For years, the weekend Homes section of the Free Press has espoused the benefits of the residential construction industry. Both new-home construction and renovations are featured on a weekly basis, with numerous articles, features and listings.
However, although one appreciates the design talent and craftsmanship that goes into a new home or a terrific renovation, seldom do we think of the major role that the industry plays in our economy.
In 2009, the MMM Group prepared an economic-impact study which demonstrated the importance of residential construction to both the Manitoba and Winnipeg markets. The results were startling.
The study found 20,723 Manitoba jobs an $853 million in wages can be directly tied to residential construction. The $2.415-billion value of new housing, residential renovations and other expenditures accounts for six per cent of Manitoba's GDP.
The study demonstrated what the industry had long known -- that residential construction is a major contributor to the welfare of our local economies.
However, it goes much deeper than that. The study showed governments rely on the residential construction industry to generate tremendous publis revenues:
* $170.1 million: total personal income taxes
* $128.7 million: --total GST revenue
* $73.7 million: --total PST revenue
* $77.2 million: total CPP premiums
* $35.8 million: total Employment Insurance premiums
In addition, in 2008, new-home construction generated $2,958,102 to the City of Winnipeg in permit fees and $10,191,780 in property taxes.
The purpose of citing these staggering numbers is not solely to demonstrate how much the residential construction industry contributes to the local economy, but also to highlight the ramifications of a sudden downturn in the industry.
New-home construction is now on the upswing, but renovations may experience a bit of a decline if Ottawa does not renew the Home Renovation Tax Credit.
It's imperative that the various levels of government do not enact punitive legislation that will impair the progress of residential construction and reduce the industry's economic contributions. Otherwise, governments will have to look elsewhere to find these funds and remember, there's only one taxpayer and it is all of us.
Mike Moore is president of the Manitoba Home Builders' Association.
