Total construction investment is expected to grow by 21% to nearly
$3.0 billion in 2004 due primarily to continued work on major
projects in the resource sector. This builds on growth of 10.8% in
2003. Construction employment averaged 11,900 in the first nine
months of 2004, an increase of 24% over the same period last year. |
Non-Residential |
| Non-residential construction investment
is expected to total $2.1 billion this year, led by high levels of
activity related to the White Rose and Voisey’s Bay projects. Mining
and oil and gas industries combined are expected to account for
approximately 71% of construction expenditures. |
| Construction Industry Indicators |
|
2003 |
2004f |
Percent Change |
Construction Investment1
Non-Residential
Residential |
$ Millions |
21.0%
30.4%
3.2% |
2,469
1,622
846 |
2,988
2,115
873 |
Housing Starts
(Jan-Sep) |
1,915 |
2,072 |
8.2% |
Employment
(Jan-Sep) |
9,600 |
11,900 |
24.0% |
1 Figures for 2003 are preliminary actual data
and figures for 2004 are Department of Finance forecast.
Statistics Canada; CMHC; Economic Research and
Analysis Division, Department of Finance |
|
|
|
In addition to the mega-project activity, there are a variety of other
significant non-residential construction projects currently underway in
the province including: the world class Humber Valley Resort located in
Western Newfoundland; a state-of-the-art sewage treatment facility that
will service St. John’s, Mount Pearl and a portion of Paradise; a cold
storage and offloading shrimp facility in St. Anthony; as well as
numerous commercial developments throughout the province. |
Residential Construction |
Growth in residential construction
investment continued in 2004. Expenditures on housing construction (not
adjusted for inflation) in the province have more than doubled over the
past eight years from $417 million in 1996 to $873 million in 2004. In
the first six months of 2004 total residential investment was up 18.0%.
Renovation expenditures, which account for 55-60% of total residential
investment, increased by 13.5% while investment in new housing increased
by 18.7%. Housing starts increased by 8.2% in the first nine months of
2004 to reach 2,072 units. Mortgage rates have remained low and this,
together with continued income growth, has maintained momentum in housing
construction.
While housing activity has been relatively strong during the first nine
months of the year, activity is expected to drop off in the fourth
quarter. As a result, annual housing starts are forecast at about
2,700—only slightly higher than last year. Total residential investment
should be up by 3.2% in 2004. |
|
