The Canadian Construction Association (CCA) has released its Fall 2025 Construction Quarterly Economic Insights report, showing that while Canada’s overall economy contracted in Q2, the construction sector grew by 0.24%, demonstrating resilience amidst economic headwinds. According to CCA President Rodrigue Gilbert, growth is being driven by the federal government’s focus on large-scale infrastructure and nation-building projects. However, rising material costs, persistent labour shortages, and growing trade uncertainty are creating significant challenges for construction firms.

A key concern highlighted in the report is the federal government’s new “Buy Canadian” procurement rules, set to take effect in November 2025. While aimed at boosting domestic sourcing, CCA warns that such protectionist policies may disrupt timelines and increase project costs if not carefully coordinated with industry stakeholders. The association is urging greater consultation to ensure these rules support rather than hinder the sector’s ability to deliver critical infrastructure.

Looking ahead, CCA forecasts a modest rebound in residential construction in late 2025, supported by expected interest rate cuts from the Bank of Canada and the rollout of the Build Canada Homes initiative. Yet, regional disparities—particularly in Ontario and British Columbia—alongside weak pre-sales suggest that recovery across the housing sector will remain uneven.

CCA is committed to closely monitoring policy changes, tariff regimes, and input prices affecting member businesses and will continue advocating for evidence-based policies that support growth and stability across the construction industry. Gilbert emphasized the importance of national cooperation, stating, “We are building Canada, together.”

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