CaDCR staff writer
Canada’s construction industry is experiencing a period of growth and resilience despite economic headwinds, according to the latest Quarterly Construction Cost Report by Rider Levett Bucknall, which focuses on the Ontario and Alberta markets.
In Ontario, building permits increased to $5.9 billion by the end of Q3 2024, largely due to substantial multi-unit residential projects in the Greater Toronto Area. The Bank of Canada’s rate cuts have stimulated Toronto’s real estate market, with residential sales up 44.4% year-over-year in Q4 2024. The Ontario government has planned $191 billion in infrastructure spending over the next decade, including major projects like Highway 413, a feasibility study for a Highway 401 tunnel, and the construction of new schools and healthcare facilities.
Meanwhile, Alberta’s economy is predicted to expand, fueled by population growth and the Bank of Canada’s relaxed monetary policy. The easing of borrowing costs, increased consumer spending, and strong employment growth all contribute to this positive trend.
Alberta’s real GDP is expected to grow by 1.8% in 2024, supported by stable energy production and rising migration driven by the search for affordable housing. Housing construction has surged to 50,000 units annually, and Calgary witnessed a 31.9% rise in building permits, totaling $798.4 million.
The province is also making progress on major projects such as the $6.2 billion Green Line LRT.
The construction sector has, however, faced consistent uncertainty, bringing both highs and lows. This uncertainty hasn’t been settled yet, although the recent interest rate cuts are a positive sign for the U.S. economy moving into 2025.
Proposed trade policies introduce uncertainty for contractors and manufacturers despite stable input prices in 2024. While high inventory levels and reduced production capacity could temporarily mitigate price spikes, they are unlikely to resolve long-term cost increases.
As tariffs reshape global trade, our reliance on domestic production may face labor and resource constraints, further driving inflation and impacting the broader economy. Despite this forecast, with proactive strategies and collaboration across stakeholders, the industry is well-positioned to navigate these changes and seize opportunities for growth.
Looking ahead to 2025, RLB North America president Paul Brussow expressed cautious optimism
“We are cautiously optimistic about the outlook,” he said in the report. “Yes, commercial construction growth may moderate, and qualified labor remains scarce, but our industry’s strength has always come from building new solutions rather than fighting market headwinds.
“We’re actively constructing our future by focusing our energy on new approaches in workforce development, project delivery, and technological integration. Our success lies not in resisting the mixed economic signals we continue to face, but in building new approaches to thrive within them.”
