Moose Jaw construction industry faces a poor year

Unless something drastic happens in the next six months this year will be depressing for the local construction industry.

Building permit values from city hall for the first six months of 2018 are less than half last year’s pace. The city issued 93 permits to June 30 worth $8.44 million – a decline of 55 per cent from $18.9 million last year.

Half the decline is from the housing sector ($5.85 million) where 11 houses worth $3.35 million were started this year compared with 24 worth $9.2 million last year.

The outlook in January was optimistic with two major projects on the front burner. A $50 million pea processing plant was planned for the new industrial park south of the asphalt refinery. Canadian Tire planned a $13.5 million project consolidating three stores on part of the exhibition grounds.

The pea plant has allowed agreements with the city for land purchase and tax concessions to lapse. Meanwhile Canadian Tire has given no indication of when work will start on the site. The Moose Jaw Exhibition Company has agreed to give up about 13 acres of leased land for the project.

In June, building permits were $1.36 million, a reduction of 3.1 million. Four new single family houses worth $1.1 million were started compared with three worth $1.17 million last June.

Ron Walter can be reached at ronjoy@sasktel.net