As we look ahead to 2025, Quebec’s construction industry is poised for a record-breaking year. The latest forecasts predict that the sector will surpass 210 million hours of work, signaling strong growth and opportunities for businesses in the industry. However, as with any year of growth, it’s important for construction companies to stay informed about the key trends, challenges, and opportunities that will shape the landscape. From residential construction’s anticipated recovery to potential workforce issues and evolving market conditions, there’s a lot to consider.
In this blog, we’ll explore what we can learn from the latest forecasts and industry insights, drawing from the recent report by CityNews Montreal. This analysis highlights the future of Quebec’s construction industry, offering valuable lessons for companies looking to adapt, diversify, and thrive in 2025.
If you haven’t read the article from CityNews please check it out first 2025 shaping up to be record year for Quebec’s construction industry
Record-Breaking Year: A Sign of Robust Demand
The Quebec construction industry is projected to hit a milestone in 2025, with expectations to reach 211.5 million hours of work—slightly more than 2024’s record. This indicates strong demand across multiple sectors, despite some challenges in certain areas. While the industry has faced ups and downs in recent years, these figures suggest an ongoing recovery and growth that business owners should prepare for.
This record year reflects both the resilience and adaptability of the industry. Even with issues like workforce shortages and fluctuating market conditions, Quebec’s construction sector has continued to deliver at a high level. For companies in the construction business, this is an encouraging sign that demand for skilled labor and construction services will continue into the foreseeable future.
Residential Sector: Poised for a Strong Recovery
Perhaps the most exciting development for the construction industry in Quebec is the expected recovery of the residential construction sector. The sector has struggled in recent years, but with lower mortgage rates and continued high demand for housing, the forecast is much more optimistic. The CityNews Montreal report suggests that the residential sector will see a 7% increase in activity, with 38 million hours of work projected in 2025.
For construction businesses, this is a clear signal to focus efforts on residential projects. As more people look to buy homes and rental properties remain in high demand, businesses that specialize in residential construction will have ample opportunity to secure new contracts. Builders who can navigate the complexities of this market—such as tight timelines, zoning laws, and increasing material costs—will be well-positioned to capitalize on the growth.
It’s also important to consider how the residential sector ties into broader societal trends. The housing crisis, particularly in urban centers like Montreal, is an ongoing issue. As governments, developers, and construction firms work together to meet this demand, businesses that are aligned with these efforts can play a pivotal role in shaping the future of Quebec’s urban landscape.
Institutional & Commercial Construction: Facing Challenges
While the residential sector is expected to grow, the institutional and commercial sectors are facing more difficult times. The forecast predicts a 2% decline in activity for these areas in 2025, largely due to budgetary constraints and a slowdown in public investments. As the CityNews Montreal report explains, projects such as school and hospital construction are being delayed or scaled back because of financial restrictions.
For businesses involved in institutional and commercial projects, this could be a challenging year. However, it’s important to view this slowdown as a potential opportunity. With less competition in the institutional and commercial space, companies with the right capabilities might find an opening to secure projects that others may shy away from. Additionally, this decline in public sector activity might spur more private sector construction projects, which could offer an opportunity for diversification.
Companies in the institutional and commercial sectors should focus on strategic partnerships, explore opportunities in private investments, and stay agile in order to adapt to changing market conditions. The ongoing need to renovate and upgrade public infrastructure will not disappear—it will simply be spread out over a longer period, giving businesses a chance to plan and adjust accordingly.
Industrial Sector: A Growth Area to Watch
One of the most promising areas for growth in 2025 is the industrial construction sector. The forecast suggests a 14% increase in activity, with significant contributions from emerging industries like the battery sector. As electric vehicles and renewable energy gain traction, the need for infrastructure to support these industries will continue to rise.
For construction firms, this is an area where new opportunities are emerging. Whether it’s building facilities for battery manufacturers or expanding infrastructure for electric vehicle production, businesses can position themselves to take advantage of the surge in industrial projects. As the CityNews Montreal report notes, some uncertainties loom over this sector, but the overall trend is positive.
Companies that are ready to invest in this growth area will have a head start over competitors who are slow to adapt. Staying up to date with technological advancements and market trends in the industrial sector will be essential for businesses looking to capitalize on these opportunities. This could be a great time for construction firms to diversify into industrial work or even partner with players in related fields, such as energy or manufacturing.
Workforce Challenges: Meeting the Growing Demand
Despite the promising outlook for the industry, there is one significant challenge that continues to plague Quebec’s construction sector—workforce shortages. The industry has struggled with attracting and retaining skilled workers, with demand for labor outpacing supply. However, the CityNews Montreal report highlights that the construction sector has managed to attract between 15,000 and 20,000 new workers annually in recent years.
While this influx of new talent is a positive development, businesses must continue to focus on workforce development and retention. Construction companies can’t afford to overlook the importance of investing in their workforce. This includes offering training programs, improving work conditions, and providing career advancement opportunities to keep workers engaged and loyal.
As demand for skilled labor increases, companies that fail to invest in their workforce risk falling behind. Retaining top talent, particularly in specialized areas such as electrical, plumbing, and heavy machinery, will be key to ensuring that businesses can take full advantage of the growing demand in the industry.
Economic Uncertainties: Potential Tariffs and Public Investment
Looking ahead, the construction industry faces a few economic unknowns. One of the biggest concerns is the potential for 25% tariffs on products exported to the United States, which could significantly affect both private and public investments in Quebec. Construction companies that rely on imported materials or exports to the U.S. need to prepare for potential disruptions in the supply chain and cost increases.
The impact of tariffs could also have a ripple effect on private investment. If construction projects become more expensive due to higher material costs, private investors may become more cautious, potentially slowing down the pace of new projects. This is an issue that businesses should keep a close eye on in the coming months and be prepared for by building flexible procurement strategies and maintaining strong relationships with suppliers.
Additionally, the upcoming collective bargaining negotiations in the construction industry could also affect labor relations and project timelines. The outcome of these negotiations will shape labor conditions for the next several years, and businesses should stay informed and engaged in these discussions to avoid potential disruptions in their workforce.
Strategic Opportunities for Growth
Despite the challenges, Quebec’s construction industry is well-positioned for growth in 2025. The key to success will lie in how businesses respond to changing market conditions and adapt to new opportunities. As residential and industrial sectors drive growth, businesses should consider diversifying into these areas. Companies that are flexible and willing to pivot can find new opportunities even in the face of challenges in the institutional and commercial sectors.
As always, staying informed and agile will be the key to success in the construction industry. Companies that can anticipate changes in the market, invest in their workforce, and diversify their portfolios will be in a strong position to thrive in 2025 and beyond.
Conclusion: Adapting to an Evolving Landscape
Quebec’s construction industry is set for a record year in 2025, but it’s not without its challenges. Residential construction is expected to rebound, the industrial sector will see significant growth, and workforce issues will continue to be a major concern. However, businesses that are proactive—by diversifying, investing in workforce development, and staying attuned to economic shifts—will be well-positioned to succeed in this evolving landscape.
The future is bright for Quebec’s construction industry, but businesses must be prepared to adapt and make strategic decisions that align with market trends. With the right approach, 2025 can be a year of opportunity and growth for companies across the sector.
Also read The Role of Analytics in Selling a Millwork Company to a Regional Competitor
Disclaimer:
Any information provided here is for informational purposes only. It should not be considered as legal, accounting, or tax advice. Prior to making any decisions, it’s the responsibility of the reader to consult their accountant and lawyer. N3 Business Advisors and its representatives disclaim any responsibilities for actions taken by the reader without appropriate professional consultation.
