In this week’s episode, Daily Commercial News and Journal of Commerce national managing editor Vince Versace speaks with ConstructConnect chief economist Alex Carrick about the economic trends that will shape both construction and the wider economy in 2021.
Carrick is optimistic about the economic prospects for 2021 because of the emergence of vaccines to combat the COVID-19 pandemic which has ravaged both the Canadian and global economies. Once enough of the population is immunized the economy will regain steam, he said. Carrick also cited the stark rise of savings rates due to people continuing to work but simply not having anywhere to spend their money as many economic sectors slowed down or closed. As restrictions ease, pent-up demand will mean people will travel, go out to eat and spend money again.
Commodity prices might also push upward because of renewed interest in infrastructure projects. Some of the spending will go towards new data centres, 5G networks and other information technology, but other commodities should also rise. This will both affect the cost of construction and push forward capital spending for owners of resources projects in a way Carrick says we haven’t seen in a decade.