West Coast woes and eastern promises

Image courtesy Stanford Downey Architects (Toronto)

With its continual flock of tourists, Niagara Falls' construction industry appears healthy compared to building activity in other parts of the country. This rendering depicts the 59-storey addition to the Niagara Falls Hilton. If the city's planned hotels are built, it will have close to 20,000 hotel rooms—the second most in Canada after Toronto.

The global economic slowdown has hit B.C.'s construction industry hard. Last month alone, the province lost 7000 construction jobs with the postponement of condominium and other housing projects due to developers hesitant to proceed amidst plummeting real estate values and cautious consumers.

Although Statistics Canada's Investment in Non-residential Building Construction for the Vancouver Census Metropolitan Area (CMA) reports a modest increase of 2.2 per cent to $816.2 million in the last quarter, overall spending fell 2.5 per cent to $3.27 billion in 2008 compared to the year before.

The Vancouver Regional Construction Association's (VRCA's) analysis of the report suggests non-residential investment is trending down.

In Calgary, the construction industry is faring no better. Total housing starts, including multi-unit residential buildings (MURBS), fell by 15 per cent last year. Canada Mortgage and Housing Corporation's (CMHC's) fall forecast projects a 39 per cent overall drop in 2009 from 2008. MURB starts are anticipated to decline from last year's 7051 to only 2500 this year.

Amidst the industry's nationwide lull, the honeymoon capital of Niagara Falls, Ont., seems busy. The city's Fallsview business district has an active 2009 planned with:
• a 59-storey expansion of the Hilton, making it the tallest hotel between Toronto and Chicago;
• 5000 new hotel rooms planned, including development of a 30-storey Hampton Inn;
• work starting on the 22,100-m2 (238,000-sf) Niagara Convention and Civic Centre; and
• a 3700-m2 (40,000-sf) Dave & Buster's restaurant expected to open later this year.

In 2007, tourism-related building and construction permits brought in $199 million, with the same value expected for 2008. Mayor Ted Salci Jr. believes 2009 will top these figures.