Non-residential construction investment spending in Metro Vancouver rebounded from the fourth quarter of 2011 with gains in all three building categories in the first quarter of 2012, according to Vancouver Regional Construction Association's analysis of Statistics Canada's Investment in Non-Residential Building Construction report.
"We are pleased to see gains in all three non-residential investment building construction categories in the first quarter of 2012," says Keith Sashaw, president of the Vancouver Regional Construction Association (VRCA). "Total non-residential construction investment spending is below levels from one year ago, but the outlook is positive."
"Industrial spending is up to its highest level since the third quarter of 2009, with another increase expected in the coming quarter," says Sashaw. "Recent building permit activity and improving market conditions point to a higher spend ahead in commercial building investment."
Metro Vancouver saw a four per cent rise in total non-residential building construction investment in the first quarter of 2012 to $667 million seasonally adjusted, from $614.4 million in the fourth quarter of 2011. Commercial building construction was up 3.9 per cent to $451 million, industrial building construction was up 25.4 per cent to $37.8 million, and institutional-government edged up 0.5 per cent to $178.2 million over the fourth quarter of 2011.
"The second quarter of 2012 will likely see further gains in private sector spending," says Sashaw. "The economic recovery is currently in a mid-cycle phase, where higher private sector investment gains momentum. We expect this to hold true for Metro Vancouver, with the public sector contributing to spending to a lesser degree."
Highlights from the first quarter 2012 Investment in Non-residential Building Construction report:
Vancouver Census Metropolitan Area (CMA)
Quarterly comparisons
? Non-residential building construction investment spending in Metro Vancouver rose four per cent in the first quarter to $667 million seasonally adjusted from $614.4 million in the fourth quarter of 2011.
Commercial building construction rose 3.9 per cent to $451.0 million.
Industrial building construction investment rose 25.4 per cent to $37.8 million.
Institutional-government building investment rose 0.5 per cent to $178.2 million.
Year-over-year comparisons
? Total non-residential investment spending declined 9.1 per cent to $656.1 million in the first quarter compared to $721.6 million one year earlier.
Commercial building investment spending is down 13.1 per cent to $443.6 million.
Industrial building investment spending climbed 30.8 per cent to $37.2 million.
Institutional-government spending is down 3.9 per cent to $175.3 million.
With more than 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.
