The on-again, off-again tariffs and uncertain economic policy of the U.S. has caused many in the Canadian construction world to pause projects and delay important decisions until the air clears.
However, a new report by Info-Tech Research Group warns that any hesitation by construction industry leaders in this country is not a good course of action because it carries significant risks.
“Waiting is not a strategy, especially in construction, where the costs of delay can compound rapidly,” says Michael Adams, a research analyst for the construction and transportation and logistics industries at Info-Tech Research Group, a Toronto-based firm that does research and provides a slow of advisory services to help business leaders make more informed decisions.
“Industry IT leaders need to take early, decisive action to mitigate risk, reduce uncertainty, and preserve project momentum,” he explained. “That means knowing where exposures exist, mobilizing resources ahead of disruption, and keeping stakeholders informed at every step.”
The report, titled Build Resilience: Strengthening Construction Amid Policy Shifts, details a clear and actionable framework to guide organizations on how to best mitigate risks and strengthen operational continuity during times of economic uncertainty like Canada is now facing.
Authors of the report note that construction leaders are facing rising costs, supply chain delays and labour shortages driven by shifting trade policies.
“Leaders must respond to an uncertain economic policy landscape, persistent supply chain disruptions, rising material cost, potential labour shortages, and a growing wave of contract disputes that threaten budgets, timelines, and stakeholder trust. This has caused widespread anxiety and locked us in a defensive posture.
“Waiting for tariffs to impact your organization can leave you behind the curve. In an industry where completion of projects is directly correlated to success, your organization needs to ensure you shape your outcome from these new tariffs. No matter your role, being the one who brings solutions can position you as an anchor for stability.”
According to Info-Tech, construction project costs are expected to rise between six and eight per cent in 2025, and it will take roughly six to nine months for the full impact of the price hikes and supply chain disruptions to emerge.
The estimated GDP loss in the U.S. from tariffs directly impacting the construction industry is anticipated to be (U.S.) $200 billion in 2025, the report calculates.
The report warns that instead of burying their heads in the sand and waiting for the dust to settle, construction leaders should act now. Otherwise, economic pressures will dictate their next move.
“Lead construction projects with foresight,” they say. “Shape outcomes early, build trust, and drive results. Take control before circumstances take over.”
The report urges construction leaders to adopt proactive measures, suggesting the need for a structured and practical response has never been greater. The blueprint introduces a step-by-step strategy that prioritizes risk readiness, resource alignment and operational continuity.
The framework detailed in the blueprint highlights what organizations in the construction industry can do to avoid reactive decision-making, respond quickly to change, and stabilize operations.
The plan offers practical, step-by-step guidance and ready-to-use tools to help leaders tackle critical challenges, execute on key initiatives, and unlock new opportunities for their organizations.
Info-Tech’s blueprint draws on the firm’s knowledge of the industry and the expertise of its analysts.
By acting early and intentionally, the authors state, business leaders can reinforce stakeholder confidence and signal reliability in volatile conditions.
Info-Tech’s blueprint identifies four critical challenges shaping the construction sector today: an unpredictable economic policy environment, persistent supply chain disruptions, rising material costs and labour shortages, and an increase in contract disputes.
Left unaddressed, the firm advises these issues can derail construction projects and expose organizations to severe financial and reputational risk.
First, Info-Tech suggests that the impact of the shifting trade policies on an organization need to be assessed by building an up-to-date risk register to track evolving exposures from leadership shifts, budget changes or workforce exits, and analyzing the potential impact of each risk on service delivery, operations and modernization efforts.
A risk event action plan can then be developed that maps out responses to minimize disruption and increases responsiveness.
Second, companies should conduct an assessment to determine if resources needed to succeed are deployed properly throughout the organization while agreements with critical vendors should be reviewed, including force majeure clauses.
Third, companies need to build a critical response blueprint to maintain business by revisiting their workforce plan and develop a cost-optimization roadmap to prepare for evolving conditions, rather than be reactive, the Info-Tech report suggests.
Finally, they should act quickly and confidently to execute their business continuity and succession plans, and support teams with a clear communication strategy and employee communications.
Meanwhile, companies should ensure that their business continuity teams and roles are accurate, and their resource capacity matches, while renegotiating vendor agreements.
Info-Tech has research and resources available for industry leaders managing disruption and uncertainty at its IT Critical Response Resource Centre. Topics include how to promote organizational resilience, what to do about tariffs, and how to respond to a crisis with a management plan.
