Canada market intelligence: under pressure
Our Q2 2025 Canada market intelligence report provides market and provincial analysis for the region, as well as economic insights from our team of industry experts.
Economic and construction overview
Canada’s economic growth has surpassed analyst expectations in Q1 2025 as geopolitical pressures continued to grow. However, while headline metrics indicate resilience, deeper signs show increasing stress as the labour market begins to weaken.
Construction growth has been resolute, supported by interest rate reductions. However, forward-looking indicators suggest that recent robustness may be short-lived.
How market conditions are influencing escalation forecasts
Input costs have increased but remained in check. The full effect of US tariffs on material costs has yet to transpire. Unionised wage rates will also add to labour cost pressures moving forwards. Costs, however, are likely to ebb and flow as supply and demand constraints compete in a complex economic environment.
Bid price escalation is progressively being shaped by uncertainty. As investors hesitate, thinning contractor backlogs are being filled out amidst increasing competition - despite recent workload buoyancy.
Government stimulus may improve industry prospects
While Canada’s construction industry is holding steady for now, growing economic turbulence is likely to dampen growth prospects.
Policy shifts aimed at reducing reliance on the US may provide longer-term stability. Renewed infrastructure capital investment should provide the building blocks needed for future growth.
