Public and industrial sector gains not enough to offset declines in commercial spending
Submitted. Non-residential construction investment in the Abbotsford CMA saw a decline in the second quarter of 2013, according to Vancouver Regional Construction Association’s analysis of Statistics Canada’s Investment in Non-Residential Building Construction report.
“Total non-residential building construction spending in the second quarter of 2013 was down in Abbotsford,” says Jan Robinson, interim president of the Vancouver Regional Construction Association (VRCA). “Commercial spending continues to trend down with no major proposed projects showing for the area to replace the large Mt. Lehman project.”
“The 2013 outlook is generally positive, but dependent on improving economic and market conditions, with public spending looking to rise and the industrial sector looking to be range-bound in 2013,” says Robinson. “A decline in commercial building spending however is unavoidable unless new projects surface.”
Total non-residential building construction investment spending in Abbotsford dropped 4.4 per cent to $42.6 million (seasonally adjusted) in the second quarter of 2013, compared to $44.5 million in the first quarter of 2013. Commercial construction investment dropped 15.2 per cent to $19.5 million, while institutional-government spending was up 5.9 per cent to $18.3 million and industrial building investment rose 12.3 per cent to $4.8 million.
Metro Vancouver saw a 1.8 per cent drop in total non-residential building construction investment in the second quarter of 2013 to $890.4 million seasonally adjusted, from $906.7 million in the first quarter of 2013.
Highlights from the second quarter 2013 Investment in Non-residential Building Construction report:
Abbotsford Census Metropolitan Area (CMA)
Non-residential building construction investment slipped 4.4 per cent to $42.6 million seasonally adjusted in the second quarter 2013 from $44.5 million in the first quarter of 2013.
– Commercial building spending declined 15.2 per cent to $19.5 million.
– Industrial building investment climbed 12.3 per cent to $4.8 million.
– Institutional-governmental building investment rose 5.9 per cent to $18.3 million.
Q2 2013 compared to Q2 2012
Total non-residential building construction investment spending dropped 21.9 per cent to $43.1 million in second quarter 2013 compared to $55.2 million in second quarter 2012.
– Commercial building investment spending fell 47.3 per cent to $19.8 million.
– Industrial building investment spending dropped 19.5 per cent to $4.9 million.
– Institutional-government spending was up 59.2 per cent to $18.4 million.
With close to 700 members, VRCA is British Columbia’s largest and most inclusive regional construction association, representing union and non-union, general and trade contracting companies, manufacturers, suppliers and other professionals throughout the Lower Mainland from Hope to Whistler.