CANADA | MARKET INSIGHT


T


he Canadian construction industry is expected to expand by 1.2% in real terms in 2026, slowing from annual growth of 2.2%


in 2025. The slowdown is attributed to a decrease in investment in housing and industrial projects, alongside ongoing trade uncertainties arising from Middle East tensions. According to Statistics Canada, the construction industry’s value-add at constant prices (seasonally adjusted at annual rates) fell marginally by 0.1% year on year (YoY) in Q1 2026, driven by residential activity, which declined by 2.2% YoY during the same period.


In the short term, the Canadian construction industry is expected to face several challenges due to the ongoing trade dispute between the US and Canada, highlighting Canada’s reliance on the US market. However, construction activity in 2026 will be supported by YoY growth of 4.5% and 2.2% growth in Q1 2026 in institutional and commercial building investment. Among recent developments, in late May 2026, the government of Ontario commenced construction on the Bradford Bypass. The project will feature a new four-lane highway. Once completed in 2030, the


16.3km highway will connect Highway 404 in the east to Highway 400 in the west. The project forms part of the province’s CAD236bn ($172.1bn) plan to build the Bradford Bypass, Highway 413 and the 401 tunnel. According to the transportation ministry, the Bradford Bypass will provide relief to drivers in Simcoe County and York Region and mitigate the government’s need to spend CAD56bn ($40.8bn) every year to handle gridlocks. Over the remainder of the forecast period, the construction industry is expected to register


ochmagazine.com | Fall 2026 19


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