Canada’s Construction Sector: Navigating Challenges and Embracing Opportunities in 2026

December 15, 2025
By Rodrigue Gilbert, President, Canadian Construction Association

As we prepare to enter 2026, the Canadian construction industry stands at a pivotal crossroads. Influenced by economic uncertainty, shifting trade dynamics, and an ever-pressing need for modern infrastructure, the landscape is more challenging but also rich with opportunity. In the past year, we’ve witnessed the construction sector grapple with a myriad of pressures—volatile supply chains, persistent labour shortages, and heightened expectations for sustainability, innovation, and digital integration.

While these hurdles present significant challenges, 2025 also marked a year of critical milestones: the introduction of new federal initiatives, remarkable technological advancements, and a renewed focus on professional excellence, safety, and workforce development. As we look ahead, several trends are set to shape our industry in 2026, outlining a path toward transformative change.

1. Resilient Infrastructure and Supply Chain

The construction sector operates on the front lines of global trade volatility. Disruptions, from steel tariffs to unforeseen material shortages, can lead to inflated costs and project delays. In 2026, the emphasis will be on fostering resilient supply chains. This will include diversifying sources, aligning trade agreements, and adopting forward-thinking procurement policies. Governments and industry stakeholders must collaborate strategically to strengthen supply lines, ensuring predictability in delivery and enabling infrastructure that endures for generations.

2. Canada-U.S. Trade and CUSMA Renegotiations

Trade relations between Canada and the United States are paramount for our industry. The renegotiation of the Canada-United States-Mexico Agreement (CUSMA) reflects significant uncertainties stemming from recent tariffs and isolationist policies. The Canadian Construction Association (CCA) advocates for free trade and hopes for renewed cooperation that prioritizes fair access to North American markets in 2026. This is critical for an industry that heavily relies on imported materials and components.

3. Labour Shortages: Bold Government Actions Needed

The construction workforce in Canada is projected to face a shortfall exceeding 108,000 workers over the next decade due to a wave of retirements and an aging workforce. Addressing this gap will require proactive measures from the federal government. There’s an urgent need for targeted initiatives to attract new talent into the skilled workforce and a collaborative effort with industry stakeholders to inspire the next generation. Revising immigration policies to accommodate skilled workers is crucial for meeting future demands.

4. Construction Excellence

In 2025, the drive for professional excellence in construction took significant strides. With initiatives like the new Gold Seal Certification portal and the inaugural Best Practices in Construction Symposium, 2026 will see continued emphasis on establishing high standards within the profession. These programs foster a culture of commitment to quality and development among construction professionals, essential for elevating the industry’s reputation and capabilities.

5. Housing Acceleration and Housing-Enabled Infrastructure

The housing crisis remains one of Canada’s most pressing issues as we enter 2026. Achieving ambitious housing targets requires not just building homes, but also the infrastructure that supports them—roads, transit systems, utilities, and facilities. By streamlining approvals and ensuring funding aligns with housing projects, we can lay the groundwork for sustainable community development. In this light, housing acceleration is indeed an act of nation-building.

6. Major Projects Office Takes Shape

Prime Minister Mark Carney’s establishment of a Major Projects Office (MPO) signals a shift in how federal infrastructure projects will be approached. The focus on "shovel-worthy" projects, combined with strategic selection for maximum economic impact, positions the construction community for substantial growth. The MPO is a triumph for the CCA, aligning closely with the Canadian Trade Infrastructure Plan and its vision for future economic prosperity through enhanced infrastructure investment.

7. Innovation in Construction: From Top to Bottom

The intersection of technology and construction is ripe for innovation. Our industry is beginning to realize the potential of digital tools to enhance productivity and efficiency. A recent report indicated that 90% of construction leaders recognize the need for such tools to streamline operations. In 2026, those leveraging technology will not only find operational enhancements but also position themselves as leaders in a rapidly evolving industry.

8. The Green Imperative

As Canada strives for net-zero emissions, the construction sector must adopt low-carbon materials and energy-efficient building practices. Sustainability is no longer just a goal—it’s an expectation. However, success hinges on supportive policies, consistent regulations, and innovative partnerships. By aligning efforts to achieve climate goals, we can both empower communities and ensure that infrastructure is sustainable and future-ready.

9. Data-Driven Decision-Making

The importance of data in construction cannot be overstated. Predictive analytics and real-time site monitoring are becoming integral to how projects operate, enhancing safety, productivity, and budget adherence. As we embrace these data-driven tools, a strong policy framework is essential to support transparency and innovation within the industry.

10. Public Procurement Overhaul

The methods of public procurement must evolve to meet the complexities of modern infrastructure demands. Outdated lowest-bid practices often lead to inefficiencies and wasted resources. A shift toward value-focused procurement will foster collaborative relationships and incentivize innovative solutions, ultimately benefiting taxpayers. For 2026 and beyond, this reform is vital for realizing ambitious infrastructure projects.

With 2026 fast approaching, Canada’s construction industry stands at a crucial juncture. The landscape is fraught with obstacles, yet it is equally teeming with potential for progress. The trends we anticipate demand a collaborative mindset, adaptability, and a resounding commitment to innovation and excellence. By transforming challenges into opportunities—strengthening supply chains, modernizing procurement, embracing new technologies, and prioritizing sustainability—Canada can ensure its construction sector thrives, ultimately supporting economic growth and community development in the years to come.

Rodrigue Gilbert is the President of the Canadian Construction Association, the national voice for Canada’s construction industry, representing over 18,000 member firms through a network of local and provincial associations.