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Rising costs, trade risks cloud Canada's construction outlook despite activity uptick
The Canadian Construction Association says steel-intensive divisions face more than 8% cost increases as tariffs and fuel prices pressure the supply chain.
- The Canadian Construction Association's latest report shows construction sector GDP rose one per cent in the second quarter, reversing two consecutive quarterly declines and returning activity to levels seen around a year earlier.
- Despite this improvement, Canada's construction outlook remains "uneven" heading into 2027, with a "soft" residential pipeline in some of the country's largest markets where condo projects have slowed compared with recent years.
- Non-Residential building costs increased 3.5 per cent year-over-year while residential costs rose 2.3 per cent, with steel-intensive construction divisions experiencing the strongest cost increases at more than eight per cent.
- Nearly 40 per cent of construction inputs are imported, with the United States accounting for 25 percentage points of that share; the association warned exposure to trade risks remains particularly high in engineering construction.
- "Our industry remains resilient, but we are increasingly divided between emerging opportunities and near-term challenges," said Nicole Emmett, the association's vice-president, as geopolitical conflicts continue impacting energy markets, trade flows, and project costs.
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6 Articles
The Toronto StarReposted by 
The Hamilton Spectator
The Hamilton SpectatorRising costs, trade risks cloud Canada’s construction outlook despite activity uptick
The outlook for Canada's construction sector remains "uneven" heading into 2027 as activity improved last quarter, despite challenges such as higher material costs and slower residential demand.
·Toronto, Canada
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Winnipeg Free Press+3 Reposted by 3 other sources
Rising costs, trade risks cloud Canada's construction outlook despite activity uptick
The outlook for Canada's construction sector remains
·Winnipeg, Canada
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Total News Sources6
Leaning Left4Leaning Right0Center2Last UpdatedBias Distribution67% Left
Bias Distribution
- 67% of the sources lean Left
67% Left
L 67%
C 33%
Factuality
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