Building Industry Continues on Steady Pace
Business TrendsSeptember 01, 2006
It's not a big boom, but a consistent steady pace that has put Sarnia-Lambton's building industry in such a good state, says Matt McEachran.
The president of the Sarnia-Lambton Home Builders Association said that when he started in the industry with his father in 1997, it had nearly fallen apart.
"When we first started it was dead, dead, dead," McEachran said. "The '90s almost wiped out the construction industry in Sarnia."
But now, as recently released numbers from 2005 show, the industry - which includes both new home building and old home renovation - is in pretty strong shape.
"It wasn't the boom that major urban centres got," McEachran said. "So maybe ours is just more consistent growth."
Figures based on data from Statistics Canada and the Canadian Mortgage and Housing Corporation show that last year nearly 2,000 jobs were created as a result of housing activity in the region.
More than 640 jobs came from new housing construction, while around 1,330 were created because of home renovations.
The stats only measure the direct jobs created, such as suppliers and trade workers, McEachran said, but there are many more, such as service professionals, decorators and landscapers who reap the benefits of a strong industry.
New construction in the area was worth $46 million in 2005, while renovation work added $95 million to the economy, according to the figures. The total value of all housing activity came to $141 million.
McEachran said that although he has no definitive answer on why the industry is going so strong, part of the reason may be the growth being spurned by newcomers to Sarnia-Lambton.
"Part of it is we are seeing people move in who do not live in Lambton County," he said.
He cited one project on Blackwell Sideroad, Bluewater Country, which has pulled in 20-25% of its homeowners from outside the area. The development targets the 50-plus market.
"If thy cane be that busy (with one target market)," he said, "the rest of the county is booming."
There are also changes in what homeowners want and expect and that is helping spur the growth, he said.
Thanks to renovation and do-it-yourself shows such as Flip This House, people want to do more with their old house and get more options in their new one.
"Once people see it and they have it, they don't want to get rid of it," he said.
With the average new home in Sarnia going for between $250,000 to $300,000, people want features such as granite countertops, higher ceilings and landscaped lawns.
Low interest rates, growth in Chemical Valley and an affordable standard of living all make the area a desirable one, McEachran said.
He predicted that the building industry in Sarnia probably has a "couple of good years" of sales left in it - but he's been making that prediction for a few years.
The president of the Sarnia-Lambton Home Builders Association said that when he started in the industry with his father in 1997, it had nearly fallen apart.
"When we first started it was dead, dead, dead," McEachran said. "The '90s almost wiped out the construction industry in Sarnia."
But now, as recently released numbers from 2005 show, the industry - which includes both new home building and old home renovation - is in pretty strong shape.
"It wasn't the boom that major urban centres got," McEachran said. "So maybe ours is just more consistent growth."
Figures based on data from Statistics Canada and the Canadian Mortgage and Housing Corporation show that last year nearly 2,000 jobs were created as a result of housing activity in the region.
More than 640 jobs came from new housing construction, while around 1,330 were created because of home renovations.
The stats only measure the direct jobs created, such as suppliers and trade workers, McEachran said, but there are many more, such as service professionals, decorators and landscapers who reap the benefits of a strong industry.
New construction in the area was worth $46 million in 2005, while renovation work added $95 million to the economy, according to the figures. The total value of all housing activity came to $141 million.
McEachran said that although he has no definitive answer on why the industry is going so strong, part of the reason may be the growth being spurned by newcomers to Sarnia-Lambton.
"Part of it is we are seeing people move in who do not live in Lambton County," he said.
He cited one project on Blackwell Sideroad, Bluewater Country, which has pulled in 20-25% of its homeowners from outside the area. The development targets the 50-plus market.
"If thy cane be that busy (with one target market)," he said, "the rest of the county is booming."
There are also changes in what homeowners want and expect and that is helping spur the growth, he said.
Thanks to renovation and do-it-yourself shows such as Flip This House, people want to do more with their old house and get more options in their new one.
"Once people see it and they have it, they don't want to get rid of it," he said.
With the average new home in Sarnia going for between $250,000 to $300,000, people want features such as granite countertops, higher ceilings and landscaped lawns.
Low interest rates, growth in Chemical Valley and an affordable standard of living all make the area a desirable one, McEachran said.
He predicted that the building industry in Sarnia probably has a "couple of good years" of sales left in it - but he's been making that prediction for a few years.