Canada’s construction sector is heading into 2026 at what Nolan Frazier, sales leader at Procore Technologies, describes as a crucial turning point. This year could separate firms that adapt from those that fall behind. According to Procore’s “2026 Construction Forecast report,” infrastructure investment, energy projects and digital facilities will continue to propel activity, even as labour shortages, trade volatility and cost pressures reshape how work is delivered.
The report points out that civil and infrastructure work are the defining engine of 2026. The question is not whether work will come, but how project teams will execute increasingly complex scopes amid a labour shortage, tighter schedules and rising expectations around risk management, sustainability and documentation.
The report frames 2026 as a convergence of forces: rising public-sector investment, accelerating technology adoption, generational workforce turnover and macro-economic uncertainty. Together, those forces are pushing the industry toward productivity-driven construction models.
The core demand drivers
Across Canada, heavy infrastructure is the backbone of construction activity in 2026. According to the report, ports, transit corridors, power generation facilities and interprovincial trade routes are priority investments, alongside a growing pipeline of nuclear, hydroelectric and renewable energy developments. Large-scale digital infrastructure, particularly hyperscale data centres, is also expected to expand.
This project mix translates directly into demand for piles, drilled shafts, diaphragm walls, cofferdams, ground improvement systems and marine works. These are the types of jobs where subsurface conditions, constructability constraints and environmental controls can make or break schedules. Frazier says the surge in capital projects is a fundamental change in how contractors are forced to operate.
“We’re seeing steady growth across infrastructure, energy transition and digital infrastructure, delivering more capital than ever and doing it with fewer people,” he said. “Contractors are trying to find any sort of operational leverage through things like technology, workflows and automation. Growth doesn’t just mean building more. It’s about building smarter.”
Frazier projects an eight to 10 per cent increase in project activity across key segments in 2026, while warning that the benefits will not be evenly shared. “There’s a tone of the haves and have-nots,” he said. “Larger players benefit from scale and diversification, while some smaller companies struggle if they don’t modernize or diversify.”
Labour shortages and the productivity imperative
If infrastructure drives growth, labour scarcity constrains decisions. The forecast underscores that retirements and skills shortages continue to ripple across the industry, and that firms cannot rely on hiring alone to meet rising workloads. The report states that productivity is inseparable from digital transformation. Technology is no longer an optional enhancement but a basic requirement for firms seeking to compete on major public projects.
Artificial intelligence, building information modelling (BIM), digital twins, predictive analytics and automated workflows are among the forecast’s “Top 10 Trends.” These tools are essential infrastructure for delivering projects safely and efficiently.
The practical applications are likely already familiar:
- Digital borehole logs and geotechnical models integrated into BIM environments.
- Real-time pile installation records capturing torque, crowd, blow counts or grout volumes.
- Vibration and settlement monitoring systems feeding dashboards for owners and municipalities.
- Analytics platforms flagging production risks before they trigger delays.
The report also highlights growing interest in precast and modular construction, driven by labour constraints and the desire for schedule certainty. This shift increases the value of early collaboration around constructability, testing programs and equipment selection.
Procurement reform and earlier contractor involvement
Another theme running through the report is the evolution of public-sector procurement. Governments and agencies are experimenting with progressive design-build, construction management and other integrated delivery models that move beyond traditional low-bid tendering.
Early involvement of specialty contractors can impact:
- Foundation type selection and installation methodology
- Access and staging in congested urban or marine environments
- Production rates and sequencing
- Testing regimes and acceptance criteria
- Geotechnical risk allocation and baseline conditions
The report frames these procurement shifts as part of a broader push toward best-for-project outcomes rather than lowest initial price. This trend could reward contractors who can demonstrate technical depth, transparent data collection and collaborative working styles.
Trade volatility and supply chain resilience
Economic uncertainty and geopolitical tensions also loom large in the 2026 outlook. Tariffs, cross-border trade friction and currency fluctuations are flagged as ongoing risks, particularly for material-intensive scopes. For the deep foundations industry, steel is the obvious pressure point: pipe piles, H-piles, sheet piling, casing and reinforcing bar all sit at the intersection of global supply chains and domestic infrastructure demand. Lead times for specialized equipment components and wear parts add another layer of exposure.
“Contractors are trying to find any sort of operational leverage through things like technology, workflows and automation. Growth doesn’t just mean building more. It’s about building smarter.”
Nolan Frazier, Procore
The report’s emphasis on supply chain resilience suggests that owners will increasingly value contractors and suppliers that can demonstrate diversified sourcing strategies, early procurement planning, domestic fabrication partnerships and inventory buffers for critical items. In an environment where schedule certainty commands a premium, the ability to secure and deliver materials reliably becomes a competitive advantage rather than a back-office function.
Equipment costs and sustainability
Fleet economics emerges as another quiet but consequential trend. Rising purchase prices, maintenance costs and emissions-compliance requirements are reshaping how contractors think about ownership versus rental, utilization rates and life cycle planning.
The report implies growing pressure for tighter production planning, real-time utilization tracking and strategic investment in versatile equipment platforms that can serve multiple project types. Environmental performance is no longer treated as a niche consideration. The report positions sustainability as a baseline requirement, shaped by public-sector procurement policies, evolving standards and owner expectations.
This extends well beyond low-carbon concrete mixes, encompassing embodied-carbon comparisons between steel and concrete systems, logistics planning to reduce fuel consumption, efficient installation methods that minimize rework and data-driven reporting on emissions and material usage. As infrastructure owners become more sophisticated buyers of sustainability metrics, the ability to quantify and communicate environmental performance is likely to influence bid evaluations and partnership decisions.
Data as a core construction material
The report says that data and analytics are becoming as fundamental to project delivery as physical materials. It presents predictive modelling, real-time dashboards and digital twins as tools that enable teams to anticipate problems rather than react to them.
In deep foundations work, where unknown ground conditions, obstructions and performance variability are everyday realities, this mindset closely aligns with industry goals. Instrumentation programs, load testing, production tracking and geotechnical monitoring are increasingly being integrated into centralized platforms that inform decision-making across disciplines.
For engineers, that means richer datasets to refine designs and calibrate models. For contractors, it means faster responses to field conditions and stronger documentation for owners and regulators. For suppliers, it creates opportunities to embed sensors, connectivity and analytics into equipment and materials.
What 2026 signals for the deep foundations community
The forecast depicts a sector evolving more through structural change than through cyclical booms and busts. Infrastructure and energy work will continue to drive demand, but success in 2026 will hinge on productivity and the ability to manage risk with precision.
As public owners and private developers seek certainty in an unpredictable economic climate, those capabilities may determine which contractors, engineers and suppliers secure a place on the country’s most ambitious projects.
The report does more than outline market conditions. It issues a challenge to the industry to adapt to a more innovative, integrated and data-driven construction ecosystem, or risk being overtaken in a year that could redefine competitive advantage.