Building Canada strong: Budget 2025 puts construction contractors at the heart of Buy Canadian Policy

New federal investments aim to strengthen Canada’s industrial base, boost domestic supply chains and open federal procurement opportunities for construction contractors and small to medium-sized businesses.

Image courtesy of the Canadian Construction Association.

Canada’s construction industry is poised for a major boost as Budget 2025 delivers on its promise to “Buy Canadian” and strengthen the country’s industrial and economic resilience. In response to global trade uncertainties, the Canadian Federal Government recently unveiled a strategy to reduce dependence on foreign markets and prioritize domestic production, providing new opportunities for contractors and suppliers across the country.

Sourcing homegrown products

Announced on November 10 in Saguenay, Quebec, Minister of Government Transformation, Public Works and Procurement, Joël Lightbound, outlined nearly $186 million in new funding to fully implement the Buy Canadian Policy. Central to this policy is the goal of using more Canadian steel, aluminum, lumber and other locally produced materials and technologies in public projects. For construction contractors, this means more projects sourcing homegrown products, helping to sustain jobs and strengthen local economies.

Specifically, the budget allocates:

• $98.2 million over five years (plus $9.8 million ongoing) to Public Services and Procurement Canada, and $7.7 million over three years to the Treasury Board Secretariat to ensure federal departments, agencies and Crown corporations fully implement the Buy Canadian Policy. Contracts with foreign suppliers will still require Canadian content wherever possible.
• $79.9 million over five years to launch the Small and Medium Business Procurement Program, providing tailored support to Canadian SMEs seeking federal contracts. For construction companies, this program could simplify access to government projects and help level the playing field for smaller firms.

Increased opportunities

It’s estimated that the Buy Canadian Policy will guide up to $70 billion in public infrastructure spending, ensuring more federal dollars are reinvested in Canadian communities. For contractors, this could translate into increased opportunities across sectors including housing, energy, transportation and community infrastructure such as hospitals, universities, bridges and recreation facilities. As Lightbound explains, the policy has been developed with the pointed objective of serving the best interests of Canadian workers.

“Budget 2025 makes a clear commitment to Canadian businesses and workers,” he asserts. “The new Buy Canadian Policy will give businesses, including small and medium-sized companies, opportunities to compete for major projects, grow and create good jobs across the country. By directing federal dollars to Canadian industries and resources, we are ensuring our investments benefit Canadians first and strengthen our economy at home.”

Streamlined processes

Budget 2025 also prioritizes transformative projects through the Major Projects Office, Build Canada Homes, the Defence Investment Agency and the Build Communities Strong Fund. As a result, construction contractors engaged in housing, energy or municipal infrastructure projects can likely expect faster approvals, streamlined procurement and greater access to federal investment.

And although these measures represent big opportunities for Canadian construction contractors, they also impose a responsibility of sorts to source materials domestically, invest in local labour and build projects that not only meet client needs but also reinforce Canada’s economic independence.

Shaping the future

In an increasingly volatile global economy, Budget 2025 sends a clear message that Canada is committed to building its industries, supporting its workforce and investing in resilient supply chains. For contractors, the message is equally clear: Buy Canadian isn’t just a slogan – it’s a mandate shaping the next wave of federal infrastructure and industrial projects across the country.