Contractors in Ontario’s non-residential construction sector continue to demonstrate resilience despite economic uncertainty, according to the Ontario Construction Secretariat (OCS) 2026 Contractor Survey. The findings were released at the 26th Annual State of the Industry & Outlook Conference in Toronto, providing insight into market conditions and expectations for the industrial, commercial, and institutional (ICI) construction sector.

The survey found that two-thirds of contractors operated at or above capacity in 2025, with a similar number expecting to maintain this level of activity in 2026. However, industry sentiment about the broader market remains divided. Approximately 49% of contractors expect the construction market to remain stable or grow, while 46% anticipate a decline, reflecting ongoing economic and political uncertainty.

A significant concern for contractors is the growing number of project delays and cancellations. According to the survey, 58% of contractors reported that at least one project was postponed or cancelled over the past year. Several key factors are contributing to these disruptions, including rising material costs (66%), limited access to financing (59%), trade-related uncertainty (45%), and high interest rates (45%).

Despite these challenges, the survey suggests that supply chain conditions are improving. Only 33% of contractors reported supply chain disruptions in the past year, a substantial improvement compared with 58% in 2024, indicating that material availability and logistics issues are beginning to stabilize across the industry.

While contractors remain cautious about the overall market outlook, many companies are optimistic about their own business prospects. Growth expectations for 2026 are strongest in Southwestern Ontario (36%), followed by the Greater Toronto Area (35%), Eastern Ontario (34%), and Central Ontario (32%). The outlook is more reserved in Northern Ontario, where only 20% of contractors expect growth due to smaller markets and fewer large-scale projects.

The construction labour market remains another key challenge. About 20% of contractors identified access to skilled labour as their top concern, particularly as many experienced workers approach retirement. Labour shortages can be especially pronounced in smaller regions where a limited workforce must support large infrastructure or institutional projects.

To address workforce challenges, contractors are increasingly investing in apprenticeship programs and workforce development. The survey found that 70% of contractors currently employ apprentices, up from 64% in 2025 and 58% in 2024. Among unionized contractors, the figure is even higher, with 82% employing apprentices as part of long-term efforts to build the next generation of skilled trades professionals.

Industry leaders emphasize that continued progress will depend on policy stability, project certainty, and sustained investment in workforce training across the province.

The OCS Contractor Survey, conducted by Ipsos, collected insights from 400 institutional, commercial, and industrial contractors across Ontario between December 2025 and January 2026. The research includes both unionized and non-unionized companies and provides a snapshot of the challenges, opportunities, and trends shaping the province’s construction industry.

Overall, the findings highlight a sector that remains busy and resilient, even as contractors navigate cost pressures, labour shortages, and evolving economic conditions.

Download the 2026 Contractor Survey Report

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