Canada’s construction industry steps up, project pipeline remains uneven amid shifting investment landscape
Latest quarterly data shows total construction activity recovered, while soft residential demand and rising input costs continue to shape industry outlook.
OTTAWA, ON — October 29, 2026 — Today, the Canadian Construction Association (CCA) released the fall edition of its Construction Quarterly Economic Insightsreport, showing that the construction industry saw recovery in Q2 but continues to face a mixed outlook as it heads into 2027.
Construction Gross Domestic Product (GDP) increased by one percent (1%) in the second quarter of 2026 following two consecutive quarterly declines, led by gains in engineering construction activity.
“Our industry remains resilient, but we are increasingly divided between emerging opportunities and near-term challenges,” said Nicole Emmett, Vice-President, Communications, Marketing and Members Services of CCA. “Despite the softening of the residential market, rising construction costs and trade uncertainty, Canada’s construction industry is still building,” said Emmett.
The Building Construction Price Index rose 3.5% year-over-year in the second quarter, with steel-intensive construction divisions continuing to experience some of the strongest cost increases. Higher fuel prices, tariffs on steel and aluminum products, and additional duties on imported wood cabinets and vanities are contributing to ongoing pricing pressures throughout the construction supply chain.
The latest report also examines several major developments expected to influence the industry ahead of the new year, including new federal investment incentives, the implementation of domestic procurement policies, evolving trade measures, labour market conditions, and a growing pipeline of nation-building infrastructure. While labour shortages have eased considerably in the near term, workforce planning remains critical as major project activity is expected to accelerate over the coming years.
“Canada has no shortage of ambition” added Rodrigue Gilbert, President of CCA. “The challenge now is ensuring that projects move from announcements to construction. Governments and industry must continue working together to reduce barriers, support investment, and strengthen the workforce needed to deliver the projects Canadians are counting on.”
A copy of the latest economic report can be found here: https://www.cca-acc.com/advocacy/economic-insights/
The next Construction Quarterly Economic Insights report will be published in January 2027.
For more information:
Anthony Valenti
Chief of Staff
President’s Office
Canadian Construction Association
613-236-9455
[email protected]
About CCA:
CCA represents more than 18,000 member firms drawn from 58 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.