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2006 Archive
Construction
Jan 1 - April 11
Construction and Development Building Excellence Award Winners
and Gala coverage
First quarter 2006 - Non-residential Building Construction Price Index

The composite price index (1997=100) for non-residential building construction reached 138.6 in the first quarter, up 1.4% from the previous quarter and 6.3% higher compared with the first quarter of 2005. As in the previous quarter, the quarterly increase was mostly the result of material and labour cost increases and a strong market for non-residential building construction.

The indexes for Calgary and Edmonton both rose 1.7% from the fourth quarter, followed by Toronto and Vancouver (+1.5% each), Ottawa–Gatineau, Ontario part (+1.4%), Halifax (+1.2%) and Montréal (+0.8%).

Calgary had the largest change (+8.0%) from the first quarter of 2005, followed by Vancouver (+7.6%), Edmonton (+7.4%), Toronto (+6.2%), Halifax (+5.4%), Ottawa–Gatineau, Ontario part (+5.2%) and Montréal (+4.6%).
Non-residential building construction price indexes1

(1997=100)

  First quarter 2006 First quarter 2005 to first quarter 2006 Fourth quarter 2005 to first quarter 2006
    % change
Composite 138.6 6.3 1.4
Halifax 125.1 5.4 1.2
Montréal 131.8 4.6 0.8
Ottawa–Gatineau, Ontario part 137.3 5.2 1.4
Toronto 144.2 6.2 1.5
Calgary 142.4 8.0 1.7
Edmonton 139.9 7.4 1.7
Vancouver 132.5 7.6 1.5
1.Go online to view the census subdivisions that comprise the census metropolitan areas.


Note: Non-residential building construction price indexes provide an indication of changes in construction costs in six census metropolitan areas or CMAs (Halifax, Montréal, Toronto, Calgary, Edmonton and Vancouver) and the Ontario part of the Ottawa–Gatineau CMA. Three construction categories (industrial, commercial and institutional buildings) are represented by selected models (a light factory building, an office building, a warehouse, a shopping centre and a school). Besides the census metropolitan areas and composite indexes, a further breakdown of the changes in costs is available by trade group (structural, architectural, mechanical and electrical) within the building types. These price indexes are derived from surveys of general and special trade group contractors. They report data on various categories of costs (material, labour, equipment, taxes, overhead and profit) relevant to the detailed construction specifications included in the surveys.

March 2006 Building permits Reach second Highest Level on Record

The value of building permits issued by municipalities rose 5.3% in March to reach their second highest level on record. Builders took out $5.5 billion worth of permits. While construction intentions remained high in the housing sector, the strong showing came largely from planned investments in non-residential building construction.


These results bode well for workers in both the residential and non-residential construction sectors, as permits are a leading indicator of building activity.

After a strong 15.3% increase in February, the value of non-residential permits surged another 15.1% in March to $2.1 billion. This level was 16.1% higher than the average monthly level in 2005, an exceptional year for the non-residential sector. The strong results in March came largely in the wake of hospital related construction projects.

In the housing sector, the value of permits remained unchanged from February and totalled $3.4 billion. A slight decline in the single-family component was offset by a gain in permits for multi-family dwellings. The housing sector remained very dynamic as the value of housing permits has been on an upward trend since the beginning of 2005 — thanks to the very strong market in Western Canada.


Regionally, 21 out of the 28 census metropolitan areas showed stronger results in the first quarter of 2006 in comparison to the same period last year. The largest advances (in dollars) were recorded in the metropolitan areas of Calgary, Edmonton and Vancouver, thanks to their hot housing sector. Furthermore, with the exception of St. John's, all metropolitan areas east of Toronto recorded faster starts to the year than 2005. Toronto, with declines in both residential and non-residential components, showed the largest retreat.

The demand for new single-family dwellings cools slightly

The value of permits for single-family dwellings declined a slight 0.6% to $2.2 billion in March, a second consecutive monthly decrease. Despite these retreats, the level in March remained 6.3% higher than the average monthly level in 2005.

The value of multi-family permits reached $1.2 billion, up 1.1 % from February and a third monthly gain over the last four months.

In terms of units, the construction of 10,155 new single-family dwellings was approved by municipal authorities in March, down 1.7% from February. The number of new single-family units approved has declined in the last three months.

The number of multi-family units authorized in March totalled 9,590 units, up 1.7% from February. The recent gains contributed to the halt of the downward trend (for the demand of multi-family dwellings) in the last part of 2005.

A total of 59,100 new dwelling units were approved in the first three months of 2006. This was the best first quarter since 1990 when 61,600 new units were approved.

The housing sector continued to be positively affected by the very dynamic economy in Western Canada. Other contributing factors were advantageous mortgage rates, the continued strength in full-time employment and in personal disposable income along with the high level of immigration.

Provincially, the largest gain in housing permits in March occurred in British Columbia (+30.7% to $729 million) as the value of multi-family permits surged. Marked increases in the demand for both single- and multi-family dwellings led Nova Scotia to a new record high ($98 million). These gains were offset by declines in Ontario, Quebec and Alberta. In Alberta, the level in March was the second highest after the record high posted in February.


Institutional projects spur non-residential sector

The value of construction projects in the non-residential sector totalled $2.1 billion in March, a 15.1% jump from February and the fourth highest recorded monthly level. A strong gain in the value of institutional permits was the main factor behind this gain. The non-residential sector has been on an upward trend since November 2005.

Permits in the institutional sector increased a spectacular 52.6% to $773 million, a second consecutive monthly increase. March's result was the second highest level on record. The gain was based mainly on projects in the hospital category. The growing demand for health care services can explain the strong construction intentions for hospitals. Provincially, Alberta and Ontario reported the largest increases in this component. By contrast, the largest decline (in dollars) was in Quebec following a very robust level in February.

In the commercial sector, the value of permits rose 3.0% to $1.1 billion, a third monthly gain over the last four months, as a result of higher intentions in the trade and services category and service stations. The largest contributions to the monthly gain (in dollars) in this component came from Ontario (+9.8% to $429 million) and Quebec (+17.3% to $180 million). In contrast, Saskatchewan recorded the largest drop, falling 44.1% to $20 million.

After a strong 38.0% increase in February, the intentions for industrial construction declined 6.7% to $258 million. The utility category showed the largest decline, followed by manufacturing buildings. The most significant decrease among the provinces for this component occurred in Alberta, with a 32.0% drop to $40 million.

The largest contributions to the monthly gain (in dollars) in the non-residential sector came from Ontario (+29.8% to $883 million) and Alberta (+42.8% to $480 million). Alberta set a new record level in March. Quebec posted the largest drop, falling 21.0% to $299 million.

Non-residential permits were up in 14 of the 28 census metropolitan areas. The largest increase (in dollars) occurred in Ottawa, where all three components rose. In contrast, Montréal recorded the largest decrease, mainly the result of a drop in institutional permits.

The recent results in the non-residential sector could be explained by the strong retail sales, the high utilization of industrial capacity, the record high operating profits earned by Canadian corporations, the lower vacancy rates for commercial buildings and favorable interest rates.

Note to readers

Unless otherwise stated, this release presents seasonally adjusted data, which ease comparisons by removing the effects of seasonal variations.

The Building Permits Survey covers 2,380 municipalities representing 95% of the population. It provides an early indication of building activity. The communities representing the other 5% of the population are very small, and their levels of building activity have little impact on the total.

The value of planned construction activities shown in this release excludes engineering projects (e.g., waterworks, sewers or culverts) and land.

For the purpose of the Building Permits release, the census metropolitan area of Ottawa–Gatineau is divided into two areas: Ottawa–Gatineau (Quebec part) and Ottawa–Gatineau (Ontario part).

USA - IPA SBRB Study: Construction Industry Survey Shows Greater Optimism for Economy than Overall Small Business Sector

Construction industries concerned about material costs

Buffalo Grove, IL - In its first survey directed at small businesses in the construction/contractor industry, the International Profit Associates Small Business Research Board (IPA SBRB) measured and compared overall small business to this important business segment.

The IPA Small Business Confidence Index (IPA SBCI), which measures expectations about revenue growth, the general economy and hiring looking forward 12 months now stands at 47.3 for all small business. In the construction/contractor industry, the IPA SBCI is at 49.3 as compared to 44.6 in the non-construction businesses in this survey.

The construction industry is more optimistic about the general economy for the next year than small business overall. Construction company executives are 23% more optimistic than their business peers in the non-construction small business sector. 48% of those in construction surveyed felt the general economy will improve compared with 44% in overall small business and 39% in non-construction industries.

When asked to identify the single most important issue to their businesses, 25% of those in construction identified the cost of materials as most important. This compared to 10% in non-construction businesses. Conversely, the cost of energy/fuel was cited by 16% in non-construction small business and only 3% of construction/contracting businesses.

Finding quality employees is of major concern to many businesses, but a bit less so in construction. Overall, 13% indicated finding quality employees is the single most important issue facing them. In construction, 10% identified this as the most important issue, while in non-construction small businesses, 16% of owners and managers identified this as the top issue.

On the hiring front, construction expects to increase hiring more than general small business. Overall, 39% of small businesses expect to increase hiring during the next year. In construction, 43% feel they will increase hiring as compared to 34% in non-construction industries.

"The differences in expectations of construction executives versus their peers in other industries is striking," said Gregg Steinberg, President of International Profit Associates, the largest privately-held provider of management consulting and professional services to small and medium-size businesses in North America. "Growth in the construction sector, coupled with higher costs for construction materials and hiring pressures, will be watched closely by the Federal Reserve as it determines future interest rate policy for the economy in general," added Steinberg.

The IPA SBRB is expanding its research to specific industry segments. With this release of construction/contracting industry data the IPA SBRB is focusing on the first of many specific industry segments. Looking forward, the IPA Small Business Research Board will provide information which reflects the opinions of both the overall small business community as well as important specific industries that drive the American economy.

The International Profit Associates Small Business Research Board ascertains and reports the opinions of small business owners and managers on a wide variety of topics related to their own businesses as well as national and international issues that may impact their operations.

Participants in the poll provide feedback on significant issues and allow for real-time insight into the state of small businesses nationwide. The universe of participants is developed from among small businesses across the United States. Nearly 500 small business owners and senior managers participated in this IPA SBRB poll, of which 281 were in the construction/contractor industries. The IPA SBRB study is a voluntary survey conducted via phone and email. The poll was structured and supervised through an independent resource.

Perimetre Institute a winner of the Governor General's Medals in Architecture

OTTAWA - The Royal Architectural Institute of Canada (RAIC) and the Canada Council for the Arts are pleased to announce the winners of the Governor General's Medals in Architecture.

The following built projects and the architects responsible will be honoured:

- 115 Studios - Cirque du Soleil - Les architectes FABG, Design Architect: Eric Gauthier (Montreal, QC)

- Bibliothèque Municipale de Châteauguay - atelier TAG et Jodoin Lamarre Pratte et Associés Architectes en consortium, Design Architects : Manon Asselin, Katsuhiro Yamazaki (atelier TAG) (Montreal, QC)

- Erindale Hall, University of Toronto at Mississauga - Baird Sampson Neuert Architects, Design Architects: Barry Sampson, FRAIC and Jon Neuert, MRAIC (Toronto, ON)

- Institut de tourisme et d'hôtellerie du Québec - Lapointe Magne + AEdifica, Design Architect: Michel Lapointe (Montreal, QC)

- "Structures d'accueil des jardins de Métis" - Atelier in situ, Design Architects: Annie Lebel, architecte et Stéphane Pratte, architecte (Montreal, QC)

- Maurer House - Florian Maurer Architect, MRAIC (Naramata, BC) - SC3-Smith Carter Workplace - Smith Carter Architects and Engineers Incorporated (Winnipeg, MB)

- Schulich School of Business, York University - Hariri Pontarini Architects, Robbie/Young + Wright Architects In Joint Venture, Design Architect: Siamak Hariri (Toronto, ON)

- The Perimeter Institute for Theoretical Physics - Saucier + Perrotte architectes, Design Architect: Gilles Saucier (Montreal, QC)

- Théâtre du Vieux-Terrebonne - atelier TAG et Jodoin Lamarre Pratte et Associés Architectes en consortium, Design Architects: Manon Asselin, Katsuhiro Yamazaki (atelier TAG) (Montreal, QC)

- Théâtre Espace Libre - Lapointe Magne et associés, Design Architect: Michel Lapointe (Montreal, QC)

- Unity 2 - Cormier, Cohen, Davies architectes (Atelier Big City) (Montreal, QC)

"Today, Canadian architects stand squarely with the best of their international counterparts as artists and craftspeople who strive not only for a physical expression of function and form, but also for an experience rooted in aestheticism and grace," said Her Excellency the Right Honourable Michaelle Jean, Governor General of Canada.

The Governor General's Medals in Architecture recognize outstanding achievement in recently built projects by Canadian architects. This program, created by the RAIC, contributes to the development of the discipline and practice of architecture, and increases public awareness of architecture as a vital cultural force in Canadian society. These awards are administered jointly with the Canada Council for the Arts, which is responsible for the adjudication process and contributes to the publication highlighting the medal winners.

"The Canada Council's participation in the administration of the Governor General's Medals in Architecture is part of its ongoing effort to promote the excellence of Canadian architecture and make the public aware of the creative genius of our architects," said Karen Kain, Chair of the Canada Council for the Arts. "Since its creation in 1950, this competition has helped foster an understanding of the nature of Canadian architecture, and of the regional, cultural, esthetic and historical realities it reflects."

The Governor General's Medals in Architecture will be presented September 20, 2006 at 6 p.m. in Montreal at l'Institut de tourisme et d'hôtellerie du Québec by Her Honour the Honourable Lise Thibault, Lieutenant Governor of Québec.

"What can be said of this year's laureates? That there is a promising future for Canadian architecture with the breakthrough of a new generation of architects. That modest public buildings in smaller urban centres can demonstrate the value of architecture in our communities. That an architectural competition program, such as the one in the Province of Quebec, can successfully give rise to superior buildings," said Yves Gosselin, FIRAC, RAIC President.

Descriptions, biographies and downloadable images of the architectural firms and their winning buildings are available at www.raic.org and www.canadacouncil.ca.

The 2006 winners of the Governor General's Medals in Architecture were selected by a jury of the following distinguished architects: Amale Andraos (New York); Peter Busby, FRAIC (Vancouver); Adam Caruso (United Kingdom); Julien De Smedt (Denmark); and, Mario Saia, FIRAC (Montreal).

The Royal Architectural Institute of Canada is a voluntary national association established in 1907 as the voice for architecture and its practice in Canada. Representing more than 3,300 architects, the RAIC provides the national framework for the development and recognition of architectural excellence.

McGraw-Hill Construction generously sponsors the RAIC's awards programs.

The Canada Council for the Arts, in addition to its principal role of promoting and fostering the arts in Canada, administers and awards over 100 prizes and fellowships in the arts, humanities, social sciences, natural sciences, health sciences and engineering. Among these are the Killam Prizes, the Canada Council for the Arts Molson Prizes, the Governor General's Literary Awards and the Governor General's Awards in Visual and Media Arts, the Prix de Rome in Architecture and the Ronald J. Thom Award for Early Design Achievement.

Cambridge-Based Reid’s Heritage Homes Wins Passport to Prosperity Employer Champion Award

Local employer recognized for outstanding commitment to school-work program

Cambridge - On April 26, 2006 Reid’s Heritage Homes of Cambridge has been selected as one of four winners of the Passport to Prosperity Employer Champion Award. Winners from across the province were selected based on their outstanding commitment to providing work experience opportunities to high school students. The four award recipients were honoured today in Toronto at the Passport to Prosperity Employer Forum.

“It’s an honour to be recognized for our school-work program,” said Tim Morrison, Manager, Customer Service, Public Relations and Community Involvement, Reid’s Heritage Homes. “Today’s average skilled trades people are in their mid-fifties. We hope that the positive work experiences high school students get with us through our Build a Home program will encourage them to think about college or apprenticeship programs in a construction-related field.”

Passport to Prosperity is a province-wide campaign led by the Provincial Partnership Council (PPC). The campaign promotes the importance of employers providing high school students with work experience opportunities to help prepare students for the critical transition from the classroom to the workforce. Opportunities include school-work transition programs, career talks, worksite visits, job shadowing, the Ontario Youth Apprenticeship Program and cooperative education placements. The PPC works closely with the Ontario Ministry of Education; the Ontario Ministry of Training, Colleges and Universities; and the Ontario Business Education Partnership, representing business-education councils and local training boards across the province.

Reid’s Heritage Homes’ Community Home Build programs offer high school students co-op programs in London, Cambridge and Guelph for credits towards their high school diploma. Students frame a house from start to finish and have the opportunity to shadow experienced trades people including electricians, plumbers, roofers, brick masons, heating, ventilating, and air-conditioning contractors and drywallers.

“Employers such as Reid’s Heritage Homes make a real difference with Ontario’s students,” said Ian Cunningham, Provincial Partnership Council Awards Chair. “They’re committed to helping students broaden their career options, and giving them the confidence, skills and experiences that can focus their education and work plans. They also see the tremendous value in engaging high-school students now, as part of a recruitment strategy for the years ahead.”

“Reid’s Heritage Homes provides opportunities I cannot simulate in the classroom,” said Brian Andres, Technology Department Head, Wellington Catholic District School Board. “They’re a long-standing co-op employer and have repeatedly helped students find meaningful career opportunities.”

“Reid’s Heritage Homes displays an amazing sense of commitment to our students,” said Dana Jones, Home Build Teacher of St. Benedict Catholic Secondary School and Monsignor Doyle Catholic Secondary School in the Waterloo Catholic District School Board. “They help students see the relevance of their core curriculum courses, provide an extensive safety training program, and take great pride in giving back to the community.”

There are 26,000 employers in Ontario participating in school-work programs and activities through Passport to Prosperity, but more are needed. Without the commitment and dedication of employers such as the Employer Champion Award winners, high school students would not have the opportunity to explore career options and gain valuable training and work experience.

Other Passport to Prosperity Employer Champion Award Winners include Hamilton Health Sciences, Sayer’s Home Hardware, Hagersville and the Waterloo Regional Police Service, Cambridge.

To find out more about Passport to Prosperity visit
www.obep.on.ca.

Scott's REIT to acquire two properties in Toronto and Montreal

Signed Letters of Intent- locations subject to due diligence

TORONTO Scott's Real Estate Investment Trust, owner of 190 small-box retail properties in seven provinces across Canada, announced April 24 that it has signed binding agreements, subject to due diligence and other customary closing conditions, for its first two acquisitions, located in the Toronto and Montreal regions.

"Since the REIT's inception just six months ago, we have been analyzing potential acquisitions and redevelopment projects, and now that effort has delivered our first two binding agreements," said John I. Bitove, the REIT's Chairman and CEO. "The two binding agreements signify our investment focus on well located free-standing restaurant pads and retail strip centres to make us Canada's premier small-box retailer."

Both acquisitions are expected to be completed in the third quarter and are subject to management review, due diligence and board approval and other customary conditions for closing being satisfied. If the potential acquisitions close, they will be accretive to earnings, and were brought to the REIT's attention by third-party vendors; neither is exclusively leased to our current brands or tenants.

Mr. Bitove will discuss the two potential acquisitions along with a review of the REIT's accomplishments in its first period of operations at the Scott's REIT Annual General Meeting on April 25, 2006 at 10 a.m. (ET) at The Second City, 51 Mercer Street, Toronto, ON. "These potential acquisitions are our first step in our goal to double our asset value in the next five years through purchases of small-box retail locations in attractive Canadian markets," said Bitove.

National Construction Industry Wage Rate Survey 2005

Data from the 2005 National Construction Industry Wage Rate Survey are now available for British Columbia, the Northwest Territories and Nunavut.

The three most highly-paid construction occupations in British Columbia for which data are available were: elevator constructors who received $36.35 an hour on average as the most frequently paid wage rate; refrigeration and air conditioning mechanics ($29.94); and tower crane operators ($28.82).

The lowest paid occupations were trade helpers/labourers who received $17.34 an hour, traffic accommodation persons ($17.53) and trade helpers/labourers with first-aid certificate ($18.77). All were well above the provincial minimum wage of $8 an hour.

The surveyed occupations were selected in consultation with union and employer representatives from the construction industry. Because of their smaller populations, fewer occupations could be covered in the Northwest Territories and Nunavut.

Among the occupations for which data are available, the highest paid construction workers in Northwest Territories were plumbers at $29.82 an hour, and the lowest, trade helpers/labourers at $16.80. The same pattern occurred in Nunavut. Plumbers received $23.61, and trade helpers/labourers, $16.94.

The survey covered establishments in the construction industry with six or more employees. The establishments were asked to provide wage rates for employees working full-time in selected occupations and to indicate whether the workers were unionized.

Data were collected for work on institutional or commercial construction sites only. For occupations with a compulsory trade licence, information was collected only for workers with the requisite licence.

Note: This survey is conducted on behalf of the Labour Branch of Human Resources and Social Development Canada to help establish wage schedules for workers on federal construction projects. The survey is conducted region by region moving sequentially across the country. Quebec and Yukon, where wage rates are established by the provincial or territorial government, are excluded. The next round of the survey will be conducted in 2006 and will cover Newfoundland and Labrador, Prince Edward Island, Nova Scotia and New Brunswick.

Investment in non-residential building construction drops 10% in Kichener for First quarter 2006

Last year's sustained pace for investment in non-residential building construction has spilled over into 2006, again the result of strong activity in Western Canada, particularly Alberta.

Investment during the first three months of 2006 rose 2.3% to $8.5 billion — the sixth consecutive record high.


Last year, investment in non-residential building construction surpassed the $31-billion mark nationally for the first time ever, thanks largely to huge gains in Alberta and British Columbia.

In the first quarter this year, investment set records in two of three components, commercial and industrial.

Investors pumped $4.8 billion into commercial projects, up 3.0% from the fourth quarter. In the industrial component, investment increased 2.1% to a record $1.6 billion, while institutional investment rose 1.2% to $2.2 billion.

Provincially, by far the biggest first-quarter increase in terms of dollar value occurred in Alberta where investment rose by $125 million to $1.4 billion. In Saskatchewan, which was a distant second, investment increased by $39 million to $238 million.

In contrast, Nova Scotia, Newfoundland and Labrador, Ontario and all three territories ended the first quarter with lower investment.

Locally, 14 of the 27 census metropolitan areas recorded gains, the strongest was in Edmonton where investment rose 15.8% to $413 million. In contrast, investment in Toronto fell most sharply as a result of a marked decline in investment in industrial construction.

The results of Statistics Canada's Survey of Private and Public Investment for 2006, indicate an increase of 8.2% in construction investment, including engineering construction.


Investment in non-residential building construction, by census metropolitan area1
  First quarter 2005 Fourth quarter 2005 First quarter 2006 Fourth quarter 2005 to first quarter 2006
  seasonally adjusted
  $ millions % change
St. John's 54 61 60 -1.9
Halifax 112 137 121 -11.1
Saint John 17 18 23 27.7
Saguenay 15 36 32 -11.4
Québec 136 159 164 3.3
Sherbrooke 24 30 27 -10.0
Trois-Rivières 33 23 32 42.1
Montréal 717 683 679 -0.5
Ottawa–Gatineau, Ontario/Quebec 314 350 371 6.0
Ottawa–Gatineau (Que. part) 57 56 55 -2.6
Ottawa–Gatineau (Ont. part) 256 294 317 7.6
Kingston 38 37 30 -17.6
Oshawa 118 132 108 -18.1
Toronto 1,607 1,649 1,605 -2.6
Hamilton 180 144 159 9.9
St. Catharines–Niagara 91 59 56 -5.8
Kitchener 178 144 129 -10.2
London 149 141 122 -14.0
Windsor 74 78 88 13.4
Greater Sudbury/Grand Sudbury 35 31 27 -13.6
Thunder Bay 22 25 35 37.9
Winnipeg 165 174 200 15.0
Regina 53 55 78 41.0
Saskatoon 40 79 86 8.2
Calgary 365 482 516 7.0
Edmonton 283 357 413 15.8
Abbotsford 19 40 44 9.4
Vancouver 480 672 666 -0.9
Victoria 44 69 71 3.4
1.Go online to view the census subdivisions that comprise the census metropolitan areas.

Note to readers

Unless otherwise stated, this release presents seasonally adjusted data, which ease comparisons by removing the effects of seasonal variations.

Investments in non-residential building construction exclude engineering construction. This series is based on the Building Permits Survey of municipalities, which collects information on construction intentions.

Work put-in-place patterns are assigned to each type of structure (industrial, commercial and institutional). These work patterns are used to distribute the value of building permits according to project length. Work put-in-place patterns differ according to the value of the construction project; a project worth several million dollars will usually take longer to complete than will a project of a few hundred thousand dollars.

Additional data from the Capital and Repair Expenditures Surveys are used to create this investment series. Investment in non-residential building data is benchmarked to Statistics Canada's System of National Accounts of non-residential building investment series.

For the purpose of the Investment in non-residential building construction release, the census metropolitan area of Ottawa–Gatineau is divided into two areas: Ottawa–Gatineau (Quebec part) and Ottawa–Gatineau (Ontario part).


Building permits February 2006

Construction intentions rebounded in February as gains in non-residential building permits more than offset a second consecutive monthly decline in Canada's housing sector.

Municipalities issued $5.2 billion in building permits in February, up 3.6% from the previous month. The total value of building permits has now been on an upward trend since the beginning of 2004.

Contractors took out $1.8 billion in permits for non-residential projects, up 14.4% following a 13.4% decline in January. Permits rose in all three components, industrial, commercial and institutional.


However, the value of residential permits fell 1.5% to $3.4 billion, the second retreat in a row since the record high set in December. The value of single-family permits fell for the first time in eight months.

However, housing construction intentions remained strong as February's level was 5.0% higher than the monthly average in 2005, a record year. Furthermore, the value of housing permits has been on an upward trend since the beginning of 2005.



Regionally, 22 out of the 28 census metropolitan areas showed faster starts than in 2005. The other six areas were all in Ontario. Three western areas (Calgary, Edmonton and Vancouver) showed the largest gains, thanks to their dynamic housing sectors.

First decline in eight months for single-family dwellings

The value of single-family permits fell 7.7% in February to $2.3 billion, the first monthly decline since June 2005. Despite the decrease, the demand for single-family dwellings remained strong as February's level was 8.0% higher than the monthly average in 2005.

Furthermore, municipalities approved 10,563 new single-family units, slightly more than 400 above last year's monthly average.

The value of multi-family permits increased 13.9% to $1.1 billion in February. A total of 9,140 new multi-family units were approved, which was 630 below last year's monthly average.

Western Canada's dynamic economy has fuelled a strong demand for new single-family dwellings. The demand for new single-family dwelling has been on an upward trend since the middle of 2005.

Since the beginning of the year, single-family dwellings have accounted for 56.2% of all new dwellings authorized, well above the proportion of 50.9% for 2005 as a whole.

The housing sector continues to benefit from advantageous mortgage rates, strong employment, a strong level of immigration and high levels of consumer confidence.

Provincially, the important decline in the value of housing permits in Ontario in February more than offset strong gains shown in Quebec, as well as in Alberta and British Columbia.

In Ontario, the value of single-family permits hit its lowest level since January 2005. In Quebec, the strong gain followed weak results in January when the value of housing permits hit their lowest level since June 2003.

In Alberta, the value of residential permits again hit a record high. Gains in housing in British Columbia came as a result of on-going strong demand for new single-family dwellings, as well as a rebound in the value of multi-family permits.


Non-residential: Big rebound in all three components

Construction intentions in Canada's non-residential sector rebounded from a decline in January. However, despite the strong increase, the value of non-residential permits has been on a declining trend since intentions peaked in mid-2005.

Several economic factors are consistent with a fertile environment for the non-residential sector: strength in retail and wholesale sectors, growth in consumer spending, declining vacancy rates for office buildings, favorable interest rates and record operating profits posted by Canadian corporations.

In the commercial sector, permits increased 9.2% to $1.1 billion, the result of higher intentions in the recreation, trade and services and warehouse categories. Provincially, Ontario and British Columbia reported the largest increases in dollar terms, whereas the largest decline was in Quebec.

In the industrial sector, the value of permits rebounded 36.3% to $273 million, halting three months of declines. However, this level was 18.0% lower than last year's monthly average.

Every industrial category recorded an increase in February, with the utility category showing the largest gain. The most significant increase among the provinces occurred in Alberta, where industrial permits more than tripled from a 22-month low in January to $58 million.

In the institutional sector, the value of permits rose 16.0% to $496 million, as a result of a strong gain in educational projects. The most significant increase in the institutional component occurred in Quebec, where permits soared 55.6% to $165 million, the highest level since December 2002.

The largest contributions to the monthly gain (in dollars) in the non-residential sector came from Alberta (+35.5% to $339 million), Ontario (+10.5% to $675 million) and British Columbia (+20.3% to $287 million). In contrast, New Brunswick recorded the largest drop, falling 53.6% to $25 million.

Alberta and British Columbia recorded increases in all three components while all three declined in New Brunswick.

Non-residential permits were up in 17 of the 28 census metropolitan areas. The largest increase (in dollars) occurred in Toronto, the result of strong gains in both commercial and institutional intentions. In contrast, Windsor recorded the strongest decrease, mainly the result of a drop in institutional permits.

Note to readers

Unless otherwise stated, this release presents seasonally adjusted data, which ease comparisons by removing the effects of seasonal variations.

The Building Permits Survey covers 2,380 municipalities representing 95% of the population. It provides an early indication of building activity. The communities representing the other 5% of the population are very small, and their levels of building activity have little impact on the total.

The value of planned construction activities shown in this release excludes engineering projects (e.g., waterworks, sewers or culverts) and land.
Value of building permits, by census metropolitan area1
  January 2006r February 2006p January to February 2006 January to February 2005 January to February 2006 January–February 2005 to January–February 2006
  seasonally adjusted
  $ millions % change $ millions % change
St. John's 30.7 39.0 26.9 45.9 69.7 52.0
Halifax 34.4 57.2 66.1 58.0 91.6 57.9
Saint John 17.1 12.5 -26.9 18.9 29.6 56.8
Saguenay 5.1 6.3 24.5 10.1 11.4 12.6
Québec 67.8 131.2 93.4 162.4 199.1 22.6
Sherbrooke 10.6 59.4 459.9 31.9 70.1 119.6
Trois-Rivières 23.5 22.1 -6.2 23.1 45.6 97.4
Montréal 463.3 545.9 17.8 971.9 1,009.2 3.8
Ottawa–Gatineau, Ontario/Quebec 163.1 114.4 -29.9 356.7 277.4 -22.2
Ottawa–Gatineau (Que. part) 57.2 27.3 -52.2 50.9 84.4 65.9
Ottawa–Gatineau (Ont. part) 105.9 87.1 -17.8 305.8 193.0 -36.9
Kingston 8.0 9.4 17.1 20.6 17.4 -15.4
Oshawa 66.9 99.9 49.2 136.4 166.8 22.3
Toronto 893.3 844.7 -5.4 1,894.8 1,738.0 -8.3
Hamilton 101.5 73.4 -27.7 166.4 174.9 5.1
St. Catharines–Niagara 32.1 28.8 -10.1 67.9 60.9 -10.4
Kitchener 88.7 73.7 -17.0 124.2 162.4 30.8
London 108.6 73.0 -32.8 136.9 181.6 32.6
Windsor 109.6 18.0 -83.6 68.9 127.6 85.2
Greater Sudbury/Grand Sudbury 4.7 5.6 19.0 26.2 10.4 -60.3
Thunder Bay 6.8 11.3 67.8 34.4 18.1 -47.4
Winnipeg 88.4 67.2 -24.0 87.1 155.5 78.6
Regina 26.0 25.9 -0.4 46.2 52.0 12.5
Saskatoon 36.6 34.0 -7.1 38.1 70.6 85.1
Calgary 321.2 422.8 31.6 497.2 744.1 49.6
Edmonton 272.9 274.3 0.5 407.2 547.2 34.4
Abbotsford 27.5 17.1 -37.8 32.7 44.6 36.3
Vancouver 415.0 436.1 5.1 709.0 851.1 20.0
Victoria 53.0 63.5 19.9 107.7 116.5 8.2
rRevised.
pPreliminary.
1.Go online to view the census subdivisions that comprise the census metropolitan areas.
Note:Data may not add to totals as a result of rounding.

Value of building permits, by province and territory
  January 2006r February 2006p January to February 2006 January to February 2005 January to February 2006 January–February 2005 to January–February 2006
  seasonally adjusted
  $ millions % change $ millions % change
Canada 5,048.2 5,228.0 3.6 9,182.4 10,276.1 11.9
Residential 3,442.8 3,391.4 -1.5 6,171.8 6,834.2 10.7
Non-residential 1,605.4 1,836.5 14.4 3,010.6 3,442.0 14.3
Newfoundland and Labrador 40.1 50.1 24.8 69.9 90.2 29.0
Residential 33.0 33.7 2.1 54.7 66.8 22.0
Non-residential 7.1 16.4 130.8 15.2 23.5 54.4
Prince Edward Island 13.2 10.4 -21.0 35.2 23.6 -32.9
Residential 8.7 9.8 12.4 21.2 18.5 -12.7
Non-residential 4.5 0.6 -86.1 14.0 5.1 -63.5
Nova Scotia 95.4 97.6 2.3 121.0 193.0 59.5
Residential 76.4 73.0 -4.4 89.8 149.4 66.4
Non-residential 19.0 24.6 29.1 31.2 43.6 39.9
New Brunswick 96.3 63.4 -34.2 89.7 159.7 78.0
Residential 43.1 38.7 -10.4 69.1 81.8 18.3
Non-residential 53.2 24.7 -53.6 20.6 77.9 278.8
Quebec 876.1 1,063.3 21.4 1,778.5 1,939.3 9.0
Residential 534.2 690.5 29.2 1,294.6 1,224.7 -5.4
Non-residential 341.8 372.8 9.1 483.9 714.6 47.7
Ontario 2,056.0 1,807.6 -12.1 3,924.8 3,863.6 -1.6
Residential 1,445.5 1,132.8 -21.6 2,562.9 2,578.4 0.6
Non-residential 610.5 674.7 10.5 1,361.9 1,285.2 -5.6
Manitoba 114.5 121.6 6.2 148.7 236.2 58.8
Residential 77.2 68.1 -11.8 93.9 145.3 54.7
Non-residential 37.3 53.5 43.5 54.8 90.9 65.8
Saskatchewan 84.3 76.8 -8.9 111.5 161.1 44.5
Residential 42.1 34.3 -18.4 56.9 76.4 34.3
Non-residential 42.3 42.5 0.6 54.7 84.8 55.0
Alberta 904.1 1,086.7 20.2 1,442.6 1,990.8 38.0
Residential 653.5 747.2 14.3 909.7 1,400.7 54.0
Non-residential 250.6 339.5 35.5 532.9 590.1 10.7
British Columbia 763.6 849.3 11.2 1,450.4 1,612.9 11.2
Residential 525.1 562.4 7.1 1,011.4 1,087.5 7.5
Non-residential 238.5 286.9 20.3 438.9 525.4 19.7
Yukon 4.0 1.0 -75.6 6.7 4.9 -26.6
Residential 3.8 0.9 -76.2 6.0 4.7 -21.8
Non-residential 0.2 0.1 -63.1 0.7 0.3 -65.1
Northwest Territories 0.5 0.2 -60.2 3.0 0.7 -76.6
Residential 0.1 0.0 -100.0 1.6 0.1 -94.2
Non-residential 0.4 0.2 -51.3 1.4 0.6 -57.3
Nunavut 0.0 0.0 ... 0.4 0.0 -100.0
Residential 0.0 0.0 ... 0.0 0.0 -100.0
Non-residential 0.0 0.0 ... 0.4 0.0 -100.0
rRevised.
pPreliminary.
...Figures not applicable.
Note:Data may not add to totals as a result of rounding.

McGuinty Government Consults On Measure To Combat Underground Economy In Construction

Paper Released On Extending Mandatory Workplace Safety And Insurance Coverage

QUEEN'S PARK - The McGuinty government is starting consultations on a proposal to extend mandatory workplace safety and insurance coverage to most people who work in construction, Labour Minister Steve Peters announced March 28.

"This consultation is part of a broader government strategy to tackle the underground economy in construction, protect workers and business from unfair competition and promote strong economic growth," said Peters. "We want to hear the views of the construction industry on how best to tackle the underground economy."

Extending mandatory coverage to most construction workers would make it more difficult for individuals and employers to hide underground economy activities. It would also bring a significant portion of workers in the construction sector under the protection of the workplace safety and insurance system, helping Ontario reach our goal of reducing workplace injuries by 20 per cent by 2008.

This would also help legitimate businesses who are now often undercut by unfair competition, and consumers who have no way of knowing if workers they hire are part of the underground economy.

"We are looking for ways to strengthen our economy and ensure fair competition for all Ontario businesses - particularly small businesses," said Peters. "Our government is continuing to pave the way for improvements in key areas of our economy, ensuring a more prosperous long-term future for everyone."

A discussion paper is available on the Ministry of Labour website at
www.labour.gov.on.ca.

Sustainable Buildings Canada (SBC) comments on increase to the energy efficiency of buildings with proposed changes to the Ontario Building Code.

Toronto - SBC congratulates the Ministry for its initiative to increase energy efficiency of buildings through improvements to the Ontario Building Code (OBC). SBC has reviewed the Ministry's proposals to revise the energy efficiency provisions in the OBC for Part 3 and non-residential Part 9 buildings, and offers the following comments:

1. The proposal advocates that designers continue to use more than one energy code to demonstrate energy efficiency. Relying on multiple criteria has created a situation that already causes considerable confusion for owners, designers, building officials and utility program managers. MMAH should settle on one energy code, the Canadian Model National Energy Code for Buildings (MNECB), and focus on enforcing the provisions contained therein. For reasons already demonstrated by SBC, the MNECB is the only energy code that is appropriate for Canadian conditions.

2. The proposal does not call for the establishment of specific overall efficiency targets for individual commercial/institutional buildings. Amongst professionals in the field, the current understanding is that such targets for energy efficiency need to be established. With their proposals MMAH must set out measurable objectives, so their proposed changes can be assessed. SBC has undertaken a preliminary analysis, and considers the results to be reasonable in some sectors, but inadequate in others.

3. Unlike other levels of Government, MMAH has little expertise in establishing minimum efficiency levels for equipment and lighting. Meanwhile, Natural Resources Canada (NRCan) and the Ministry of Energy review and revise these efficiency levels on a regular basis. To join the leading edge, MMAH should partner with the Ontario Ministry of Energy to ensure that designers and others are kept abreast of changes and only reference the latest requirements, as is done in MNECB.

4. The need to reduce peak electricity demand, especially in the summer, provided the major impetus for the Ontario Government to improve energy efficiency in new building designs. The only proposals that attempt to reduce peak electricity demand come from the lighting and some equipment efficiency provisions in the OBC. SBC believes that other viable options exist, and must be addressed. Currently, other potential options are prevented within the current OBC framework. Furthermore, some other provincial regulations have not even been addressed.

5. The proposals are short term in scope, and there is no mention of longer term proposals being considered by the Ministry. With a normal code cycle of 5 years for the OBC, and a current cycle of 9 years since the 1997 OBC, longer term planning is clearly necessary. At very best, the proposal offers short-run "band-aid" solutions that are unlikely to satisfy longer term needs.

The Ministry is to be congratulated for taking the initiative on renewable technologies such as Solar and Wind systems, and to open up the discussion of other green technologies such as Green Roofs.

SBC supports any initiative to improve the energy and environmental performance of new buildings at the design stage, but feels that more can be achieved in a cost effective and sustainable manner.

Real estate rental and leasing and property management industries - 2004

The continued buoyancy of the real estate market, along with steady economic conditions, contributed to the growth of the real estate rental and leasing and property management industries.

Total combined operating revenues of the real estate rental and leasing and property management industries increased 9.5% from 2003 to $50.6 billion.

Total operating expenses for the combined industries increased by 8.9% in 2004 to $40.2 billion. Of the total operating expenses, mortgage interest accounted for 19.3% and property taxes for 17.4%. Profit margin (before tax) of these industries stood at 20.6%.

Revenue growth was widespread across Canada. Provincial shares remained virtually unchanged from the previous year, except for slight increases in Alberta and British Columbia. Being the most populated province in Canada, Ontario continued to dominate the market, followed by Quebec.

The largest segment of the industry was the non-residential sector (52%), followed by the residential sector (41%) and property management services (7%).

Data on the real estate rental and leasing and property management service industries are now available for 2004. These data provide information such as operating revenue, operating expenses, salaries and wages, profit before income tax and the number of establishments at the provincial and territorial level. The industries comprise lessors of residential buildings (excluding social housing), lessors of non-residential buildings and property managers.

New Housing Price Index - January 2006

The New Housing Price Index rose 0.9% in January, up from December's increase of 0.6%. On a 12-month basis, prices were up 6.6% compared to 5.9% the previous month.

The New Housing Price Index (1997=100) rose to 134.4 in January.

Building material and labour cost increases were the main factors pushing price levels up at the national level. A strong market in some metropolitan areas was also a factor. Land value increases contributed to price hikes in 12 of the 21 metropolitan areas surveyed.

Of the 21 metropolitan areas surveyed, 14 posted monthly gains, led by a 3.7% increase in Regina mainly as a result of higher material and labour costs. Builders in Regina also cited the cost of developing new subdivisions as a contributor to price hikes, in particular higher servicing costs.

New housing price indexes

1997=100

  January 2006 January 2005 to January 2006 December 2005 to January 2006
    % change
Canada total 134.4 6.6 0.9
House only 143.3 6.5 1.1
Land only 116.8 6.0 0.4
St. John's 126.9 3.0 0.0
Halifax 129.7 6.5 0.0
Charlottetown 113.9 2.6 -1.0
Saint John, Fredericton and Moncton 111.4 3.3 1.0
Québec 139.2 5.6 0.5
Montréal 144.4 3.6 0.4
Ottawa–Gatineau 156.5 3.1 0.2
Toronto and Oshawa 135.2 4.6 0.7
Hamilton 138.3 5.1 0.8
St. Catharines–Niagara 141.0 3.7 0.0
Kitchener 134.7 4.3 0.7
London 130.3 5.7 1.3
Windsor 106.0 1.4 0.5
Greater/Grand Sudbury and Thunder Bay 100.6 1.6 -0.1
Winnipeg 138.9 8.9 0.5
Regina 149.9 9.5 3.7
Saskatoon 128.3 3.6 0.0
Calgary 169.7 20.8 1.9
Edmonton 148.6 12.1 2.6
Vancouver 108.6 5.7 1.2
Victoria 117.0 7.9 0.0
Note:View the census subdivisions that comprise the metropolitan areas online.