MARKET INSIGHT | CANADA Canada, construction output value, by sector (real, $ million), 2020–29
Latest news and developments
Manufacturing value-add continues to decline in September 2025. Statistics Canada reports that the manufacturing industry’s value-add decreased by 1.4% YoY in September 2025, following declines of 3.1% in August and 3% in July 2025. On average, value-add fell by 2.1% YoY over the first nine months of 2025. This followed a 2.8% annual decrease in 2024. Investment in industrial buildings continues to decline in September 2025. According to Statistics Canada, total investment in industrial buildings fell by 1.5% YoY in September 2025, extending the downward trend after declines of 1.8% in August and 1.5% in July 2025. Over the first nine months of 2025, industrial building construction investment dropped by 5% YoY. This followed annual growth of 3.9% in 2024. Industrial permits decreased in
September 2025. Statistics Canada data shows that the total value of industrial building permits issued declined by 30.4% YoY in September 2025, after falling by 44.1% in August and 41.5% in July 2025. Across the first nine months of 2025, the value of industrial building permits decreased by 28.2% YoY. This came after overall annual growth of 4.2% in 2024.
Projects In September 2025, the Ministry of Energy and Natural Resources announced a CAD40m ($29.3m) investment through the Strategic Response Fund to support the expansion of Hitachi Energy’s manufacturing facility in Varennes. The total cost of Hitachi Energy Canada’s project is estimated to range from CAD164.2m ($120.3m) to CAD410m ($300.4m), including the construction of a new 12,700m2
manufacturing building.
In October 2025, Canadian Power-to-X Partners (CPXP) announced plans to build a low-carbon hydrogen production facility in Sarnia. The proposed facility in Sarnia, Ontario, is expected to cost between CAD500m ($366.3m) and CAD600m ($439.6m). With a capacity of 100MW, it is projected to produce approximately 14 million kg of hydrogen annually. Construction is slated to begin in the second half of 2028.
20 Spring 2026 |
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uncertainty over US tariffs and a reduction in the value of industrial building permits issued. A recovery is anticipated from 2027, with the sector projected to grow at an annual average rate of 2.5% between 2027 and 2029. Growth during the forecast period is expected to be driven by domestic manufacturing investments and a major beverage production facility project.
Some downsizing The industrial construction sector is projected to shrink by 4.1% and 2.9% in real terms in 2025 and
2026, respectively, following a decline in industrial building investment. This trend is reflected in falling values of industrial building permits and increased supply chain disruptions linked to US tariff uncertainty. In October 2025, the US government announced an additional 10% tariff on Canadian goods, following the Ontario government’s anti-tariff advertising campaign. Looking further ahead, the sector is expected
to regain momentum, expanding at an annual average rate of 2.5% between 2027 and 2029. This recovery will be supported by government
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