Patrick Ryan Executive Vice President of the Americas
Despite economic headwinds and geopolitical uncertainty, North America's construction industry is poised for steady growth, driven by mission critical sectors in the US and government incentives in Canada.
The North American construction market is showing cautious optimism despite the uncertainty surrounding US tariffs and global trade. Canada is expected to rebound from its 1.8% fall in output in 2024, while the US is set for steady growth, but at a slower rate than initially forecast.
While GDP growth has also been revised downwards in the wider economy, to 1.8% in the US and 1.4% in Canada, recovery is anticipated by mid-2026, with inflation continuing to stabilize, however this forecast remains uncertain.
Against this backdrop, the US construction industry is expected to see annual growth of 3.8% from 2025 to 2028, driven by sectors linked to the AI boom, as well as a push towards reshoring. The US is the world’s fastest growing market for data centers, with capital spending reaching a record US$31.5bn in 2024, and it continues to dominate life sciences, securing 70% of total deals by value last year. High-tech industrial construction is also maintaining strong momentum, albeit with uncertainty hanging over future funding.
Meanwhile, Canada’s construction industry is set to grow at an annual rate of 2.8% from 2025-28, supported by government plans to invest CA$193.3bn in energy infrastructure, internet networks, ports and public transport. The data center market remains busy, but the life sciences sector has seen a notable decline since 2023, largely due to funding pressures.
Power infrastructure has become a critical issue across North America, with mission critical sectors such as data centers, advanced manufacturing and electric transport driving huge increases in electricity demand. Although the US and Canada both have major plans for grid modernization, mission-critical sectors are increasingly utilizing direct purchase agreements to secure clean energy.
The supply chain outlook for 2025 is marked by volatility, largely driven by tariffs, which are impacting procurement strategies, worsening lead times and increasing cost pressures across key sectors. Given current circumstances it is likely that some uncertainty will continue to shape the industry’s outlook, which could lead some sectors that rely on imported equipment to delay investment decisions. Many developers will need to double down on risk management during this time.
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