Issue link: http://read.dmtmag.com/i/236097
Canada ("Ring Of Fire Cools, But Canadian Prospects Are Generally Hot" continued from page 46) "This development is about more than one company," Gravelle insisted. "It's a multigenerational economic opportunity with known mineral potential representing one of the largest known deposits in the world." He said Ontario is prepared to invest in vital infrastructure to create the right climate needed to support Ring of Fire development. Meanwhile, Gravelle's boss, Ontario Premier Kathleen Wynne, has been knocking on the federal government's door, suggesting the senior level should help get the project in the ground even though the Treasury Board President tagged the business sector for that investment. However, Wynne came out of a meeting early in December with Prime Minister Stephen Harper claiming the two levels of government are singing the same notes when it comes to Ring of Fire. The Liberal premier noted that Harper's Conservative government has strongly supported resource development in other parts of Canada, particularly the oil sands in Conservative Alberta. "This is a project of national interest in the same way there have been projects in Alberta and Newfoundland & Labrador of national interest," said Wynne, who has estimated the preferred federal Ring of Fire infrastructure commitment at up to $2.5 billion. "We're looking for engagement." Be it corporate or government investment, billions are needed to either push a dedicated resource railway into the wilderness or build a road that would also connect several isolated First Nations communities to Ring of Fire territory. A power grid is another key part of the equation. Nice Icing The Ring of Fire would be the icing on an already very plump construction cake. Even without it, 2014 is expected to be a banner year nationwide, with many resource development projects continuing unabated and even picking up steam. Generally speaking, the federal Bank of Canada has forecasted 2.3 percent GDP growth in 2014. While that's down from an earlier estimate of 2.8 percent, it's still a full percentage point up from 2013. The Royal Bank of Canada, one of the country's top five commercial lending institutions, is even more optimistic, predicting 2.6 GDP growth in 2014 and 2.7 growth in 2015. RBC says job growth has driven up wages by 2 percent over the past year, while inflation has only risen by .9 percent. The bank's most recent economic outlook says the West will continue outperforming the East with the dividing line on the Ontario-Quebec border. Another sound general economic indicator is the federal government's budget balancing path. The government had given 2015 as the target; but because of increased revenues and concentrated spending cuts, some analysts are now suggesting a balanced budget could happen in 2014. 48 | www.cedmag.com | Construction Equipment Distribution | January 2014 While Finance Minister Jim Flaherty won't commit to 2014, he insists 2015 will bring a budget surplus. Back in 2009-'10, the deficit stood at $55.6 billion. By 2012-'13, the shortfall was down to $18.9 billion, $7 billion below the stated target of $25.9 billion and on track for an impressive balancing act by 2015 at the latest. The Conference Board of Canada, a nonprofit economic think-tank, says Alberta will lead the way in economic growth in 2014 thanks in large part to oil sands investment and a strong labour market. The province is expected to experience GDP growth of at least 3.4 percent compared to the national 2.3 percent. Resources development will also continue to carry Saskatchewan and Newfoundland & Labrador as economic powerhouses, but at a slower pace. The outlook for other provinces is sunny as well, the conference board states, predicting a boost in the Ontario economy due to a partial recovery in exports and strong growth in commercial and financial services. Summing up, the board claims good times are in store over the next two years, due largely to improved outlooks for the U.S. and global economies. Total exports are forecast to grow by 3.7 percent in 2014 and by 4 percent in 2015. Meanwhile, the domestic economy should keep humming along over the next two years, thanks to continuing low interest rates and improving business and consumer confidence. Equipment Picture Never Better The construction and equipment industry in Canada is reflecting the rosy economic picture. In Alberta, one of the strongest construction markets in North America,