Judy Lamelza Special to Ontario Construction News
As Canada’s construction sector moves into 2026, the industry finds itself at a defining crossroads with rising infrastructure demand, rapid technology adoption, generational workforce turnover and ongoing economic uncertainty converging. This is more than a typical cyclical adjustment. For many contractors, developers, and suppliers, 2026 will be a determining year that separates firms able to adapt and grow from those that struggle to remain competitive in a rapidly evolving market.
The most pressing challenge facing construction in 2026 remains workforce availability. According to BuildForce Canada’s latest national outlook, the industry is bracing for the retirement of approximately 270,000 experienced tradespeople over the next decade. At the same time, more than 380,000 new workers will be required by 2034 simply to maintain current construction activity levels.
For contractors, this reality is shaping bidding strategies, scheduling decisions, and long-term workforce planning.
Despite labour constraints, activity levels heading into 2026 remain generally positive, particularly in civil and infrastructure construction with provincial forecasts point to strong regional demand tied to population growth and major public investment programs.
In Ontario, BuildForce estimates the province will need about 154,100 additional construction workers by 2034 to deliver planned infrastructure and housing projects. Alberta is also seeing momentum, with non-residential construction employment projected to rise eight percent above 2024 levels by 2026, even as the province prepares to replace more than 43,000 retiring workers.
Across the country, industry leaders report growing pipelines tied to public infrastructure, energy transition initiatives, hydroelectric upgrades, data centre development, and large-scale civil works. These projects are increasingly complex, schedule-driven, and technically demanding.
Technology becomes central to project delivery
As labour availability tightens, technology is playing an increasingly critical role in how work gets done. A recent report titled Canadian Construction: Doing More With Less, developed by KPMG in collaboration with the Canadian Construction Association, confirms that the industry has reached a turning point in digital adoption.
About 90 per cent of construction leaders surveyed now view tools such as artificial intelligence, building information modeling, digital twins, analytics, and automation as essential to improving efficiency and addressing labour shortages. These investments are already delivering results. Eighty-one percent of respondents reported productivity gains from recent technology adoption, with many expecting digital tools to become central to workforce management strategies in the years ahead.
In concrete and heavy civil construction, technology is reshaping day-to-day operations. Robotic layout systems are reducing reliance on manual surveying. Automated rebar-tying tools are improving productivity and safety in high-density placements. Digital pour tracking, concrete scanning, and real-time quality control workflows are helping teams avoid rework and compress schedules.
Precast and modular concrete solutions are also gaining traction as contractors seek predictable timelines and reduced labour intensity. These approaches are increasingly attractive in an environment where skilled labour is scarce and project certainty is critical.
Economic headwinds and a split market
While public-sector infrastructure continues to move forward, private-sector construction remains under pressure. Elevated interest rates have caused many residential and commercial developers to delay or cancel projects, creating a split market where publicly funded work advances while private investment lags.
This environment has also placed pressure on construction equipment fleets. Rising emissions-compliance requirements and higher operating costs have not been fully reflected in rental rates, creating margin challenges for equipment providers and contractors alike. A stable and predictable public infrastructure pipeline is increasingly important to maintaining balance across the construction ecosystem.
Procurement reform and new delivery models
Another significant shift shaping 2026 is procurement reform. Traditional lowest-bid models are showing limitations, particularly on complex infrastructure projects where risk, coordination, and constructability play major roles.
Progressive design-build, construction management, and integrated project delivery models are gaining acceptance as ways to improve collaboration and allow contractor expertise to influence projects earlier in the design phase. For heavy civil and concrete-intensive work, this approach can improve cost certainty, reduce risk, and support better schedule outcomes.
