The Construction Quarterly Insights Report is your essential guide to understanding the current state and future direction of Canada’s construction sector. Produced by the Canadian Construction Association (CCA), this exclusive report delivers expert analysis on economic trends, policy developments, and market forces impacting your business. Whether you’re planning for growth, managing risk, or advocating for change, the insights in this report are tailored to help CCA members make smarter, faster decisions.
View our most recent issues below.
Essential reading for every construction leader navigating today’s challenges
Winter 2026
Highlights:
- Canadian economy steadied: GDP rebounded in the third quarter of 2025, growing at an annualized rate of 2.6 per cent, surpassing $2.5 trillion. As the Bank of Canada moves to sidelines, interest rates are expected to remain at 2.25 per cent through much of 2026.
- Building permits lowered further in Q3: Following a downturn in the second quarter, building permits weakened by a further 5.1 per cent to $32.5 billion in Q3, representing a 9.9 per cent year-over year (YOY) decline. Ontario recorded the largest drop, with permit values down 15 per cent quarter-over-quarter. However, early Q4 permit activity suggests a rebound that could make up for the slack in Q2 and Q3, lifting the annual total into positive territory.
- Cost pressures remain elevated: Construction input costs continue to rise, led by steel-intensive divisions. The Building Construction Price Index (BCPI) increased 4.2 per cent YOY. Contractors should plan for ongoing price volatility, especially in factory construction and in higher-inflation regions like London and Quebec City.
- Federal Budget bolsters construction demand: Budget 2025 reinforces long-term construction demand, committing $280 billion over five years in capital investments. New measures introduce $150 billion in net spending before operational savings, with roughly one-fifth tied to construction-related activity. This package is built around three core federal priorities: attracting private investment, prioritizing Buy Canadian procurement, and supporting unionized labour.
Fall 2025
Highlights:
- Construction steady as interest rates fall: Canada’s economy shrank by 1.6 per cent, but construction continued to grow modestly. Lower interest rates could support new investment in construction, particularly in multi-unit residential buildings.
- Fewer permits signal potential short-term slowdown: Building permits dropped 6.2 per cent in Q2, down 3.1 per cent year-over-year (YOY), hinting at a possible slowdown in project starts. Real estate market confidence has softened in Vancouver and Toronto, and a pre-sale market rebound may take time before housing starts pick up.
- High costs narrow Canada’s projects list: Construction costs rose four per cent over the past year, led by steel intensive divisions. Since 2017, industrial, commercial, and institutional (ICI) construction costs have risen twice as fast as consumer inflation. Higher delivery costs, new trade measures, and future federal procurement red tape could push costs up further.
- Trade shifts add new challenges: Tariffs and new “Buy Canadian” procurement rules expected in November may add to costs and delay projects. Industry consultation will be key to ensuring domestic sourcing supports, not hinders, Canada’s ability to build.
Summer 2025
Highlights:
- Construction holding steady: Industry output rose 0.22 per cent. While that’s more modest than the broader economy, it’s a stable gain for a sector that lacks export and inventory-driven spikes and absorbed higher imports.
- Building material inflation cooling – at factory gate: Industrial Product Price Index (IPPI) inflation slowed to 1.17 per cent YOY in May. Steel prices have climbed 3.38 per cent since February and cement costs are ticking up as well.
- Record federal build-out: The federal government’s four-year, $50 billion construction plan from Prime Minister Mark Carney’s platform places the industry in its most constructive (literally and figuratively) policy position since the post-war highway boom.
Spring 2025
Highlights:
- Industry holds steady: The construction sector expanded for a second consecutive quarter in Q4 2024, with real GDP rising 1.1 percent. Despite these quarterly gains, the industry posted a slight year-over-year contraction of -0.3 per cent in 2024.
- Material usage and trade in construction: Canada’s construction industry remains deeply dependent on imported materials, primarily steel, aluminum, cement, and electrical components. Many of these inputs are sourced primarily from the U.S., making them highly vulnerable to tariffs.
- Canada’s economic performance in Q4 2024 and early 2025: Despite a 1.6 per cent full-year growth rate, supported by lower interest rates and a temporary export surge, early 2025 is showing signs of strain. Escalating tariff threats and political uncertainty are weighing on consumer sentiment and investment, limiting the economy’s growth potential.
Winter 2025
Highlights:
- Trade and tariffs: Canada’s reliance on imports for critical materials like steel, aluminum, and lumber makes the sector particularly sensitive to trade disruptions.
- Workforce in construction: Employment levels in construction remain stable, reflecting strong demand for labour. As of Q3 2024, unemployment in the construction sector stood at five per cent, lower than the averages seen in the 2010s.
- Construction’s economic output: The construction industry’s GDP experienced modest growth in Q3 2024, reflecting the industry’s resilience in navigating economic uncertainties.
Check out some of our past issues.