At the TIDA and Enterprise Ireland Built Environment Forum, industry leaders explored how shifting construction demand, infrastructure investment, financing challenges and international collaboration are reshaping Canada’s built environment, and what it will take to turn opportunity into completed projects.
(left to right): Caitriona Geoghegan, VP, National Bank of Canada (NBC); Karl Brady, CFO, Greybrook Realty Partners; Caroline Madden, Executive Director, CIBC Capital Markets; and John Lyne, Senior Director, CDPQ (La Caisse). Image by Sean Tarry.
Canada’s construction industry is entering a period of significant transition, with unprecedented attention on infrastructure investment, growing demand for housing and renewed efforts to strengthen domestic supply chains. Yet, despite an increasingly ambitious national construction agenda, questions remain about project feasibility, access to capital and the industry’s ability to deliver.
Those challenges – and the opportunities they present for Canadian contractors and international suppliers – were central themes at the Toronto Ireland Development Alliance (TIDA) and Enterprise Ireland Built Environment Forum, where construction executives, developers, financial institutions and industry stakeholders examined the changing Canadian market.
Across discussions focused on construction opportunities, international partnerships and capital investment, a consistent message emerged, highlighting the fact that Canada has no shortage of construction needs or potential investment. The challenge is creating the conditions necessary to translate those opportunities into viable, financeable and efficiently delivered projects.
For general contractors, that means navigating a market increasingly influenced by public investment, evolving procurement requirements, tighter project economics and a growing emphasis on collaboration throughout the construction supply chain.
A construction market in transition
One of the forum’s central themes was the changing composition of Canada’s construction pipeline.
While the condominium market has experienced a substantial slowdown, other segments are demonstrating considerably greater resilience. Purpose-built rental housing, affordable housing and publicly funded institutional projects are emerging as important sources of construction activity.
In fact, participants described a pronounced shift away from investor-driven condominium development toward projects supported by government programs, institutional investment and public infrastructure spending.
Healthcare, long-term care, education and green infrastructure were identified as particularly active sectors, with public funding helping sustain construction demand through a challenging period for private residential development.
The residential market, however, remains uneven.
One participant estimated that high-rise residential construction activity in the Greater Toronto Area could fall approximately 50 to 60 per cent below its 10-year average, while purpose-built rental construction has demonstrated stronger momentum.
Meanwhile, lower-rise residential construction has shown signs of recovery, supported in part by tax relief and other government measures intended to improve housing affordability and project feasibility.
For contractors, the implications are significant. Firms that previously relied heavily on condominium development may increasingly need to pursue institutional projects, rental housing and alternative delivery models.
However, participants cautioned that announcing infrastructure investments is considerably easier than delivering them.
Concerns were raised about public-sector capacity, the coordination of major investment programs and the importance of ensuring that ambitious construction commitments are supported by realistic implementation strategies.
Capital is available, but feasibility remains the obstacle
The availability of construction financing was another major focus of the forum, particularly as developers contend with elevated construction costs, ongoing financing pressures and uncertain market conditions.
Financial-sector participants emphasized that Canada continues to have substantial pools of capital available through banks, pension funds, institutional investors and private investment groups.
However, that capital is becoming increasingly selective.
Investors are prioritizing projects with predictable revenue, experienced sponsors and credible delivery strategies. Energy infrastructure, critical minerals, affordable housing and data centres were among the sectors identified as attracting investment interest.
By contrast, speculative condominium developments and certain commercial real estate projects are facing greater financing challenges.
Perhaps most importantly, participants suggested that the problem is not necessarily insufficient capital, but rather the inability of some projects to generate acceptable returns under current economic conditions.
Development charges, municipal approval timelines, financing costs and construction expenses were repeatedly identified as barriers to moving projects forward.
In response to this challenge, several participants advocated greater flexibility in project financing, including public-private risk-sharing arrangements, government-supported equity contributions and expanded financing programs.
There was also agreement among the participants that relationships between lenders, developers and contractors have become increasingly important, and that financial institutions are looking beyond project economics to evaluate a sponsor’s delivery history, operational capabilities and willingness to address problems proactively.
For general contractors, this places additional importance on being able to demonstrate reliable execution, transparent communication and the ability to manage cost and schedule risks.
International partnerships offer new opportunities
For Irish construction companies seeking opportunities in Canada, forum participants suggested that the establishment of local relationships is essential.
However, while Canadian contractors and developers are increasingly receptive to international products and technologies, entering the market requires considerably more than offering a competitive product.
Participants emphasized the importance of understanding Canadian building standards, procurement practices, installation requirements, distribution networks and after-sales support, among other things.
Foreign suppliers were encouraged to engage with architects, engineers, contractors and owners well before projects reach the tendering stage. That kind of early engagement can help ensure innovative products are considered during specification development rather than introduced after major purchasing decisions have already been made.
Several participants also recommended a geographically focused approach to market entry. Rather than attempting to establish a presence across Canada immediately, international companies were advised to concentrate on a particular region, develop relationships and build a track record before expanding.
Subcontractors were identified as particularly valuable partners because of their ability to introduce alternative materials and systems during procurement and construction.
The discussion also highlighted opportunities for Canadian contractors to benefit from greater supplier competition, particularly where established North American supply chains are experiencing capacity constraints.
(left) Niall Collins, Executive Vice-President, Choice Properties REIT and (right) Patrick Tobin, Senior Vice-President, Enterprise Ireland. Image by Sean Tarry.
Innovation and modular construction gain momentum
Construction innovation emerged as another area where international collaboration could deliver practical benefits.
Participants identified modular construction, prefabrication, smart-building technologies and advanced commissioning systems as areas of significant opportunity.
With Canada’s housing shortage creating pressure to accelerate delivery, modular construction was discussed as a promising approach, especially for low- and mid-rise developments.
However, participants acknowledged that transporting large, completed modules internationally is generally impractical. Instead, opportunities for overseas manufacturers may lie in supplying specialized components, building systems and technologies to Canadian modular manufacturers.
Smart-building technology also generated considerable discussion.
Although increasingly sophisticated building systems promise improved energy performance and operational efficiency, participants warned that some projects have incorporated technologies that are difficult to integrate, commission or operate effectively.
This creates opportunities for solutions that simplify building operations, improve systems integration and accelerate commissioning.
For contractors delivering complex institutional facilities, including hospitals and laboratories, these capabilities could become increasingly valuable as project schedules tighten and building systems become more sophisticated.
Supply chain pressures create openings
The forum also examined the changing relationship between Canadian construction supply chains and the United States.
Participants described growing competition for mechanical and electrical equipment as American data centre and energy projects absorb manufacturing capacity. One example involved generators ordered for a Canadian hospital project that were reportedly redirected to a U.S. data centre, resulting in delivery complications. These types of experiences highlight the risks associated with concentrated supply chains and highlight opportunities to diversify sourcing.
While domestic-content requirements and Canadian procurement preferences could present challenges for international suppliers, participants suggested that foreign manufacturers may find opportunities through local partnerships, co-branding arrangements or Canadian production facilities.
The broader objective is not simply to replace existing suppliers, but to establish more resilient procurement networks capable of supporting Canada’s expanding infrastructure ambitions.
Despite the challenges confronting Canada’s construction sector, the prevailing sentiment throughout the forum was one of cautious optimism.
Participants pointed to Canada’s natural resources, established financial institutions, skilled workforce and long-term infrastructure requirements as important competitive advantages.
However, improving productivity, accelerating approvals, reducing regulatory complexity and strengthening collaboration between governments and industry were identified as essential priorities.
For Canadian general contractors, the forum reinforced the importance of adapting to changing project demand while remaining open to new technologies, suppliers and delivery partnerships.
For international companies, particularly those from Ireland, the message was equally clear, pointing to the fact that meaningful opportunities exist, but success will depend on understanding the Canadian market and demonstrating long-term commitment.
Ultimately, the forum illustrated an industry with considerable potential, but one whose next phase of growth will be determined less by the scale of investment announcements than by its collective ability to finance, procure and deliver projects successfully.