Downtrend continues across all three sectors with no major projects on the horizon
From VRCA. Non-residential construction investment in the Abbotsford CMA saw a 24.4 per cent decline in the first quarter of 2014, 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 first quarter of 2014 was down in Abbotsford to its lowest level since the first quarter of 2011, with declines in all three categories,” says Fiona Famulak, president of the Vancouver Regional Construction Association (VRCA). “While the region’s economy is beginning to improve, it will take some time before we see this reflected in a market-wide investment upturn.”
Total non-residential building construction investment spending in Abbotsford decreased to $25.1 million seasonally adjusted in the first quarter of 2014, compared to $33.2 million in the fourth quarter of 2013. Commercial construction investment dropped 23.4 per cent to $9.4 million, while institutional-government spending fell 27.4 per cent to $12.4 million and industrial building investment decreased 14.5 per cent to $3.4 million.
“Recent building permits suggest an increase in industrial spending in the second quarter of 2014, but this will likely not be enough to offset declines in commercial and public spending. Chances are for another decline in total spending, however the long quarterly downtrend will likely end in 2014 and total spending will hit a bottom,” says Famulak.
Metro Vancouver saw a 3.4 per cent decline in total non-residential building construction investment in the first quarter of 2014 to $830.8 million seasonally adjusted, from $860.1 million in the fourth quarter of 2013.
Highlights from the first quarter 2014 Investment in Non-residential Building Construction report:
Abbotsford Census Metropolitan Area (CMA)
- Non-residential building construction investment fell 24.4 per cent to $25.1 million seasonally adjusted in the first quarter 2014 from $33.2 million in the fourth quarter of 2013.
- Commercial building spending declined 23.4 per cent to $9.4 million.
- Industrial building investment fell 14.5 per cent to $3.4 million.
- Institutional-governmental building investment dropped 27.4 per cent to $12.4 million.
Q1 2014 compared to Q1 2013
Total non-residential building construction investment spending was down 44 per cent to $25 million in in the first quarter of 2014 compared to $44.7 million one year ago.
- Commercial building investment spending was down 59.3 per cent to $9.4 million from $23.2 million.
- Industrial building investment spending was 20.8 per cent lower at $3.3 million from $4.1 million.
- Institutional-government building investment spending was 29 per cent lower to $12.3 million from $17.4 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.
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