Q1 Investment in Non-Residential Building Construction Down 1.6%

April 20 2016

Investment in non-residential building construction declined for the fifth consecutive quarter, down 1.6% from the previous quarter to $12.5 billion in Q1. Nationally, the decrease reflected lower spending in all three components: commercial, institutional and industrial. Commercial buildings accounting for most of the decline. Lower spending was recorded in eight provinces, with Alberta posting the largest decline and Quebec a distant second.

Chart 1: Investment in non-residential building construction

 

 

 

 

 

 

 

 

 

 

In Alberta, the decline came mainly from lower investment in commercial and industrial buildings, as spending on institutional buildings has been on an upward trend since the third quarter of 2014. In Quebec, lower spending on institutional and commercial buildings was responsible for the decrease.

British Columbia and Saskatchewan were the only two provinces to register advances. In British Columbia, the gain was a result of higher investment in commercial and industrial buildings. In Saskatchewan, the increase came from institutional structures and, to a lesser degree, commercial buildings.

Census metropolitan areas

Non-residential building construction spending fell in 22 of the 34 census metropolitan areas in the first quarter, led by Edmonton, followed by Montreal, Winnipeg and Calgary.
In Edmonton, the decrease was attributable to lower construction spending on commercial and industrial buildings. In Montreal, lower investment in institutional building construction was largely responsible for the decline.

The decline in Winnipeg resulted from lower spending on institutional and commercial buildings. In Calgary, the drop was attributable to decreased investment in commercial buildings, which was partly offset by higher investment in institutional buildings and, to a lesser extent, industrial buildings.

Conversely, the largest gains occurred in Saskatoon and Vancouver. In Saskatoon, the advance came mostly from higher investment in the institutional component, while in Vancouver, the increase stemmed from all three components, with commercial buildings accounting for much of the gain.

Commercial component

Investment in commercial building construction fell 1.8% to $7.2 billion in the first quarter, marking a fifth consecutive quarterly drop. Investment was down in seven provinces, with declines spread across several commercial construction categories.

Alberta posted the largest decline, followed distantly by Quebec and Newfoundland and Labrador.

In Alberta, spending in commercial building construction was down 6.9% to $1.7 billion in the first quarter, marking the fourth consecutive quarterly decline. This was a result of lower investment in most commercial categories, particularly warehouses and office buildings.

In Quebec, investment fell 1.7% from the previous quarter to $1.1 billion in the first quarter, mainly attributable to lower spending on office buildings, communication buildings and warehouses.

In Newfoundland and Labrador, investment fell 21.0% to $69 million, a third quarterly decline. Lower spending on the construction of office buildings, hotels and restaurants, and warehouses was responsible for most of the decline.

British Columbia had the largest increase in commercial building construction in the first quarter, up 3.2% to $913 million. The advance resulted mostly from higher spending on the construction of retail and wholesale outlets as well as warehouses. Ontario closely followed, with higher investment in retail and wholesale outlets, office buildings as well as laboratory and research centres.

Chart 2: Commercial, institutional and industrial components

 

 

 

 

 

 

 

 

 

 

Industrial component

Investment in industrial building construction decreased 2.5% to $1.8 billion in the first quarter. This fifth consecutive quarterly decline was attributable to lower spending in most industrial building categories.

Construction spending on industrial buildings fell in six provinces. Alberta registered the largest decline, reflecting less investment in every industrial building category, mainly manufacturing plants and maintenance-related buildings.

The largest increase occurred in British Columbia, mostly as a result of higher investment in manufacturing plants.

Institutional component

Following seven quarterly gains, spending in the institutional component edged down 0.9% to $3.5 billion in the first quarter. The decline was a result of lower spending on the construction of educational institutions and medical facilities, which more than offset increased investment in nursing homes and government buildings.

Institutional building construction investment declined in eight provinces, with Ontario, Quebec and Manitoba registering the largest decreases. Lower investment in medical facilities and educational institutions explained the drop in Ontario, while less spending on educational institutions was responsible for most of the decline in Quebec. In Manitoba, investment in every institutional building category registered declines.

Alberta and Saskatchewan were the two provinces to register advances in the institutional component. In Alberta, the gain was attributable to higher spending on educational institutions as well as nursing homes and retirement residences. In Saskatchewan, the increase came mainly from higher investment in medical facilities.

Source: Statistics Canada, www.statcan.gc.ca/daily-quotidien/160415/dq160415b-eng.htm?HPA.

 

Related Articles


Latest Articles


Changing Scene

  • Skills Ontario Supports Ontario’s Investments in Skilled Trades in Budget Announcement

    Skills Ontario Supports Ontario’s Investments in Skilled Trades in Budget Announcement

    March 28. 2024 As demand for skilled trades professionals rises, Skills Ontario is commending the government for continued investments in skilled trades and technology programing, working to address the shortfall and need to build the workforce of the future in Ontario.  The skilled trades shortage is costing Ontario approximately $25 billion in foregone GDP. A… Read More…

  • IVRY Launches 7 New VR Lessons

    IVRY Launches 7 New VR Lessons

     IVRY Technologies, a division of IDEAL Electrical, is launching seven new virtual reality (VR) lessons in Canada as part of its Virtual Electrical Training (VET) Series 2 training module. The cutting-edge training will serve as a learning resource for International Brotherhood of Electrical Workers (IBEW) training centers across Canada. Read More…

  • PEI Budget 2024 Signals Continued Focus on Healthcare, Housing and Affordability for all Islanders 

    PEI Budget 2024 Signals Continued Focus on Healthcare, Housing and Affordability for all Islanders 

    March 28, 2024 Hon. Jill Burridge, Minister of Finance, presented government’s 2024-25 operating budget to the legislative assembly, outlining $3.2 billion in investments for Prince Edward Island with a continued focus on healthcare, housing and affordability measures. “This budget signals where we’re headed as a province and shows Islanders where we will be making key… Read More…

  • BC’s Budget 2024 Prioritizes Actions for Low-Carbon Economy

    BC’s Budget 2024 Prioritizes Actions for Low-Carbon Economy

    March 28, 2024 Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation, and Brittny Anderson, MLA for Nelson-Creston, met with community climate leaders in Nelson to discuss how Budget 2024 can help support people in the region to transition to a low-carbon economy and meet shared CleanBC goals. “Our government’s budget this year reflects the… Read More…