Non-residential construction losing ground

Although non-residential construction continues to grow, the dollars invested are showing signs of decline.


Reed Construction Data reports that according to Statistics Canada , growth in non-residential construction is approaching the zero line, following the general decline in the North American economy.

Research indicates that investment in non-residential building construction in Canada increased by 1.7% in the final quarter of 2008. This rise follows a 1.5% increase in the third quarter. Compared to the previous year, the increase in investment was 8.0% in the fourth quarter and 7.1% in the third quarter. Institutional construction was up by 3.7%, followed by commercial, up 1.5%. Industrial project investment declined by 1%.

However, when put in inflation-adjusted terms, investment in non-residential building construction fell 1.2% fourth quarter, as a result of a decline in the volume of industrial (-4.0%) and commercial (-1.5%) construction. In the quarter, institutional construction was up by 1.4%.

Looking forward, the large volume of projects that are shovel-ready or currently underway, combined with the effect of stronger profit growth mid-way through 2008, should support non-residential building construction in the first half of the year. However, the report states that the support is likely to dissipate by mid-2009, due to the effects of declining industrial capacity use, retreating corporate profits, slowing growth of office-based employment, tightening lending conditions, and a drop in investor confidence.

Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
Sizing water pipes, ASHRAE 90.1, recovering waste heat, and more
Sizing water pipes, ASHRAE 90.1, recovering waste heat, and more
Developing lighting solutions; Designing lighting systems; Integrating fire alarm and HVAC systems
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me