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While Canada’s economy contracted in the second quarter of the year, the construction industry continued to post gains, according to the fall 2025 Construction Quarterly Economic Insights report from the Canadian Construction Association (CCA). The construction sector grew by 0.24 per cent, outpacing the broader economy.
“Canada’s construction industry continues to show remarkable resilience, but that is not without its challenges,” said Rodrigue Gilbert, CCA’s president. “We’re seeing growth in construction activity, fueled by the federal government’s nation-building focus, but rising costs, workforce shortages, and trade uncertainty are making it harder for companies to plan, bid and deliver projects that Canadians depend on.”
CCA’s economic report warns that new “Buy Canadian” procurement rules for federal projects, which are expected to take effect in November, could have mixed effects on project timelines and costs. CCA emphasizes that consultation with downstream industries, including construction, is critical to ensuring that domestic sourcing policies strengthen rather than constrain Canada’s ability to build.
“Building strong communities, trade corridors, and critical infrastructure remains a national priority and a priority for our industry, but protectionism adds friction to that mission,” said Gilbert. “We need coordinated trade, procurement and investment policies that make it easier to build, not harder.”
Looking ahead, CCA anticipates that rate cuts from the Bank of Canada and the launch of Build Canada Homes could provide a modest lift to residential construction and housing-infrastructure in late 2025. However, weaker pre-sales and regional disparities, especially in Ontario and British Columbia, signal that the road to sustained recovery remains uneven.
