The Tribune

By NATARIO McKeNZIE

Tribune Business

Reporter

nmckenzie@tribunemedia.net

THE Bahamian construction industry is "waiting to see what's on the horizon", as activity slows down following the post-Hurricane Matthew construction and repair work.

Leonard Sands, the the Bahamas Contractors Association's (BCA) president, told Tribune Business that storm clean-up, renovation and remediation work had sustained the industry for a number of months.

"That was a windfall for the construction industry and gave many contractors lots of work and necessary activity to support their businesses," he said. "However we are now in June 2017 and most of that work has slowed down significantly."

Mr Sands added: "The construction industry is looking forward to what's going to happen next in terms of development. There are some small development whispers but, for the most part, we don't hear a lot regarding new projects, especially in New Providence. We are waiting to see what's on the horizon, what new thing can happen to bring some much-needed movement in the construction sector."

K T Turnquest, minister of finance, said during last week's 2017-2018 Budget communication that "some degree of momentum" had been seen in construction-related output last year, supported by a number of foreign investment projects in both New Providence and the Family Islands.

"While the domestic construction sector remained soft, it did receive a temporary boost in the wake of Hurricane Matthew with the rebuilding of residential and commercial properties and repairs to public infrastructure," he added.

"Otherwise, the softness of the construction sector, as a whole, was reflected in total mortgage disbursements for new construction and repairs, which declined by almost 7 per cent, following a gain of 24 per cent in 2015. As for the two main components of the sector, the residential element contracted by 3 per cent last year, while the commercial segment decreased sharply by 51 per cent, and this on the heels of a 35 per cent downturn in 2015."

Stephen Wrinkle, a former BCA president, told Tribune Business: "Things are very flat right now. I think it's too early to tell what effect the change of government will have on the industry as a whole. Certainly, a lot of interested parties and investors have been waiting on the sidelines for the election results.

"Those that were eager to see a change now see it, and it remains to be seen whether they will go ahead and invest. Hopefully, the people who have been on the sidelines can get the the financing that they need. I have not seen the banks easing up the criteria for lending, and that is going to continue to make it difficult for prospective home-buyers. We have to make it more affordable for Bahamians to obtain a mortgage. You have to be able to reach the consumer so that they can realise the dream of home ownership."