to sell the product and turn it into revenue. For many clients, we got creative with the terms of their loan and restructured them so the business had the ability to succeed under their current cash cycle. The result was that clients under this type of pressure gained the ability and the capital to purchase materials with confidence.” Moving forward, that’s the kind of support, flexibility and personal service that CWB intends to offer their clients regardless of any challenge facing the construction industry. There’s one looming challenge that Jeremy does not expect to limit the growth of his construction clients - the specter of recession. He says that governments tend to continue infrastructure spending through these periods, and many contracts will come up for offer. “If you’re an infrastructure contractor and you have the liquidity, capacity, knowledge, geographical positioning, required equipment and staffing levels to bid on these projects, I think you’re wellpositioned going forward.” In the residential construction sector, meanwhile, Jeremy points out that there is a clear and obvious “disconnect between housing supply and the number of new houses needed.” Federal immigration targets, for example, are about 800,000 annually – and those new residents will need places to stay. “For construction companies, there’s huge opportunity there to produce homes for new Canadians,” he says. Of course, there are challenges to producing those homes – even though inflation has levelled off and the supply chain is relatively back to normal, costs remain high, interest rates have increased and affordability is a problem. Even given those challenges, Jeremy says the builders who have a plan to manage their costs, who can absorb potential market changes, and who can complete projects at a price that meets market expectations “are poised to earn a return on their investment.” “From our view, capital should always be available to good, strong businesses,” Jeremy says. “CWB’s approach is that we’ll always support the right client, regardless of what the economy is doing.” Jeremy Bloy, AVP, Business Development, CWB’s Vancouver District. JULY 2023
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