- CUQ 12.40
- 0.00 +0.00%
Churchill’s target market is Western Canadian (British Columbia, Alberta, Saskatchewan, Manitoba and Yukon) institutional and commercial building construction and industrial services. Drivers of this market include population growth, resource prices, and industry and government capital spending.
| (thousands) | 2011 | 2006 | Difference | % Growth | 5 Year CAGR | |
|---|---|---|---|---|---|---|
| Manitoba | 1,208.3 | 1,148.4 | 59.9 | 5.21% | 1.02% | |
| Saskatchewan | 1,033.4 | 968.2 | 65.2 | 6.74% | 1.31% | |
| Alberta | 3,645.3 | 3,290.4 | 354.9 | 10.79% | 2.07% | |
| British Columbia | 4,400.1 | 4,113.5 | 286.6 | 6.97% | 1.36% | |
| Yukon | 33.9 | 30.4 | 3.5 | 11.61% | 2.22% | |
| Western Canada | 10,320.9 | 9,550.8 | 770.1 | 8.06% | 1.56% |
Source: Statistics Canada
Western Canada’s population has averaged 1.56% annual growth over the five years from 2006 to 2011, including during the 2008/2009 recession.
Source: Statistics Canada
Western Canadian investment in commercial and institutional building construction is recovering to pre-recession levels, driven largely by growth in commercial private-sector spending.
Source: Western Canada provincial budgets
The governments of British Columbia, Alberta, Saskatchewan and Manitoba estimate total institutional capital spending of $6 billion in their fiscal year ending March 31, 2012. SODCL is well positioned to benefit from this government spending.
Resource prices determine, to a large extent, the viability of western Canadian industrial projects.
Source: United States Energy Information Administration
Resource prices determine, to a large extent, the viability of Western Canadian industrial projects, which in turn influences commercial and institutional spending as the workforce is sized to meet demand. The W.T.I. oil price has trended upward since 2009 and may be entering a period of volatility in a higher range.
Source: United States Energy Information Administration
The Henry Hub natural gas price is expected to continue to gradually trend upward, with seasonal variability.
Source: Western Canada provincial budgets
The four Western Canadian provinces are forecasting total capital spending of $6.2 billion for civil projects in 2011–2012. Most of this work is within Broda’s focus area.
Source: Statistics Canada
Western Canadian investment in industrial building construction has been trending upward since the second quarter of 2010, driven largely by growth in oilsands and mining spending.
Source: Statistics Canada
After a major pullback in 2009, oil and natural gas companies intend to continue to increase their construction expenditures in Western Canada to over $50 billion in 2012.
Source: Statistics Canada
Western Canada mining construction expenditures have trended upward over the last 5 years, and are expected to remain strong in 2012.
Source: Statistics Canada
Annual construction expenditures by utilities in Western Canada exceeded $8 billion in 2011, and utilities expect to spend $9.7 billion on construction in 2012.