the $90-billion Industry • Construction
Bill Borger Jr., president of the Borger Group of Companies.
the construction sector employs more than 1.2 million Canadians or approximately seven per cent of Canada’s total workforce. Annually, construction is responsible for nearly $90 billion in economic activity or about seven per cent of Canada’s overall gross domestic product (GDP). Although Vine cites some important, recent regional factors affecting the volumes of especially Calgary construction activity, he points out that, in the Calgary market the CCA deals with commercial (not residential) construction. “When it comes to commercial construction, at least one Calgary cliché no longer applies. Construction in Calgary is no longer seasonal as it may still be in woodframe, residential homebuilding. Our winter construction methodology has changed so much in the past 20 years or so that, aside from the occasional, severe weather conditions, commercial construction in Calgary is year-round. Besides,” he explains, “there are such big differences between commercial and residential construction.” A key aspect of Calgary’s uniqueness is the size and diversity of the companies and contractors that contribute to construction being such a dynamic and vital Calgary industry. In terms of longevity and a respected reputation for being iconic members of Alberta’s construction industry, the Borger Group of Companies – the fourth-generation, familyowned and operated, Calgary-based construction company that was founded in Winnipeg in 1919 and has worked in Calgary since 1949 – continues as an innovative leader in sectors like underground infrastructure, earth moving and heavy equipment transportation. “There are so many innovations creating so many changes in the construction industry,” says president Bill Borger Jr. “Contractors must find ways to differentiate themselves. Not only has diversity of products and services made things much more competitive in our industry, different contractors are doing work in different areas than they used to. When 66 • March 2015 BUSINESS IN CALGARY | businessincalgary.com
Underground utility installation at Sagehill. Photo courtesy of Borger Group of Companies.
Calgary was 100,000 people, it was a different scene. “There is so much work here that Calgary is now a bull’seye for construction companies wanting to come and bid on Calgary projects,” Borger says with solid Calgary pride and cautious construction-business savvy. “Especially international dominance. Majors from the States and around the world see Calgary as an opportunity for expansion. The biggest thing now is competition.” The investment community agrees with Borger that Calgary construction is acknowledged as an industry hot spot. Investment is always a reliable indicator of construction industry trending and, late last year, Calgary construction (and the Calgary economy) got a boost from Statistics Canada numbers that show that non-residential construction in the third quarter of last year reached $918.9 million, up 3.9 per cent from the previous year. The information also tracked that Calgary’s commercial construction had an increase of two per cent to $739.9 million while the institutional sector spiked by slightly more than five per cent to $124 million. Construction industry outsiders are sometimes surprised to learn that, in most major municipalities, commercial construction’s biggest client is the city. In Calgary, infrastructure expenditures include projects like LRT lines and terminals, interchanges, sewers, recreation centres, schools, hospitals, bridges and road repairs. The Federation of Canadian Municipalities estimates that Canada needs about $123 billion to bring crumbling public infrastructure up to acceptable levels and an additional $115 billion to meet the growing demand. Canada typically spends three per cent of GDP annually on public infrastructure and a growing portion of this is under the control of the municipal government. In Calgary, Transportation Infrastructure (TI) was formed 10 years ago to plan, designs and build safe, efficient and sustainable infrastructure in all quadrants of the city, including C-Train stations and extensions, road widenings,