Alberta non-residential construction soaring
Value of non-residential construction in Alberta in second quarter is $2.2 billion
Alberta non-residential construction is booming. Photo courtesy Robert Sevalrud
The endless roar of earth movers, jackhammers and welding torches may fray the nerves of some, but that’s the price one pays for a red-hot economy. And in Alberta, that roaring sound on construction sites ramped up over the spring.
In the second quarter of 2012, the value of non-residential construction in Alberta rose to $2.2 billion – an increase of 1.9 per cent over the first quarter and 3.3 per cent over the second quarter of the previous year.
Seventy per cent of Alberta’s non-residential construction is in commercial real estate, such as shopping malls and office towers. The meteoric jump in commercial projects during the boom years 2006-08 – followed by the large slump in 2009-10 – can be seen in the graph.
Now that Alberta’s economy is once again doing well, commercial projects are steadily increasing. The value of commercial projects was $1.6 billion in Q2, much of that related to office tower construction in downtown Calgary.
Industrial construction (warehouses, refineries and upgraders, fabricating plants, etc.) has now surpassed government and institutional construction (roads, bridges, schools, hospitals, etc.). Government construction saw a large increase during the downturn as provincial and federal governments spent stimulus dollars. Much of that spending has now returned to normal.
The steady increase in non-residential construction is an encouraging sign for Alberta’s economy. Still, with economic activity moderating somewhat in the second half of 2012, the value of non-residential construction could cool in the coming quarters.
| ATB Financial
Category: Business
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
