Construction growth has been resolute, supported by interest rate reductions, yet forward-looking indicators suggest that recent robustness may be short-lived rather than permanent.

Input costs have increased but have remained in check. Although the full effect of US tariffs is yet to transpire on material costs and unionised wage rates will 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.

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, and renewed infrastructure capital investment should provide the building blocks needed for future growth.