Saskatchewan is in the midst of an investment cycle – a key milestone in the upside of an economy driven by commodity production.
Veterans of the potash industry have a saying: the potash business has a 15-year cycle…seven years up followed by seven years down. Right now, we are in the middle of the upside of that cycle.
That is the time when industry makes investments as they turn the cash flow generated by strong global demand and pricing into new or added capacity. The Jansen Potash mine is an example. So is Foran’s copper play at Flin Flon and all the activity in the uranium sector.
Numbers on construction also support this theory. The latest report shows June and July saw more capital investment than in any month in the past year. Both months were near $600 million which would be more than $7 billion on an annualized basis.
Construction also attracts people – workers who follow the big projects which are in Saskatchewan right now. Then add in the downstream support people: service industries such as restaurants, retail and health care.
