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Sunday, January 8, 2012

The Infrastructure spending during economic slowdowns

Since the end of World War II, with the exception of 1950 and now 2000, the World economy has taken a tumble at the end of, or beginning of each decade (1960, 1970, 1980, 1990 and now 2010).


Personally I had anticipated a major drop for 2000. It didn't occur and the economy kept on rocking and rolling. Governments, Banks and the people were oblivious of what was to come.


So here we are in the dumper and our Government keeps telling us that our economy depends on what happens around the World.... "DUH" ..... they squandered billions on so called infrastructure spending that lends little or nothing to the overall economy ..... it is simply a governing parties way of paying back General Contractors that supported them during the election.... THAT IS ALL IT HAS EVER BEEN.


I have worked in the construction industry in Quebec, Ontario and the Maritime's since 1973 and still do. You depend on government contracts and you remain in close contact with governments at all levels, Municipal, Provincial and Federal.


Shovel ready projects are those that have already been engineered, designed and tendered.... otherwise they would not be shovel ready.


Lets say I am a GC who's company was the successful bidder on a project but funding has been stayed because of the economy. I go to my local politician and do what I have to do to get that project back on track. Depending on how much I have invested in his party will determine how much weight I carry and if the governing party will make a major announcement about how much they are investing in the area.


It is how politics and construction are inter-twined. Just look at what happened with the G8/G20 spending.

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