2024 Calgary Construction Job Forecast
2024 may best the most difficult time to have home renovation work completed. Why? Many trades people work in the oil or construction industries, where there is more job security than with smaller home renovation contractors, 2024 home construction may reach an all-time record leaving very few trades people to work for you .
This year will see a lot of new companies starting up. Labour prices may rise a little and there will be a smaller range of quality in the Calgary Renovation Contractors market. Make sure when you hire a renovation contractor that they have a long track record of great work in Calgary.
The current economic turmoil (high inflation, housing, etc.) has impacted Albertans in many ways. At this point, there is hope to be found in municipal projects, but as long as the housing and construction industries are in a state of disarray, there is only so much work to be done.
This situation might lead one to ask: In a province where the economy is so closely linked to the value of oil… What can be done about the fluctuating price of the resource?
The province of Alberta has, for some time, been set up in such a way that it will be prosperous so long as the price of oil is sitting around $80 per barrel. The minimum for profit to be made has been debated lately, but typically the estimates will land between $40-55. As of January 9, 2024 oil is ranging between $70 and $80.
In 2020 we wrote, “Right now, a barrel of oil is cheaper than KFC’s largest bucket of chicken… Fluctuating around the $40 per barrel mark.” The irony is, with inflation, in 2024, you can easily rack up a bill at KFC between $70 and $80.
For this piece, I wrote to an acquaintance who has worked for years as a relatively high-ranking administrator in the Oil & Gas industry, and asked if he would answer a few questions… He agreed to answer three questions, so long as his identity remained anonymous. I gave him a call. This is our brief correspondence.
Q: How do you feel about the current negativity in the political climate here in Alberta?
A: Well, I understand it. But I see a lot of misdirected anger. The impulse to get the pipelines built immediately, get everyone back to work, and continue to flood oil into a market which has become oversaturated is an understandable one, but, in the long term, is more likely to harm our economy than help it. It is easier said than done, but I keep preaching: patience, patience, and patience. We live in a province full of valuable resources. Unfortunately, the cyclical prices and values become volatile. It’s the nature of the beast.
Q: Can you share some basic insight into what exactly is happening to the Oil & Gas industry?
A: This is a complicated question. But let me attempt to simplify for anyone who is unclear as to why the price of oil has dropped the way it has. The price of oil has dropped so greatly and so suddenly, basically, because there has been a lot of it produced. The global market, with all of its combined contributors, has simply produced more oil than the world needs, or even that it can use. The surplus oil that has been produced in the Far East, meaning the oil coming out of countries such as Saudi Arabia, Nigeria, and Algeria, is being sold at a very low price that is affecting the global value. Even the costs that Russia can get away with selling their oil at would drastically reduce the value of oil. These countries are doing this in an effort to move there surplus, and the price point for them to profit off of their oil is considerably cheaper than what Alberta requires. Really, what it boils down to, is that a surplus of anything will consistently drive the price of said thing down… It is the law of supply & demand. For us to take drastic measures to begin producing more oil and increasing our export is the worst thing we can do for our own economy, as well as the price of oil.
Q: How do you feel the government is handling this situation?
A: Loaded question, [laughs], well… Let me see here… This is just my opinion, and it’s not necessarily a popular one. First of all, I think the choice to spend 750 million on infrastructure within our province was a good call. It will create jobs, improve many sectors within the province, and that massive investment is going, almost directly, back into the local economy. Partnering with manufacturing, it was such ideals that pulled the Western World out of the Great Depression. Streamlining the E.I process will help stabilize the personal lives of the people, and keep their lives together for as long as they require assistance. I think that this is a tough situation, obviously. Let us not forget that the Jim Prentice government predicted this downturn, which was supposedly one reason he called for an early election. Any government will warrant criticism in such difficult times, but our current legislation has made some steps in the right direction for Alberta… That’s just my opinion.
It sounds like Alberta needs is solid leadership in business and politics, creative problem solving in industry, and widespread resilience. Luckily, these values have been upheld by Albertans for many generations.