B.C.’s construction industry will be kept busy in 2012 with strong residential activity and increased private-sector investment in non-residential construction, according to a forecast released this morning by consulting services company BTY Group.
Neill McGowan, a partner with BTY, told Business in Vancouver that B.C. will see a similar amount of construction activity in 2012 as it saw in 2011.
“It’s not as high as it was a few years ago, but there is activity – but there’s also capacity in the industry to handle that activity,” he said.
McGowan characterized the forecast 2012 construction activity as “diversified.”
“The [Canada Mortgage and Housing Corp.] is forecasting a 7% rise in new housing starts, and there’s a fair amount of diversity in the marketplace because there’s activity on the BC Hydro front, there’s more energy in the mining sector and we’re seeing ongoing transportation projects like the Gateway Program continuing, the Evergreen Rapid Transit starting up and so forth,” he said.
But McGowan added that, given B.C.’s strong construction contractor numbers, BTY is predicting construction costs in B.C. will rise by only 1% to 2%.
“It’s at or slightly below the general rate of inflation as the contractors are getting a bit squeezed,” he said.
How does B.C.’s forecast stack up against predicted activity for the rest of Canada?
“The scale of activity is dwarfed by the activity in Alberta, in the oilsands, where there’s multi-billion dollar investments taking place,” he said. “But [B.C.]’s still doing reasonably well in the national picture.”
Jenny Wagler
@JennyWagler_BIV