Skip to main content

Infrastructure stocks were touted as ideal investments to take advantage of stimulus spending when the recession first hit, but their performance has lagged the broader S&P/TSX index in the past year.

Reasons for their weakness include:

Private sector projects dwarf public spending

Story continues below advertisement

Although the government stepped in with stimulus funds, private sector projects have historically accounted for 60 to 70 per cent of all business.

Delays, delays, delays

The government took its time doling out contracts and the construction industry is notorious for delays in getting approvals and completing work.

Recession contracts had lower margins

When proposed projects died during the downturn, more firms bid for fewer contracts, lowering margins on those awarded.



Report an error Licensing Options
About the Author
Reporter and Streetwise columnist

Tim Kiladze is a business reporter with The Globe and Mail. Before crossing over to journalism, he worked in equity capital markets at National Bank Financial and in fixed-income sales and trading at RBC Dominion Securities. Tim graduated from Columbia University's Graduate School of Journalism and also earned a Bachelor in Commerce in finance from McGill University. More

Comments are closed

We have closed comments on this story for legal reasons. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.