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Winnipeg Free Press - PRINT EDITION

Permit to celebrate

Construction industry sets record, despite slow end to year

By: Murray McNeill

Posted: 02/8/2012 1:00 AM | Comments: 0 (including replies)

WINNIPEG FREE PRESS Enlarge Image

BORIS MINKEVICH / WINNIPEG FREE PRESS The new football stadium at the University of Manitoba is one of the projects driving growth in Manitoba�s construction sector.

Manitoba's high-flying construction industry has set a record for the highest dollar volume of building permits issued in a single year, despite getting its wings clipped in the final month of 2011.

Figures released Tuesday by Statistics Canada show Manitoba posted the biggest percentage decline in permit activity in the country in December. Municipalities issued only $142.3 million worth of permits during the month, a drop of 33.4 per cent from November's $213.7 million.

The slow finish followed two consecutive months of double-digit gains -- 24 per cent in October and 17.2 per cent in November. But it wasn't enough to prevent the industry from setting a record of $1.86 billion in 2011.

That was a six per cent improvement over the previous record of $1.75 billion set just last year. It also added another year to a decade-long construction boom one industry official said Tuesday is showing no signs of ending.

Ron Hambley, executive vice-president of the Winnipeg Construction Association, dismissed recent economic forecasts that predicted a slowdown in construction this year in Manitoba.

"That's certainly not what we're tracking," he said. "Certainly there are some signature projects wrapping up, but there are just as many starting."

Examples he cited are the Winnipeg Convention Centre expansion, the new IKEA retail development in southwest Winnipeg, the football stadium project at the University of Manitoba, the conversion of the former Canada Post building on Graham Avenue into a new police headquarters and several hospital-related projects.

"We're very optimistic about 2012," he said.

Hambley said the 2011 numbers are definitely worth celebrating.

"Any time we can beat last year's record, that's an excellent year for the construction industry in Winnipeg and Manitoba. And we're really pleased with a six per cent increase. That's awesome for us."

Statistics Canada said the bulk of December's decline was in non-residential permits -- off by 65 per cent, to a meagre $35.9 million from $102.7 million in November. Residential permits were down by a more modest 4.1 per cent to $106.4 million from $111 million.

For the year, the value of residential permits rose by 4.1 per cent to $121.1 million, while non-residential permits increased by 9.9 per cent to $652.1 billion.

Nationally, Canada's housing market may have been showing signs of cooling in late 2011, but December's building-permit report shows there's still plenty of fire in that furnace.

The value of permits issued in December rose 11 per cent over the previous month, rising to the highest level in more than four years and incinerating expectations for a one per cent gain, the agency said.

Permits issued in December were worth $6.8 billion, following a revised 2.6 per cent decline in November. The December level was the highest since June 2007.

-- with files by Postmedia News

murray.mcneill@freepress.mb.ca

Republished from the Winnipeg Free Press print edition February 8, 2012 B4

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