Posted January 13, 2019 10:16:54Canada’s infrastructure sector is in good shape, with more than $1.6 trillion in investments in infrastructure since the beginning of the decade, according to an analysis of the latest available data.
But a growing number of the investments have gone to companies that aren’t well-known in the United States, according the Canadian Centre for Policy Alternatives, an advocacy group.
The group’s report, released Tuesday, said that Canada has about $3 trillion in infrastructure spending, of which only $1 trillion is accounted for by the private sector.
But the $1 billion in infrastructure investments that Canada is making each year is far less than the $11.4 trillion in private investment in the U.S.
A growing number are coming from the U, but some are coming in from overseas.
“It is very troubling that there is so little recognition of how the U S. is going through this transition,” said John Hagedorn, president of the Canadian Council for Infrastructure Investment.
“And that’s not a surprise.”
Hagedorn said that for many Canadian companies, the U is “the only source of capital that is available to them” in the capital markets.
He said the growing reliance on foreign investors is a concern.
“We have seen some of these projects being developed overseas in countries like China and India, but we have to be careful that we don’t put ourselves at a competitive disadvantage,” he said.
“If we do that, it is going to have a detrimental effect on Canadian jobs, on our infrastructure and on the overall economy.”
Canadian firms are already making investments in Canada, but the investment has gone to the private, rather than public sector, sector.
There are about 6,000 Canadian firms with infrastructure investment projects in place, according a CBC News analysis of data from the Canada Infrastructure Bank.
“The vast majority of those are private investments,” said David Mazzetti, a senior economist at CIBC World Markets.
He added that Canada’s capital spending has been growing, while U. S. spending has remained relatively flat.
“Canada has a higher level of private investment than most other countries,” Mazzett said.
The private sector’s share of Canada’s total capital spending in the first half of this year was 10.7%, according to CIBC.
That compares with just over 3% in the rest of the world.
In the past decade, the United Kingdom has added $3.2 trillion in projects to its infrastructure, the Canadian centre said.
But there have been signs that the country is struggling to keep pace.
The country’s gross domestic product fell 0.5% in 2016, compared with the previous year.
In a report released last month, the Organization for Economic Cooperation and Development said it was concerned about the country’s ability to meet its economic targets, citing the lack of access to capital and the low levels of infrastructure spending.
The OECD has warned of the impact of an aging population and rising costs of living in the country.
The United States has a relatively low level of infrastructure investment, according an analysis from the University of California, Berkeley.
But that could change with a $15 billion public-private partnership announced in April.
The University of Michigan, meanwhile, said it is investing $25 billion in a new $20 billion infrastructure fund for 2020.
The fund will create up to 40,000 jobs.
The Canadian Centre also noted that Canadian companies are investing in the developing world to meet demand for their products.
That means a lot of investments are going to be in low-income countries, where there are a lot fewer options to invest, Hagedhorn said.
“There’s a lot more money that’s been invested in the Middle East than in any other part of the globe,” he explained.
The U.K., meanwhile, has seen investments surge in recent years, with the government creating a fund to invest up to $20 million per year in the next five years to help meet the countrys infrastructure needs.
That includes projects that will create 1,000 to 2,000 construction jobs and $5 million in local economic activity, according and the UK government.
In 2016, the government announced $2 billion in investments, including $2.5 billion in capital projects, according, and said it expects to invest more than that in the coming year.