Alberta Budget 2022- Summary of the potential impacts on Calgary’s local construction industry

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On February 24, 2022, the Province of Alberta released Budget 2022. Through new funding commitments to capital projects and steps to address the looming skill shortage crisis, we remain hopeful of the direction taken in the Budget. The following is a summary of the potential impacts on Calgary’s local construction industry:

New capital projects in the Calgary region:

As City builders, we understand the importance of creating spaces for Calgarians to thrive – by investing in the community and in areas to live, work and play.

The 2022 Budget offers millions of dollars in new funding capital spending on projects across the Calgary region that include:

$41 million for SAIT’s John Ware Building redevelopment project.
$38 million to replace the existing office of the chief medical examiner in Calgary.
$97 million for new facilities across Alberta, including the Repsol Sports Centre, the Calgary Stampede Foundation SAM Centre and the Canmore Nordic Centre.
$744 million in total and $474 million over the next three years for the Springbank off-stream reservoir flood mitigation project.
$22.3 million over the next three years towards the construction of a new interchange on the Northeast Stoney Trail and Airport Trail

Additional capital funding commitments:

$332 million over two years to complete the Calgary Cancer Centre, creating 160 new inpatient cancer beds – for a total spend of $1.4 billion on the project.
$5 million on downtown revitalization efforts in Calgary. We support Calgary’s downtown revitalization efforts to attract vibrancy and investment into our downtown core and will continue to offer our voice to provide expertise and leadership in the retrofitting of old space, building and material standards, and more.
$50 million for the Green Line LRT project, which is a part of the promise to fund 1/3 of the project buildout. The Calgary Construction Association has long supported the Green Line LRT project as a fundamental city-building project that is essential for a thriving City now and into the future.

Funding to address the skills shortage:

The looming skill shortage is one of the biggest challenges facing the construction industry and its effects are being felt already. Baby Boomers with over forty years of work experience are retiring, and Generation X and Millennials are seeking to step up in their roles. Greater emphasis needs to be made on attracting and retaining skilled workers to fill the looming labour gaps in the local Industry

In Budget 2022, the Government of Alberta recognizes the importance of attracting and retaining new, skilled labour to the province. In Budget 2022, it writes: “Developing skills is critical to addressing existing gaps in our labour market. Specialized skills also enable our youth and other underrepresented segments of the workforce to maximize their participation in our economy.”

Budget 2022 will see significant funding through the Alberta at Work program, including $264 million spent to address the labour shortage and address critical skill gaps. Key commitments include: