💰 Budget season

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⏰ Today’s read: 4 ½ minutes

MARKETS

*Stock data as of last market close; currency, oil and crypto data as of 12:30AM ET February 27th, 2024.

Economy: Canada’s inflation dropped low enough last month to hit the Bank of Canada’s target range. The change surprised analysts and sparked predictions of a potential interest-rate cut this spring. The Consumer Price Index rose 2.9% in January on an annual basis, down from 3.4% in December.

THE BIG STORY

Budgets bloom as elections loom

Birds are singing, flowers are blooming and budgets are brewing. It’s that time of year where provinces and the federal government begin rolling out their their spending plans.

Starting west: B.C. has already tabled theirs, prompting little praise from builders. It’s predicting a deficit of $7.9 billion, and had few new project announcements. It was also criticized for failing to address prompt payment. 

Moving east: Other provinces are about to drop their budgets (Alberta has indicated it will do so Feb 29 and Ontario’s is coming in March). Many have already made their recommendations, ranging from support for major projects, investing in trades recruitment and investment in infrastructure.

Zooming out:  Here is what the Canadian Construction Association is calling for from the federal budget which is also expected to drop soon. 

• Infrastructure: Focusing and funding housing-enabling infrastructure as well as announcing the next steps of for long term infrastructure investment strategy; prioritizing the completion of the National Infrastructure Assessment including the creation of its independent advisory body; Investing and strengthen trade infrastructure by supporting the Canada Trade Infrastructure Plan.  

• Procurement: Continue to update and modernizing tendering and procurement models.

• Labour: Addressing the workforce shortage including the modernization of Canada's immigration system.

Finding balance: After eight years in power, Justin Trudeau’s liberals are struggling to maintain support (recent polling appears to back this up). With the construction sector holding the key to easing some of the biggest pain points for Canadians (high housing costs, the economy, inflation) and an election on the horizon, the budget’s approach to building could be a do-or-die moment. 

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NEED TO KNOW

The week's headlines

🌲 Pembina says it is deferring a final investment decision on the Cedar LNG facility until mid-2024. The company and its project partner, the Haisla Nation, have been working to develop plans for a floating liquefied natural gas facility in Kitimat, B.C. to serve Asian markets.

📈 Ontario premier Doug Ford is giving $114 million to the City of Toronto through the Building Faster Fund as a reward for crushing its housing goals. The city began work on 31,656 new housing units last year, beating its 2023 target by 51%. The funds can go towards infrastructure projects that boost housing and community development.

🏠 B.C. is cracking down on house flippers. The province announced plans to introduce a tax of up to 20% on profits made when properties are sold within two years of their purchase. The tax will be in place for a year after purchase and will slide to zero between 366 and 730 days after the acquisition.

🔎 A new study suggests Ontario’s regional planning authorities are overstating the number of lots that are ready for construction by nearly a million housing units. Industry advocates say the data debunks accusations that it is sitting on supply. The study cited a lack of approvals, permits, servicing allocations or support from municipalities for the lower number.  

PROJECT SPOTLIGHT

A home for Indigenous law

Located on Lək̓ʷəŋən (Songhees and Esquimalt) territory, the National Centre for Indigenous Laws (NCIL) at the University of Victoria is still under construction but its architectural design is already winning awards. Slated to open in late Fall 2024, the NCIL has received a 2023 Canadian Architect Award of Excellence, celebrating its Coast Salish design elements and focus on bringing the surrounding forest into the building.

PROJECT UPDATES

• Ottawa LRT project reaches major milestone with O-Train

• Multiplex selected to deliver Etobicoke Civic Centre

• Ottawa in line for province's housing fund after nearing 2023 target

• Feds contribute $16M to mixed-income residential tower

• CIB announces $138M for energy storage facility

WHAT WE’RE TALKING ABOUT

PHOTOS: 🗽A strange object took flight over the streets of Toronto this month

VIDEO: 📽️ Documentary covers Vancouver’s forgotten neighbourhood

READ: 🏗️ Researchers in B.C. are investigating historic construction methods

DATA: 📉 Canada ranks almost dead last in construction permit study

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Here’s to a great rest of the week!