According to the most recent construction industry report, Vancouver Island’s economy is on the road to recovery based on the volume of building permits issued in Q2 2014. Total building permits for the island, a key sign of future construction activity, climbed 8.2 per cent.

The Vancouver Island Construction Association (VICA) reports that the Nanaimo Regional District posted the largest gain at 53.9 per cent in Q2, followed by a 45.9 per cent rise in the Cowichan and a 23.9 per cent increase in the Comox Valley compared to Q1 2014.

“Construction investment is a key economic indicator” said Greg Baynton, CEO of VICA, This is a positive sign and indicates increased confidence in region’s economy, particularly for Nanaimo and north.”

By the Numbers

• Year-to-date building permits were 10.5 per cent higher on Vancouver Island compared to the same period last year.
• Total non-residential construction building investment spending in the Victoria metropolitan area increased 4.9 per cent in the second quarter led by public construction.
• Construction employment declined 10 per cent in the second quarter of 2014 over the first quarter and was below year ago levels.
• Non-residential building construction costs edged lower in the second quarter bring the year-over-year measure below one per cent.
• Projected major capital projects activity remains unchanged at an unprecedented $32.1B

“We expect this positive trend to continue through the remainder of 2014 and for the trend to increase dramatically in 2015/2016” said Baynton, noting the impact of major projects across the region.