The most recent edition of the Canadian Construction Association’s Construction Quarterly Economic Insights report finds construction GDP growth for the third quarter of last year ahead of the all-industry average.

Construction’s GDP grew by 1.3 percent in the quarter, compared with the all-industry average of 0.5 percent. Growth was led by engineering and other construction activities, reversing declines seen early in 2025.

While the output of other subsectors remained close to their Q2 levels, construction’s output was 2.6 percent higher compared to Q3 2024.

The CCA report points to the federal government’s most recent budget as a major driver of opportunity for the sector. The budget introduced $150 billion in net new spending over five years, with roughly one-fifth of that estimated spending tied to construction-related activity.

While these measures signal sustained public-sector demand for construction, CCA said, they also raise potential concerns for contractors related to costs, procurement processes, and workforce availability

"The opportunities ahead for our industry are significant, but so are the risks," said CCA President Rodrigue Gilbert. "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."

One of the challenges for the industry is the continued escalation of construction costs.

The Building Construction Price Index increased 4.2 percent year-over-year in the third quarter, with increases particularly driven by metal fabrications (+7 percent), structural steel (+9 percent), and plumbing (+10.2 percent).

Additionally, the cost of factory construction increased by 5.7 percent, while the cost of office building increased by 3.2 percent.

Looking ahead to 2026, CCA forecasts that labour demand is expected to rise as the national push to build materializes into a pipeline of new construction projects. At the same time, immigration policy is now targeting lower inflows and a smaller share of temporary residents over the next few years.

CCA will publish its next Construction Quarterly Economic Insights report in April.