Job Bank’s latest market trends, news in Alberta

source: jobbank.gc.ca

Week of Jun 15 – Jun 19, 2015

• Trinidad Drilling and CanElson Drilling, two large oilfield services companies, are merging operations in a $506M deal. The combined entity will have 163 land drilling rigs in its North American and international operations.
• Operations have resumed at both of the Canadian Natural Resources Ltd. and Cenovus Energy Inc. oil sands projects that were threatened by wildfires after two weeks offline. Both companies are assessing the costs associated with the shutdown in production.
• The Industrial Heartland Association is seeking provincial government support for a $1.6B plastics manufacturing facility in the region. The association stated that such projects typically create 1,500 construction jobs, and 150 full-time positions.
• The Capital Region Board, encompassing the greater Edmonton area, has approved the formation of a new regional economic development agency. Under an initial funding proposal, Edmonton would pay 60 per cent of the $600,000 cost for the first year.
• The City of Medicine Hat has released the May 2015 building permit numbers for the city. Multi-unit residential permit values are down 50 percent from a year ago. Commercial construction permit value is also down from 2014, mostly because of two large projects started in 2014 worth a combined $58M.
• Medicine Hat School District No. 76 is seeking 41 teachers to fill positions for the upcoming school year. The openings are a result of retirements and maternity leaves. The Medicine Hat Catholic Board of Education has recently hired 12 teachers and is seeking two more for September 2015.
• Big Eagle Hydro-Vac, a regional oilfield services company, and its related companies have been placed in receivership at the request of creditors. The company operates a fleet of 400 trucks, nitrogen service vehicles, tank haulers and other pieces of specialized equipment.
• The Palliser Regional School Board has achieved a balanced budget for the 2015-16 school year through a combination of staff reductions and hours of work. The district is cutting certified staff by 15 full-time equivalent positions, and support staff will see an eight percent reduction in hours. The cuts were largely achieved by attrition.
• Athabasca University, with a main campus in Athabasca, is experiencing sustainability issues resulting in part from reduced Alberta student enrolment. The university has been increasingly dependent over the last 20 years on out-of-province students signing up for its online programs. There are approximately 400 full-time university staff members that live in the Athabasca area.
• The Vegreville Observer, a weekly newspaper serving the Vegreville area has ceased operations after 109 years. According to the newspaper owner, the publication had not been profitable for several years.
• The Airdrie Urgent Care Centre, in Airdrie, is adding five new beds at a cost of approximately $400,000. Construction to convert the existing office space is slated to begin in the summer of 2015, with the bed space open in the first quarter of 2016.
• The Pembina Hills Regional Division No. 7, is hiring a Communications Director for a term of one-year in order to build communications capacity amongst staff
• Restaurants Canada is recommending that the Government of Alberta consider the economy, and phase-in any planned increases to the minimum wage. The association stated that it has over 4,000 members in Alberta representing more than 150,000 employees.
• Recent reports on the state of commercial real estate in downtown Calgary suggest that the market is feeling the effects of company downsizing due to depressed oil prices. Real Net Canada and Cushman & Wakefield reported lower real estate transactions and increased vacancy rates, compared to 2014.
• Elite Fitness, a downtown gym in Banff, closed its doors on June 2, 2015 following two and a half years of operation. Rising rent and low membership renewals resulted in financial troubles for the business.
• The Varscona Theatre in Edmonton is being demolished to make way for a new $7.5M state-of-the-art theatre scheduled to open in the spring of 2016. Four walls and an associated tower from the original building are being retained.
• Lethbridge College is offering a new Plumbing Apprenticeship program within its School of Construction Trades. Registration is now open for the first intake of students planned for January 2016.
• The Agriculture Business Risk Management program at Lethbridge College is set to receive $215,570 from the Alberta Livestock and Meat Agency. The program curriculum is being designed by industry for those working and studying in the livestock, grain and oilseed industry who would benefit from increased skills and knowledge in the area of business risk management.
• Steelhead Structures have broken ground on construction for Park Place, a 24-unit storage/studio facility in Canmore. Completion of the project is scheduled for early December 2015.
• Gap Inc., an apparel retailer, has announced the closure of 175 Gap specialty retail stores in North America over the next several years, without detailing any Canadian locations. Gap has about 90 stores in Canada.
• Peace River Cabins and Outdoors, an outdoor tourism and canoe/kayak tour company has opened in Peace River. It offers guest cabins, guided river and photography trips.
• ConocoPhillips has temporarily shut down its Surmont Phase 2 oilsands project near Fort McMurray following an acid leak. Approximately 1,200 workers remain on-site, pending the cleanup and restart of operations.
• Irving Shipbuilding, a New Brunswick company involved with ship building for the Government of Canada, is holding a job fair in Fort McMurray on July 8, 2015. The company is hoping to attract fully certified pipefitters, welders, iron workers and marine fabricators to fill more than 200 jobs in the fall.
• An energy company has ceased its hydraulic fracturing operations in the Fox Creek area, in accordance with regulations put in place by the Alberta Energy Regulator, after seismic activity was recently detected. The company has ceased operations until further notice from the regulator.
• The Canadian Association of Oilwell Drilling Contractors has revised its 2015 drilling forecast due to weakness in the energy sector. A sharp drop in the number of overall operating days means an estimated reduction of 25,110 total jobs in 2015.
• Fort McMurray International Airport is looking at ways to cut costs in the wake of continued declines in passenger numbers. Low oil prices have reduced the number of workers flying in and out of the region.
• Two Sergeants Brewing Inc., a new craft brewery in Fort Saskatchewan has started a crowd funding campaign to help with construction costs for their brew pub at Fort Station. The pub will feature live music and on-site brewing.
• The Fort Saskatchewan Chamber of Commerce reached a record 400 members on June 1, 2015. The Chamber represents a broad spectrum of businesses from various sectors with the majority of small businesses who employ 15 people or less.
• Grande Bingo Society in Grande Prairie is building a new $50,000 bingo hall at the Army Navy Air Force Veterans building. The new facility will include an office area, storage and a concession stand.
• The Loon River First Nation has announced a new truck stop/gas bar/Tim Hortons complex at the south end of Red Earth Creek near High Prairie; construction started on June 19, 2015.
• The City of Calgary has approved a density swap between residential developments that allow for a residential rental building in the East Village. Transferring density allows the developer to build 64 additional units in the rental tower.
• The Government of Alberta has agreed to honour a commitment from the previous administration to jointly fund a new seniors facility in Innisfail. Construction of the $17.6M facility is expected to start in the spring of 2016 and be completed in 2018.
• The Town of Innisfail has approved the Bella Vista residential development on the west side of the community, with construction starting in 2016. Creation Communities has 659 residential units planned over a 10 year build out.
• The Drowning Ford Grazing Association has donated $1M to the Prairie Rose School Division for the new school in Schuler. Construction is expected to start in August 2015 and be finished a year later.
• Leduc County has decided to fund a one-year transportation project designed to help rural seniors gain access to the City of Leduc. Rural seniors travel to the city for medical and dental services and shopping.
• The Town of Nanton has voted to increase the pay rates for volunteer firefighters to reach parity with firefighters in the Municipal District of Willow Creek. The latter council increased its pay rates on May 20, 2015.
• Imperial Oil has started production at the $9B Kearl oil sands expansion project north of Fort McMurray. Kearl is a partnership between Imperial Oil and its U.S. parent, ExxonMobil Corp.
• Mary’s Amazing Housekeeping Service, a residential and commercial cleaning business in Peace River, is expanding and seeking new employees
• The Maple Tree Bakery, the only gluten-free bakery and café in Red Deer, is opening soon for business pending receipt of a development permit for building renovations
• MEG Energy Corp. is moving forward with plans for a diluent removal facility near Bruderheim, following conditional approval from Strathcona County. The facility will strip out diluent from a pipeline mixture and recycle it back to a production plant.
• Northern Lakes College has closed its campuses in LaCrete and High Prairie due to budgetary constraints. Approximately 24 to 30 staff were also laid off, some at the Slave Lake campus. The college has also created 18 positions to service new programs.
• Statoil ASA, Norway’s state-controlled oil producer, will cut as many as 2,000 more jobs by the end of next year as it reacts to lower crude prices by slashing costs. The company did not provide a geographic breakdown of the cuts.
• The Bonnyville and District Chamber of Commerce is conducting a local survey of businesses in cooperation with the Alberta Chamber of Commerce to gauge the local impact of a proposed minimum wage increase over the next three years.
• The Alberta Aerospace Training Centre, now in operation at Edmonton International Airport, is positioning the city as a leading aerospace training hub. The training centre will expand in July 2016 when Canadian Helicopters will install a helicopter simulator.
• A planned $900M expansion of the Banff Centre, an arts and creativity incubator, which included a new downtown venue and expansion of the current campus, has been put on hold indefinitely. The facility is modifying the plans to focus on improvements to its existing assets.
• The City of Calgary is seeking guidance on the regulation of medical marijuana dispensaries and related businesses in anticipation of growth in the sector. The city will consider whether there should be limits on the numbers of such businesses.