Home->Spring 2009->Editorial

Context is key as B.C. holds its own

Jessica Krippendorf

There was $4.5 billion worth of building permits taken out nationally in March, up 23.5 percent from February, says Stats Can, which is a turnaround from five consecutive monthly declines, but still leaves the numbers below December 2008 levels. The value of building permits went up in some provinces in the same month, the most significant cases being in Ontario (up 45.7 percent to $1.8 billion), Quebec (up 30.3 percent to $1 billion), and Alberta (up 34.1 percent to $696 million)—the three provinces largely responsible for the increase in the number of non-residential permits.

Despite declines in some areas, B.C. is still holding its own. The value of permits dropped in B.C., but the province is largely responsible for a 89.2 percent increase in the value of institutional and commercial permits because of intentions for medical buildings. Residential numbers are way down, but taken in perspective of last year’s overheated market, the effects are minimal (so far), with few contractors reporting huge declines.

A Statistics Canada Labour Survey for April says B.C. and Alberta stood on the unemployment podium in March, with the most significant decline being in construction (16,000 in B.C. in March, 7,700 in the Lower Mainland-Southwest). Despite these numbers, both province’s unemployment rates are well below the national average, and Alberta’s is still lower than it has ever been.

The government help the industry has been in need of is on its way. A total of 113 infrastructure projects across B.C. were included as part of a $793,000 investment roll-out care of the provincial government in March. Six new housing developments in Vancouver were part of the announcement, as were 478 new housing units on 11 sites, in seven additional communities, totalling $130 million. The province is looking at 30 new K-12 school and school renovation projects worth $424 million from which 2,500 new, direct jobs are said to result. Improvements to correctional facilities, courthouses, and other public safety facilities valued at $59 million are set to result in 380 new jobs, and nine projects for the Ministry of Children and Family Development are priced at $8 million total and should result in 50 direct jobs.

An April news release from the Ministry of Education reported that a combined investment of $20 million by the province and school districts for projects to improve energy efficiency and air quality in interior and northern-B.C. schools will create up to 128 direct jobs. The primary focus of many of these is replacing and upgrading mechanical systems, implementing technology and systems to significantly reduce GHGs and carbon footprints, and other retrofits aimed at improving energy efficiency and helping school districts save on long-term costs.

There are positive economic points of interest at the field level too. B.C. has the third in Canada highest average weekly wage ($798), pays its youth (under 25) the third highest hourly wage in the country ($13), and leads the nation in consumer confidence at 82.6 compared to Canada’s overall 71.5. All in all, things are looking up. SMACNA contractors are, of course, at an advantage (Jim Paquette from Local 280 talks all about it on page ). Most importantly, these small jumps and contextual adjustments are creating the first inkling of optimism, a surplus of which is always welcome. SMJ