Last week TransCanada announced it would no longer build its Energy East Pipeline, and the country is divided on whether that's good or bad news.

The pipeline would have run from Hardisty, Alta. east to St. John, N.B. and the cancellation of its construction will have an impact on the economy.

Varsteel is a steel distributor throughout much of western Canada and Tim Fauser is the branch manager for Swift Current and Medicine Hat.

Fauser said despite not having any contracts for the pipeline's construction, they'd be losing some peripheral business due to its cancellation.

"It's not like we had a big pipe contract or something like that cancelled," said Fauser. "Just in general, we get peripheral business from those types of activities. When they're building they'll generally source the main products that they need. Corporately the pipe might have been bought overseas or whatever. What we get is the smaller stuff, the fill-in stuff. Guys are looking for a piece of this, or they're building brackets, we kind of get the spin off."

Fauser estimated the energy sector makes up between one third and half of Varsteel's business, with infrastructure and farm and ranch also making up big portions.

The cancellation is bad news for Varsteel, and Fauser said the scrapping of the pipeline plans goes beyond just their business.

"It's disappointing. We're fighting our way back from a pretty deep hole and every bit helps. The jobs and that that would have been created - these guys spend money, they buy groceries and stay in hotels and eat in restaurants, so it's a trickle-down effect right across the board."