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Canadian Infrastructure

W ith an economy stuck in slow-growth mode and govern-ments everywhere looking for ways to increase growth, pro-ductivity, and incomes, there

are concrete and proven ways in which active public policy engagement can produce the economic out-comes we need as a nation.

Past initiatives inadequateit is widely known that investments in Canada’s long-term economic infrastructure are among the best, most growth-enhancing public goods that govern-ments can provide. Canada has always been a trade-de-pendent nation but often insufficient infrastructure investment by past governments at all levels has con-tributed to a massive shortfall between our economy’s needs and the reality on the ground.

The previous federal government invested heavily in short-term infrastructure projects in order to help Canada emerge from the recession of 2008 and 2009 in a relatively strong position. Partially as a result, Can-ada’s recession was much less deep and protracted than those suffered by other countries. The previous govern-ment also renewed the flagship federal Building Can-

Public Infrastructure to Power Canadian Growth in the 21st Century

Publisher & Account Manager: David Lilleyman Business Developer: Ian Solnick Managing Director: Martin Kocandrle Production Manager: Carlo Ammendolia Lead Designer: Matthew Senra Contributors: Michael Atkinson, Sandra MacGregor, D.F. McCourt Cover Photo: Getty Images Photo credits: All images are from Getty Images unless otherwise accredited.

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INDUSTRYANDBUSINESS.CA

Michael AtkinsonPresident, Canadian Construction Association

ada Fund, providing predictable and long-term infra-structure funding across the country for the next dec-ade. Both of these initiatives have helped a great deal, but there is much more we can and should be doing to build world-class public infrastructure in Canada.

Weak growth due to barriers to tradeSince we emerged from the recession in the immedi-ate post-2009 years in a relatively strong position, growth has been persistently and stubbornly slug-gish. Of course much of this has to do with weak com-modity prices in recent years over which we have no control. But much of it has to do with the difficulty that Canadian producers and exporters experience in getting their goods to market. Roads are clogged; the

border is jammed; vital transport links in many parts of the country have been left to atrophy for want of sufficient investment and maintenance.

Learn from the pastThe new federal government has come to power at a vital time for Canada, and with an agenda that in-cludes large-scale public infrastructure potentially unlike anything we have seen in Canada. Though the commitment to new money is hugely welcomed, any new federal infrastructure plan must be designed in a way that is smart and forward-looking. It must learn from the mistakes and lessons of previous programs, and it must be flexible to the demands of an ever-changing economy and policy landscape. Though the financial sums promised are massive, the need is always greater than any government’s capacity to pay, and so projects must be selected for funding in a transparent manner that clearly sets out the business case for the investment and that funds it in a fair and predictable manner — taking into account design, construction, and life-cycle maintenance costs.

This opportunity is not to be wasted. It is time to invest in public infrastructure that will power Canadian growth in the 21st century.

2 INDUSTRYANDBUSINESS.CA

C anada has a nation-wide infrastructure deficit, with roads, bridges, schools, pub-lic transit, sewers, and more all suffering

from decades of cost-cutting and underin-vestment. We also have an aging work-force, particularly in the skilled trades, al-ready beginning to retire en masse. Both of these problems can be solved by timely and substantial investment in this coun-try’s public infrastructure.

Rick Smith, Executive Director of the Broadbent Institute, believes that, eco-nomically, the timing is ideal. “At a time when the economy is flagging in many parts of the country, and at a time when governments, particularly the feder-al government, have a low debt to GDP ratio, and a stellar credit rating, it is a clear time to invest.”

A recent Broadbent Institute study has estimated that one dollar invested in pub-lic infrastructure today will show a re-turn on investment of nearly quadruple over the long term, with even the short term numbers suggesting a GDP boost of $1.43 per $1 spent. “Today, there are work-ers available and, with the business cycle down somewhat, bids are likely going to be more competitive,” says Bob Blakely, Can-adian Operating Officer for Canada’s Build-ing Trades Unions. “The interest rates are as low as they are ever going to be. In this environment, you get more bang for your construction buck.”

More affordable labour means more affordable trainingBecause the private business cycle is at a low ebb, there is a golden opportunity to wisely pursue nationwide projects that will not only improve quality of life for Canadians, but also provide appren-ticeship options for the next generation of skilled tradespeople. Apprenticeship opportunities have been disproportion-ately located in western Canada for the past decade, and that is simply not sus-tainable. “A lot of New Brunswick pipe-

fitters and welders, for example, work out west,” says John Telford, Director of Canadian Affairs at UA Canada. “But, if there’s no work at home, we can’t de-velop new apprentices in New Bruns-wick. To get apprenticeships rolling in all the provinces, we need to come up with infrastructure work in New Brunswick, in Nova Scotia, in Quebec, everywhere in the country.”

And we desperately need those ap-prentices. “We have to replace, over the next seven years, roughly 25 percent of

the extant construction workforce,” says Blakely. “And we’re going to lose roughly 40 percent of superintendents and supervisors.” Unless we provide good training opportunities in every province, it will be very difficult, if not impossible, to revitalize that workforce with young tradespeople. Due to the greater variety of work an apprentice is exposed to, public infrastructure pro-jects offer the best training opportun-ities, compared to what they would see working in a refinery.

The virtuous circle“There’s a virtuous circle,” says Smith, “where increased infrastructure spending results in more projects, which results in more apprenticeship opportunities, which results in more skilled tradespeople.” After a lengthy period of austerity, it is well past time to get this circle spinning again before it grinds to a complete halt.

The good news is that, for the first time in two decades, the prospect of re-al reinvestment in Canada’s public infrastructure is finally beginning to gain traction at all levels of govern-ment. As citizens, it is our duty to en-courage that investment in order to modernize and maintain the infra-structure of this country for ourselves and for generations to come.

By D.F. McCourt

“A recent Broadbent Institute study has estimated that one dollar invested in public

infrastructure today will show a return on investment of nearly quadruple over the long

term, with even the short term numbers suggesting a GDP boost of $1.43 per $1 spent.”

The Perfect Infrastructure StormCrumbling roads, leaky school roofs, flagging industry investments,

and retiring skilled tradespeople.

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Investing in Canada’s infrastructure means investing in Canadians and those

who’ve helped build our country. It also means revitalizing Canada to build a

stronger future, one with more jobs, higher wages and a greater standard of

living for our middle class — and a growing population.

Learn more about the importance of investing in Canada’s infrastructure.

Visit uacanada.ca & buildingtrades.ca

4 INDUSTRYANDBUSINESS.CA

T hough infrastructure is a part of every Can-adian’s life in one way or another — from the electricity and water we use at home, to the roads or public transportation we take to work — few people actually have an appre-

ciation of just how much we depend on it in our daily lives. “Infrastructure is really what gives our society the

ability to function socially and economically. It enables commerce and develops communities,” says John Gam-ble, President and CEO of the Association of Consulting Engineering Companies. Despite being so central to our lives, infrastructure is largely underappreciated — and unseen. “One of the challenges of infrastructure is that, as important as it is to our standard of living and quality of life, if you do it well, it becomes invisible. It’s as though we’ve allowed ourselves to believe that bridges and roads were natural phenomena and electricity and water just came out of the walls,” notes Gamble.

Luckily, this underappreciation does not seem to be shared by either the previous or our present gov-ernment, who have made commitments to invest in fortifying the frameworks that keep this country functioning smoothly.

Bridging the Infrastructure Gap

“Infrastructure is a great enabler,” emphasizes Gamble. “It allows economic activity and commerce to take place which is where real jobs and opportunity come from.”

One can point to Halifax’s MacKay and Macdonald Bridges as prime examples of well-maintained assets, both serving on average 105,000 cars a day, every day. In mid-2015 Halifax Harbour Bridges undertook “The Big Lift” on the Macdonald Bridge — a period of rejuvenation that will eventually see the entire road deck, as well as other structural elements, either replaced or protected from further wear and tear. Estimated at $150 million, it will engage local contractors and tradespeople, revital-ize the main artery connecting Dartmouth and Halifax, and cause minimal delays to commuters during con-

To learn more about CAS or IUPAT please contact:

Robert KucheranCanadian Vice-Presidentrkucheran@iupat.org905-979-8616

Jack WhiteAssistant to the General Presidentjwhite@iupat.org604-290-3014

In support of Canada’s effort to rebuild, restore and maintain its critical infrastructure, the International Union of Painters and Allied Trades (IUPAT) in association with the Society for Protective Coatings (SSPC) and NACE International (formerly the National Association of Corrosion Engineers) presents the Coating Application Specialist Training Program (CAS).

CAS trainees receive theoretical and practical training in the complex task of applying protective coatings to precise specifications, to reduce the effects of corrosion on key elements of our industrial society. Ships, Bridges, Water Tanks, Gas and Oil Pipelines, Waste Water Facilities, Power Generation Plants all require skilled craftsmen to apply today’s high performance coatings.

IUPAT is pleased to participate in developing and maintaining highly trained workers at this most important juncture in our history. Corrosion is taking its toll on these industries and we must respond urgently before it becomes an unmanageable problem.

It’s all about proper asset management.

struction. This project, as well as regular upkeep, were planned proactively to extend the life of the bridge.

“A plan is critical. It’s how you know what to invest in long term,” says Gamble. “It’s important to have a good understanding of what the current state of your infrastructure is and what it needs to be into the fu-ture. A strong asset management outline will allow informed decision making. We owe it to future gener-ations to make smart decisions today. If we underin-vest in infrastructure, it’s going to create an enor-mous challenge and directly impact the prosperity of our children and our country.”

By Sandra MacGregor

“It’s important to have a good understanding of what the current state of your infrastructure is and what it needs to be into the future.”

MEDIAPLANET 5

To learn more about CAS or IUPAT please contact:

Robert KucheranCanadian Vice-Presidentrkucheran@iupat.org905-979-8616

Jack WhiteAssistant to the General Presidentjwhite@iupat.org604-290-3014

In support of Canada’s effort to rebuild, restore and maintain its critical infrastructure, the International Union of Painters and Allied Trades (IUPAT) in association with the Society for Protective Coatings (SSPC) and NACE International (formerly the National Association of Corrosion Engineers) presents the Coating Application Specialist Training Program (CAS).

CAS trainees receive theoretical and practical training in the complex task of applying protective coatings to precise specifications, to reduce the effects of corrosion on key elements of our industrial society. Ships, Bridges, Water Tanks, Gas and Oil Pipelines, Waste Water Facilities, Power Generation Plants all require skilled craftsmen to apply today’s high performance coatings.

IUPAT is pleased to participate in developing and maintaining highly trained workers at this most important juncture in our history. Corrosion is taking its toll on these industries and we must respond urgently before it becomes an unmanageable problem.

It’s all about proper asset management.

When looking at the cost of major infrastructure investments, it is only too easy to fall into the trap of considering only the up-front capital costs.

However, ongoing maintenance costs make up a sub-stantial portion of the whole-life cost of most infra-structure projects. And, one of the most significant contributors to increased maintenance costs and re-duced lifespans in infrastructure projects is corrosion — most familiarly known as rust.

One 2003 study estimated that the total annual dir-ect and indirect impact of corrosion on the Canadian economy had a staggering $46.4 billion price tag. That’s roughly 2.5 percent of Canada’s gross domestic prod-uct. Frustratingly, NACE International, the preeminent worldwide authority on corrosion, asserts that nearly 50 percent of these corrosion costs are preventable through the use of proper techniques at the time of construction and over the lifetime of the project.

There are many techniques for preventing corrosion, but one of the simplest and most effective is a properly applied paint finish. However, not all paints are creat-ed equal. “A lot of bridges and other structures fail soon-er than they should because the proper paint was not

applied,” says Joe Russo, Business Manager/Secretary Treasurer of District Council 46 of the International Union of Painters and Allied Trades (IUPAT). “By apply-ing the proper paints, with finishes that provide corro-sion protection, we could extend the life of some of these bridges to as much as double their current lifespan.”

The proper protection, improperly applied, is no protection at allEqually as important as using the correct paint is ensur-ing that it is applied correctly. Corrosion protection is a vital part of protecting Canada’s infrastructure assets and we can ill afford to see these assets rust away due to critical tasks being assigned to improperly trained tech-nicians. “Even if you have the right type of paint, if you don’t apply it properly it’s the same as not applying the proper product,” says Russo. “You have to ensure that both facets are covered: both the proper qualities of the paint and the proper individuals to apply it.”

Proper corrosion prevention is important for Can-ada’s transportation infrastructure, but the need for the best techniques to be employed by the best trained people becomes even more evident when we consider some of our other infrastructure assets. Ontario’s nu-clear power plants are exposed not only to the exter-

The Little Known Cost of Canada’s Corroding Infrastructure

ior element of the Canadian environment, but also to incredible internal pressures from steam and heavy water, making corrosion prevention vital to our safe-ty as well as to the continued operation of our electri-city infrastructure. “When you look at the structures that contain the reactors, the whole structure of the power plant, corrosion cannot be allowed to happen in those places,” says Russo. “And this is why the proper application of these paints by the proper people is para-mount in a facility such as a nuclear power plant.”

Ontario taking the long viewThe good news is that the Ontario government has re-committed to ensuring that infrastructure in our prov-ince — across a number of key areas including transit and transportation — is built to the highest standards and maintained by the right people. The current gov-ernment’s four-part infrastructure plan includes in-vestment in skills as one of its pillars.

This is the sort of investment that is needed to ensure that the future of Ontario’s infrastructure remains se-cure. Members of cabinet have bought in to the import-ance of that long-view thinking. “These investments are critical to supporting the needs of Ontario’s residents and businesses” says Ontario’s Minister of Transportation, Steven Del Duca. “I have two daughters — ages eight and four — and every time I talk about what we are and what we will deliver in this region, over the 10 year span that we campaigned on, I am reminded that, really, we are build-ing this network for them and for their generation.”

By D.F. McCourt