Linesight: Canada’s Construction Growth Continues in 2026, but Power, Planning, and Workforce Constraints Are Shaping Delivery

Public investment, data centers, and life sciences underpin activity as execution readiness becomes critical

TORONTO--(BUSINESS WIRE)--Canada’s construction industry is forecast to grow by 2.6% in 2026, supported by public investment and continued activity across data centers, life sciences, infrastructure, and high-tech industrial projects, according to Linesight’s latest Construction Market Insights: Americas report. Growth is being underpinned by major public programs, AI-focused digital infrastructure funding, and continued investment in biomanufacturing, vaccines, therapeutics, and research facilities.

Canada’s wider economic outlook remains modest, with GDP growth forecast at 1.5% in 2026 and 1.9% in 2027, although weaker momentum in early 2026 means that outlook may still shift. Construction activity remains positive, but growth is becoming increasingly selective. Power availability, planning requirements, and specialist workforce capacity are shaping where projects can proceed with confidence, particularly beyond established delivery hubs.

Supply chain constraints remain a delivery risk

Supply chain conditions continue to influence delivery certainty in Canada, particularly for power‑intensive and specialist projects. While equipment availability remains uneven, delivery risk is increasingly shaped by the interaction between procurement timelines, power access, and planning requirements. In this context, early supplier engagement and realistic sequencing remain essential to maintaining schedules.

“Canada’s construction market continues to grow, but delivery is becoming more constrained,” said Patrick Ryan, Executive Vice President of the Americas at Linesight. “Projects that secure power early, engage suppliers ahead of procurement, and align procurement timing with workforce availability are better positioned to progress with confidence in a tightening delivery environment.”

Construction inflation remains elevated but stable

Canada’s construction inflation is expected to hold in the 3% to 4% range in 2026. While subdued macroeconomic conditions are weighing on overall demand, tariffs on metals, labor shortages, and specialist trade requirements continue to pressure budgets, timelines, and procurement planning, particularly for complex and technical projects reliant on imported equipment and materials.

Commodity pricing reflects trade exposure and energy costs

Commodity markets continue to influence construction costs across Canada, with pricing shaped less by cyclical demand and more by tariffs, trade exposure, energy costs, and logistics pressures.

• Copper: Prices rose 14% quarter-on-quarter in early 2026, driven by tariff-related buying, infrastructure demand, and constrained mine supply.
• Aluminum: Prices increased 11% quarter-on-quarter, supported by tighter supply and higher global prices.
• Steel flat: Prices are forecast to rise 18% quarter-on-quarter, with movement still shaped by trade policy and supply conditions.
• Diesel: Costs increased 11% quarter-on-quarter as geopolitical disruption and crude market volatility pushed through to transport and equipment pricing.

The Construction Market Insights: Americas – June 2026 report can be read in full here.

About Linesight.

Linesight is a multinational consultancy firm with over 50 years' experience, providing cost, schedule, program and project management services to sectors including life sciences, commercial, data centers, high-tech industrial, residential, hospitality, healthcare and retail. Linesight’s specialist project teams, each with specific skills and experience, provide certainty in project delivery, greater cost efficiency and maximum value for money for their clients.