Building a Smarter Tomorrow, Together
Since its inception, Procore’s vision has been to improve the lives of everyone in construction. As we prepare to enter 2026, I feel immense optimism concerning Canada’s construction sector - optimism that’s rooted in the resilience, innovation and ownership our industry continues to show in both challenge and change.
Across Canada, we’re seeing momentum in heavy infrastructure builds, new nuclear and renewable projects and the growth of hyperscale data centre builds. Yet, this growth is currently constrained by persistent labour shortages, resource limitations and rising delivery complexity. The result is a collective imperative: we must grow by building smarter.
This shift is already underway. In Canada’s evolving construction landscape, technology is no longer a luxury; it has become essential for builders, owners and governments striving to meet increasing demand with a limited workforce. From modular construction to predictive analytics and AI, we’re seeing the digital transformation of construction accelerate, and with it, a renewed focus on productivity and safety.
At Procore, we’re encouraged by the long-term certainty created through major public investments in the infrastructure that connects and strengthens Canada. We see this commitment in projects like the Darlington New Nuclear Project in Ontario, the Alto High-Speed Rail connecting Quebec and Toronto and the Contrecœur Terminal Container Project in Quebec. Modernizing ports, transit, energy infrastructure and interprovincial trade corridors is key to unlocking the country’s economic potential. And their success increasingly depends on the effective use of technology.
There is a sense of cautious optimism across Canada’s construction industry, as 2026 will demand greater discipline, deeper collaboration and more sophisticated digital practices for builders and owners to achieve their goals. Procore is proud to work alongside Canadian construction leaders to deliver the digital infrastructure that unifies teams, data and workflows, empowering their organizations to innovate, adapt and lead.
On behalf of Procore, thank you to our partners across Canada for your continued trust and collaboration. Together, we can build a smarter, safer and more connected tomorrow.
Sincerely,
Nolan Frazier Head of Sales, Canada, Procore
Canada’s construction crossroads
Canada’s construction sector is set to undergo transformative change in 2026.
BY ON-SITE EDITORIAL STAFF
As Canada’s construction sector enters 2026, it stands at a pivotal moment when rising infrastructure demand, rapid technological adoption, generational labour turnover and macro-economic uncertainty converge. It’s a moment in time that represents more than another cyclical shift. For many firms, 2026 may be the year that determines who adapts and thrives, and who struggles to remain competitive in a market defined by accelerating change.
The fundamentals are unmistakable. BuildForce Canada’s latest national outlook
points to a tightening labour force that will continue to shape the industry’s trajectory into the foreseeable future. Over the next decade, Canada is expected to lose 270,000 experienced tradespeople to retirement, while total demand will require more than 380,000 new workers by 2034 to maintain the pace of construction. The labour force, currently hovering around 1.73 million with roughly 1.65 million actively employed, is already stretched thin, and the national unemployment rate of 4.6 per cent reflects a market in which demand for skilled workers continues to exceed supply.
CIVIL INFRASTRUCTURE THE DEFINING ENGINE OF 2026
While labour remains challenging, the activity outlook for 2026 is generally optimistic, particularly for civil and infrastructure work. Provincial data shows strong regional demand. In Ontario, BuildForce forecasts that the province will require roughly 154,100 new construction workers by 2034 to meet planned infrastructure and housing needs. And Alberta’s non-residential construction employment is projected to rise eight per cent above 2024 levels by 2026, even as the province prepares to replace more than 43,000 retiring workers. These figures align with what industry leaders see on the ground: momentum is building in public infrastructure, energy transition projects, hydroelectric upgrades, data centre development and large civil works.
Rod Elliott, District Manager for Civil Engineering at Trimble, describes a pipeline dominated by heavy power and digital infrastructure projects.
“We see a lot around power, power generation, data centres and hydroelectric,” he says. “That’s where we see the biggest growth. AI is a growing area too, and we’re getting deeper into autonomy. The biggest barrier is safety, but we’re making big advancements. One of the highest-growth areas is training on the tech. There’s huge demand for it.”
2026 set to be transformative year for Canadian construction industry.
For contractors - those supporting major road, bridge, water, energy and structural projects - this represents a significant opportunity. Civil work is increasingly complex, schedule-driven and technology-enabled, making accurate pouring, forming, layout, validation and quality control more important than ever.
TECHNOLOGY MOVES FROM SUPPORT TOOL TO CORE STRATEGY
The recently released report titled ‘Canadian construction: Doing more with less’, which was developed by KPMG in collaboration with the Canadian Construction Association (CCA), confirms that construction’s pivot toward technology has reached a tipping point. Among other things, the report reveals that ninety per cent of construction leaders now see tools such as AI, BIM, digital twins, analytics and automation as essential to increasing efficiency and closing labour gaps. Importantly, these investments are paying off. The report also notes that 81 per cent of respondents say recent tech investments have already boosted productivity, and a majority expect digital tools to become central to how they manage labour shortages in the years ahead.
In the concrete sector, this shift is serving to reshape how crews work. Robotic layout systems have replaced much of the manual survey work that has traditionallty dominated sites for decades. Automated rebar-tying tools are making high-density placements faster and safer. Digital pour tracking, concrete scanning and real-time QA/QC workflows are helping project teams avoid rework and compress schedules. And precast and modular concrete solutions, once considered niche, are gaining traction as builders seek predictable timelines that reduce labour intensity. In fact, according to Nolan Frazier, Sales Leader at Procore Technologies, the acceleration is no longer theoretical.
“We’re seeing steady growth across infrastructure, energy transition and digital infrastructure, delivering more capital than ever and doing it with fewer people,” he explains. “Contractors are trying to find any sort of operational leverage through things like technology, workflows and automation. Growth doesn’t just mean building more.
It’s about building smarter.”
on that note, Frazier expects an eight to ten per cent increase in project activity across key segments in 2026 but cautions that the benefits that are yielded may not be evenly distributed.
“There’s a tone of the haves and havenots,” he notes. “Larger players benefit from scale and diversification, while some smaller companies struggle if they don’t modernize or diversify.”
ECONOMIC UNCERTAINTY AND TRADE VOLATILITY
Beyond most other issues, the current global economic environment remains volatile and unpredictable. Interest rates have pushed many residential and commercial developers here at home to postpone or cancel projects altogether, resulting in the creation of a split market in which publicly funded infrastructure moves ahead while private-sector activity lags. Leor Margulies, Partner at Robins Appleby, warns that without decisive action by the Bank of Canada (BOC), significant portions of the market may continue to struggle.
“The BOC is finally waking up to the fact that the economy is in serious trouble,” he asserts. “The huge downturn in the new home market along with this real estate recession is even worse than the period between 1990 and 1995. The BOC needs to take dramatic steps to cut interest rates if there’s to be any hope of restarting the moribund new home construction industry or the impact will be severe.”
EQUIPMENT: A QUIET COST DRIVER
Contractors who rely on critical fleets of excavators, telehandlers, compaction equipment, pumps and finishing tools, are facing another subtle but important challenge in the way of fleet inflation and emissions-compliance costs. Darryl Cooper, President of Cooper Equipment Rentals, explains that as a result, rental rates have not kept pace with rising operating expenses.
“Equipment rental rates haven’t kept pace with inflation,” Cooper asserts. “New emissions-compliance standards have driven operating expenses up, while rental rates have remained relatively flat. In this environment, a dependable equipment
partner is more important than ever.”
He goes on to explain that a predictable and healthy public infrastructure pipeline is essential toward stabilizing Canada’s rental market, especially as the impacts of U.S. economic pressures continue to ripple northward.
A NEW ERA OF PROCUREMENT
One of the most transformative forces shaping 2026 may be procurement reform. For decades, the lowest-bid model has dominated Canadian construction, often at the expense of collaboration, innovation and risk sharing. But that system is showing its limits. Developers increasingly recognize that complex infrastructure projects require different delivery models that reward efficiency, enhance communication and leverage the expertise of contractors earlier in the design process.
This is especially relevant in heavy civil and concrete-intensive projects, where everything from formwork staging to pour sequencing to weather windows carries risk. Progressive design-build, construction management and integrated project delivery models allow contractors to influence constructability at earlier stages, improving both cost certainty and schedule performance.
A DEFINING YEAR FOR CANADIAN CONCRETE CONSTRUCTION
Viewed holistically, the signals are clear. Canada’s construction industry is heading into 2026 with a healthy mix of strong public-sector demand, transformative technological adoption and significant workforce pressures. For contractors, the path forward will favour those who adapt, embracing digital tools, investing in training, preparing for sustainability mandates and positioning themselves strategically within the booming civil and infrastructure markets.
Those who adapt will help build the next generation of Canada’s infrastructure - bridges, highways, power systems, water networks and resilient communities shaped, poured and reinforced through concrete. Those who lag behind will risk being outpaced in a market where efficiency, innovation and expertise will matter more than ever.
CANADIAN CONSTRUCTION:
DOING MORE WITH LESS
A new national study reveals that technology adoption is redefining how Canadian contractors confront rising demand.
BY SEAN TARRY
Canada’s construction sector is entering one of the most consequential periods in its history. With a federal “build” agenda directing more than $140 billion toward infrastructure and housing, the industry faces mounting pressure to deliver more, faster, despite labour shortages, rising material complexity and escalating project risk. That central theme framed a recent webinar hosted by On-Site Magazine, featuring Jordan Thomson, Managing Director in KPMG’s Global Infrastructure Advisory group, and Kenny Leon, Vice-President of Marketing Innovation and Industry Collaboration at the Canadian Construction Association (CCA). The discussion examined the findings of KPMG and CCA’s latest technology and digital maturity study and explored what it means for Canadian contractors today.
DIGITAL TRANSFORMATION
Thomson traced the study’s origins to the early stages of construction’s digital shift, which accelerated dramatically during the pandemic. While the sector has long lagged other industries in digital maturity, momentum is building. In 2019, spending focused on cybersecurity and ERP systems; today, investment has moved decisively toward “workforce technologies” that influence on-site execution. Prefabrication, modularization, AI, machine learning and robotics rank among the fastest-growing areas of interest.
Technology poised to play critical role in meeting increased construction demand.
More than 78 per cent of survey respondents report skilled labour shortages, and 70 per cent say workforce gaps limit their ability to bid and deliver work. With an estimated 380,000 additional workers needed by 2034, the industry cannot hire its way out of the challenge. Digital tools are helping contractors maintain productivity: automation reduces physical strain, BIM improves coordination and digital project management platforms optimize scheduling and documentation. According to the study, 86 per cent of firms report labour efficiency gains from digital tools, while 81 per cent see productivity improvements.
TARIFFS AND OTHER DISRUPTIONS
Tariffs and supply chain volatility continue to influence project planning. While concerns about a broader trade war have softened, steel and aluminum tariffs remain
an ongoing risk. Leon added that shifting tariff policies have increased costs by 3 to 15 per cent on some projects, forcing contractors to diversify suppliers and rethink procurement strategies.
Both speakers stressed the need for cultural change, particularly among small and mid-sized firms. Many construction technologies are no longer prohibitively expensive; robust project management and estimating platforms are now available “out of the box.” Thomson argued that organizations should focus on strengthening internal processes and data discipline rather than tailoring software to fit outdated workflows. AI may accelerate this transition by generating insights from unstructured data and allowing contractors to bypass traditional digital hurdles.
BUDGET 2025 AND THE ROAD AHEAD
The federal budget adds urgency with initiatives, including the Major Projects Office and the Department of Housing, Infrastructure and Communities, aimed at untangling approvals, coordinating stakeholders and scaling up national construction capacity. Investments in critical minerals, pipelines, trade infrastructure and municipal supports will generate extensive downstream demand for concrete and civil work. The challenge, Thomson noted, is not whether Canada should build, but whether the industry can evolve fast enough to meet national objectives. And Leon emphasized that funding alone cannot resolve the industry’s current labour constraint. The CCA continues to advocate for a long-term national infrastructure plan, modernized procurement and stronger workforce development strategies. Technology may lessen labour pressure, but it cannot replace skilled workers.
The discussion consluded by identifying the need for an ecosystem approach in which owners, contractors, engineers, suppliers and technology partners work toward best-for-project outcomes.
As Canada embarks on one of its most significant building eras in generations, it’s clear that the contractors who adapt will be among those that realize the opportunities for success and help shape the country’s future.
PHOTO: © IPOPBA / ADOBE STOCK
TOP 10 CANADIAN CONSTRUCTION TRENDS TO WATCH IN 2026
Canada’s construction sector enters 2026 amid labour shortages, trade uncertainty and rising innovation, setting the stage for transformative change across the industry.
BY RODRIGUE GILBERT, PRESIDENT, CANADIAN CONSTRUCTION ASSOCIATION
As we prepare to enter 2026, the Canadian construction industry is beginning a period of profound transition - one shaped by economic uncertainty, shifting trade dynamics and an urgent need for modern infrastructure. The past year exposed the pressures facing builders, from volatile supply chains and labour shortages to rising expectations for sustainability, innovation and digital integration. Yet 2025 also delivered key milestones: new federal initiatives, technological breakthroughs and a renewed focus on professional excellence, safety and workforce development. Together, these forces are redefining how projects are planned, procured and delivered, while challenging industry leaders to adapt rapidly to an evolving landscape. Here are the top 10 trends poised to shape the industry in 2026, and what they mean for builders nationwide.
1
RESILIENT INFRASTRUCTURE AND SUPPLY CHAINS
Canada’s construction sector is on the front lines of global trade volatility. From steel tariffs to material shortages, every disruption adds costs and delays to projects Canadians are counting on. As a result, building resilient infrastructure also means building resilient supply chains in order to ensure stable access to the essential materials and equipment needed to keep projects moving. Diversification, trade alignment and forward-looking procurement policies are critical to safeguarding delivery. Resilience is about planning for the unexpected. Whether it’s geopolitical instability, climate events or shifting trade rules, predictability matters. Governments must work with industry to strengthen supply chains, modernize procurement and reduce regulatory bottlenecks. When
supply chains are stable, Canada can deliver infrastructure that not only meets today’s needs but endures for generations.
2
CANADA-U.S. TRADE AND CUSMA RENEGOTIATIONS
It’s no surprise that the current state of Canada-United States (U.S.) trade and the renegotiation of the Canada-United States-Mexico Agreement (CUSMA) will be top of mind for our industry. 2025 brought significant challenges for our industry due to the uncertainty of Canada-U.S. trade, caused by President Donald Trump’s senseless tariffs and isolationist mentality.
As a result, Canada responded with targeted retaliatory tariffs on U.S. goods. But without a construction exemption under the United States Surtax Remission Order, our industry was hit hard. As an importing sector, construction bears the brunt of these trade disputes. In 2026, our industry hopes to see a return to complete free trade throughout North America. CCA has always advocated for open, free trade and will continue to do so. Our industry depends on it.
3
LABOUR SHORTAGES: BOLD GOVERNMENT ACTIONS ARE STILL NEEDED
In our 2025 submission to the government’s consultations on the federal budget, we sounded the alarm, yet again, on the construction workforce shortage. Canada’s construction industry is projected to face a shortfall of 108,000 workers over the next decade, with 21 per cent of the current workforce set to retire. It’s time for bold action. We need targeted efforts from the federal government to help correct those shortages and attract new workers into the skilled workforce. And it’s also time for industry stakeholders and government to work together to find better solutions to promote careers in construction. We all need to work together to inspire and incentivize new generations of workers to join the Canadian construction industry and reform our federal immigration policies so that immigrants and temporary foreign workers can help to alleviate retirements and address skills shortages.
CONSTRUCTION EXCELLENCE
4
In 2025, our team achieved several exciting milestones in our promotion of professional excellence in construction. Our Gold Seal Certification team launched their new portal to make it easier for more professionals to become Gold Seal certified. And our Best Practices Services team organized the first-ever Best Practices in Construction Symposium which was attended by many of construction’s operational leaders. We believe that professional excellence will, and ought to, be a priority for construction professionals in 2026. These excellence programs are a great way for professionals to distinguish themselves and demonstrate a commitment to professional development and standards of excellence.
5
HOUSING ACCELERATION AND HOUSING-ENABLING INFRASTRUCTURE
Canada’s housing crisis remains a defining challenge for Canada in 2026. Hitting ambitious housing targets isn’t just about building more homes - it’s about delivering the enabling infrastructure that makes
communities livable: roads, transit, utilities, schools and health facilities. Without these supports, housing supply cannot keep pace with population growth or meet the needs of Canadians. The construction sector is ready to deliver, but success depends on removing bottlenecks and aligning investment. Governments must streamline approvals, commit to predictable funding and partner with builders early in the process to ensure housing projects are supported by the infrastructure that sustains them. Done right, housing acceleration is nation-building in its purest form, laying the foundations for thriving communities across the country.
6
MAJOR PROJECTS OFFICE TAKES SHAPE
Announced in September, Prime Minister Mark Carney’s Major Projects Office (MPO) is something that the entire construction industry is closely watching. We were encouraged to see the federal government’s prioritization of “shovel-worthy” projects, not just shovel-ready projects. In our industry, there’s no shortage of potential projects. The real value lies in carefully selecting those that will deliver the
greatest economic impact, especially in light of recent global trade disruptions. The MPO is a major win for the Canadian Construction Association (CCA), which has long advocated for the Canadian Trade Infrastructure Plan (CTIP) - a long-term strategy aimed at driving the next generation of economic growth in Canada through investment in road, rail, air, port and marine assets. The prioritization of several trade infrastructure projects by the MPO is a step in the right direction towards that reality.
7
INNOVATION IN CONSTRUCTION: FROM TOP TO BOTTOM
Technology and innovation are hot topics for Canada’s construction industry. In June, our team released a report with KPMG, which noted that 9 in 10 construction leaders say digital tools are needed to boost productivity to build more, faster. The fact is that technology doesn’t take away jobs - it helps workers operate at a higher level of efficiency, productivity and safety. Many construction companies are already seeing the benefits of leveraging new and emerging technologies, and this is definitely something we will be watching in 2026.
Delivering the infrastructure that enables liveable communities will be key.
8
THE GREEN IMPERATIVE
Canada’s path to net zero runs directly through construction. From low-carbon materials like mass timber to energy-efficient building systems and carbon capture integration, the industry is advancing solutions that reduce emissions while delivering the infrastructure Canadians need. The green imperative isn’t a trend - it’s now a baseline expectation for how we design, build and operate. But ambition requires alignment.
Builders are ready to innovate, yet success depends on supportive policy, consistent standards and investment in research and new technologies. With the right partnerships, Canada’s construction sector can help achieve climate goals while strengthening communities and ensuring our infrastructure stands the test of time.
innovation. By putting data at the core of how we build, Canada’s construction industry can deliver smarter, safer and more sustainable infrastructure - laying not just foundations, but foresight.
10
PUBLIC PROCUREMENT OVERHAUL
MACK / CONSTRUCTION / ON-SITE CANADA—DEC 2025
9
DATA-DRIVEN DECISION-MAKING
Client: Mack
Project: Q4 2025 Advertising
Date Modified: November 11, 2025
Data is becoming as essential to construction as concrete and steel. From
Date Due: November 11, 2025
predictive analytics and digital twins to real-time site monitoring, data-driven tools are improving safety, boosting productivity and helping projects stay on time and on budget. These technologies allow decision-makers to see risks before they materialize and optimize how resources are deployed across projects of every scale. But technology is only as powerful as the policies that support its adoption. Governments and owners must embrace data transparency, set consistent standards and create procurement models that reward
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The way Canada procures infrastructure is as important as the projects themselves. Outdated lowest-bid models too often lead to cost overruns, delays and adversarial relationships that undermine value for taxpayers. A modern procurement approach means focusing on value, not just price. Collaborative delivery models, fair risk-sharing and contracts that reward innovation will enable projects to be built right the first time. By overhauling public procurement, governments can unlock efficiency, strengthen industry partnerships and deliver infrastructure that truly serves Canadians for the long term. In 2026, procurement reform is no longer optional - it is central to ensuring that ambitious infrastructure plans succeed.
With 2026 just around the corner, Canada’s construction industry stands at an important juncture - facing real pressures but also unprecedented opportunities to lead national progress. The trends shaping the year ahead demand collaboration, adaptability and a renewed commitment to innovation and excellence. Whether strengthening supply chains, modernizing procurement or embracing technology and sustainability, the choices made now will define the sector’s future resilience. By working together, industry and government can build an environment where construction thrives - supporting economic growth, enabling housing and infrastructure delivery and ensuring Canada is prepared for the challenges and possibilities in the decade ahead.
Rodrigue Gilbert is the President of the Canadian Construction Association, the national voice for Canada’s construction industry, representing more than 18,000 member firms in an integrated structure of 57 local and provincial construction associations.
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Ensuring resilient supply chains will be a focus in 2026.