Construction Opportunities Are Growing — But So Are the Risks

Toronto, ON – October 3, 2026

Canada’s construction and related industries are facing major changes: new infrastructure spending and housing programs are creating opportunities, while tariffs, CUSMA uncertainty, material costs and financing pressures are creating new risks.

Here are the developments you should be watching.

CUSMA and tariffs

Canada-U.S. trade uncertainty continues. Tariffs and counter-tariffs affecting steel, aluminum and other products can increase costs throughout the construction supply chain—from structural materials and machinery to equipment and finished building products.

Companies should be reviewing where their materials come from, exposure to U.S. suppliers, alternative Canadian sources and how tariff-related cost increases are addressed in contracts.

$51 billion for infrastructure

The federal Build Communities Strong Fund represents a significant pipeline of future construction work:

• $17.2 billion for provincial and territorial infrastructure;
• $6 billion in direct federal investments, including a $1-billion Local Impact Stream; and
• $27.8 billion for municipal and community infrastructure.

Funding can support roads, water and wastewater systems, housing-enabling infrastructure, health facilities, community facilities and climate-resilient projects. The federal Buy Canadian Policy will also influence how public infrastructure dollars are spent.

Ontario and municipal opportunities

Ontario municipalities are receiving significant federal infrastructure funding.

In addition, Canada and Ontario have announced a $1-billion infrastructure stream for municipalities that do not levy residential development charges, supporting roads, bridges, water and wastewater projects that enable housing.

For contractors, engineers, consultants, suppliers and manufacturers, government infrastructure spending should translate into new procurement and project opportunities.

Housing and rental construction

Ottawa is moving ahead with Build Canada Homes, while governments continue looking for ways to accelerate housing construction.

A new $1.5-billion Canada Rental Protection Fund will help non-profit, co-operative and Indigenous housing organizations acquire and preserve affordable rental properties. The initiative could protect approximately 7,000 homes during its first five years.

This can create opportunities throughout the construction ecosystem—from redevelopment and renovations to engineering, mechanical, electrical and building-material supply.

Modular construction gaining momentum

Canada has introduced CSA Z251, a new national standard for volumetric modular construction.

Governments are increasingly looking toward modular, prefabricated and other modern construction methods to reduce costs and build housing and infrastructure faster.

Companies involved in manufacturing, construction technology and prefabrication should be watching this closely.

New assistance for tariff-affected businesses

The federal government has also announced $7.5 billion in support for businesses and workers affected by tariffs, including financing, diversification assistance and support for companies undertaking new investments.

Construction manufacturers and suppliers affected by U.S. trade measures should determine whether their operations or planned investments qualify.

What should the industry do now?

Do not wait for the next tender or funding announcement.

Review your supply chains and tariff exposure. Identify Canadian alternatives. Examine upcoming municipal and provincial capital projects. Prepare expansion and equipment investments. Consider modular and modern construction opportunities. Most importantly, get projects shovel-ready so your company can move when programs and procurements open.

How GTA Strategies can assist

GTA Strategies can help identify government programs and procurement opportunities, engage the appropriate municipal, provincial and federal officials, and position projects for upcoming opportunities.

If you have a project, expansion, tariff issue or government-related challenge, contact us to discuss how we can assist.