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Canada CERF Incorporated, which operates equipment rental and waste management businesses, says customers remain bullish about projected workloads. "This translates into strong current and future demand for our equipment and services," said CERF President Wayne Wadley, who said more than $8 million has been invested by his company to meet demand for construction rental equipment. In response to demand for oilfield rentals, $2.7 million has been invested. Wadley said CERF's oil and gas rentals business has diversified its customer base through fleet expansion and has increased its sales force by 25 percent. Cam Tyhurst, Ottawa, Ontario, general manager for Nortrax, John Deere's forestry and construction equipment dealer, said eastern Canada is the "right place to be" for the industry, not just in the short term but over the next decade. With projects already in the ground and others such as the Ring of Fire poised to possibly come on stream, things have never looked better. Nortrax received zoning approval in December to construct a new 12-bay shop and showroom over 34,000 square-feet in Ottawa's rural west end. Including the 16-acre site, the project all-in is worth close to $10 million. Expansion from a current four-bay centre has been planned for five years and reflects heavy regional demand for Nortrax excavators, loaders, backhoes and skid steers, Tyhurst indicated, including right in Ottawa where light rail expansion is ongoing. Completion of the new Nortrax building in 2014 will add about 12 people to the Ottawa employee roster of 35. Looking ahead, Tyhurst sees tremendous potential for heavy equipment in municipal infrastructure projects in Ontario and other parts of the country. All levels of government agree that major investments must be made in bridges, roads and underground pipes that are literally crumbling from neglect. As usual, it's a question of how much it'll cost and where the money is going to come from. As an example of how infrastructure is falling to pieces, Tyhurst pointed to a recent incident with the Champlain Bridge in Montreal, where a sudden crack in a steel girder doubled in length over three weeks. As a Band-Aid solution, it was reinforced with the addition of a new super beam. Discussing recent company sales in eastern Canada, Tyhurst said 30 pieces of Nortrax equipment were purchased for about $500,000 per unit by two contractors working on the Muskrat Falls hydroelectric project in Newfoundland & Labrador. Now under construction, the $7.7 billion development will be capable of generating up to 824 megawatts of electricity a year as soon as 2017. The province's power-hungry customers will be able to bank on stable, emissions-free electricity, said Premier Kathy Dunderdale when she announced the provincial government will take out a loan of $5 billion over 40 years to help finance the project. Borrowing a tune her Ontario counterparts use to describe Photo credit: Ashley Fitzpatrick/The Telegram. Heavy equipment works on a site near the Muskrat Falls Hydroelectric project in August, 2012. the Ring of Fire, Dunderdale called Muskrat Falls "one of the most significant ventures Canada has ever undertaken." B.C.'s Robust Activity Like Tyhurst, Garry Frelick, president of Douglas Lake Equipment in Surrey, British Columbia, is counting on hydroelectric development as a source of great things to come for the industry in 2014 and beyond. Add to that some B.C. transportation infrastructure projects, increased pipeline activity, and a forestry sector ready to ride a wave of new construction in the U.S. and Asia – well, it looks like its feasting time in the feast-or-famine cycle. The gravy on that feast, Frelick said, would be the launch of Site C, a $9 billion proposed third dam and hydro-generating station on the Peace River in northeast B.C. Subject to environmental certification, Site C would produce 1,100 megawatts of capacity every year as the third dam on the Peace River system. Offering several lines of equipment and locations in B.C. and Alberta, Frelick said Douglas Lake business continues to be healthy, especially in rental activity and parts and service. Which Hat Are You Wearing? Toromont Vice President of Marketing Rick Van Exan said one can look at 2014 prospects wearing an optimist's hat or a pessimist's hat. With most economic indicators accelerating and some regions of the country, notably Alberta, "red hot," it's pretty difficult to keep the pessimist's hat on for very long. Toromont, headquartered in Ontario, also serves Newfoundland & Labrador, Manitoba and the Arctic, and Van Exan said all regions look promising for equipment sales and service. In addition to Muskrat Falls and revitalizing transportation infrastructure, he cited the light rail system in Ottawa as projects with growing potential. And as for the Ring of Fire – it could flare up again in 2014, spreading the landscape with bonus opportunities. TOM VAN DUSEN JR. has written for daily and weekly newspapers in Canada for more than 40 years. A freelancer based near Ottawa, Ont., his specialties include the general economy, politics, agriculture and the environment. He can be reached at 613-445-3407, tomvandusen@sympatico.ca. January 2014 | Construction Equipment Distribution | www.cedmag.com | 49