From shock to strategy: what Canada’s political reset means for construction

As global uncertainty reshapes Ottawa’s priorities, industry leaders must build faster and smarter and prepare for a new era of policy-driven opportunity. The panel discussed the political year that was, looking ahead to the near-term and what it all means for general contractors.

At the Canadian Construction Association’s Annual Conference in Coronado, California in early March 2026, a panel of seasoned political strategists unpacked a year that upended expectations in both Ottawa and Washington. What began as a near-certain path to a Conservative victory shifted dramatically with leadership changes and geopolitical shocks. “Without those two triggering events – the resignation of Justin Trudeau and the election of Donald Trump – Mark Carney is probably not prime minister,” said Richard Mahoney, Founding Partner at McMillan Vantage. “But Canadians hired him to deal with an existential threat.”

That shift, from affordability to national resilience, has reshaped the policy landscape that general contractors must now navigate.

The construction economy in an era of deficits

The federal government’s response has been aggressive spending, particularly in infrastructure. With billions committed to major projects, transit, housing and defence, construction firms are positioned at the centre of Canada’s economic strategy. And Mahoney emphasized that it’s not a temporary situation. “We’re unlikely to see a significant change in the federal fiscal situation for some time,” he asserts. “Canada’s going to need that kind of investment for years.”

But funding alone is not enough. Karl Bélanger of Traxxion Strategies warned that delivery remains a bottleneck. “When provinces aren’t there to match funding, the money doesn’t flow and projects don’t get built.”

Energy ambitions to serve as a turning point?

A major theme throughout the discussion was Canada’s long-delayed ambition to become an energy superpower. Jason Lietaer, President of Enterprise Canada, pointed to past failures like the Northern Gateway pipeline as examples of political inconsistency. “We got it through regulatory processes,” he said. “And then government uncertainty killed it.”

Today, however, he sees a different mindset in Ottawa. “We’ve got a federal government now that, on purpose, is trying to reverse that.”

The implication for contractors is significant and is showing up in the fact that large-scale energy and resource projects, which have been long stalled, are now reemerging as priority builds. Still, internal politics could complicate execution.

Cost, procurement and “Buy Canadian”

While opportunity is expanding, however, so too are pressures. Lietaer warned of increasing political scrutiny on project costs. “They’re not going to get the infrastructure they want for the budget they have,” he suggests. “And they’re going to blame the people building it.”

At the same time, governments are pushing domestic procurement with an increased insistence on ‘buy Canadian’. It’s a strategy that could certainly benefit domestic firms, but could also have the unintentional effect of complicating supply chains that are already strained by global instability.

Risk and relationship

No issue loomed larger, however, than Canada’s relationship with the United States. Despite rising anti-American sentiment here at home, panelists stressed the importance of maintaining strong ties with our southern neighbours. “There is no relationship more important than the one we have with the United States,” Bélanger said. “When friends are in trouble, you don’t walk away – you keep building that relationship.”

For construction firms, this means continued cross-border exposure, whether through materials, labour or investment. However, at the same time, U.S. instability, from trade tensions to geopolitical conflicts, adds volatility to project costs and timelines.

Trade diversification and global investment

With traditional U.S. trade channels under strain, Canada is increasingly looking outward. And in light of this, Mahoney highlighted the importance of attracting global capital. “The goal isn’t just to pick projects,” he said. “It’s to convince international investors these projects will actually get built.”

This shift could unlock new funding streams for infrastructure, but could also introduce new stakeholders and expectations into project delivery.

Opportunity amid uncertainty

Despite the turbulence, panelists were clear that this current moment represents one of the most significant opportunities for Canada’s construction sector in decades. “The country needs you now more than ever,” Mahoney said to general contractors in the audience. “This is where jobs will come from, and where growth will happen.”

For those paying attention, the path forward is complex but promising, with success hinging on the ability and capacity to navigate political dynamics, manage rising costs and deliver projects efficiently in an environment where expectations, and stakes, have never been higher.

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