Immigration And Cannabis Boost Investment Potential In Atlantic Canada To Record $141 Billion
DIEPPE – Population growth due to immigration, the booming cannabis industry and a large mine expansion in Labrador are among factors driving the Atlantic Provinces Economic Council (APEC) to expect capital spending on major projects in the region to rise 8 per cent this year to $12.3-billion.
“We’re seeing some changes in our economy overall. We have some needs in the labour force and immigration’s playing a big role, and part of that, we’re seeing some diversification in the economy – spending on cannabis and also aquaculture,” said Patrick Brannon, APEC’s director of major projects, during the organization’s conference in Dieppe Friday.
“I think we’re seeing some positive activity in Atlantic Canada overall this year. In New Brunswick, the underlying numbers are quite strong in the cities and around electricity developments, so there’s definitely some positives there.”
APEC’s current inventory records 480 major investment projects in various stages of development across the region, valued at a record high of $141 billion, 3 per cent more than last year.
P.E.I. and Newfoundland are leading the growth, while Nova Scotia is seeing a flat growth and New Brunswick is seeing a decline. The value of investment spending in New Brunswick this year is down 9 per cent at $2.2 billion due to a $260-million cut in capital spending by the provincial government to help balance its budget, and lower spending at the Irving refinery this year.
Still, large cities in the region are continuing to see population and housing growth and certain industries are seeing a lot of capital investment take place.
APEC estimates around $1 billion will be invested in cannabis production in Atlantic Canada between 2018 and 2022, and more than 2,000 jobs will be created. More than one-third of that investment will be in New Brunswick. This year alone, nearly $200-million is expected to be invested in that industry in the province, Brannon said.
Meanwhile, the aquaculture sector is seeing $850-million of capital investments planned between 2018 and 2023 in Atlantic Canada, more than half being in Newfoundland and around $200-million in New Brunswick. Brannon says this is due to a rapid increase in global demand for seafood – salmon demand increases at 78 per cent a year.
P.E.I. is facing a record investment of $531-million this year, up 24 per cent from the previous year. This is driven by housing constructions needed to support a rapidly growing population. A bulk of the investment is going to Charlottetown, which grew by around 7,000 people in the past three years thanks to immigration.
In New Brunswick, Fredericton saw the fastest population growth but when it comes to projects, Moncton leads with $550 million worth of projects in 2018-2019 – $70 million of that in housing. The situation in Saint John is more volatile though $369 million worth of project investments are expected there.
“What’s driving all of that is population growth that we’re seeing in the Moncton area. In the last three years, 6,000 people have been added to the Moncton area. We also see very strong growth in the Fredericton area…Saint John has seen some boost in the last three years. And the main reason for that is immigration. Immigration has tripled in Moncton, tripled in Fredericton and doubled in Saint John over the last few years,” Brannon said.
“On top of that, we’re also seeing migration continuing from rural areas especially into Moncton and Fredericton. There’s a little bit of out-migration still happening but it’s not a huge drain to Alberta as it was a few years ago.”
Green energy projects are also seeing positive signs of growth, with wind farms planned in various parts of the province, some led by Indigenous communities.
Labour Challenges
While the outlook for major projects is stable, APEC sees challenges ahead, including an aging construction workforce and technological innovations that will require a more skilled workforce down the line. Buildforce Canada expects the Atlantic region will need 9,200 more people than there are apprentices to replace retiring tradespeople over the next decade.
Looking at underrepresented groups including Indigenous, women, and immigrants is an important part of that solution,” Brannon said.
APEC’s conference included a panel with representatives from the Indigenous-led Joint Economic Development Initiative (JEDI), women-in-trades advocacy organization MAPS and national constructing firm Pomerleau.
JEDI president Alex Dedam says there needs to be more education to break negative stereotypes about Indigenous people.
“According to the Truth and Reconciliation Commission’s recommendations, one of the things they’re asking us to do and work hard on, is to go out and educate your businesses, communities, and people on what things can be done in order to make sure that we are a part of the community in New Brunswick economy; that we’re treated as equals,” he said.
MAPS director Hélène Savoie-Louis said with only four per cent of all tradespeople in New Brunswick being women, businesses need to help open doors.
“We are too family-connected in our industry. Everyone knows someone that knows someone and that’s the talent pool we’re sticking with. So just try to look outside the box and invest in partnerships with institutions, with schools, with us,” she said. “Look at the potential, not the package it comes in. Break down the stereotype we have about what a tradesperson should look like.”
Pomerleau director of business development and industry relations Sean Strickland says his company has utilized the Atlantic Immigration Pilot program to fill vacancies and urges more immigration. But he also wants to see apprenticeships being integrated into the education system.
“We need to get back to where trades are promoted and considered a viable, noble profession within our communities and fully integrated within the education system.”
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