MARCH 19, 2026
Ontario contractors remain cautiously optimistic about their business prospects in 2026, even as concerns persist over broader market conditions. According to the latest OCS Contractor Survey, firms expect steady opportunities from upcoming projects and government investment, but rising costs, increased competition, and economic uncertainty continue to pose challenges.
The annual survey, commissioned by the Ontario Construction Secretariat (OCS), collects insights from contractors across Ontario’s ICI (Industrial, Commercial, Institutional) construction sector. Participants include both union and non-union firms, covering a range of company sizes and trades.
Contractor Profile
A total of 400 contractors participated in this year’s survey. Trade contractors represented 80% of respondents, with the remaining 20% being general contractors. To qualify, firms were required to conduct at least half of their business in the ICI sector.
Most respondents (89%) work for firms with fewer than 50 employees. About half reported estimated 2025 revenues of $2 million or more, including 34% earning between $2 million and $10 million, and 15% earning over $10 million.
Regionally, 39% of contractors are based in the Greater Toronto Area, followed by Central Ontario (23%), Southwestern Ontario (19%), Eastern Ontario (13%), and Northern Ontario (8%).
Optimism and Risks
While opinions on the overall market are divided, 49% of contractors expect Ontario’s construction market to remain stable (35%) or grow (14%) in 2026, while 46% anticipate a decline. However, contractors are more optimistic about their own firms: 36% expect higher revenues and 33% expect increased business activity.
Optimism drivers include strong upcoming project pipelines, improving economic conditions, and government investment in infrastructure and nation building projects. One respondent noted, “Government is green lighting a lot of projects.” Others highlighted early tender opportunities, saying, “There has been more tenders out early this year compared to last year.”
Risks include increased competition, rising costs, and economic uncertainty. One contractor explained, “I believe there is a lot more competition for less work.” Another commented, “All the uncertainty. People are scared to spend money.” These factors suggest that while firms see opportunities, they remain cautious about the broader market.
Project Delays and Cancellations
More than half of contractors (58%) reported experiencing project delays or cancellations. This is consistent with what BuildForce Canada has reported through conversations with various owners about project timing and schedules. The most common causes for delays and cancellations include rising material costs (66%), lack of financing (59%), uncertainty related to trade tensions (45%), and high interest rates (45%).
Labour Market Imbalances Continue
Labour market imbalances remain a concern despite broad concern about Ontario’s construction market. Half of contractors expect hiring skilled labour to be more difficult in 2026, particularly in Northern Ontario, where 83% anticipate challenges. Although, we have seen a softening in labour availability concerns, contractors recognize the aging workforces and the challenges finding labour to meet peak demands. Fortunately, contractors and their labour partners continue to build the workforce through the apprenticeship programs, with 70% of firms now employing apprentices, up from 58% in 2024 and 64% in 2025.
Competition and Supply Chains
Competition remains intense, with 89% describing competitors as strong and 34% expecting further increases in 2026. With 56% of work secured through competitive bidding and 73% from repeat clients, maintaining strong relationships is crucial.
Supply chain disruptions are improving: 34% of contractors reported issues in the past year, down from 58% in 2024. Material costs remain a challenge, and ongoing trade uncertainties could introduce new risks, particularly for smaller firms.
Read the full report here.