The Daily Courier

Okanagan economy up and down

- STEVE MacNAULL

The Okanagan has a confoundin­g economy. Everything seems to be humming along nicely, yet home constructi­on in the Central Okanagan has plummeted 37 per cent and the number of business licences is off 3.6 per cent.

It’s a sign that while the Valley has a strong economy, the overheated housing market is correcting itself.

The 1,838 home constructi­on starts from January through September this year was down 36.9 per cent from the 2,912 starts during the same period last year.

To put it in perspectiv­e, this year’s activity is still historical­ly high, beating the pace of 2012, 2013, 2014 and 2015.

Records for home building were set in 2016 and 2017.

The disparity in business licenses was less.

In 2017, there were 13,089 licensed businesses in the Central Okanagan, 3.6 per cent fewer than the 13,579 in 2016.

That may be a reflection of some smaller constructi­on businesses or suppliers falling idle, companies closing due to retirement and some businesses simply giving up in a slightly tougher economy.

Every three months, the Central Okanagan Economic Developmen­t Commission generates an economic indicators report tracking activity in 10 categories.

Despite the drop in home constructi­on, the value of building permits issued January through August this year topped $750 million, up seven per cent from the $701 million over the same time last year.

That means a lot of constructi­on is about to start in the Central Okanagan, driven by a 48 per cent hike in commercial building permits issued. Other indicators: – Population in 2017 up 1.4 per cent to 199,103

– Labour force bigger by 3.1 per cent to 107,878

– Number of airport passengers January through September up 9.2 per cent to 1.55 million

– Household income up 19.5 per cent between 2011-16 at $71,127

– Median new home price up 19.7 per cent to $905,000

– Average monthly rent for a two-bedroom apartment up eight per cent to $1,151

– Number of job postings up 4.1 per cent to 1,316 a 50-50 joint-venture partnershi­p with Southeaste­rn Timber Products in Ackerman, Mississipp­i.

Southeaste­rn makes 100 million board feet of southern yellow pine lumber per year.

“We’re pleased to have found a partner like Southeaste­rn timber Products that we share the same family-owned business values with,” said Tolko CEO Brad Thorlakson.

“We look forward to the opportunit­y to invest in this, our second asset in the U.S., to support the future growth of our company. We’re pleased to support this facility and enhance its sales, marketing and logistic capabiliti­es to service our customers across North America and abroad.”

Southeaste­rn Timber Products manager Bill VanDevende­r said the Tolko partnershi­p will help the company expand and boost annual output to 300 million board feet a year. year-round.”

That means you can also recycle lots of other flexible plastics at any London Drugs, including sandwich bags and zip-lock bags, pouches for granola or frozen berries, crinkly wrappers and bags, coffee bags, any cellophane or flexible packaging with a plastic seal, such as the plastic used for fresh pasta and pre-packaged deli meats, bubble wrap, plastic envelopes and net bags used for fruits and vegetables.

Items collected at stores is sent to Merlin Plastics, a postconsum­er processing company in Delta, which turns the plastics into engineered fuel to be used at concrete plants.

London Drugs stores also have bins to recycle everything from light bulbs, smoke alarms and small appliances to cardboard, styrofoam, beverage containers and batteries.

London Drugs claims to have 93 per cent waste diversion with its recycling programs.

The goal is zero waste.

 ?? The Okanagan Weekend file photo ?? New-home constructi­on plunged 37 per cent in the Central Okanagan in the first nine months of this year compared to the same time period last year.
The Okanagan Weekend file photo New-home constructi­on plunged 37 per cent in the Central Okanagan in the first nine months of this year compared to the same time period last year.
 ?? Special to The Okanagan Weekend ?? London Drugs has launched the first-ever Halloween candy wrapper recycling drive in B.C.
Special to The Okanagan Weekend London Drugs has launched the first-ever Halloween candy wrapper recycling drive in B.C.
 ?? Special to The Okanagan Weekend ?? Thompson Okanagan Tourism Associatio­n won the bid to host the Internatio­nal Indigenous Tourism Confernce in Kelowna next year.
Special to The Okanagan Weekend Thompson Okanagan Tourism Associatio­n won the bid to host the Internatio­nal Indigenous Tourism Confernce in Kelowna next year.
 ?? Special to The Okanagan Weekend ?? Vernon-based Tolko Industries has bought half of the Southeaste­rn Timber Products lumber mill in Mississipp­i.
Special to The Okanagan Weekend Vernon-based Tolko Industries has bought half of the Southeaste­rn Timber Products lumber mill in Mississipp­i.
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