Ontario Construction News staff writer
Canada’s construction industry has welcomed several measures in the federal government’s 2026 budget, including funding for housing, infrastructure and major projects, but industry associations say more is needed to address labour shortages, construction costs and domestic manufacturing capacity.
Released Nov. 5, Budget 2026 includes an additional $13 billion for Build Canada Homes, continued funding for the Build Communities Strong Fund and investments in First Nations infrastructure. It also includes measures to encourage business investment, improve productivity and support skilled trades.
The Canadian Construction Association (CCA) welcomed the commitments but said the government must ensure the industry has the capacity to deliver the projects.
“Canada needs to build, and this budget recognizes the important role construction plays in delivering on that ambition,” said CCA president Rodrigue Gilbert. “We appreciate the government’s action on housing supply, strengthening communities, and advancing projects of national importance. The next priority must be ensuring the conditions are in place to turn these commitments into completed projects.”
The association also welcomed plans to transition up to 200,000 temporary residents already in Canada to permanent residency by the end of 2027, including 100,000 workers eligible for Express Entry or the Provincial Nominee Program.
However, it called for additional measures to address construction labour shortages, expand recognition of training and qualifications beyond the Red Seal system, manage rising costs and tariffs, improve procurement practices and streamline project approvals.
“Construction costs have a direct impact on Canada’s ability to build,” Gilbert said. “Supporting the competitiveness of Canadian contractors and the broader construction supply chain is essential to delivering projects efficiently and affordably.”
The Canadian Home Builders’ Association (CHBA) said the budget falls short in providing new measures to support homeownership and market-rate housing construction, with much of the funding focused on previously announced social and rental housing commitments.
“Addressing Canada’s housing challenges requires a range of housing options, and investments in social and rental housing are certainly needed,” said CHBA interim CEO Frank Lohmann. “But we cannot lose sight of the importance of homeownership in Canada’s housing system. We need more policies that support the construction of homes Canadians can aspire to own, alongside the measures being taken to increase rental and non-market housing supply.”
The association cited Canada Mortgage and Housing Corporation figures showing that the share of housing starts intended for homeownership fell from approximately 69 per cent in 2021 to 45 per cent in 2025.
Lohmann also called for alternatives to municipal development charges, including debt financing and recovering water, wastewater and road infrastructure costs through user charges rather than levies on new homebuyers.
The Progressive Contractors Association of Canada (PCA) welcomed the budget’s focus on competition, natural resource development, major projects, skilled trades and regulatory reform.
“This is a budget that understands that competition is what builds a country,” said PCA president and CEO Paul de Jong. “Canada has the resources, the workers, and the ambition to lead. Budget 2026 puts the focus where it belongs: on attracting investment, removing barriers, and ensuring we have the skilled workforce to deliver.”
PCA also welcomed an extension of Employment Insurance benefits from 14 to 18 weeks for apprentices attending in-class training.
However, it raised concerns about prevailing-wage requirements attached to the Clean Electricity and Clean Technology Investment Tax Credits, which have been extended to 2040.
“Locking prevailing wage conditions in until 2040 narrows the pool of qualified contractors and workers, raises costs for taxpayers and investors, and runs counter to the government’s own competitiveness goals,” de Jong said. “We urge Ottawa to remove these requirements so projects can stay on time and on budget and every contractor and worker can help build Canada’s clean energy future.”
The Mechanical Contractors Association of Canada (MCA Canada) welcomed measures supporting business investment, infrastructure, energy, housing and skilled workers, including the Productivity Mega Deduction, which allows businesses to immediately expense a broader range of eligible capital investments.
“This is fundamentally a budget about productivity, building, and growth; Canada’s mechanical and electrical contractors are ready to build,” said Tania Johnston, CEO of MCA Canada.
“Whether we are talking about housing, hospitals, energy infrastructure or major nation-building projects, Canada needs capable contracting firms and their skilled employees to turn those investments into completed projects.”
MCA Canada also welcomed support for small businesses through the Canada Growth Incentive and investments in the electricity system and nuclear industry.
“Announcing projects is one part of the equation. Having the people and businesses capable of building them is the other,” Johnston said. “Government and industry need to work together to ensure we are developing the right trades, in the right numbers, in the right regions to meet the construction demand ahead.”
The Cement Association of Canada (CAC) said the budget does not provide enough certainty or targeted support for domestic cement producers.
“Cement and concrete are the foundation of the Build Canada agenda. Canada cannot deliver on its housing, major infrastructure projects or defence expansion goals without supporting the industries that supply the materials to achieve them,” said CAC president and CEO Adam Auer.
The association is seeking expedited Strategic Response Fund reviews for cement modernization, decarbonization and supply-chain resilience projects. It said at least four major projects representing more than $1 billion in capital investment are at risk.
It is also calling for a dedicated $25-million fund for workforce training, infrastructure research and adoption of Canadian cement and concrete technologies.
“Cement and concrete belong in that same category. You can’t build a home, a bridge, a pipeline or a nuclear reactor without them, and a country that can’t make its own cement can’t build on its own terms,” Auer said.
