G O V E R N M E N T S  -  I N T R O D U C T I O N

Context

Government spending is a major economic driver that has a tangible impact on the economic well-being of every business and individual in Canada. The sector includes all levels of government (federal, provincial, municipal and all related agencies, institutions and crown corporations) from coast to coast and in the north. Overall, Canadian governments spend more than $1 of every $3 of the country's GDP.

Dillon partners with governments at all levels, delivering a full range of programs and services as key members of the client's team. We have specialized in the Government Sector for over 60 years, and are a key player in all regions of Canada.

Drivers

The health of the Government Sector is largely determined by the relative and absolute status of the Canadian economy, and is in turn significantly influenced by the world economy (predominantly the US). The level of foreign investment, relative taxation and national/international interest rates all affect our economic health.

Major drivers of government services include environmental concerns and regulations, public perceptions of the economic role of governments and the growing need to renew public infrastructure. An ongoing challenge in the extent of program spending on these is the amount of social versus capital spending.

Outlook

Over the past 20 years, the sector has been increasing in size overall, but decreasing on the basis of percentage of the GDP. In the near future, the overall size of the sector is expected to stabilize; in the longer term, the trend is towards smaller government with more reliance on outsourcing. The balance between capital and social spending may be shifting back as well.

Changing Client Needs

Clients in this sector increasingly need reliable planning and program delivery expertise for an ever broadening mandate. This includes programs for the environment, infrastructure management, resource management, alternative service delivery, disaster/emergency management and climate change initiatives.

Dillon’s Approach

Dillon partners with governments at all levels, providing professional guidance and technical expertise for the delivery of a full range of programs and services. Our approach is founded on solid, long-term relationships with our government clients that are based on quality service, understanding the unique needs of each and internal re-investment in our people, processes and technologies to prepare for the emerging needs of this vital area of the Canadian economy.