dividends for years to come. The Federation of Canadian Municipalities recently published a report saying that Canada���s three levels of government must spend $123 billion to fix the country���s creaking infrastructure. The report, notes that the country���s infrastructure was mostly built between the 1950s and 1970s, and has used up 79 percent of its service life. The cost estimate includes water and wastewater systems ($31 billion); transportation ($21.7 billion), transit ($22.8 billion), solid-waste management ($7.7 billion), and community, recreational, cultural and social infrastructure ($40.2 billion). Finding the funding will be a challenge, but it must be dealt with, and it will be good for the construction equipment business. Commodities have had a minor setback this year but are on a longterm growth pattern that is unlikely to moderate for long. All provinces of Eastern Canada are blessed with huge mineral resources, and development will continue at an aggressive rate. At this point, it appears that jumping off a fiscal cliff is not on the U.S. agenda ��� good news for Canada as well. As a side note, folks here in Ontario were delighted that Michigan voters soundly rejected the proposition requiring a Danger Ahead: The Coming Collapse statewide referendum before a new bridge between Windsor and Detroit could be built. AED is a strong supporter of the building of this bridge and has used its influence where possible. At home, we saw a change in provincial leadership in Quebec with a new minority government and the expectation of another election within a year. In Ontario, Dalton McGuinty, the incumbent premier, surprised us all by announcing his resignation effective next March. An election in Ontario is likely in 2013. In the last quarter, a very successful two-day safety conference was held in Toronto with safety managers from dealerships across Canada. The Ontario chapter also continued with a series of power breakfasts supporting our efforts with our education partners bringing technicians into the industry. Christian Klein from AED���s Government Affairs Office, spoke at the December breakfast. We are looking forward to seeing everyone at the Canadian Lunch in conjunction with the AED Summit in Las Vegas. n 54 | www.cedmag.com | Construction Equipment Distribution | January 2013 42_Directors_Reports_Feature_KP.indd 54 12/21/12 1:38 PM