Recovery Takes Hold as Infrastructure and Renewables Accelerate Canada’s Construction Growth Into 2026, says Linesight

Linesight forecast a rebound following two years of contraction, fueled by strong data center pipeline amid ongoing labor and trade challenges

TORONTO--(BUSINESS WIRE)--According to Linesight’s latest Construction Market Insights report, Canada’s construction industry is expected to have rebounded with 2.2% growth in 2025 after two years of contraction. The recovery is led by infrastructure and renewable energy projects, alongside industrial construction gains in chemical and pharmaceutical sectors. From 2026 to 2029, construction output is expected to grow at an average annual rate of 2.8%, driven by major investment in transport, renewable energy, water systems, and sewage infrastructure.

Economic conditions are slowly improving

Canada’s real GDP is expected to have grown 1.2% in 2025. However, tariffs and ongoing trade tensions with the US continue to hurt exports, slow business investment, and widen the economic slowdown. Despite these pressures, mission critical investment remains strong, with Canada’s data center pipeline valued at US$96bn as of Q3 2025.

Commodity markets show mixed signals as infrastructure and manufacturing shape demand

• Steel: Prices continue to face downward pressure due to oversupply and ongoing uncertainty in US–Canada trade relations
• Copper: Expected to have increased 3% in Q4 2025 and projected to rise further into early 2026, driven by strong manufacturing demand and supply constraints
• Cement: Elevated due to infrastructure expansion and projected to have risen 0.8% in Q4 2025
• Lumber: Prices remain volatile, driven by oversupply and weaker US demand, and are forecast to have fallen 4.3% in Q4 2025

Regional sourcing improves but global shipping volatility continues to affect delivery

Regional sourcing across North America increased in 2025. More equipment now originates from the US and Mexico, as overseas procurement becomes less viable. Persistent risks include tariffs, extended customs clearance, and shifting shipping routes. Clients are encouraged to standardize equipment specifications, diversify sourcing, pursue bulk order strategies, and secure long‑term agreements to reserve capacity.

Risks and constraints

Labor shortages are intensifying. The industry is projected to need over 380,500 workers by 2034, including 111,600 new entrants, with skilled trades under the most pressure. Tariffs and geopolitical tensions continue to disrupt planning, increase cost exposure, and challenge procurement timelines.

“Canada’s construction rebound is encouraging, but delivery certainty depends on proactive planning,” said Patrick Ryan, Executive Vice President of the Americas, Linesight. “Engage contractors and suppliers early, plan for power availability, and pace programs to match labor capacity. These steps help maintain stability in a shifting trade and workforce environment.”

The 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 multiple 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 faster project delivery, greater cost efficiency, and maximum value for money for their clients. For further information, please visit https://www.linesight.com.