Category: Economy

Telus diving into AI data centers, Graham Group expanding to California, and Miller Electric partnering with Novarc for welding robots. Join our host Russell Hixson as he explores some of the largest business.

Key Takeaways:

• Between 2012 and 2023, nearly 30,000 single-family homes in Metro Vancouver were demolished, and upzoning policies are expected to increase demolitions by 35% over the next decade.
• Research suggests that 20% of these homes could be relocated to non-urban areas, while 40-60% could be deconstructed for material reuse, reducing unnecessary waste.
• Renewal Development and Light House urge municipalities to implement pre-demolition assessments, refundable deposits, and green removal permits to encourage relocation and deconstruction, aligning with sustainability goals.

The Whole Story:

Between 2012 and 2023, 29,888 single family homes were bulldozed in Metro Vancouver to make way for higher density development. According to a report released today, provincial and municipal upzoning policies will contribute to a 35% increase in demolitions over the next ten years.

The report was co-authored by Renewal Development and Light House, leaders in providing sustainable solutions to the construction and development industry. Through their research, they estimate that 20% of homes that are leveled can be rescued and relocated to non-urban centres. Another 40-60% can be deconstructed with the materials salvaged and reused.

“There is still so much life in many of these homes and we are just throwing them away,” says Renewal Development CEO Glyn Lewis. “Municipalities have a social and fiscal responsibility to be part of the solution.”

Renewal Development and Light House are calling on municipalities to enact bylaws to reduce waste and protect affordable housing. Among their recommendations:

• Establish pre-demolition assessment that requires all pre-1970 single-family homes slated for demolition to determine whether the home can be relocated or deconstructed.
• Impose a refundable deposit where relocation or deconstruction is deemed feasible.
• Create a separate ‘green removal’ permit, granting relocation and deconstruction companies adequate time to salvage homes and materials before demolition.

“Metro Vancouver can lead by example by making sure these rules apply to all city-owned buildings,” says Gil Yaron, Light House’s Managing Director of Circular Innovation. “Home relocation and deconstruction is a win-win for municipalities – stimulating local economic activity and helping achieve net zero carbon goals.”

They believe there is precedent for these calls to action:

• The City of Victoria imposes a $19,500 refundable deposit that requires 3.5kg of wood be salvaged per square foot of finished floor space on homes older than 1940.
• Parks Canada requires government-owned buildings slated for demolition to be pre- assessed for building relocation or deconstruction.
• BC Housing requires construction, renovation and demolition waste reduction and diversion from landfills for all projects that receive the majority of funding from BC Housing.

“The demolition first paradigm must end. There are responsible alternatives to conventional demolition, be it home relocation or home deconstruction,” adds Lewis.

Key Takeaways:

• Energy sector CEOs are urging federal political leaders to declare a national energy crisis and use emergency powers to fast-track projects like pipelines and LNG terminals, citing their importance to Canada’s economic sovereignty.
• The executives demand streamlined regulations, the removal of the federal emissions cap, repeal of the carbon levy on large emitters, and support for Indigenous co-investment, arguing these measures are crucial for project approvals and economic growth.
• Conservative leader Pierre Poilievre advocates for eliminating the carbon tax and expediting projects, while Liberal leader Mark Carney supports balanced energy development, emphasizing provincial cooperation and positioning Canada as a leader in both conventional and clean energy.

The Whole Story:

With a federal election on the horizon, a group of energy sector chief executives is urging the leaders of Canada’s four federal political parties to declare a national energy crisis and invoke emergency powers to fast-track critical projects deemed to be in the “national interest.”

In an open letter, CEOs from 10 of the country’s largest oil and natural gas companies, along with the four biggest pipeline operators, presented a plan aimed at bolstering Canadian economic sovereignty.

The executives argue that public support is growing for expanding the energy sector and enhancing infrastructure, such as pipelines and LNG terminals, to boost Canada’s energy exports.

The letter comes amid escalating tensions with the U.S., as President Donald Trump threatens Canadian sovereignty and proposes sweeping tariffs on Canadian goods, including oil and natural gas.

Among their key demands, the energy leaders are calling for streamlined regulations and firm deadlines for project approvals.

Additionally, they’re advocating for the removal of the federal emissions cap, the repeal of the carbon levy on large emitters, and loan guarantees to support Indigenous co-investment opportunities.

Alberta Premier Daneille Smith threw her support behind the group, saying the province’s energy sector has long been the economic engine of Canada and has never been more critical to Canadian sovereignty and prosperity.

“During the last decade of Liberal-NDP government, multiple destructive energy policies have resulted in more than $280 billion dollars in projects being delayed, cancelled or shut in by the proponents,” said Smith. “These are projects that would have created tens of thousands of jobs, generated hundreds of billions in government revenues, secured energy security for Eastern Canada and made our nation less dependent on the United States.”

She said Ottawa’s “elected eco-extremists” have done everything they can to keep our oil and gas in the ground – that has to change now.

“We wholeheartedly support the call by Canada’s energy business leaders to find a new way of getting major projects built. Over the last couple of months, we have seen the discussion around our oil and gas shifting across the country, and these industry leaders have captured this spirit perfectly in their letter to the federal party leaders.

Pierre Poilievre, the Conservative Party leader, has taken a strong pro-energy development stance. He has promised to repeal Bill C-69, which he sees as a hindrance to major project approvals, and pledged to create “Canada Shovel Ready Zones” to expedite the development of various energy and infrastructure projects. Poilievre has also vowed to eliminate the carbon tax entirely, including for large industrial emitters.

Mark Carney, the Liberal Party leader and former Bank of Canada governor, has adopted a more moderate approach to energy policy, marking a shift from his previous climate-focused stance. Upon becoming Prime Minister, Carney cancelled the unpopular carbon tax on consumers.

While expressing support for pipeline construction and energy development, Carney has emphasized the need for provincial agreement, particularly with Quebec, before proceeding with major projects. He aims to position Canada as “an energy superpower in both clean and conventional energy,” attempting to balance economic development with environmental concerns.

Key Takeaways:

• Saskatchewan’s Crown corporations are prioritizing local steel purchases from EVRAZ Steel to support over 400 jobs in Regina, helping safeguard employment amid economic challenges.
• SaskPower secured up to 10,000 tons of steel from EVRAZ—enough for three years of infrastructure projects—demonstrating a long-term commitment to maintaining a resilient local supply chain.
• The initiative not only strengthens Saskatchewan’s economy but also fosters partnerships with local fabricators like Brandt and JNE Welding, contributing to a “made-in-Saskatchewan” solution that boosts the provincial economy and ensures infrastructure reliability.

The Whole Story:

Officials in Saskatchewan are buying steel years in advance to support local steel jobs as tariffs hammer the sector.

Saskatchewan announced that its Crown corporations are purchasing local steel to support local jobs, with thousands of pounds of steel and more than a hundred kilometres of pipe recently procured from EVRAZ Steel. 

“The Government of Saskatchewan will always stand up for Saskatchewan’s interests, focusing on pragmatic and sensible solutions, while protecting our jobs, economy and residents,” Crown Investments Corporation Minister Jeremy Harrison said. “By prioritizing the purchasing of local steel for SaskPower and SaskEnergy infrastructure projects, we are helping to keep over 400 hardworking Saskatchewan people on the job right here in Regina.”

SaskPower has negotiated a purchase of up to 10,000 tons of steel from EVRAZ, or the equivalent of three-years’ worth of steel for the Crown, which is used for the construction of transmission structures and other infrastructure that is critical to maintain Saskatchewan’s power grid.

“EVRAZ Canada has been a proud part of Saskatchewan’s economy for nearly 70 years,” EVRAZ Canada Senior Vice President Don Hunter said. “The commitment we are seeing today from the provincial government is a strong signal that the Government of Saskatchewan recognizes the importance of domestic steel manufacturing—not only for EVRAZ’s workers who depend on it but for the broader economy that benefits from a strong and resilient supply chain.”

Officials stated that the collaboration between SaskPower and EVRAZ, along with steel structure fabricators, Brandt and JNE Welding, will result in a made-in-Saskatchewan solution that will support the provincial economy while ensuring reliable power for residents and businesses. 

“The United Steelworkers have been at the forefront of fighting for our jobs and for our industry,” USW Local 5890 President Mike Day said. “When hearing of commitments like this from the Saskatchewan government, it eases some of the uncertainty our members have been facing. 

“Commitments and investments just like these – to buy Canadian – from all forms of government is what the USW has, and will, continue to advocate for in all Canadian infrastructure projects.”

Currently, EVRAZ is working on an order from SaskEnergy which purchased 125 kilometres of steel pipe through Gateway Tubulars LTD. for the Aspen Power Station project, a new 370-megawatt natural gas power plant near Lanigan. SaskEnergy has procured $79 million from EVRAZ directly or through supplier agreements since 2019.

In the first three quarters of 2024-25, the Crown sector awarded $1.2 billion to Saskatchewan suppliers, including $92 million to Indigenous companies.

Key Takeaways:

• The federal government is providing $2.55 billion in low-cost financing, while the City of Toronto is contributing $234.83 million in financial incentives to build 4,831 rental homes, including at least 1,075 affordable units.
• The funding is part of a broader $7.3 billion federal commitment through the Apartment Construction Loan Program (ACLP), conditional on Ontario’s financial participation. The City is also working toward its goal of 65,000 rent-controlled homes by 2030.
• The federal government is allocating $25.8 million to support Toronto’s encampment response, complementing $400 million from the Province of Ontario. This will fund outreach services, shelter expansions, and Indigenous-led housing initiatives.

The Whole Story:

In a landmark partnership with the City of Toronto, the federal government has announced $2.55 billion in low-cost financing to unlock 4,831 rental homes including a minimum of 1,075 affordable rental homes. The City is also investing approximately $234.83 million in financial incentives such as relief from development charges, fees and property taxes. 

“Every Torontonian deserves an affordable place to call home,” said Mayor Olivia Chow. “Today’s landmark housing agreement will reduce barriers so more than 4,800 homes will be built faster. By working together with our federal partners, we are securing affordable homes in Toronto for generations to come.” 

The financing, delivered through the Apartment Construction Loan Program (ACLP) and administered by the Canada Mortgage and Housing Corporation (CMHC), responds to requests from Toronto City Council that the federal government provide the City with low-cost loans to support the delivery of a range of affordable and purpose-built rental homes. 

The federal government has set aside up to $7.3 billion in ACLP low-cost financing over three years, conditional on securing required financial support from the Government of Ontario. The City has requested the provincial government to partner on expanding the Purpose-built Rental Housing Incentives stream and support more rental homes get built faster.  

Through the newly announced ACLP low-cost loans, the City will be able to advance the delivery of seven rental housing projects that are set to start construction by the end of 2026 and have at least 20% affordable rental homes. This includes several projects approved in December 2024 under the Purpose-Built Rental Housing Incentives stream as well as Housing Now projects that create mixed-used housing on transit-oriented, City-owned land. The financing will support: 

• 1,267 rental homes at Quayside. This complements the recent $975 million federal, provincial and City investment to complete enabling infrastructure to support 14,200 new homes along Toronto’s waterfront at Quayside and Ookwemin Minising.
• 1,226 rental homes at 49 Ontario St.
• 767 rental homes at 50 Wilson Heights Blvd.
• 705 rental homes at 777 Victoria Park Ave.
• 370 rental homes at 250 Wincott Dr.
• 341 rental homes at 26 Gilder Dr.
• 155 rental homes at 3379-3385 Lawrence Ave. E.  

The City says it is committed to working with other orders of government to achieve its 10-year goal of approving 65,000 rent-controlled homes by 2030. This includes 41,000 affordable rental, 6,500 rent-geared-to-income (RGI) and 17,500 rent-controlled homes. More information can be found on the City’s website. 

City officials also reaffirmed continued collaboration with the Government of Canada to address the needs of people experiencing homelessness in Toronto.  

As part of the Unsheltered Homelessness and Encampments Initiative (UHEI), the federal government has committed $25.8 million over two years to support the City’s immediate needs related to encampments. This complements the City’s contribution of $400 million secured through a partnership with the Province of Ontario. 

The City will use this funding to expand outreach work and enhance shelter services that support people to transition from encampments to homes. Planned initiatives include: 

• Leveraging partnerships with health, mental health and addictions services providers to support people with complex needs living in encampments.
• Hiring and training up to 20 additional front-line City staff to support encampments, along with partner agencies to provide additional street outreach. Together, these staff will allow the City to expand the Enhanced Outreach Model, which has seen great success in reducing large encampment sites in the last 18 months by moving people into shelter and housing.
• Supporting Indigenous-led, culturally-appropriate projects that help people from those communities who are disproportionately affected by homelessness. 

In response to rising U.S. tariffs, the City of Toronto has unveiled a new action plan aimed at protecting local businesses and workers, with a particular focus on strengthening Canadian supply chains in the construction sector.

Mayor Olivia Chow, joined by members of the Mayor’s Economic Action Team, announced the City of Toronto United States Tariff Response: A Strategy to Protect Toronto Businesses, Workers and Residents.

The action plan is part of a broader City staff report that outlines measures to mitigate the economic impact of U.S. tariffs, which are set to take effect on April 2 for all Canadian goods. Tariffs on steel, aluminum, and other exports are already in place, posing a significant challenge to Toronto’s economy, which drives 25% of Ontario’s GDP and conducts $123 billion in annual trade with the U.S.

“These trade measures create significant uncertainty for Toronto’s economy,” Mayor Chow said. “We are taking swift action to support our businesses, protect workers, and strengthen our local supply chains.”

Construction sector front and centre

Within the next 30 days, Toronto will implement 10 actions aimed at supporting businesses, including prioritizing Canadian suppliers in City procurement processes to bolster local manufacturing and industrial sectors.

For construction projects, the City plans to partner with regional municipalities and the Province to reduce reliance on U.S.-based suppliers and expand procurement opportunities for Indigenous, Black, and diverse suppliers. Additionally, efforts will be made to find local alternatives for key goods such as construction materials, technology, municipal water equipment, and paramedic supplies.

Procurement Policy Amendments

A major component of the plan involves amendments to the City’s procurement bylaw to give Canadian suppliers priority in competitive bidding processes. Proposed changes include:

• Exclusively awarding new City contracts under $8.8 million for construction to Canadian suppliers.
• Deeming American-based suppliers ineligible to bid on new contracts when it aligns with the City’s best interest.
• Enhancing supplier outreach programs to identify local alternatives for construction-related materials.

These amendments aim to ensure Canadian construction firms are positioned to thrive in the face of increasing U.S. protectionism.

Industrial Property Tax Deferral Program

Recognizing the financial strain on industrial businesses, the City is proposing an Industrial Property Tax Deferral Program. Eligible industrial property owners facing hardship due to tariffs could defer tax payments from June 1 to November 30, 2025, without incurring late fees or interest. The initiative, with an estimated cost of $300,000 to $750,000, is expected to provide much-needed liquidity to companies.

As the plan moves forward, it will be considered by the City’s Executive Committee on March 19, followed by Toronto City Council at the end of the month. The City is also collaborating with the Government of Canada and the Province of Ontario to coordinate efforts under a “Team Canada” approach, ensuring a unified response to U.S. trade policies.

As the trade war between Canada and the U.S. continues to simmer, government is looking to weather the storm by fast-tracking major projects, rethinking shelved ones and ensuring that Canadian companies and workers benefit the most. 

Big spenders: “The government should pay people to dig holes in the ground and then fill them up,” is how John Maynard Keynes, the father of Keynesian Economics put it. He argued that government spending can boost aggregate demand during economic downturns. Infrastructure projects often have a multiplier effect, where initial government spending leads to increased economic activity beyond the initial investment.

Picking up speed: While it’s hard to keep track of the day-to-day trade war updates, it’s safe to say the Canada’s faith in the U.S. as a trade partner and stable ally has been deeply wounded, and officials are looking to make some long-term changes.

• B.C. announced it will fast-track 18 critical mineral and energy projects worth approximately $20 billion in response to the threat of U.S. tariffs
• Alberta Premier Danielle Smith says the tariffs have caused a “sea change” in support for pipelines, including the possibility of an “Energy East 2.0”.
• Quebec Environment Minister Benoit Charette indicated that the government is open to reconsidering TC Energy Corp.’s Energy East pipeline and GNL Quebec’s proposal to build an LNG pipeline and export terminal in the Saguenay region.
• Quebec also says it has plans to accelerate the pace of infrastructure development.

Keeping in Canadian: There’s no point in trying boost the economy with public spending if that money doesn’t reach Canadians. That’s why officials have also been tearing up U.S. contracts and opting for local procurement policies.

• Ontario has banned U.S.-based companies from participating in government procurements as long as U.S. tariffs on Canadian exports are in place.
• Alberta has altered its procurement policies to only purchase goods and services from Canadian companies or countries with honoured free trade agreements with Canada
• The B.C. government and its Crown corporations say they will buy goods and services from Canada and other countries first.
• Industry Canada has been directed to prioritize the funding of projects that use predominantly Canadian steel and aluminum.
• Toronto has proposed procurement changes that would limit construction work under $8.8 million to Canadian companies.

Not our first rodeo: Franklin Delano Rosevelt’s New Deal is one of the most famous North American examples if this kind of policy. But we have some closer to home and in our more recent memory.  

• 2008 financial crisis – The federal government implemented a significant fiscal stimulus package in the 2009 and 2010 budgets, with 40% of it going towards “shovel-ready” infrastructure projects.
• COVID 19 – The government launched various infrastructure initiatives as part of the economic recovery plan. Priorities included seniors’ health care, ex-urban broadband, clean transit, and clean energy projects.

Key Takeaways:

• PSP Investments is making its largest Canadian infrastructure commitment by acquiring a 7.51% stake in the 407 Express Toll Route (407 ETR) for about $2.39 billion, with an additional deferred payment due within 18 months.
• After these transactions, the new ownership breakdown will be Ferrovial at 48.29%, CPP Investments and other institutional investors at 44.20%, and PSP Investments at 7.51%, with AtkinsRéalis exiting as a shareholder.
• PSP Investments aims to leverage its transportation sector expertise to support the long-term stability of the 407 ETR, aligning with its broader infrastructure strategy and strengthening partnerships with CPP Investments and Ferrovial.

The Whole Story:

One of Canada’s largest pension investors is getting into the highway business.

Public Sector Pension Investment Board (PSP Investments) announced that it has entered into agreements to acquire a strategic interest in 407 Express Toll Route (407 ETR), an all-electronic, barrier-free, toll highway spanning 108km in the Greater Toronto Area, from investment management organization Canada Pension Plan Investment Board (CPP Investments).

407 ETR is a privately leased and operated toll highway in Ontario. It is part of Highway 407, which spans the entire Greater Toronto Area (GTA) around the city of Toronto. The 407 ETR specifically refers to the 108.0 km (67.1 mi) segment from Burlington to Pickering

PSP Investments will add this 407 ETR investment to its global portfolio of road assets through the acquisition of a 7.51% stake for a purchase price comprised of approximately $2.39 billion payable at closing, and a deferred payment to be made up to 18 months after closing.

Simultaneously, engineering services and nuclear company AtkinsRéalis will enter into agreements to sell its remaining 6.76% stake in 407 ETR to CPP Investments and Ferrovial, a global infrastructure company. CPP Investments expects to acquire a 1.70% interest in 407 ETR from AtkinsRéalis, on the same basis as the deferred portion of the purchase price paid by PSP Investments. Net proceeds to CPP Investments from all of the applicable transactions are expected to be approximately $2.39 billion for a net 5.81% interest sold after closing.

Following completion of these transactions, ownership control of 407 ETR is expected to be attributed as follows: Ferrovial at 48.29%, CPP Investments and other institutional investors at 44.20%, and PSP Investments at 7.51%. AtkinsRéalis will cease to be a shareholder.

“We are pleased to join CPP Investments and Ferrovial in the 407 ETR ownership group. PSP Investments has deep expertise in the transportation sector and will support the long-term stability and reliability of this critical road that services more than 3 million Canadians each week,” said Sandiren Curthan, Managing Director and Global Head of Infrastructure Investments, PSP Investments. “Our investment in 407 ETR represents our largest infrastructure commitment in Canada to date and exemplifies our broader infrastructure strategy.

James Bryce, Managing Director, Head of Infrastructure, CPP Investments explained that tge transaction enables CPP Investments to optimize returns for CPP contributors and beneficiaries while building stronger ties with valued partners and continuing to own a significant stake in a high-quality business.

“We look forward to partnering with PSP Investments, Ferrovial and the management team, as the 407 ETR continues to deliver excellent service to the millions of individual and business customers who use the highway,” he said.

Here is a timeline of the highway’s history:

• 1994: Design-build contract awarded for initial construction
• 1997: Initial 68 km concrete toll motorway opened in October
• 1999: Ontario government announces privatization of Highway 407
• 2001: 39 km of extensions completed (24 km west, 15 km east), bringing total length to 108 km
• 2011: $35 million lane-widening project completed from Highway 403 to Highway 401 in the west, and from Highway 400 to Highway 401 in the east
• 2012: Construction begins on Highway 407 East project
• 2016: Phase 1 of Highway 407 East opens on June 20, extending 22 km to Harmony Road in Oshawa, including Highway 412
• 2018: Phase 2A opens on January 2, adding 9.6 km extension to Taunton Road
• 2018-2019: Widening project between Markham Road and Brock Road completed
• 2019: Phase 2B opens on December 9, adding 23.3 km extension to Highway 35/115, including Highway 418

Key Takeaways:

• The 25% U.S. tariffs on Canadian steel and aluminum are expected to have devastating effects on workers and communities in both countries, disrupting the industry and threatening jobs.
• Canadian steel producers are urging the government to impose tariffs on unfair imports from countries like China and to prioritize Canadian steel in publicly funded infrastructure projects to strengthen the domestic industry.
• Worker representatives view the tariffs as a direct attack on Canadian jobs and economic sovereignty, demanding wage subsidies, enhanced employment insurance, and strong retaliatory measures to protect workers and the economy.

The Whole Story:

As 25% tariffs go into effect on all Canadian steel and aluminum exported to the U.S., Canada’s industry is starting to feel the pain.

The size and scope of the industry is massive. In 2024, Canada exported approximately $7.1 billion USD worth of steel and $9.4 billion USD worth of aluminum to the U.S., accounting for 23% of total U.S. steel imports and 53% of total U.S. aluminum imports. While steel represents a significant portion of total U.S. imports, the country depends far more on Canadian aluminum to meet domestic demand.

Following the implementation of new U.S. tariffs, Canada swiftly responded by imposing countermeasures. These counter-tariffs, which took effect at midnight on Thursday, targeted $29.8 billion worth of U.S. goods, including steel, aluminum, computers, sports equipment, and cast-iron products.

François-Philippe Champagne, Minister of Innovation, Science and Industry, also directed Industry Canada to prioritize funding of projects that use predominantly Canadian steel and aluminum.

“Canadian steel and aluminum form the basis of North America’s critical infrastructure and manufacturing base, while supporting vital U.S. industries, including defence, shipbuilding and automotive,” said the minister. “They are also essential for securing our collective energy future and generate high-quality jobs on both sides of the border.”

“We will continue to stand strong for Canada, our workers, and our industries.”

Catherine Cobden, President and CEO of the Canadian Steel Producers Association (CSPA) explained that the announcement by President Trump of a 25% tariff on Canadian steel entering the United States has deeply damaged our mutually beneficial trading relationship.

Steel producers call for more industry support

“These tariffs will have devastating repercussions on both sides of the border for workers and communities that rely on a strong North American steel industry,” said Cobden. “Indeed, many are already feeling the impacts.”

Cobden praised Canada’s retaliatory tariffs, as well as ongoing efforts by government to resolve the trade war. However, she remained deeply concerned about the significant disruption and ongoing uncertainty being created by the United States for the industry. To build resiliency and long-term prospects for the sector in Canada, the association called on the government to act with urgency to address long standing concerns. Here’s what they want:

• Enact tariffs on all steel and steel derivatives from China and other known trade offenders to address unfair steel trade in Canada. Cobden said there remains significant levels of dumping and other unfair practices which erode the industry’s ability to compete.
• Asking all municipal, provincial and federal governments to step up and ensure they are prioritizing Canadian steel in all their publicly funded infrastructure projects.

Union says tariffs an ‘industry killer’

Worker representatives emphasized the massive impact the tariffs could have on Canadian jobs.

“These tariffs are nothing less than a potential industry killer,” said Marty Warren, United Steelworkers National Director for Canada. “It’s an economic attack on workers and our economic sovereignty. Trump’s protectionist charade is not about helping American workers but about using them as political pawns while jeopardizing jobs on both sides of the border. Canadian steel and aluminum workers will not be intimidated. We are ready to fight back and we will.”

The new measures, which extend to downstream products containing non-U.S. steel and aluminum, come on top of previous tariffs that have already placed massive strains on Canadian industry. While the existing tariffs are temporarily paused until April 2, if they take effect as planned, these combined tariffs will amount to 75% on steel and 60% on aluminum.

“This is a serious escalation in an unnecessary trade war with a trusted ally, and jobs and communities on both sides of the border hang in the balance,” said USW International President David McCall. “USW members across North America work together. We also fight together. And when it comes to beating back ill-advised trade policy that hurts us all, we will win together.”

He called on Canada to institute wage subsidies and enhanced employment insurance. He also stressed the importance of prioritizing domestic procurement and hit back at the U.S. with retaliatory tariffs on key industries.

“This isn’t just about steel and aluminum – this is about protecting Canada’s economy, its workers and its sovereignty,” Warren said. “We will not stand by while Trump uses our jobs as bargaining chips in his political game. Steelworkers will fight back on the shop floor, in the halls of government and in the streets if necessary.”

Steel tariff deja vu

During his first term as president, Donald Trump initiated a significant trade dispute with Canada over steel and aluminum imports. In March 2018, Trump imposed tariffs of 25% on steel and 10% on aluminum imports from most countries, including Canada. These tariffs were implemented under the justification of national security concerns. The dispute continued for about a year, affecting various industries and causing economic uncertainty on both sides of the border. In May 2019, nearly a year after the tariffs were implemented, the U.S., Canada, and Mexico reached an agreement to remove the tariffs and ultimately paved the way for the ratification of the United States-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA).

Key Takeaways:

• The catalogue features standardized designs for rowhouses, fourplexes, sixplexes, and accessory dwelling units to accelerate construction and reduce costs, particularly benefiting smaller homebuilders.

• Architectural firms across Canada contributed region-specific designs, ensuring the catalogue addresses diverse construction methods, materials, and local building codes, while also prioritizing accessibility, energy efficiency, and financial feasibility.

• The catalogue aims to simplify the path from concept to construction by providing ready-to-use architectural and engineering plans, technical guidance, and cost estimates, helping builders deliver housing more efficiently.

The Whole Story:

New standardized designs for housing across Canada have arrived.

The federal government released the final renderings, floor plan layouts, and key building details as part of the Housing Design Catalogue, an initiative under Canada’s Housing Plan. The catalogue features some 50 standardized housing designs for rowhouses, fourplexes, sixplexes, and accessory dwelling units across the country.

“These standardized designs will help smaller homebuilders cut through the complexity, speeding up the time between concept and construction and lowering costs of building,” said Nathaniel Erskine-Smith, Minister of Housing, Infrastructure and Communities.

Firms chosen to develop designs for the catalogue include MGA | Michael Green Architecture for the British Columbia region. LGA Architectural Partners Ltd. worked with five other teams of regional experts: Dub Architects (Alberta), 5468796 Architecture (Manitoba and Saskatchewan), KANVA (Quebec), Abbott Brown Architects (New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island), and Taylor Architecture Group (Yukon, Northwest Territories, and Nunavut). LGA itself covered the region of Ontario.

Officials stated the announcement provides a head start for homeowners, builders, and communities in their planning processes. The regional architecture and engineering teams were instructed to focus on creating gentle density and infill development in existing neighbourhoods in all regions of the country. The final architectural design packages will be released this spring.

To help ensure the Housing Design Catalogue supports the goals of Canada’s housing system, numerous principles were considered during the development phase. These principles include adaptability and accessibility, energy efficiency, financial feasibility, use of regional construction methods and materials, and compliance with local regulations and building codes.

Once the final architectural design packages are ready, the Housing Design Catalogue will help builders streamline the process from concept to construction, cutting costs and speeding up housing delivery. The catalogue simplifies design, ensures compliance with building codes, and helps estimate costs—so homes can be built faster.

The designs cover all regions of the country: British Columbia, Alberta, Manitoba and Saskatchewan, Ontario, Quebec, the Atlantic provinces (New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island), and the territories (Yukon, Northwest Territories, and Nunavut).

The final architectural design packages will consist of architectural and engineering drawings and specifications, including accessible-ready and enhanced-accessible layouts; technical guidance on topics such as site considerations and energy modeling;  and, construction cost summaries for each housing design in regions across the country.

The federal government is drawing inspiration from Canada Mortgage and Housing Corporation (CMHC)’s post-war housing design catalogues developed between the 1940s and 1970s. 

Here are renderings of some of the new designs:

Key Takeaways:

• The Canada Infrastructure Bank (CIB) has provided a $100 million loan to the Enoch Cree Nation to support infrastructure for a 256-acre mixed-use development, including essential utilities, roads, and facilities such as a cultural center, medical center, and elders facility.
• The project aims to diversify the Enoch Cree Nation’s economy, creating a self-sustaining future for over 2,800 community members while generating up to 800 jobs for both local and surrounding area residents.
• Nation officials emphasize the historic significance of this investment in closing long-standing infrastructure gaps faced by many Indigenous communities, highlighting the financial accessibility provided by the CIB’s Indigenous Community Infrastructure Initiative.

The Whole Story:

The Canada Infrastructure Bank (CIB) has reached financial close on a $100 million loan to help the Enoch Cree Nation develop its reserve near Edmonton, Alberta. The agreement enables a future elders facility, a cultural centre and medical centre and more than $1 billion in commercial and residential development.

The enabling infrastructure includes construction of water and wastewater mains, roads and installation of underground utilities at the 256-acre mixed-use development.

Officials say the development will diversify the First Nation’s economy and create a self-sustaining future for more than 2,800 community members.

The project will also support up to 800 jobs for community members and individuals living in the surrounding areas. Enoch Civil Construction LP, the First Nation’s heavy civil construction company, will hold the primary contract for the project as the general contractor. Construction is expected to be completed in 2027.

The investment follows a $15-million CIB loan in August 2023 towards upgrades to the main transportation artery within the reserve, including pedestrian crossings and a new multi-use pedestrian trail.

“Our second investment with the Enoch Cree Nation supports its ongoing work to develop their reserve and create a self-sustaining future for community members,” said Ehren Cory, CEO, Canada Infrastructure Bank. “The enabling infrastructure will create jobs and needed road, water and wastewater infrastructure. The end result will be a new mixed-use development with office and retail space and community resources.

Nation officials noted that the announcement is historic and begins to help address infrastructure issues that many other Indigenous groups face.

“Like many First Nation communities in Canada, we have struggled to address many infrastructure gaps that hinder our Nation from moving forward,” said Enoch Cree Nation Chief Cody Thomas. “The CIB’s Indigenous Community Infrastructure Initiative has allowed our Nation to borrow the necessary capital to address some of the infrastructure gaps that we are currently experiencing at terms that are financially suitable.”

Canada is embroiled in a bitter trade war with the U.S., putting immense pressure on countless businesses. The U.S. is now imposing 25% tariffs on all goods imported from Canada, with a 10% tariff on energy and critical minerals. Canada has responded with its own tariffs in retaliation.

If you are looking to support Canadian construction businesses during the crisis, check out our list of producers. They make everything from steel girders to steel-toe boots. And if there is a made-in-Canada company that you think should be featured, let us know at hello@readsitenews.com.

Steel

Algoma Steel was forged in 1901 with two small blast furnaces, a 60-ton Bessemer furnace, a 23- inch bloom rolling mill and rail mill. It has since grown into a fully integrated steel producer based in Sault Ste. Marie, Ont. The company manufactures and sells hot and cold rolled steel products including sheet and plate.

Canam Steel Works Inc. was founded in St. Gédéon de Beauce, Que. in 1960. Despite a series of devastating fires, the company persisted. The company says it has been involved in more than 300,000 Construction projects in North America.

Solid Rock is a classic immigrant success story. Berend Steunenberg learned the metal fabricating trade while growing up in Holland and and took his skills to Vancouver in the 1950s. Now the company is helping tackle large, complex projects like The Butterfly, the Surrey Central Library and Microsoft’s Vancouver headquarters.

Stelco is a long-standing integrated steel producer in Canada, primarily focusing on flat-rolled steel products. They produce hot-rolled and cold-rolled steel as well as coated products, serving industries such as automotive, construction, and energy.

AltaSteel, located in Edmonton, Alberta, specializes in producing high-quality steel products for industries such as construction and energy. The company plays a vital role in Western Canada’s steel industry by supporting local businesses and infrastructure projects.

Supreme Steel is headquartered in Acheson, Alberta, near Edmonton. It is the largest privately owned steel fabricator in Canada and provides services such as engineering, fabrication, and installation for industrial and commercial projects. Supreme Steel has contributed to iconic projects like the Port Mann Bridge and Anthony Henday bridges.

George Third & Son is a prominent steel fabrication company based in Burnaby, British Columbia, Canada. Founded in 1910, the company has over a century of experience in the steel industry.

Wood

Interfor Corporation, founded in 1963 and based in Vancouver, is one of the largest lumber providers globally, with 21 mills across North America. Interfor’s operations span British Columbia, Ontario, Quebec, and the U.S. South, producing a wide array of wood products, including softwood lumber and engineered wood.

West Fraser Timber Co. Ltd., founded in 1955 in B.C., has grown to become one of the largest lumber producers in the world. The company operates over 60 mills across Canada, the U.S., and Europe, producing a wide range of wood products, including softwood lumber, plywood, OSB, and engineered wood.

Nordic Structures, based in Montreal, has worked on many projects in the U.S. and Canada, including Canadian Nuclear Labratories, Plate 15, Paul Mercier Library and more. Since 1961, Nordic has been using trees to make construction materials at its industrial complex in Chibougamau.

Canfor Corporation is a forest products company headquartered in Vancouver, B.C. Founded in 1938, Canfor specializes in producing lumber, pulp, and paper products, serving markets across North America, Asia, and Europe. The company operates numerous sawmills and pulp mills, with a strong presence in B.C., Alberta, and the U.S. South. In 2019, the Jim Pattison Group, one of Canada’s largest private companies, became Canfor’s majority owner, ensuring it remains Canadian-owned.

Tolko Industries Ltd., established in 1956 and based in Vernon, B.C., is a family-owned company that has grown into a significant player in the North American wood products industry.

Western Forest Products specializes in high-value, specialty lumber from the coastal forests of British Columbia. They serves niche markets like marine applications, custom homebuilding, and furniture manufacturing.

Stella-Jones, based in Montreal, Quebec, specializes in producing pressure-treated wood products, particularly utility poles and railway ties. They also manufacture lumber for residential construction. In 2025, Stella-Jones reported revenue of $2.5 billion.

Heavy equipment

Tigercat is a privately owned, vertically integrated Canadian corporation with deep expertise in engineering, fabrication, manufacturing, and the support of machinery suited to severe duty applications. The off-road industrial product line includes land clearing, silviculture and site preparation equipment as well as other specialized severe duty carriers used in a variety of industries including utilities, oil and gas and construction.

MacLean Engineering, based in Ontario, manufactures a range of underground mining machinery, which is also used in construction projects, particularly in tunnel construction and underground operations. Their machinery includes mobile mining equipment, bolters, scissor lifts, and other safety-focused tools.

Foremost is a Canadian company that manufactures heavy-duty construction and industrial equipment. Located in Calgary, Alberta, their product range includes drilling rigs, vacuum trucks, and specialized equipment for construction and mining applications.

Cement/Concrete

Béton Provincial Ltée, a Quebec-based family-owned company established in 1960, stands out in Eastern Canada for its diverse, high-quality concrete and paving products. They focus on a personalized customer approach and boast a wide distribution network, supplying construction projects across the region. In recent news, Béton Provincial made headlines by acquiring assets from CRH Canada, further solidifying their position in the market.

Federal White Cement, based in Woodstock, Ontario, specializes in white Portland and masonry cement for the construction industry. This family-owned company prioritizes innovation, offering traditional and eco-friendly white Portland cement options alongside white masonry cement.

Miller Cement supplies bulk Portland cement and specialty cementing materials. The Ontario-based company emphasizes sustainable practices and control their delivery process across the province.

Ciment Québec, boasting one of the most modern cement plants in North America, is a key player in Quebec’s construction industry. Their offerings include cement, concrete, construction materials, and aggregates. 

BM Group, based in B.C., has more than 40 years of history supplying Canada with concrete. It boasts expansive ready mix facilities and a constantly growing fleet. Alongside concrete supply is its precast manufacturing operation which offers a vast catalogue of precast concrete products.

Tools/gear

Gray Tools focuses on manufacturing hand tools for accomplished tradespeople. Founded by Alex Gray in 1912, the company offers over 6,000 hand tools designed for the specific work and needs of the professional user under two brands: Gray and Dynamic Tools. They are Canada’s only broad line manufacturer of hand tools.

Task Tools is a Canadian company founded in 1968, based in Delta, British Columbia. It is a family-owned and operated business that specializes in developing high-performing, quality tools for construction professionals. Task Tools offers three brands: TASK Signature, TASK, and Tuf-E-Nuf.

JessEm Tools manufactures precision woodworking tools. They are Canadian-owned and produce their tools in New Brunswick.

Rolgear Manufacturing produces a patented toothless ratchet system used in hand tools such as screwdrivers and socket wrenches. They are located in Ashcroft, B.C.

Tiger Torch manufactures propane and natural gas blow torches near High River, Alberta.

Veritas Tools produces high-quality woodworking hand tools, including planes, sharpening tools, joinery saws, marking and measuring tools, chisels, and carving tools. The Ontario company boasts 1250 products and more than 100 patents.

RAD Torque Systems is a Canadian manufacturer of pneumatic, battery powered, and electronic pistol grip torque wrenches which are marketed under the RAD trademark. RAD products are used in oil & gas, petrochemical, mining, aerospace, power generation and manufacturing.

Busy Bee Tools, a proudly Canadian-owned and operated company, has been specializing in woodworking, metalworking, and industrial tools since 1976. Headquartered in Concord, Ontario, the company has expanded nationwide with locations in Ottawa, Mississauga, London, Dartmouth, Pickering, Barrie, and more.

Perma Pouch Inc. specializes in designing and manufacturing leather tool belts and pouches. The Burnaby, B.C. company’s products are 100% Canadian-made, focusing on durability and functionality for tradespeople. Perma Pouch is known for its commitment to local production and high-quality craftsmanship.

Impact Poly Hammers is a Saskatoon-based company that produces professional-grade soft-faced dead-blow hammers. Their hammers feature increased steel frame construction and fully welded heads. They offer a variety of sizes and are known for their durability, with some users reporting their hammers lasting for 15 years without significant wear.

Akribis Leather designs and manufactures rugged, high-quality tool belts specifically for tradespeople. Founded by Luke Riemer, the Summerland, B.C. company started with custom-made belts tested in the harsh conditions of the Okanagan Valley. 

Personal protective equipment

Canada West is a 47-year old boot manufacturer that has a variety of styles for steel toe work boots. Based in Winnipeg, Canada West states that making Goodyear welted footwear may not be the easiest way to make a boot or shoe, but they still believe it is the best way. Especially for heavy-duty work boots and western boots used throughout Canada.

Big Bill is a fourth-generation family business and a brand of Codet Inc., dedicated to producing high-quality workwear for over 75 years. Founded by Charles E. Audet in Coaticook, Quebec, the company has grown into a North American leader with four specialized divisions: workwear, outdoor clothing, flame-resistant apparel, and safety footwear.

Superior Glove is a Canadian company specializing in hand protection. Based in Acton, Ontario, they manufacture a wide range of gloves for industrial applications, including cut-resistant and heat-resistant options. They are one of the largest glove manufacturers in North America with a strong focus on local production.

Dynamic Safety produces above-the-neck PPE for industrial applications. The Quebec company manufactures hard hats, ear muffs, and other safety equipment designed for workers in construction, manufacturing, and other industrial sectors. Dynamic Safety continues to operate its manufacturing plant in Laval, focusing on North American production.

Covergalls is a Sudbury, Ontario manufacturer of industrial PPE and workwear designed specifically for women. Founded by Alicia Woods in 2013, the company has grown significantly and now produces a wide range of PPE products tailored to women’s needs in various industries.

Tatra is a 100% Canadian-made work boot manufacturer based in Dunnville, Ontario. They produce high-quality, hand-crafted CSA work boots and emphasize their commitment to supporting fellow Canadians by providing quality work boots and jobs. As of February 28, 2025, Tatra continues to manufacture their boots entirely in Canada.

Mellow Walk, located in Toronto, Ontario, produces safety footwear including work boots and shoes. They offer a range of styles, from steel-toe work boots to composite toe athletic work shoes, all manufactured in Canada.

Royer, based in Lac-Drolet, Quebec, has been manufacturing work boots since 1934. They offer a “Made in Canada” line that guarantees the product was made in their Lac-Drolet factory from top to bottom.

Hardware

Leland Industries is one of Canada’s leading manufacturers of fasteners, including nails, bolts, nuts, and screws. The B.C. company specializes in providing high-quality steel fasteners for a variety of industries, including construction, automotive, and industrial applications.

Can-Eng Manufacturing specializes in cold-heading and forging processes to produce nuts, bolts, screws, and other metal products. Their fasteners are used in industries such as construction, automotive, and energy.

Pacific Bolt is the largest bolt manufacturer in Western Canada. They produce construction fasteners and anchors using domestic steel.

Canadian Stainless Fasteners Inc., based in Pitt Meadows, BC, has been supplying and distributing fasteners since 1995. While primarily a distributor, they also offer custom design services for fasteners.

After weeks and weeks of threats, delays and changes, U.S. President Donald Trump has launched his trade war against Canada. Here’s what you need to know.

What is impacted: The U.S. is now imposing 25% tariffs on all goods imported from Canada, with a 10% tariff on energy and critical minerals. This includes a plethora of products but let’s focus on two of the big ones.

• Wood – In 2020, 67% of Canada’s softwood lumber production was exported, with 84% of these exports destined for the U.S. In 2024, the United States imported wood and articles of wood, including wood charcoal, from Canada totaling approximately $11.59 billion.
• Steel – In 2024, the U.S. imported approximately $7.69 billion worth of iron and steel products from Canada, making us its largest supplier. However, Steel is facing a double whammy. In addition to the current tariffs, Trump plans to implement 25% more tariffs starting later this month, meaning Canadian imports would have a 50% tariff placed on them.

Both ways: Canada has fired back with immediate matching tariffs on $30 billion worth of American goods. For construction, this includes:

• Sands for concrete
• A variety of plastics used in building products
• Floor coverings
• Engineered wood products
• Construction equipment tires
• Hand tools
• Power tools
• Lighting fixtures
  

After a review period of 21 days, Prime Minister Justin Trudeau has promised to raise this retaliation to impact $155 billion worth of American goods.

What you can expect to see:

• Business closures – Communities with large dependence on industries that mainly export to the U.S. are in trouble. This is especially true for eastern steel/aluminum producers who are facing double the tariffs. Steel orders were already slowing and at least one plant making electrical cables has shut its doors.
• Job losses – A report by the Washington-based Brookings Institution predicts the tariffs could kill 510,000 Canadian jobs. Canadians are much more pessmistic. Quebec says it could lose up to 100,000 jobs if the tariffs remain in place for six months and up to 160,000 if they last a year. Ontario believes 500,000 jobs are at risk in Ontario alone.
• ‘Buy Canadian’ movements – We have already seen multiple provinces float policies that would ban U.S. procurement. Ontario has shredded a $100M contract with StarLink and economists have encouraged builders to get goods from Canadian producers as much as possible.
• Higher construction costs – Countervailing tariffs could cause increases in construction costs say home building groups. Canada imports some $3.5B in glass and glass products, $3.1B in major appliances, $2.2B in hardware, and about $1B in ceramic tile and products. Our second phase of tariffs, slated to come into place after 21 days, currently includes steel and aluminum. Canada imports some $17B of steel and aluminum. 
• Increased public sector work – With a federal election on the horizon, some economics experts believe candidates will have little choice but to make up for economic hit from tariffs with government spending, including large public infrastructure projects. This could provide opportunity for builders to have steady work and create jobs.
• Recession – Yep, that dreaded word. Economists say if these tariffs contine, the nation will likely be plunged into a full-blown recession this year.

In the days leading up to the tariffs showed a consistent decline in the Canadian stock market, with a notable dip following the tariffs and counter tariffs.

The response from the construction sector has been swift, with many warning that retaliating with our own tariffs could be catestrophic. Here’s what industry leaders are saying:

While Canada’s retaliatory tariffs are understandable, all considerations regarding the industry and housing supply and affordability should be considered, with an emphasis on avoiding tariffs on construction products and materials, unless other domestic or import solutions can be easily found for comparable prices. Governments can also help offset the impact that countervailing tariffs will inevitably have on housing affordability by removing the GST (and PST/HST) on new construction, as well as lowering development taxes at the municipal level, particularly in those municipalities with extremely high development taxes.

Canadian Home Builders’ Association CEO Kevin Lee

These tariffs present a significant risk for the construction industry. This likely means increased costs for homebuilding and trade-enabling infrastructure, impacts to our supply chains and trading relationships, and a weakening of our economic development and productivity. While the federal government is right to respond in kind, CCA reiterates its call for all governments to consider economic measures to support Canadian businesses and stimulate our economy, in consultation with industry. 

The Canadian Construction Association

Canadian retaliation, while understandable in the circumstances, will magnify the blow to our economy by raising costs/prices for consumer goods and business inputs. This is particularly true given that the U.S. is the number one source of Canadian and B.C. imports.

Jock Finlayson, Senior Economist, Independent Contractors and Businesses Association

And so it begins. A trade war with no winners. Critical that we stay calm, calulated, respond thoughtfully and lets not overreact. Hard to know the impact, with such policy volatility, but I suspect potentially less than some fear. In the end moves like this, that make so little sense, are unlikely to last. 

Jon Love, Founder, KingSett Capital

Breaking internal barriers: There have also been calls to make provincial trade easier by cutting inter-provincial red tape. Last week, officials told the provinces and territories Friday that Ottawa will remove more than half of federal internal trade barriers in an effort to make the nation less reliant on the U.S. Statistics Canada data shows that the most commonly reported obstacle to interprovincial trade was the cost of transportation for both businesses purchasing (27.4%) and selling (23.2%) goods or services.

Deja vu: In 2018, the Trump administration imposed significant tariffs on Canadian steel (25%) and aluminum (10%) imports, citing national security concerns under Section 232 of the Trade Expansion Act. Canada retaliated by imposing tariffs on $12.6 billion worth of U.S. goods, including steel, aluminum, and various consumer products. This trade conflict resulted in economic disruptions for both countries, with Canadian exports of steel to the US dropping by nearly 40% in the first month of implementation, while economists estimated at least 75,000 job losses across the U.S. manufacturing industry by mid-2019.

The Canadian Homebuilders’ Association (CHBA) has released its 2024 Municipal Benchmarking Study that examines how local development processes, approvals, and charges impact housing affordability and housing supply in major housing markets across the country.

The study benchmarks municipalities based on three key development features:

• Municipal fees charged on new residential development
• Length of time for residential development applications to move through the development application process
• Features in place to help applicants navigate the development application process.

The previous edition of the study was conducted in 2022. This edition of the study provides further detail on how a municipality’s performance on these measures influences housing outcomes, including affordability and availability of housing for young families, and the total cost implications of these municipal processes and policies. The study also includes the indirect costs to the construction process that accumulate on a development as its application goes through the application process.

“Development charges, delays, and inefficient processes at the municipal level directly impact the price of homes and how many are built,” said CHBA CEO Kevin Lee. “The purpose of this study is to facilitate dialogue with all levels of government, but particularly with municipal governments, on the effects of longer timelines, higher fees, and the level of efficiency of processes on housing affordability and outcomes. This report also offers insight into best practices that municipalities can adopt to help improve their housing affordability and supply. It also points to ways that the provincial and federal governments can continue to drive and support change at the municipal level,”

The report’s key findings include:

• The cities of Edmonton, Halifax, and London rank highest overall.
• When looking at the municipalities ranked in the bottom ten, seven are in Ontario, and two are British Columbia’s largest municipalities that were studied.
• Municipal fees charged on new residential developments went up by an average of $27,500 for a low-rise home since the 2022 study, raising the new average in Canada for municipal fees in these cities to $82,600 (ranges from $8,700 to $195,000) at the time of the 2024 study.
• Municipal fees charged on new residential developments went up by an average of
  $3,000 for a high-rise home since the 2022 study, raising the new average in Canada at the time of the 2024 study to $35,000 (ranges from roughly $1,600 to $134,400).
• The 2022-2031 period is on track to be the decade with the fewest homes built per new persons added to the Canadian population since at least 1972.
• A combination of a challenging economic backdrop and costly application processes are leading to fewer application submissions.
• Application submissions have fallen significantly since peaking in 2021, in both Ontario and British Columbia. The decline has been driven by site-plan and/or development permit applications.
• In contrast, more affordable markets, such as Alberta, have experienced an increase in application submissions.
• Approval timelines improved marginally from the previous study but remain high, and in some cases the improvement is likely simply because of fewer applications being submitted.

“More needs to be done to address the housing crisis in Canada. The CHBA Benchmarking Study points out the barriers to getting more homes built and ways in which these barriers contribute to the cost of a new home,” stated Lee.

For more information on CHBA’s Municipal Benchmarking Study, visit chba.ca/municipal-benchmarking/.

Key Takeaways:

• The merger between Graham Group and XL Industries (XLI) strengthens Graham’s U.S. presence and expands both companies’ capacity in key growth sectors. This immediately boosts Graham’s annual revenue, backed by a $1.4 billion project backlog.
• Both companies emphasize innovation, quality, and reliability while maintaining a strong commitment to local communities, workforce development, and sustainable building practices.
• The merger allows both companies to leverage technological advancements, broaden service offerings, and enhance workforce capabilities to meet the evolving demands of the construction industry.

The Whole Story:

Graham Group has completed a merger with XL Industries (XLI), a northern California-based construction company, expanding both companies’ delivery capacity in key growth sectors and strengthening Graham’s U.S. footprint. The merger will result in an immediate boost in Graham’s annual revenues supported by more than $1.4 billion (USD) in project backlog. 

Headquartered in Milpitas, California, with additional offices in Oakland and Sacramento, XLI encompasses a diverse family of companies: XL Construction, Bradley Concrete, Elevated Construction Services, TimberQuest, and Arrow Rental & Supply.

“This merger is an exciting step forward for both companies,” said Andy Trewick, CEO of Graham. “By joining forces, we’re growing our market presence and bringing even more innovation to the industry. XL Industries is known for its reliability and commitment to quality, just like us, making this partnership a great fit for both teams. There is no question that our combined strength, talent and innovation will grow our leadership in the industry.” 

Beyond the business advantages, both Graham and XLI stated they share a deep-rooted commitment to the communities where they operate. The companies have long supported local initiatives, workforce development, and sustainable building practices that contribute to the long-term success of the regions they serve. 

“We’re excited to take this next step with Graham,” said Richard Walker, President and CEO of XL Industries and now Graham’s EVP, US Buildings division. “This next phase for our business gives us the opportunity to grow, reach new markets, and continue delivering high-quality projects while staying true to our values. Most importantly, it strengthens our ability to make a lasting impact in the communities where we live and work.”

The merger will enable both companies to capitalize on technological advancements, expand service offerings, and build workforce capabilities to meet the evolving demands of the construction industry.

Founded in 1992, XL Industries (XLI) is a leading construction services provider committed to its purpose of “building to improve lives.” There will be no immediate changes to XLI’s brand or leadership. XLI will join Graham’s U.S. Buildings group, comprised of Milender White, a full-service real estate company with offices in Southern California and Colorado that joined Graham in 2021, and Graham’s Seattle operations.

Together, these companies specialize in serving clients across the education, life sciences, advanced technology, commercial, civic, and healthcare sectors, creating spaces that enhance and enrich communities. Known for excellence, XLI has been consistently ranked among Silicon Valley’s “Best Places to Work.”

B.C.

• Work progressing at Cedar Hill Middle School replacement
• Major construction starts on Surrey Langley SkyTrain
• Foundation proposes major expansion of Vancouver General Hospital
• Big upgrades coming to Horseshoe Bay ferry terminal

Ontario

• Ring of Fire access roads may not be complete until 2040
• Hard Rock Hotel in London eyes spring completion 

Alberta

• Bridge construction to ramp up in Edmonton

Quebec

• Quebec border crossing to receive $100M makeover

Maritimes/Atlantic

• Grieg Seafood pausing construction on Marystown expansion

Key Takeaways:

• The Prairie Economic Gateway agreement is expected to generate over $7 billion in economic activity and create more than 30,000 jobs in the Calgary region over the next decade, addressing the city’s rapid growth and increasing job demands.
• By leveraging the existing Canadian Pacific Kansas City (CPKC) rail network, the initiative aims to improve supply chain efficiency, expand trade access, and reduce reliance on seaports, strengthening the region’s economic resilience.
• The partnership between Calgary and Rocky View County highlights the power of municipal collaboration in driving infrastructure investment, market expansion, and economic diversification, with plans to secure further government and private sector funding.

The Whole Story:

The City of Calgary and Rocky View County have approved the Prairie Economic Gateway agreement, a historic partnership projected to generate over $7 billion in economic activity and create more than 30,000 jobs across the region over the next 10 to 12 years.

Strategically located adjacent to Calgary’s eastern limits, the proposed inland port will leverage the region’s existing Canadian Pacific Kansas City (CPKC) rail network to enable greater interprovincial trade and access to global markets while unlocking new opportunities in manufacturing, logistics, processing and distribution. Officials say that improving supply chain efficiency and reducing reliance on seaports, the Prairie Economic Gateway will enhance trade resilience in the region and mitigate economic disruptions.

The Prairie Economic Gateway is a leading example of what can be achieved when municipalities work together to unlock the industry’s potential to create jobs and generate prosperity.

Rocky View County Reeve Crystal Kissel

“Three years ago, I envisioned a bold new future for Calgary, where our city could be home to the strongest inland port in North America,” said Calgary Mayor Jyoti Gondek. “Today, I am proud to say we are turning that vision into reality. Prairie Economic Gateway is not just a project. It is a promise of prosperity, productivity and opportunity that will transform our region for future generations.”

The agreement formalizes almost two years of collaboration between the municipalities. Recognizing that Calgary is Canada’s fastest-growing metropolitan area and will need more than 110,000 new jobs in the next five years, officials stated that the Prairie Economic Gateway highlights the critical importance of investing in essential infrastructure.

“The Prairie Economic Gateway is a leading example of what can be achieved when municipalities work together to unlock the industry’s potential to create jobs and generate prosperity,” says Rocky View County Reeve Crystal Kissel. “In collaboration with the City of Calgary, this partnership focuses on removing impediments to growth by coordinating infrastructure development, expanding markets and diversifying the regional economy.”

This approval enables The City of Calgary and Rocky View County to take the next steps in securing funding from other orders of government and private sector partners.

“The Prairie Economic Gateway is a great example of the amazing work that can be done when municipalities work together,” said Ric McIver, Minister of Municipal Affiars. “The collaboration between the City of Calgary and Rocky View County will create jobs, drive investment and spur economic growth in the region. This shared vision between the two councils will create stronger and more resilient communities now and well into the future.”

Canada’s construction sector is seeing major shifts this month, from high-profile acquisitions and strategic partnerships to groundbreaking sustainability initiatives. Quikrete’s $11.5 billion purchase of Summit Holdings signals a major consolidation in the building materials market, while WSP and Microsoft’s $1 billion collaboration aims to modernize the industry with AI-driven solutions. From corporate expansions to renewable energy investments, these developments highlight the industry’s ongoing transformation and commitment to innovation. Here’s what you need to know:

Northstar Clean Technologies expands

Northstar Clean Technologies has taken a major step in scaling its asphalt shingle reprocessing operations by signing a non-binding letter of intent with YORK1 Environmental Waste Solutions. The agreement sets the stage for a strategic alliance that will supply Northstar’s planned Empower Hamilton Facility in southwestern Ontario with up to 10,000 tonnes of waste shingles annually, with potential for increased volumes over time. The collaboration not only strengthens Northstar’s position in sustainable construction materials but also aligns with YORK1’s commitment to environmental innovation. A definitive agreement is expected by mid-2025.

Quikrete completes $11.5 Billion acquisition

Quikrete Holdings, Inc., a leading North American building materials company, has finalized its $11.5 billion acquisition of Summit Holdings, Inc., a top producer of aggregates and cement. The transaction, which includes debt, marks a major expansion of Quikrete’s infrastructure and commercial market footprint across the U.S. and Canada. To finance the deal, Quikrete secured $3.95 billion in term loans, a $1.5 billion revolving credit facility, and a $5.45 billion bond issuance, with legal counsel provided by Troutman Pepper Locke.

Assembly buys Swedish robotic manufacturing line

Assembly Corp., a Canadian mass timber construction company, is accelerating its operations by acquiring a robotic manufacturing line from Swedish company Lindbäcks Group, which produces factory-built housing and components. The machinery, currently stored in Sweden, will be shipped to a new Toronto-area factory slated for 2026, where it will enable the pre-fabrication of panels and other components for midrise wooden buildings.

Through off-site construction in a state-of-the art factory with detailed control of quality and security, Lindbäcks is able to deliver beautiful buildings that drastically reduce development schedules, costs, and environmental footprint, on a scale that is unmatched globally. We are very excited to bring both this equipment and expertise to Canada.

Geoff Cape, CEO, Assembly Corp

Lafarge Canada expands partnership with Lithium Universe

Lafarge Canada has signed a memorandum of understanding with Lithium Universe to further their collaboration on sustainable cement production. Under the agreement, Lithium Universe will supply Aluminosilicate Secondary Product (ASCR) from its Bécancour Lithium Refinery, a material that enhances cement strength while reducing costs. The companies plan to finalize a definitive supply and purchase agreement, reinforcing Lafarge’s commitment to greener construction materials. With Canada’s cement and concrete industry reaching $12.3 billion in revenue in 2025, this partnership aims to strengthen local supply chains and advance circular economy initiatives in Québec’s

Indigenous-owned hemp block plant launches

A groundbreaking new manufacturing facility in Elk Point, Alberta, is set to revolutionize sustainable construction with lightweight, fire- and mould-resistant building blocks made from hemp and other fibres. The company, Asinikahtamwak—meaning “works with rock” in Cree—is a joint venture with Frog Lake First Nations (51% ownership), Natural Fibre Technologies (39%), and the Town of Elk Point (10%). The plant, which opened in 2024, currently produces 250 blocks per day, with plans to scale up to 1,000. Already constructing a prototype home for Frog Lake First Nations, Asinikahtamwak is also exploring applications for greenhouses and cabins.

WSP and Microsoft sign $1B Partnership

WSP Global Inc. and Microsoft Corp. have announced a groundbreaking seven-year strategic partnership, exceeding $1 billion in combined investment, to accelerate digital transformation in the Architecture, Engineering, and Construction (AEC) industry. WSP will designate Microsoft as its preferred partner for AI and digital services, expanding Microsoft 365 Copilot globally, while Microsoft will turn to WSP for engineering and science consultancy. The collaboration aims to leverage AI, data, and digital tools to modernize asset lifecycles, speed up mission-critical infrastructure projects, and unlock new design paradigms—positioning both companies at the forefront of industry innovation.

This collaboration will allow us to push the boundaries of what’s possible, ensuring we stay at the forefront of technological advancements and consistently provide exceptional value to our people and clients.

Alexandre L’Heureux, President and CEO, WSP

SitePartners acquires Kelowna-based marketing firm

SitePartners has acquired BlackBean Marketing, an industrial marketing firm based in Kelowna, enhancing its capabilities and expanding its service offerings. This acquisition strengthens SitePartners’ commitment to delivering results-driven marketing solutions tailored to industrial businesses. BlackBean’s expertise in content strategy, SEO, lead generation, web design, and tactical marketing complements SitePartners’ specialized knowledge in the industrial and B2B sectors. With a new office in Kelowna, the company is now better equipped to serve clients across the B.C. Interior and beyond.

We are excited to welcome new talent to our team, expand our service offerings, and strengthen our market reach with a new office in Kelowna. The expertise and industry knowledge that the BlackBean team brings will allow us to create even more value for our clients in the industrial sector.

Andrew Hansen, CEO of Site

Willow Lake Métis Group and Earth & Iron forge partnership

Willow Lake Métis Group (WLMG) has entered a strategic partnership with Earth & Iron Inc. to enhance construction readiness and economic development in the Métis community. Focused on site preparation, pad work, and infrastructure projects, the collaboration strengthens WLMG’s ability to manage projects from inception to completion. While initially targeting oil and gas, the partnership also extends to forestry and road clearing. Additionally, WLMG is pursuing renewable energy investments and an Indigenous ESG framework, supported by a $480,000 federal grant. The initiative aligns with the Nation’s long-term strategy to drive sustainability and prosperity.

This alliance will enable us to undertake larger projects, create employment opportunities, and contribute to the prosperity of our community

Andy Harnett, CEO, Willow Lake Métis Group

Cooper Equipment Rentals expands national presence

Cooper Equipment Rentals has expanded its presence in Canada with the acquisitions of Rent All Centre (RAC), Skyhigh Platforms in Ontario, and Big Stick Rentals in Alberta. These additions strengthen Cooper’s position as the country’s only truly national independent rental provider, enhancing coverage in both Eastern and Western Canada. RAC and Skyhigh, established in 1973, add six full-service rental locations and an aerial specialty branch, expanding service in Peterborough and the 401 corridor. Big Stick Rentals, a key player in Grande Prairie since 2013, extends Cooper’s reach in Northern Alberta.

 At Cooper, we don’t just grow for the sake of growth – we expand with purpose. Bringing these respected businesses into the Cooper family means we’re strengthening our service, growing our footprint, and staying true to what matters most: delivering the best rental experience in the industry.

Doug Dougherty, CEO, Cooper

Northstar buys Ontario-based Altitude Equipment

Northstar Access has acquired Altitude Equipment, a prominent swing stage rental, sales, and service provider in Southern Ontario. This acquisition strengthens Northstar’s swing stage capabilities, increasing its Toronto inventory to over 225 units, including Tractel/Tirak hoists and Winsafe stages. It also marks Northstar’s second major recent expansion, following its integration of Access Rigging in Ottawa earlier this year. CEO Paul Zvonar welcomed Altitude’s team, emphasizing their shared commitment to excellence, while Altitude Co-Founder Mike Van Volsen highlighted the partnership’s potential to expand services and enhance customer offerings.

Brookfield buys U.S. renewables business for $1.7B

Britain’s National Grid has agreed to sell its U.S. onshore renewables business to Canada’s Brookfield Asset Management for $1.74 billion, including debt, as part of its strategy to refocus on energy networks. The deal, expected to close by March 2026 pending regulatory approval, includes National Grid Renewables’ 1.8 GW of operational capacity and 1.3 GW under construction.

ATCO launches Viva Homes with Calgary project

ATCO is launching Viva Homes, a new residential development initiative aimed at addressing Canada’s housing crisis through modular construction. Leveraging decades of experience in modular structures, ATCO says it has developed a quick-to-market model where homes are built indoors, then transported and placed as fully serviced, permanent residences. This approach allows for faster delivery of homes without sacrificing quality, with the first prototype completed in just eight weeks. Viva Homes is designed for urban settings, with plans to build 1,000 units over the next five years, starting with a large project in Calgary.

Novarc partners with Miller Electric on welding tech

Miller Electric and Novarc Technologies have announced a strategic partnership to revolutionize the welding industry with AI-powered automation. Their collaboration will drive advancements in adaptive welding solutions through the Miller Copilot line, addressing skilled labor shortages and enhancing welding precision for industries like shipbuilding, construction, and heavy equipment manufacturing. By integrating AI with automation, the partnership aims to improve productivity, quality, and accessibility of robotic welding, enabling the automation of previously unfeasible tasks.

Munro president creates durable glass solution

Colleen Munro, President of The Munro Group of companies, faced the ongoing challenge of escalating costs and lost resources due to broken glass from intrusions and vandalism. To solve this, she partnered with ClearSecure to create Rockglass, a glass product offering enhanced security and noise mitigation. Rockglass is a nearly invisible, durable solution that can be installed on new or existing windows, reducing the need for frequent repairs and insurance claims. As demand grows, ClearSecure has expanded its manufacturing capacity.

GFL set to repurchase own shares following $6.2B sale

Following the $6.2-billion sale of its environmental services division, GFL is preparing to resume its aggressive acquisition strategy after an 18-month focus on debt reduction. CFO Luke Pelosi stated that the company now has the financial flexibility to pursue mergers and acquisitions without significantly impacting leverage, as it plans to fund deals through annual cash flows. GFL is also using $2.25 billion from the sale for share buybacks, including purchases from long-term investors like BC Partners and Ontario Teachers’ Pension Plan, the latter of which has stepped down from the board as its stake declines. CEO Patrick Dovigi also acknowledged the company is exploring a potential U.S. redomiciling but remains focused on maintaining its Canadian presence, particularly as it nears eligibility for the S&P/TSX 60 index.

Innergex to be acquired by CDPQ

Innergex Renewable Energy Inc. (TSX: INE) has entered into a definitive agreement for CDPQ to acquire all outstanding common and preferred shares of the company, excluding those held by certain executives, for $13.75 and $25.00 per share in cash, respectively. The transaction, subject to shareholder and regulatory approvals, will transition Innergex from a publicly traded to a privately held company under CDPQ’s ownership. CDPQ plans to syndicate up to 20% of its investment to like-minded investors. Innergex leadership views the move as a strategic opportunity to enhance long-term growth, stability, and its commitment to renewable energy and partnerships with Indigenous and local communities.

Hydron Energy recieves bridge funding support from Modern Niagara

Hydron Energy Inc. has secured additional bridge financing from its strategic partner, Modern Niagara Group Inc., to support its manufacturing needs ahead of a Series A investment. Hydron’s INTRUPTor technology, a gas separation and upgrading platform, enables cost-effective renewable natural gas (RNG) production from waste sources while reducing capital and operating costs by up to 50% and cutting greenhouse gas emissions by 85%. Modern Niagara sees further potential for the technology in on-site oxygen production for hospitals and other industrial applications, highlighting its broader impact beyond RNG.

GFL environmental adds support for soil reuse app

Phil, a free excess soil reuse marketplace and load-tracking app, is now supported at GFL Environmental receiving sites in Ontario. Phil Co-Founder Bryan Kerr explained that users can find the appropriate contact information on each GFL listing, or simply chat or call to get started. He added that this means Phil is giving companies an absolutely free method to comply with soil regulations and track their material to the largest permitted site operator. GFL is the only major diversified environmental services company in North America offering services in solid waste management, liquid waste management, and soil remediation.

Canada’s construction sector is bracing for a potential surge in material costs and investment uncertainty as trade tensions with the United States continue to escalate.

To better understand how this could impact builders, we spoke with accomplished economists who are warning that tariffs on steel, aluminum, and other goods could disrupt supply chains, weaken the Canadian dollar, and prompt companies to postpone major projects.

While some argue that government spending could offset a private-sector slowdown, there is widespread concern that ongoing tariff threats—and possible retaliatory measures—could cause long-term harm to both economies, heightening the stakes for Canadian builders and policymakers alike.

Julien Karaguesian: Construction has a huge silver lining

Karaguesian, is a Course Lecturer at McGill’s Department of Economics. He also spent 25 years in the Canadian Ministry of Finance and worked at the Embassy of Canada in Washington D.C as Finance Counsellor.

For Karaguesian, the recent announcements by Trump are a clear escalation of trade tensions between Canada and U.S. But he argued it should not come as a shock, as the U.S. has been moving in this direction for decades. And despite the doom and gloom, he believes the trade war could have a silver lining for the construction sector and be an opportunity to reshape Canada’s economy. 

Karaguesian reached all the way back to President George W. Bush’s time as one of the first instances of changing American attitudes toward free trade. Following the 9/11 attacks borders thickened, first for security reasons, and then for economic reasons following the 2008 financial crisis. The American government spent billions bailing out its auto industry, hoping to eat into Canada’s 20% share of the sector. This continued with President Barack Obama, who implemented a Buy American procurement policy.

“Both the left and the right were anti free trade,” said Karaguesian. “You had the rise of the Tea Party movement on the right and the Occupy Wall Street movement on the left. Now Trump has tapped into this.”

He noted that some of this sentiment stems from the early 1980s when the U.S. began deindustrializing their economy and moved that work to other countries. 

“We did the same here,” he said. “Economists promoted it, saying people would move to more value-added jobs. But that didn’t happen. We gutted our rust belt. It was the deindustrialization of the English-speaking West. We lost well-paid blue collar jobs.” 

And then easy access to credit softened the pain of destroying the manufacturing sector, saddling many with crippling debt. Karaguesian said this caused many to become disillusioned with the country and created ripe conditions for Trump to ascend to the presidency. 

“The reaction from voters to traditional Republicans and Democrats was that these people have messed up the economy,” he said. “That’s when Trump enters the scene. He knows Americans in the rust belt and Appalachia have been devastated and then indebted. He ran on an anti-free trade ticket. And then Biden kept most of the initial tariffs he imposed … Trumps actions are an acceleration but shouldn’t come as a surprise.” 

More than the tariffs themselves, which change from day to day and have been walked back multiple times, the biggest issue is the uncertainty. Karaguesian explained companies might consider to relocating to the U.S. to avoid it. He cited Barrick Gold’s announcement that it might cross the border as a prime example of this. 

But when it comes to Canadian construction, there could be a massive silver lining. 

“Any government serious about maintaining Canada’s prosperity is going to have to make up for the shortfall,” he said. “Any government coming to power cannot undertake austerity measures or they will make the economy worse. They will likely run deficits to rebuild the industry.”

Karaguesian predicts federal and provincial money is going to pour into the construction sector, citing Trudeau’s massive high-speed rail announcement as the start of this. There is also talk of expanding pipelines.

He also warned of retaliatory tariffs, which may feel warranted, but could hurt builders. 

“The only way our costs go up is if we do dollar-for-dollar retaliation,” he said. “I don’t think we should do that. We have some time to think and sectors like construction should be lobbying against it. Trump tariffs will be recessionary, but retaliatory tariffs will be inflationary, giving us the worst of both worlds. The negative demand shock from Trump’s tariffs will have to be absorbed by government spending. Candidates have to run on a ticket of rebuilding the Canadian economy and I think that’s a good idea.” 

Another way to fight without retaliatory tariff is shifting procurement to local suppliers when able.  

“If they have torn up our trade agreements that they forced us to negotiate, we are free to take our procurement and only use Canadian suppliers,” said Karaguesian. “That will be good for our side and create less American competition.”

Werner Antweiler: Buying domestic could dampen impacts

Antweiler is an Associate Professor at University of British Columbia’s Sauder School of Business. He serves as Chair, Strategy and Business Economics Division and Chair in International Trade Policy. 

Antweiler believes the dispute could drive up material prices and hurt the Canadian dollar. He urged Canadians to stand up to President Donald Trump, who he believes is ignoring negotiated trade agreements. 

He explained that the trade war is affecting the input price of construction materials directly and indirectly. Major inputs into construction are steel, cement/concrete, and lumber. Steel and aluminium currently will be subject to U.S. import tariffs starting March 12. This can have an indirect impact as Canadian steel is exported to the U.S. and may in turn end up in steel products that are purchased by Canadian construction firms. 

“They in turn will look for cheaper alternatives domestically and from third-country sources, and this may drive up prices,” said Antweiler. “Another indirect effect may come from a depreciation of the Canadian dollar, which makes imports more expensive. A direct effect will also come from Canadian counter-tariffs on U.S. steel and aluminium. So this is very much a repetition of the 2018 trade war that Trump launched against Canada at that time.”

He noted there will be a noticeable effect on steel and aluminium prices, although reshuffling supply chains from imports to domestically-sourced goods may help dampen the impact. 

“Construction firms will be well advised to look into their supply chains and identify alternative suppliers in order to circumvent the tariff impact,” he said. “Companies should examine carefully where their inputs are made—in Canada, in the United States, or in third countries. They should then look to identify alternative non-US suppliers and be ready to shift sourcing to more affordable vendors when the need arises. In some instances, this may also require establishing relationships with these suppliers.”

Antweiler added that in the long term, economies will adjust as companies will look for affordable suppliers. But it requires much effort, and certainly some short-term pain as finding alternative suppliers may not be easy, and these alternative suppliers may be constrained in their ability to ramp up output. Businesses must engage in extensive contingency planning and prepare for the different scenarios that may emerge.

He noted that the situation will become much more worrisome should Trump launch into a full-scale trade war with 25% tariffs on everything. Then Canada will be forced to retaliate in kind, and this will further increase the cost of building materials. 

Antweiler said Trump is treating close friends and allies as if they were enemies for unclear reasons and in ways that will harm his own country. 

“We do not know the true intentions of the US president. One can never take his word at face value, and his utter disregard for CUSMA—a treaty he himself signed—demonstrates that he is not good to his word,” he said. “Canada and the United States have been friends, allies, and good neighbours. This trade war makes no sense and is an affront to our friendship. It is a return to the age of protectionism of the early 20th century, which has caused great economic harm — including the significant contribution to worsening the Great Depression.”

Jock Finlayson: Be wary of retaliatory tariffs

Finlayson is the Independent Contractors and Businesses Association’s Senior Economist and a Senior Fellow at the Fraser Institute. 

He believes the simmering trade war could weaken the Canadian economy and feared retaliatory tariffs could compound its impacts.

He explained that we don’t yet know all the details, except that steel and aluminum will face 25% tariffs as of March 12. On the export, this will hit B.C. mainly due to Rio Tinto’s large aluminum manufacturing plant in Kitimat which does ship product to the U.S.

 Trump postponed his earlier plan to slap 25% tariffs on all Canadian merchandise exports to the U.S. (except oil and critical minerals, which would face a lower 10% tariff).  

“In early March, we should know more about the mercurial, tariff-obsessed U.S. President will do,” said Finlayson. “My best guess is that Canada will face a 10% across-the-board levy on all of our goods exports to the U.S., totalling almost $600 billion per year.” 

 He noted that this would weaken the B.C. economy, mainly by dampening output and employment in export-focused industries (lumber, energy, minerals/metals, agri-food, and all parts of manufacturing).  

“Without Trump’s tariffs, I would have expected the B.C. economy to grow by around 1.5-1.8% in 2025, after inflation,” he said. “With a 10% U.S. tariff in place, growth will be materially lower—less than 1%. The same holds for 2026, assuming the American tariffs remain in place for the next two years.” 

In construction, this means reduced levels of non-residential investment across large parts of the private sector economy.

“Trump’s mad-cap tariff policy will cause many B.C./Canadian firms to postpone investment decisions,” he said. “Some may redirect capital spending to the U.S. to get around the tariffs.  This is negative for the domestic construction industry, particularly companies active in non-residential segments.  

To help offset a fall-off in private sector investment, governments may boost capital spending on infrastructure and other categories of public sector assets.

But Finlayson’s biggest concern was if Canada would retaliate with its own tariffs, a move that he feels could be disastrous. 

“Canadian retaliation, while understandable in the circumstances, will magnify the blow to our economy by raising costs/prices for consumer goods and business inputs,” he said. “This is particularly true given that the U.S. is the number one source of Canadian and B.C. imports.” 

 He called for retaliation to be carefully calibrated so it minimizes harm to Canadians. He said this should include not imposing tariff levies on imports of building materials and other construction inputs. 

Finlayson argued that Trump’s broad tariff strategy aims to boost U.S. manufacturing, reduce trade deficits, and strengthen the economy, but it faces significant challenges. The U.S. manufacturing sector already struggles with a skilled labor shortage, making large-scale reshoring difficult. 

“There is overwhelming evidence from history—including Trump’s first term as President that the kind of tariff scheme Trump favours will harm the U.S. economy by increasing inflation and raising costs for both households and businesses,” said Finlayson. 

Peter Morrow: Stay calm and strategize

Morrow is an Associate Professor of Economics at University of Toronto and is an expert in international economics. 

Morrow stressed that President Donald Trump’s tariff threats have already created confusion for industries on both sides of the border, and construction firms should prepare for significant ripple effects.

“Things are chaotic if everything’s sort of lurching from one stated policy to another stated policy; it’s really unclear what’s going to happen,” Morrow said. “I think the uncertainty is the biggest issue. Companies really don’t know what is going to be coming down the pipeline six months from now.”

According to Morrow, the imposition of tariffs could result in unexpected price fluctuations. In some cases, Canadian firms might actually see costs drop if demand for certain goods in the U.S. falls, freeing up supply for Canada. 

“Because the other buyers are no longer there. It’s like if there’s a housing boom in the U.S., lumber gets more expensive for Canadian builders; this is just the opposite of that,” he explained. “Those American consumers are disappearing. So Canadian timber manufacturers have to sell to someone, so Canadian builders might actually get a better deal.”

However, other sectors could be hit hard by retaliatory measures. 

“If there’s retaliatory tariffs, then anything that gets hit by a Canadian retaliatory tariff that comes from the U.S. will become more expensive,” Morrow said. 

Heavy construction equipment or specialized machinery sourced from the U.S., for example, may become costlier if targeted.

Adding to the complexity, Morrow highlighted how tariffs could disrupt long-established supply chains, particularly in major industries like auto manufacturing. He noted that parts often cross the Canada–U.S. border multiple times before becoming a finished product, meaning repeated tariff payments could “have the potential for chaos.”

The impact on the construction sector, Morrow advised, depends on the extent to which local economies rely on tariff-affected industries. 

“If you build houses in the Okanogan Valley and you think that Trump is going to slap tariffs on Canadian wine from the Okanogan Valley, all those winemakers are going to have a lot less money in their pocket,” he cautioned. That diminished revenue could slow homebuilding or renovation projects.

As for how Canada should respond, Morrow pointed to strategies used in previous trade spats—focusing retaliatory tariffs on politically sensitive goods in the U.S.

Ultimately, Morrow urged level-headedness and careful planning among Canadian builders. While stocking up on certain materials might make sense if tariffs seem likely, he warned against overreacting. 

“This is not smart for any of us. This is just going to cause both sides pain,” Morrow said.