Construction defies downturn in Q2, grappling with shifting procurement and global trade policies

The Canadian Construction Association's fall economic report shows the construction industry is holding strong through an economic slowdown, with growth continuing despite rising costs and trade uncertainty.

OTTAWA, ON, Oct. 29, 2025 /CNW/ - The Canadian Construction Association (CCA) has released its fall 2025 Construction Quarterly Economic Insights report, revealing that while Canada's economy contracted in the second quarter of the year, the construction industry continued to post gains growing by 0.24 per cent and 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," said Gilbert.

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.

CCA will continue to monitor the effects of tariff regimes, input prices, and procurement reforms on member businesses and advocate for evidence-based policy solutions that support economic growth through construction.

"We are building Canada, together," added Gilbert. 

SOURCE Canadian Construction Association