July 29, 2025
Summary
Non-residential BCPI inflation was 4% year-over-year (y/y) in Q2 2025. Inflation across Ontario census metropolitan areas was varied, with Ottawa-Gatineau at the low end (3%) and London at the high end (6.6%). Filtering by division, conveying equipment had the highest inflation at 10.7%. Structural steel framing inflation was also noteworthy (6.3%).
Note: All inflation rates reported here are in year-over-year terms
BCPI Inflation by Region
Overall Ontario BCPI inflation in Q2 2025 came in at 4%, little changed from the 4.2% in Q1. By census metropolitan area (CMA), Ottawa was the lowest at 3%, while London saw the highest at 6.6%. Toronto BCPI inflation mirrored the Ontario average. Breaking down the CMA numbers by type of work, Ottawa’s increases were primarily in earthwork (6.9%) and structural steel framing (5.1%, up from 3% in Q1). Toronto saw the most inflation in conveying equipment (11.1%) and openings (6.8%, up from 5%). London experienced the largest y/y price increase in structural steel framing (10.3%) and concrete (9.8%, albeit down from 10.5%).
BCPI Inflation by Division (Type of Work)
The highest inflation levels came from conveying equipment (10.7%), openings (6.5%, up from 4.9%), structural steel framing (6.4%, up from 3.9%), and thermal and moisture protection (6.3%, up from 5.1%). On the other end, both electrical and HVAC saw somewhat lower inflation, down from around 5% in Q1 to 3.5% in Q2.
For conveying equipment, the inflation came from Toronto (11.1%) and London (9.1%), whereas Ottawa-Gatineau was down substantially (3%, down from 6.1%). Openings work was up mainly in Toronto (6.8%, up from 5%). Of note is that structural steel framing work was up in all Ontario CMAs (see chart below).
Cost Pressures
According to Statistics Canada, cost pressures were partly due to disruption caused by tariffs and counter-tariffs. It was reported that uncertainty made it more difficult to obtain contracts, which contributed to project start delays. However, decelerating activity in areas such as Toronto put downward pressure on costs.
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FOR MORE INFORMATION, CONTACT:
Ali Ahmad
Research Analyst
Ontario Construction Secretariat (OCS)
180 Attwell Drive, Suite 360, Toronto, ON M9W 6A9
P 416.620.5210 ext. 222
aahmad@iciconstruction.com
