







 |
|
Construction Industry
The construction industry is one of the largest
employers in Calgary. It employed over 55,000 people in
2003, and forecasts a growth of 15.4%, with total
employment demand estimated to reach 63,461 people by
2009.
The City of
Calgary
forecasts for the construction industry an annual
average employment growth of 2.4%. Additional growth in
employment opportunities for skilled trades people and
professionals is expected after the year 2005 and
continuing for the next two decades as more baby boomers
start to retire.
.
What types of trades and professional occupations are in
the construction industry?
.
Areas of Activity in the Construction Industry
.
Major Long-Term Institutional and Engineering
Construction Projects
.
Very-Long Term Engineering Construction Projects
.
Residential Construction Activity and Long-Term Projects
.
Trends that May Impact on the Construction Industry in
Calgary
What types of trades and
professional occupations are in the construction
industry?
A list of regulated occupations employed in the
construction industry is available at the website of the
Alberta Learning Information Service - ALIS, please
select the option:
Occupations by Industry Search.
2003 FACTS Calgary Economic Region:
. 4.5 % annual economic growth for the Calgary Economic
Region
. 8.6 % of the total employment demand in Calgary was in
construction
. 2.8% employment growth rate for trades people in
construction
. 19,680 trades people were employed in the construction
industry
Areas of Activity in the
Construction Industry
The construction industry is a very diverse industry
sector, composed of four major areas of activity, with
different employment opportunities, cycles of hiring and
different rates of growth:
New Home Building and Renovation
Construction activity that refers to new buildings and
remodeling or renovation of single-family homes and
multi-family residential buildings (condominium
complexes, duplexes and rental apartment buildings).
Heavy Industrial
Construction activity that refers to the construction of
diverse manufacturing operations or factories (plants).
Examples of heavy industrial buildings are: cement
factories, power plants, food factories, metal shops,
machinery and equipment repair shops.
Institutional and Commercial
Construction activity that refers to the building of
commercial and institutional buildings and any related
structures. Examples of commercial buildings are:
shopping centers, office buildings, warehouses,
restaurants and coffee shops. Examples of institutional
buildings are: sports and leisure complexes, schools,
universities, government buildings.
Civil Engineering
Construction activity that refers to large and complex
engineering projects, such as highways and roads,
interchanges, light railway transit systems and platform
stations, water and sewer lines, power and communication
lines, and bridges.
Major Long-Term
Institutional and Engineering Construction Projects
Responding to population growth challenges and the needs
of Albertans, the Government of Alberta provided major
funding for health care, education and affordable
housing.
In the next three years, major institutional
construction projects are taking place in Calgary
through the Government of Alberta Capital Plan
(2004-2007) and the Government of Alberta Centennial
Capital Plan (2003-2006). The Centennial Capital Plan is
a unique capital funding plan to accomplish projects
that will serve Albertans and celebrate 100 years since
the Province of Alberta joined the
Canadian Confederation on September 1, 1905.
In addition, Calgary is receiving from the provincial
government $450 million to expand four hospitals over
the next four years.
TIME FRAME - PROVINCIAL FUNDING FOR CONSTRUCTION PROJECTS
2003-2006 - Centennial Capital Plan
Construction Projects for Calgary
EDUCATIONAL INSTITUTIONS
. School Facilities: $21.4 million
. Ongoing School Projects: $47.9 million
. Infrastructure Maintenance Program: $38.4 million
. University of Calgary Health Research Centre: $105
million
HEALTH CARE
. Health Care Facilities: $67.7 million
. Infrastructure Maintenance Program, Health: $32.3
million
2004-2007 - Capital Plan Construction
Projects for Calgary
EDUCATIONAL INSTITUTIONS
. New Schools, Calgary Roman Catholic Separate School
District: $27 million
. New Schools, Calgary Board of Education: $25million
HEALTH CARE
. Redevelopment - Foothills Medical Centre: $70 million
. Land Acquisition - South Calgary Hospital: $12 million
2004-2008 - Other Provincial Government Funding
for Calgary
. Expansion at Four Hospitals: $450 million
. Affordable Housing Grants ($51.24 million for the
entire)
(Province of Alberta matched by an equal
contribution from the Federal Government)
Recognizing the tremendous urban growth and the role of
Calgary as the transportation hub for Western Canada,
more government funding is being allocated for major
engineering construction projects designed to expand
roads and the public transit system. For example, over
the period 2004-2007 the City of Calgary Municipal
Government has allocated $45 million for transportation
initiatives. In 2003, the City Council approved the
much-needed expansion of the Glenmore Trail at a cost of
$99 million.
In addition, the City of Calgary has developed the
Transportation Infrastructure Investment Plan:
2003-2010, identifying needs, possible funding sources
and engineering construction costs to expand and upgrade
Calgary�s transportation system.
READ MORE...City of Calgary -
Transportation
Infrastructure Investment Plan Presentation 2003-2010
Very-Long Term
Engineering Construction Projects
The extension of the Calgary�s Light Railway Transit
(C-Train) is expanding over a 20-year period. The
C-Train project is now at a preliminary planning stage,
dependent on available federal and provincial funding.
Another long-term plan is the future expansion of the
Calgary International Airport runway and
includes adjacent road improvements. It is estimated
that it will take 10 years to complete the work once the
estimated $157 million funding is available.
Residential
Construction Activity and Long-Term Projects
The residential construction activity is dependent on
continuous economic growth and sustained high employment
rates in Calgary. Growth in residential construction is
dependent on the net migration of people who move from
other parts of Canada to Calgary. Net migration is
slowing down from record highs achieved during the
period: 1998 to 2002.
After a record high of 21,000 new housing starts during
the peak residential construction years: 2001 and 2002;
the City of Calgary forecasts a steady more normal pace
of new construction with a total of 56,000 new
single-family homes to be built from 2003-2008.
Construction for multiple-dwelling homes, such as
condominium complexes and rental apartment buildings, is
expected to slow-down.
In Calgary, major residential construction projects are
planned for two inner city areas, on land recently sold
by the government to private developers in the East
Village and in the Bridgeland area. In addition to inner
city developments, Calgary continues to expand at the
borders changing farmland into urban developments. The
city of Calgary municipal government approves new
developments based on an analysis of available funding
from developers and total costs to build roads and
provide services to the future communities.
Trends that May Impact on the Construction Industry
in Calgary
Trends with Positive Impact:
. Calgary expands at a fast pace; the City of Calgary
estimates that by the year 2008 the population will
expand to over 1 million.
. The Centennial Capital Plan (2003-2006) creates more
opportunities and short-term growth in institutional and
engineering construction activity in Calgary and through
out Alberta.
. The Province of Alberta may undertake more
institutional and engineering construction projects once
the provincial debt is eliminated possibly a year in
advance, during the budget year 2004-2005.
. Record low interest rates and mortgages increase affordability for home ownership, commercial and
industrial property ownership and the capability to
undertake major renovation and remodeling projects.
. Increased home ownership affordability because of
declining unemployment rates, the City of Calgary
forecasts an unemployment rate of 4.9% in 2008,
declining steadily from 5.8% in 2002.
. Canada Mortgage and Housing Corporation allows
homebuyers to buy without a down payment, allowing more
people to buy homes as they have to pay only the monthly
mortgage amount.
. Continued economic growth in Calgary fuelled by low
interest rates, high oil and natural gas revenues and
one of the lowest unemployment rates among Canadian
cities.
.The City of Calgary gets a rebate from the Federal
Government for a portion of the Goods and Services Tax (GST);
rebate to be used to build roads and cover other
infrastructure needs.
Trends with Negative Impact:
. High value of the Canadian dollar reduces the
volume of Canadian exports and affects jobs in
manufacturing, export trade and transportation.
. Globalization of businesses and migration of
manufacturing operations to other parts of the world to
lower costs.
. Increasing general and builder�s risk insurance rates
for construction companies.
. Increasing cost of energy and emission control
(Canadian environmental regulations) that results in
higher costs for building materials.
. Unexpected global risks that may impact Western Canada
or the entire continent (terrorism, flu epidemics and
other human and livestock diseases).
|