If you think B.C.’s construction industry has been busy, you ain’t seen nothing yet, Credit Union Central predicts
Paul Luke
Province
B.C.’s non-residential construction sector is surging into a white-hot future, says a new report. The already blistering pace of non-residential building across the province will accelerate as investment pours into transportation, commercial, industrial and institutional projects, Credit Union Central of B.C. said yesterday.
Total provincial spending on non-residential building should bound to $17.3 billion in 2008 from $11.4 billion last year, the report said.
That represents average annual growth of 15 per cent, up from 12.6 per cent annually for the period from 2003 to 2005.
“B.C.’s boom in non-residential construction is being driven by many factors, including robust growth in provincial GDP, consumer spending, disposable income and employment,” Central economist Dave Hobden said.
“Moderate growth in population, relatively low and stable interest rates and China’s surging economy are other significant factors.”
Non-residential construction comprises transportation and utility projects, as well as commercial, institutional and industrial buildings.
Growth in real gross domestic product from the non-residential sector should average 8.8 per cent a year through 2008. That’s up from 6.3 per cent over the past three years, the Central report said.
Building construction will generate the fastest-growth rate in GDP, followed by repairs and heavy engineering, Central said.
Growth should be spread widely over the province, the report said.
The building binge means the sector will account for more than seven per cent of all growth in B.C.’s real GDP from 2006 to 2008.
Surging construction will fuel dramatic employment growth.
The non-residential workforce should jump to more than 119,000 people in 2008 from 89,100 in 2005, the report said.
“Seventy per cent of forecast growth will be in specialized trades working for equipment, foundation, structural, envelope and finishing contractors,” Central said.
“The remaining 30 per cent will be in direct employment with builders and developers.”
Self-employed workers will account for more than half of the sector’s forecast job growth. Engineering projects account for about two-thirds of total construction investment in non-residential, the report said.
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WHERE ARE YOUR TAX DOLLARS AT WORK TODAY?
Estimated capital costs for non-residential projects in the B.C. government’s Major Projects Inventory total just under $80 billion, up almost $23 billion from a year earlier.
Here are 10 major non-residential projects in the Lower Mainland from the inventory:
– RAV Canada line — estimated cost: $1.9 billion
– Vancouver International Airport expansion — estimated cost: $1.78 billion
– Proposed Port Mann Bridge twinning/Highway 1 widening — estimated cost: $1.5 billion
– Proposed Cogburn magnesium quarry and ore-processing plant in Hope — estimated cost: $1.3 billion US
– Proposed Coquitlam Light Rail Transit Line (Evergreen line) — estimated cost: $953 million
– Proposed South Fraser Perimeter Road in Surrey — estimated cost: $800 million
– Proposed Golden Ears Bridge in Langley — estimated cost: $650 million
– Vancouver Convention Centre expansion — estimated cost: $615 million
– Sea-to-Sky Highway upgrade — estimated cost: $600 million
– GVRD Capilano and Seymour Water Filtration plant — estimated cost $600 million
© The Vancouver Province 2006
