Construction industry poised for growth amid policy shifts and cost pressures

The Canadian Construction Association (CCA) released its winter edition of its Construction Quarterly Economic Insights (CQEI) report, showing a growth in construction GDP output of 1.3 per cent in Q3 2025, successfully outpacing the all-industry average and setting the stage for continued advancement. “The opportunities ahead for our industry are significant, but so are the risks,” said Rodrigue Gilbert, CCA’s president. “Investments from the federal government will drive growth, but rising costs and workforce constraints will continue to limit the industry’s ability to unlock its full potential and deliver on Canada’s ambitious construction agenda.” Facing the end of 2025, the Building Construction Price Index (BCPI) increased 4.2 per cent year-over-year in Q3, with increases particularly driven by metal fabrications, structural steel, and plumbing. Canadian jurisdictions most affected by cost increases were noted as London, (ON) and Quebec City (QC). Additionally, the cost of factory construction increased by 5.7 per cent, while the cost of office building increased by 3.2 per cent. The 2025 federal budget, published in November 2025, presented $89.7 billion in net new measures over the next five years, with $32.5 billion being classified as capital investments. In total, CCA noted approximately $32 billion in new construction-related spending earmarked over the next five years. “2025 was a very strong year for our industry and we’re looking forward to building on that ...