Vancouver Island’s construction industry is showing strong signs of growth, new data suggests

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by JOC Digital Media

According to the Vancouver Island Construction Association (VICA), total building permits for the island, a key sign of future construction activity the association says, climbed 8.2 per cent in quarter two.
Vancouver Island’s construction industry is showing strong signs of growth, new data suggests

The Nanaimo Regional District posted the largest gain at 53.9 per cent in Q2, followed by a 45.9 per cent rise in the Cowichan and a 23.9 per cent increase in the Comox Valley compared to Q1 2014.

"Construction investment is a key economic indicator" said Greg Baynton, CEO of VICA. "This is a positive sign and indicates increased confidence in region's economy, particularly for Nanaimo and north."

Year-to-date building permits were 10.5 per cent higher on Vancouver Island compared to the same period last year. Total non-residential construction building investment spending in the Victoria metropolitan area increased 4.9 per cent in the second quarter led by public construction.

Despite the growth, construction employment declined 10 per cent over the first quarter and was below year ago levels.

Non-residential building construction costs edged lower in the second quarter bring the year-over-year measure below one per cent

Projected major capital projects activity remains unchanged at an unprecedented $32.1B

"We expect this positive trend to continue through the remainder of  2014 and for the trend to increase dramatically in 2015 (and) 2016"  said Baynton, noting the impact of major projects across the region.

The Vancouver Island Construction Association, (VICA) represents more than 500 construction related businesses on Vancouver Island.

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