Ontario’s Fall Economic Update is being met with approval from the province’s construction and infrastructure leaders, who say the government’s continued focus on competitiveness, housing, and skilled trades provides stability amid economic turbulence.
Minister of Finance Peter Bethlenfalvy delivered the update at Queen’s Park, outlining modest adjustments to projections but reaffirming key spending on infrastructure and housing.
1. Industry Applauds Continued Infrastructure Focus
Stakeholders from Ontario’s construction sector largely endorsed the government’s message of fiscal stability and long-term investment.
Groups such as the Residential and Civil Construction Alliance of Ontario (RCCAO) and the Progressive Contractors Association of Canada (PCA) said the update shows Ontario is “staying the course” in maintaining growth and productivity.
2. RCCAO: Investment in Housing and Skilled Trades Crucial
“RCCAO commends the Government of Ontario for staying the course on its economic priorities by continuing to invest in critical infrastructure, housing and the skilled trades,” said Nadia Todorova, Executive Director of RCCAO.
She noted that major initiatives — including the Ring of Fire development, HST relief for first-time homebuyers, and efforts to strengthen the skilled workforce — will help safeguard Ontario’s competitiveness.
The RCCAO also pointed to the accelerated Gardiner Expressway project as a model of innovative procurement and project management, highlighting similar benefits expected from Highway 413 and the Bradford Bypass.
3. PCA: Support for Competitive, Innovative Construction
The Progressive Contractors Association of Canada (PCA) echoed these sentiments, emphasizing the importance of a fair and open competitive environment.
“We fully support the government’s goal of making Ontario the most competitive place to do business and invest,” said Karen Renkema, PCA Vice-President for Ontario.
She stressed that maintaining a productive, innovative, and competitive construction sector is key to attracting investment.
4. Building Trades Council: Prioritize Ontario Jobs and Companies
The Provincial Building and Construction Trades Council of Ontario called on the government to ensure large-scale projects benefit local workers and firms.
“Ensuring that the province’s large-scale procurement and project investments focus on Ontario-based companies and construction workers is essential to safeguarding jobs and apprenticeships here at home,” said Marc Arsenault, the Council’s Business Manager.
He added that the Council looks forward to working closely with the province to ensure apprenticeship pipelines and journeyperson hiring are fully leveraged across projects.
5. Fiscal Overview and Deficit Update
The government’s fiscal update shows a slightly improved deficit forecast — from $14.6 billion in the spring budget to $13.5 billion for the current year.
Despite modest progress, the province remains focused on discipline over new spending, keeping most initiatives unchanged.
6. New Tax and Investment Measures
While the Fall Update contained few major new investments, it did expand several key programs:
- Manufacturing Investment Tax Credit: Enhanced to encourage capital spending and modernization.
- $100 Million for SMEs: Additional funding to help small and medium-sized businesses diversify into new markets.
- Protecting Ontario Account: $4 billion remains unallocated from the $5 billion fund aimed at sectors affected by U.S. tariffs.
The government said new funding streams from this account will be announced soon.
7. Housing Projections Revised Downward
Despite continued policy efforts, Ontario’s new housing construction forecast has been revised downward.
Originally projected at 71,800 new homes for 2024, the updated figure now stands at 64,300 — well below the pace needed to meet the province’s goal of 1.5 million homes by 2031.
8. Ontario’s Economic Strategy: Stability Over Surprises
Observers note that the “stay-the-course” tone of the Fall Update reflects a cautious but deliberate strategy.
Rather than introducing flashy new programs, the province is reinforcing existing commitments — in infrastructure, housing, and skills development — to maintain investor confidence amid global volatility.
9. Key Takeaways for Construction Stakeholders
- Confidence Restored: Industry groups see steady leadership amid economic headwinds.
- Infrastructure Priority: Key projects like Highway 413 and Ring of Fire remain central to growth plans.
- Skilled Trades Emphasis: Apprenticeship and workforce development continue to anchor Ontario’s competitiveness.
- Fiscal Prudence: The government remains focused on reducing deficits while maintaining capital investment.