CIOB Analysis: What The Federal Budget Means For Construction

This year’s federal budget is all about building, and building fast. The government has set out an ambitious plan to grow the economy through major investment in housing, infrastructure, and manufacturing. For those working in construction, that means big opportunities ahead and some serious challenges we will need to tackle together.

The numbers are significant: more than $115 billion for infrastructure has been committed over the next five years and $25 billion for housing through the new Build Canada Homes program. The Prime Minister said these investments will mean good, union jobs for Canadians, something our industry has been waiting to hear for a long time.

For crews, contractors, and tradespeople, this budget could bring a steady pipeline of public projects and the long-term certainty that lets firms plan and hire with confidence.

There is also a strong push for modern methods of construction (MMC), including off-site fabrication, modular builds, and bulk procurement for housing. When done right and in partnership with the industry, these methods could mean more predictable workloads, safer working conditions, and the speedy delivery of high-quality buildings.

The 2025 Canadian federal budget also introduces new tax incentives to encourage investment in manufacturing and processing facilities. Businesses that build or upgrade qualifying facilities, including eligible machinery, equipment and buildings used primarily for manufacturing or processing, can now write off more of their costs upfront. This faster depreciation improves cash flow and could allow companies to reinvest sooner in equipment, hiring, and training.

Although the measure is aimed at the manufacturing and processing sectors, it could also benefit the wider construction supply chain, including builders, fabricators, installers and plant-upgrade contractors involved in these projects.

It is important to note, however, that these proposals are not yet confirmed. The budget still needs to be passed by Parliament, and with Carney’s Liberals leading a minority government, the existing proposals will need to be negotiated with other parties to secure enough votes to approve the plan. Some details could change as the budget moves through the parliamentary process, but the direction of travel is clear: a major focus on building, economic growth and productivity.

Of course, all this investment only matters if we have the people to deliver it. Across Canada, contractors are already struggling to fill positions. BuildForce Canada says we will need more than 80,000 new workers by 2033 just to keep up with demand. At the same time, Canada’s youth unemployment rates remain at a 15-year high. With the right programs and investments into attracting, training and retaining young Canadians into construction, the capital investments in housing and infrastructure outlined in the budget could translate into reduced unemployment rates and the provision good, high-quality jobs across the country.

The work ahead is not just about recruiting people; it is about building a skilled, confident workforce. The jobs coming down the line will require people who are comfortable with new tools, digital technology, and greener ways of working. That means more training, better apprenticeships, and clearer routes for young people, and anyone looking for a career change, to get into the trades.

To make that happen, we need to engage early. Kids in elementary school should have opportunities to learn about construction, and see the smart, modern, and vital work the sector does. This engagement could take many forms, from job site visits, to classroom projects about how buildings are constructed, to more chances for students to meet the people who actually build their homes and communities.

For the Chartered Institute of Building, this budget shows that government recognizes construction as the foundation of Canada’s future. If we get the skills piece right, these investments can mean steady work, strong communities, and well-paid careers for years to come.

The opportunity is real, and the challenge is clear. Now it is time to make sure we have the people, training, and pride to get the job done, and build the future Canada deserves.