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<strong>Michael Atkinson, president of the Canadian Construction Association, says when new infrastructure comes on-stream it leverages private-sector investment for industries that utilize it. </strong>

The federal government's recently announced infrastructure rebuilding program will boost the economy, create good-paying jobs and renew assets that touch on the lives of Canadians every day, including roads and bridges, fresh and wastewater treatment facilities, schools and hospitals as well as sports, cultural and recreation centres. A lot of these assets were built in the 1950s and '60s and are reaching the end of their useful life, says Michael Atkinson, president of the Canadian Construction Association.

"They got neglected, so we've got some catching-up to do," he says, adding that numerous studies indicate that from an economic perspective infrastructure spending is one of the most efficient ways to supercharge the economy and create living-wage jobs. For example, a Broadbent Institute study indicated that a $50-billion infrastructure rebuilding program rolled out over five years would add $1.43 to Canada's gross domestic product (GDP) for every dollar invested in the short term, and as much as $2.50 to $4.00 in the long term. That's because as new infrastructure comes on-stream it "leverages" private-sector investment for industries that utilize it. For example, better roads and bridges make it easier to move goods to market, encouraging investment in manufacturing, transportation and trade.

In terms of its overall economic and employment contribution to the Canadian economy, the construction industry currently contributes seven per cent of GDP and employs 1.4 million workers directly or indirectly, or about one in every 13 Canadians. Many of these are skilled trades that exceed living-wage requirements. And new jobs are coming; Mr. Atkinson estimates that in order to meet demand and replace workers going into retirement, the industry is going to need another 260,000 workers over the next decade.

He adds that the construction industry is well positioned to take up the challenge the infrastructure rebuilding program presents. Canada already has the fifth-largest non-residential construction sector in the world and is expected to remain in the top seven through 2025. Its vitality has attracted interest and investment by foreign firms, particularly from Europe. "The result is that our own capacity has been supplemented, plus the industry is very mobile in terms of marshalling and deploying its resources to meet demand," says Mr. Atkinson.

No matter how you look at it, infrastructure spending is a win-win all around. It spurs investment, encourages innovation, creates jobs and renews essential assets. "It's an investment in Canada's future," says Mr. Atkinson.

BY THE NUMBERS

Canada has the 5th-largest non-residential construction sector in the world and is expected to remain in the top 7 through 2025

The construction industry currently contributes 7% of GDP and employs 1.4 million workers directly or indirectly, or about 1 in every 13 Canadians

An infrastructure rebuilding program worth $50- billion and rolled out over five years would add $1.43 to Canada's GDP for every dollar invested in the short term, and as much as $2.50 to $4 in the long term

Source: Canadian Construction Association


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