Ontario Construction News staff writer
The Canadian Construction Association (CCA) says the construction sector is continuing to outperform the broader economy, even as Canada experienced an economic contraction in the second quarter of 2025.
In its fall Construction Quarterly Economic Insights report, released this week, the association reported that the industry grew by 0.24 per cent during the quarter — a modest but notable gain in a slowing national economy.
“Canada’s construction industry continues to show remarkable resilience — but that is not without its challenges,” said CCA president Rodrigue Gilbert. “We’re seeing growth in construction activity, fueled by the federal government’s nation-building focus, but rising costs, workforce shortages, and trade uncertainty are making it harder for companies to plan, bid, and deliver projects that Canadians depend on.”
The report cautions that new “Buy Canadian” procurement rules for federal projects, set to take effect in November, could have mixed impacts on project costs and delivery timelines. CCA says consultation with downstream industries, including construction, is essential to ensure that domestic sourcing policies support — rather than hinder — Canada’s infrastructure ambitions.
“Building strong communities, trade corridors, and critical infrastructure remains a national priority and a priority for our industry,” Gilbert said. “But protectionism adds friction to that mission. We need coordinated trade, procurement, and investment policies that make it easier to build, not harder.”
Looking ahead, CCA forecasts a modest lift to housing and residential construction later this year, driven by expected Bank of Canada rate cuts and the launch of the federal Build Canada Homes initiative. However, the report notes that weaker pre-sales and regional disparities — particularly in Ontario and British Columbia — suggest an uneven recovery path.
CCA says it will continue to monitor the effects of tariffs, input costs, and procurement reforms on its members and advocate for evidence-based policy solutions that promote sustainable economic growth.