Canada’s construction industry faces softer outlook as trade and procurement complexities grow
Latest economic report finds weakening construction activity alongside rising compliance costs tied to evolving trade and procurement policies.
OTTAWA, July 30, 2026 — Today, the Canadian Construction Association (CCA) released the summer edition of its Construction Quarterly Economic Insights report, highlighting a softer economic outlook for Canada and growing challenges for the construction industry. Construction sector GDP contracted by 1.3 per cent in the first quarter of 2026, while building construction investment also declined as economic uncertainty weighed on activity.
“The construction industry continues to build through uncertainty, but contractors are facing increasing pressures in getting the job done,” said Rodrigue Gilbert, President of the CCA. “Slowing economic growth along with a volatile trade environment are creating added costs and administrative burdens across the industry.”
While activity weakened in the first quarter, the report points to areas of resilience. Commercial and institutional investment continued to grow, labour demand remained relatively strong, and permit activity suggests pockets of future growth in residential and industrial construction.
The report also examines the impact of ongoing CUSMA negotiations, sector-specific tariffs, and expanding domestic-material requirements which are increasing compliance obligations for contractors and placing project delivery across the country under further strain.
“Canada’s housing, infrastructure, and economic ambitions depend on a construction sector that can deliver projects efficiently and competitively,” added Gilbert. “As governments advance major investments, it will be critical that we do everything possible to unlock the full potential of our country’s construction industry, with policies that support, rather than hinder, project delivery.”
The next Construction Quarterly Economic Insights report will be published in October 2026.
For more information:
Anthony Valenti
Manager, Media Relations
Canadian Construction Association
613-236-9455
[email protected]
About CCA:
CCA represents more than 18,000 member firms drawn from 57 local and provincial integrated partner associations across Canada. CCA gives voice to the public policy, legal and standards development goals of contractors, suppliers and allied business professionals working in, or with, Canada’s institutional, commercial, industrial, civil and multi-residential construction industry.
The construction sector is one of Canada’s largest employers and a major contributor to the country’s economic success. The industry, 99.9 per cent of which is made up of small and medium enterprises, employs more than 1.6 million Canadians and contributes 7.3 per cent of Canada’s Gross Domestic Product.