Data compiled by Norfolk's economic development department concludes that construction activity last year reached a four-year high.

Building permits issued last year were worth $97.7 million. This is a 16 per cent increase ($14 million) over the value of permits issued in 2005.

Industrial construction last year was worth $21.1 million. This is up 26 per cent from the previous year. The Toyotetsu auto parts manufacturing facility in Simcoe is largely responsible for the increase.

Permits for commercial construction almost doubled last year compared with 2005. Commercial permits were worth $10.2 million.

Much of this construction was confined to the Queensway in Simcoe. New projects there include the pending conversion of Zehrs to a Real Canadian Superstore, a Boston Pizza, Shoppers Drug Mart and TSC.

Despite the challenges facing the farming community, there were also signs of robust growth in the agricultural zone. Farm-related building permits were worth $7.4 million last year. This is up from $4 million in 2005. Highlights include new pig and poultry barns and modern cold-storage facilities for fruits and vegetables.

The boost in development is good news. However, Mayor Dennis Travale warns Norfolk will have to overcome serious challenges in the area of water and sewage capacity if it hopes to keep the ball rolling. A moratorium on new building permits in Port Rowan will be in effect until the town receives a new sewage treatment plant. Simcoe and Port Dover are also close to hitting the wall in terms of infrastructure capacity.

"Norfolk County has had very favourable growth as the building activity figures demonstrate," Travale said in a press release. "However, this pace might not continue nor be sustained due to major challenges in the waste water program. We are making every effort to resolve these issues and are hopeful that we can continue to have a promising future."

Fritz Enzlin, Norfolk's chief building official, gave assurances this week that his department will work hard in 2007 to make this year as successful as last year.

"Our building division staff is committed to offering excellent customer service to builders, developers and ratepayers," Enzlin said. "We have a great team of professionals and I am proud of them all."