[ad_1]
Linesight forecasts renewed growth led by concrete-intensive public works, energy projects, and industrial construction, alongside continued labour and trade pressures.
Image courtesy of Linesight.
After two years of contraction, Canada’s construction sector is regaining its footing, with growth expected to have reached 2.2 per cent in 2025, according to Linesight’s latest Construction Market Insights report. For contractors involved in heavy civil and general construction, the recovery is being driven less by private development and more by infrastructure, renewable energy and industrial projects.
Looking ahead, Linesight forecasts average annual growth of 2.8 per cent from 2026 to 2029, supported by sustained public and institutional investment in transportation networks, renewable energy facilities, water systems and sewage infrastructure. These sectors represent core opportunities for contractors focused on foundations, structures, civil works and large-scale pours.
Industrial work adds volume
Beyond public infrastructure, industrial construction is emerging as a key growth driver. Linesight points to continued investment in chemical and pharmaceutical facilities, along with a strong pipeline of critical projects. Canada’s data centre pipeline alone was valued more than $130 billion as of Q3 2025, highlighting demand for specialized, schedule-driven construction supported by robust concrete scopes.
While broader economic conditions remain mixed, these project types are helping stabilize workloads for contractors capable of delivering complex, high-spec builds.
Economic headwinds remain despite improving outlook
Canada’s real GDP is expected to have grown by 1.2 per cent in 2025, signalling gradual economic improvement. However, Linesight cautions that tariffs and ongoing trade tensions with the United States continue to weigh on exports and business investment. For construction firms, these pressures translate into uncertainty around pricing, procurement timelines and escalation risk, particularly on multi-year infrastructure programs.
Despite these challenges, however, public investment is providing a level of insulation from broader economic volatility.
Materials pricing sends mixed signals for contractors
Commodity trends present a varied picture for construction pricing and estimating. Cement prices remain elevated, rising an estimated 0.8 per cent in Q4 2025, driven by sustained infrastructure demand. In addition, copper prices increased roughly 3 per cent in late 2025 and are expected to continue rising into early 2026 due to manufacturing demand and supply constraints, affecting electrical and energy-related projects.
By contrast, steel prices face downward pressure due to oversupply and trade uncertainty, while lumber prices remain volatile and were forecast to fall 4.3 per cent in Q4 2025 amid weaker U.S. demand.
Labour shortages and supply chains remain critical risks
Labour availability continues to be one of the industry’s most pressing constraints. Linesight estimates Canada’s construction sector will require more than 380,500 workers by 2034, including 111,600 new entrants, with skilled trades under the greatest strain. For contractors, this reinforces the need for realistic scheduling, early workforce planning and collaboration with owners.
On a brighter note, supply chains are showing some improvement through increased regional sourcing from the U.S. and Mexico, but risks persist. Tariffs, customs delays and shifting global shipping routes continue to affect delivery certainty. In light of this, Linesight advises standardizing equipment, diversifying suppliers, using bulk purchasing strategies and securing long-term agreements where possible.