Moncton building permit values rising over last year
Numbers of permits issued running on pace but value 26 per cent ahead of last year
By BRENT MAZEROLLE
Times & Transcript Staff
Published Saturday October 6th, 2007
Appeared on page D2
Construction activity in Moncton is on pace with last year, but its value is rising sharply, according to figures released Friday by the City of Moncton.
The total number of building permits issued so far this year has now reached 930, the exact same number of permits issued at this point last year. However, at $104.8 million, the total value of these 930 building permits issued through the January-September period is more than 26 per cent ahead of the $82.7 million issued last year.
"Year-to-date building permit values exceed the 2006 levels in all sectors of the construction industry", said Ben Champoux, a business development specialist with the City of Moncton. The total value of residential building permits was up 4.7 per cent so far this year and institutional and government construction was up 31.8 per cent.
The big story though is in the total value of commercial and industrial permits -- a whopping 63 per cent ahead of last year. "These numbers show that citizens are building more expensive homes, and that investors are building larger commercial and industrial projects, a clear indication of a diversified economy and strong consumer confidence," Champoux said.
September itself saw a falling off of activity over the same period last year. The city issued permits valued at $8.3 million compared to a value that was almost twice that in September 2006, a particularly strong month that included big ticket items like the rebuilding of Maritime Door and Window.
Construction highlights in September 2007 included construction of a 33,000 sq. ft. warehouse on 90 MacNaughton Avenue, valued at $1,485,000, a veterinary clinic on Mapleton Road, valued at $550,000 and construction of the shell and foundation of a 4,500 sq. ft. repair garage on Urquhart avenue, valued at $292,500.
Major renovation projects included interior renovations to convert the former Dooly's on Main Street into a Nubody's Fitness Center, valued at $200,000, work at the Mountain Road Burger King also worth $200,000 and an addition to Cheers Pub worth $100,000.
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Metro boasts most workers in province
And Statistics Canada figures show job growth in province second
By Kate Wright
Times & Transcript Staff
Published Saturday October 6th, 2007
Appeared on page A1
OTTAWA - Metro Moncton's ongoing construction boom is helping the city to lead the province in employment growth, a Statistics Canada report found yesterday.
New Brunswick had the second highest rate of job growth across the country so far this year -- second only to Alberta -- and Metro continues to boast the biggest employment base in the province.
There were 74,000 Monctonians working last month, up from 71,000 one year ago.
While month-to-month employment figures give a snapshot of employment trends in the region, year-over-year numbers show the New Brunswick workforce has gained 13,000 workers-- a sign of strong job growth to come.
Samuel LeBreton, senior economist with Service Canada in Fredericton, said while Moncton "struggled" at the beginning of the year to gain employment momentum, the city has added nearly 3,000 people to the workforce since last year.
Major construction projects like the $35-million Molson Canada brewery and a continued rush on new home construction in the hub city has encouraged more Metro Monctonians to join the labour force.
"There's construction, there's lots of activity -- it's really picking up," he said. "Moncton's employment rate is high and continued to do well."
The province continues to reach record levels of employment this year. There were 363,000 New Brunswickers employed last month -- up by 13,000 people from Sept. 2006.
Around 9,000 people entered the workforce since January, which represents a 2.5 per cent increase in employment -- higher than the national average over the same time period.
The unemployment rate rose slightly by 0.5 per cent to 8.2 per cent because 2,300 more people were looking for work since last September.
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Metro economy will 'do well no matter what'
Experts say diversified economy, consumer confidence key to Metro's
By Brent Mazerolle
Times & Transcript Staff
Published Saturday October 6th, 2007
Appeared on page A1
Metro Moncton has some experience in its past with the 'R' word, but citizens are apparently not concerned about the sub-prime mortgage crisis in America and increasing whispers that the U.S. might be headed toward a recession.
And while no economy is completely recession proof, several economic voices suggest our local economy, like the fine ships that founded it long ago, is properly balanced to ride out the waves.
First off, several leading Canadian economic reports this week predict Canada's economy will weather the troubles in the U.S., where a mortgage crisis could cost as many as two million people their homes. In fact, they predict the U.S. economy will also continue to grow overall despite the crisis.
A Conference Board of Canada report released Thursday said although some sectors of Canada's economy might be hurt by the troubles south of the border, the economy should grow at a healthy rate of roughly 2.8 per cent in 2008.
"The combination of the strong Canadian dollar and slowing U.S. growth will decrease exports in sectors such as wood products and automobiles, but the Canadian domestic economy remains robust and should offset declines in exports," said Kip Beckman, principal research associate and author of The U.S. Housing Market Meltdown: Implications for Canada.
Toronto-Dominion and CIBC World Markets reports also released this week echo the Conference Board.
Closer to home, City of Moncton business development specialist and respected economist Ben Champoux, Canada Mortgage & Housing Corporation's former senior market analyst for New Brunswick, was upbeat when asked yesterday about Metro's future.
Pointing to increasingly plentiful employment options and a local economy that has never before been so diversified -- no one sector employs more than 8 per cent of population -- he said, "when the economy's booming everywhere, all urban centres do well. But when the economy slows down at a macro level, people look to urban centres where opportunities exist but where they can still afford to live. Moncton is one of those centres that offers that, and is now in a position to do well no matter what."
The diversification is also key. "Today, the Moncton economy is like a mutual fund. Overall, it continues to grow (even if some sectors suffer reverses)," he said. More important, he added, the growth is "at a rate that's sustainable."
Year-to-date building permits released by Champoux's office yesterday suggest "citizens are building more expensive homes, and that investors are building larger commercial and industrial projects, a clear indication of a diversified economy and strong consumer confidence."
In its third quarter 2007 report, CMHC forecasts that the average MLS price in New Brunswick will rise by 6.4 per cent and 3.5 per cent in 2007 and 2008, respectively. The average 2007 price for a house in Moncton is forecast to be $138,000, jumping to $142,750 in 2008.
With year-to-date housing starts in Moncton hitting $50 million, it appears the housing market will remain strong.
Though Canada Mortgage & Housing Corporation forecasts the level of new home construction will decrease in all provinces except for Manitoba, Quebec, and Saskatchewan next year, existing home sales will register their best year on record in 2007. Things will cool a bit in 2008, but it's a matter of jumping from the roof of the penthouse to the roof of the rest of the building. CMHC believes 2008 will see the second highest level on record. In New Brunswick, CMHC says positive labour market conditions will help reduce the net outflow of interprovincial migrants in 2007 and 2008. Nevertheless, rising mortgage carrying costs and more choice in the resale market will result in lower levels of new home construction.
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