Issue link: http://read.dmtmag.com/i/146868
Regional Snapshots rulemakers in Albany will give the go ahead to move forward anytime soon. What the region has had in the energy sector the past few years is wind. Last year saw a big push for projects to be operational in order to be eligible for the Federal Tax Credits that expired on Dec. 31. With the expiration of the credit looming, many new planned projects were put on hold for 2013. Now that the credit was renewed, several of our customers report that although the first half of this year will be very quiet, the second half looks very encouraging to put people and machines back to work in this segment. Infrastructure: Several states are looking at increasing gas taxes to prop up transportation budgets for the future. Vermont passed and implemented an increase in April and both New Hampshire and Massachusetts as of this writing still have it pending in their respective state legislatures. Although any real growth in this segment is not anticipated for the region as a whole, New York and Massachusetts seem to be bright spots with decent highway budgets and several large projects including the massive $3.9 billion dollar Tappan Zee Bridge replacement. This project is expected to employ 2,600 full-time workers over the next five years. Moving Forward The weak first quarter has given many Northeast dealers pause about the balance of the year, despite the increased quoting activity level this spring. The primary reason continues to be the lack of customer confidence in the leadership and direction coming out of Washington. Whether it is energy tax credits, bonus depreciation, a long-term sustainable highway bill, or health care cost, the short-term nature of the past few years' decisions have created too much ambiguity for many contractors, causing many of them to rent versus buy and put off updating fleets. The region's customers are ready to grow, they just need more confidence in what the political and tax landscape of the future will be to invest long term. n Western Canada More Skilled Technicians Desperately Needed Garry Frelick AED Regional Director, Western Canada Douglas Lake Equipment, Langley, B.C. The biggest economic concern as we entered 2013 was the impact of U.S. sequestration and the potentially negative trickle-down effect on the Canadian economy. This uncertainty had many of us feeling uneasy and to date it appears that this concern may have been somewhat unfounded, as the U.S. economy continues to be growing and on the path to a normal economic recovery. The federal government still has plans to eliminate the deficit by the next election in 2015 and return back to a surplus position by 2016-2017. The Bank of Canada predicts that overall economic growth in 2013 will decline to 1.5 percent from 2 percent due to a softening in the housing market, commodity prices, and the uncertainty of the global economy, which has had a negative impact on government revenues. Overall, recent GDP reports show that Canada is currently in a pronounced economic slowdown, and this decline began in the fourth quarter of fiscal 2012. The federal government did release some good news in their recent 2013 budget including a new 2013 Economic Action Plan. This plan will include $70 billion in funding over the next 10 years for new and current infrastructure projects, as well as a Building Canada Fund that will provide (continued on next page) New From... KER OUNTED BREA HYDRAULIC M LT CUTTER ASPHA • High impact alloy steel • Forged blade • Reinforcing rib adds strength and stiffness to minimize twisting and deflection loads MADE IN THE USA We Make Pounding the Pavement Profitable! 800-323-9129 info@ajaxtools.com SPECIAL LENGTHS AVAILABLE UP TO 9.5 FT LONG Visit www.ajaxtools.com to see our Post Drivers, Deck Busters, Frost Wedges, Tamping Pads & More! August 2013 | Construction Equipment Distribution | www.cedmag.com | 39 32_Directors_Feature_KP1.indd 39 7/25/13 12:46 PM