Budget Bad News for Construction Industry
Alberta Construction Association (ACA) was disappointed to see capital spending heavily impacted in the Government of Alberta 2018-2019 Budget released Thursday March 22. The Capital Budget has been cut by $2.5 Billion in the first year alone, with an additional $1 Billion cut over the next 2 years.
“The government has been signalling the capital spending cut for a while now. In order to approach a balanced budget the government has cut spending on needed infrastructure.” said ACA Executive Director Ken Gibson.
The construction industry continues to deal with the consequences of a reduction in private investment during the downturn and public spending on capital projects has been a way to keep Albertans employed in our industry. With private investment forecast to remain weak ACA is concerned industry may not recover in the next few years.
“This is a period when our industry is struggling and we depend on our public partners to help keep Albertans employed and provide the schools and other facilities needed by Albertans. 80% of our members are small businesses, which lack the resources to ride out a sustained downturn. These cuts will be felt by Alberta families in every community across the Province.”
ACA represents 3200 member firms in commercial, industrial, and Institutional construction industry across Alberta. Construction employs one in nine working Albertans.
Read an in depth analysis of the 2018 Provincial Budget here.