Construction credited for region’s fast-growing pace
Wendy McLellan
Province
Expansion of the Vancouver Convention Centre is only one of many new projects. Photograph by : Jon Murray, The Province
Construction sites will continue to dominate the Lower Mainland next year, making it the fastest growing metropolitan economy in the country, says a report released yesterday by the Conference Board of Canada.
Non-residential construction, including Olympics-related projects, will have another strong year, bringing more jobs, more people and more spending to the municipalities that make up the Greater Vancouver region, the report said.
Although residential-housing starts have slipped and are expected to slow further next year, non-residential construction will continue to increase in 2006, with forecasted growth of 7.9 per cent.
Overall, construction activity in B.C. increased by about 9.4 per cent this year and is expected to grow by another 7.6 per cent in 2006. Non-residential construction spending increased by 12.2 per cent in 2005 and is forecast to increase 8.9 per cent next year.
“We have had a very busy 2005 — a phenomenal change from what we experienced a few years ago,” said Keith Sashaw, president of the Vancouver Regional Construction Association.
“B.C. and the Lower Mainland have gone through incredible growth in non-residential construction, and we anticipate it will continue in 2006 probably at the same blistering pace as we had in 2005.”
Sashaw said the provincial government maintains a major-projects inventory which now lists more than $82 billion in construction currently under way. Two years ago, the inventory was worth $44 billion.
He said the Olympics projects represent about $600 million of the inventory.
“The job growth in the Lower Mainland has been huge,” Sashaw said. “In June, 2004, there were about 60,000 people employed in the industry; this year, there are more than 80,000 — and that’s just in the Lower Mainland.
“We’re looking forward to a number of years of good, solid growth, at least until 2009, 2010.”
Overall, the Lower Mainland’s economy showed steady growth this year, which is expected to continue in 2006, the report said. Almost 31,000 new jobs will be open in the region, meaning more consumer spending and continued vigorous activity in both goods and services industries.
“I certainly agree 2006 will be a good year for Greater Vancouver, and construction is the biggest driver, no question,” said Jock Finlayson, executive vice-president of the Business Council of B.C.
“Residential, non-residential, infrastructure and transportation — construction is very strong across the board.”
Abbotsford’s economy has seen strength, with the construction industry leading the growth this year and continuing in 2006. Non-residential projects, including the next phase of the $24-million Mt. Lehman Road interchange upgrade and the $355-million Regional Hospital and Cancer Centre, will more than make up for an anticipated decline in housing starts in the area.
The region’s economy is forecast to increase by another 3.1 per cent in 2006 and employment is expected to grow by 2.9 per cent.
Victoria‘s strong gains in both the goods and services sectors improved employment, and along with healthy consumer spending, a strong housing market and improved tourism activity, provided the region with solid growth this year, the report said.
Next year is forecasted to bring a 1.1-per-cent decline in employment; however, the region will continue to enjoy moderate growth, according to the report.
© The Vancouver Province 2005