Construction in Nunavut fell on hard times in 2023.
There was a meager $34.5 million worth of construction permits issued last year, a 62.9 per cent decrease from $92.9 million the previous year, according to Statistics Canada.
Commercial projects were at the forefront with $15.7 million in investment, but trailed last year's $19.3 million in that category.
Next came residential builds, which showed the biggest decline to $11 million in 2023 from $57.4 million in 2022 — an 80.8 per cent decrease. There were 111 residential units that went up in 2022 compared to only 20 in 2023, according to Statistics Canada.
Industrial construction slumped to $6.3 million from $11.6 million in 2022.
The $1.4 million in institutional and governmental activity was well below the $6.6 million in related activity the previous year.
Things didn't appear much better in January 2024 with just $924,000 in construction permits, but February brought a modest improvement to $2.4 million with residential builds leading the way at $1.7 million.
The average weekly earnings among Nunavut construction workers was $1,545.32 as of February 2024.
The sector accounted for 6.8 per cent of the territory's gross domestic product in 2023.
GN capital budget
The Government of Nunavut's 2024-25 capital budget contains $359.6 million in spending, with $157.1 million earmarked for community infrastructure.
Among the major construction projects the GN has in progress across the territory -- some in partnership with other governments -- are the $83.7-million, 24-bed Aqqusariaq Nunavut Recovery Centre for addictions treatment, a new high school in Taloyoak and major renovations to Coral Harbour’s Sakku School, the Ilavut correctional centre in Kugluktuk, six air terminal buildings, several water and wastewater treatment plants and replacement of Rankin Inlet's utilidor -- the community's piped water and sewage system.
Some of these projects will likely encounter hurdles. The territorial government included this passage in its 2024-25 Fiscal and Economic Indicators document: "Note that since the onset of Covid-19, governments worldwide have faced escalating challenges in executing capital projects, with costs dramatically increasing due to disrupted supply chains and increased material prices. Shortages of skilled labour have only compounded these difficulties, significantly prolonging project timelines and complicating logistical planning."
The new hamlet office in Sanikiluaq is expected to open during the summer of 2024.
In Arviat, a $50-million modular home factory will soon be a reality -- expected to be complete by 2025 -- with Sakku Investments Corp., the Kivalliq Inuit Association's business arm, backing the project.
Among private-sector projects underway in Nunavut, the $800-million Goose gold mine in the Kitikmeot is in construction and expected to be in production during the first quarter of 2025.
Housing plans
The territorial government is aiming to erect 166 new housing units in 17 communities this year.
The GN signed a $134.7-million design-build contract with NCC Development Ltd. to tackle the work.
There will be 146 public residences and and 20 staff housing units.
There will be 20 units constructed in Iglulik and Kinngait, 16 in Pangnirtung, 12 in Kugluktuk and Coral Harbour, eight units in each of Chesterfield Inlet, Clyde River, Kugaaruk, Naujaat, Pond Inlet, Sanirajak and Sanikiluaq and six homes apiece in Grise Fiord, Kimmirut, Resolute Bay, Qikiqtarjuaq and Whale Cove.
In January, federal Housing Minister Sean Fraser announced $27 million for Nunavut home construction, with $8.9 million going to Iqaluit.
Training program
With such high demand for houses and the GN's objective to build 3,000 homes by 2030, the Makigiaqta Inuit Training Corporation, under Nunavut Tunngavik Incorporated, and NCC Development finalized a $4.9-million, six-year initiative in April to train Inuit to be qualified for construction jobs.
Up to 90 people will be able to enrol in the training in either Inuktitut or English. The 2024-25 introductory offerings will be available in Arctic Bay, Arviat, Baker Lake, Cambridge Bay, Gjoa Haven, Iqaluit, Rankin Inlet and Taloyoak.