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Vancouver Island construction increases in second quarter

The construction industry experienced an upturn in activity on Vancouver Island in the April to June 2013 period.

The construction industry experienced an upturn in activity on Vancouver Island in the April to June 2013 period thanks to surge in institutional and government building and a seasonal increase in residential construction.

The Vancouver Island Construction Association (VICA) reports that the total dollar value of building permits issued for the Island rose 40 per cent, total non-residential building construction investment in Metropolitan Victoria increased four per cent and construction employment climbed 9.3 per cent on the Island in the second quarter over the first quarter.

“This trend continues to be consistent with the increase in project opportunities in the association’s BidCentral and plan rooms,” says Greg Baynton, CEO of VICA. “Market conditions are still challenging and growth is sporadic as our economy slowly gets back on track.”

Highlights of the second quarter 2013 for Vancouver Island include a:

· 52 per cent surge in non-residential permits which includes a 524 per cent jump in institutional-government permits;

· 31 per cent increase in residential permits;

· 9.3 per cent increase in construction employment.

All seven regional districts on Vancouver Island, except Nanaimo, saw gains in building permits. The largest gains were in the Capital Regional District and the Strathcona Regional District.

“Vancouver Island’s construction industry outlook remains mixed. Market conditions are not conducive to a significant investment upturn given the state of the regional economy, so we expect below-average performance for the rest of 2013,” explains Baynton. “But beyond 2013, investment prospects will depend on demand the state of the economy. The expected growth upturn in the U.S. and Asian economies during 2014 is likely to have significant spin-offs which will reach as far as Vancouver Island.”

The Vancouver Island Construction Association, (VICA) is British Columbia’s largest and most inclusive regional construction associations, representing more than 500 construction related businesses on Vancouver Island.

As one of Canada’s oldest not-for-profit Constructions Associations, VICA has been serving the construction community since 1912. We’re dedicated to providing support and services crucial to contractors, manufacturers, suppliers and the purchasers of construction services throughout Vancouver Island from our Victoria and Nanaimo offices.

— Vancouver Island Construction Association