Tariffs may boost infrastructure spending
Trump’s new round of tariffs could mean big changes for Canadian contractors, especially those in heavy civil construction. While tariffs often spell trouble for industries like manufacturing, they can also lead to government stimulus in infrastructure spending. When manufacturing jobs are at risk, governments tend to act. They don’t want job losses to hit the economy hard, so they invest in areas that create stable, well-paying jobs. Construction is a prime target.
The need for infrastructure renewal is growing
Canada already faces an infrastructure deficit. Roads, bridges, and utilities need major investment. Governments at every level know this, and when they see economic pressure from tariffs, they often respond by putting money into these essential projects. For contractors, this means opportunity—more bids, more jobs, and more revenue. But taking advantage of a potential boom isn’t automatic. It takes planning, strategy, and tight financial control.
Strengthen your business practices to prepare
One of the first steps is understanding your competition. When new projects open up, it’s not just you bidding on them. Other contractors, big and small, will be looking to grab work. You need to know what niches they specialize in, how they price their bids, and where you can gain an edge. If you don’t have the lowest price, what makes you the best choice? Maybe it’s efficiency, reliability, or expertise in a specific type of project. The better you understand your competitors, the stronger your position.
Scheduling is another critical factor. More infrastructure spending means more work, but it also means more demand for labor, equipment, and materials. If you don’t have a solid handle on your job schedules, you could find yourself overcommitted and struggling to deliver. Delays eat into profits and hurt your reputation. Contractors who dial in their scheduling, ensuring they have the right crews and equipment lined up, will be the ones who win repeat business.
Cost control will make or break profitability in this environment. If material costs rise due to tariffs, your margins can shrink fast. The best contractors aren’t just good at building; they’re good at managing money. Knowing exactly where every dollar is going and finding ways to keep costs in check without sacrificing quality will separate the winners from the losers. If you don’t have a system in place to track and analyze your financials, now is the time to fix that.
Finally, competitive bidding is key. With more work up for grabs, more firms will be chasing contracts. If your bids aren’t sharp, you’ll miss out. It’s not just about submitting a low price—it’s about pricing smart. You need to factor in labour, materials, overhead, and risk while ensuring you still turn a profit. The best contractors have a clear process for estimating, reviewing, and refining their bids to stay competitive without undercutting themselves.
Our specialized Construction CFO teams can help you maximize profits
We work with contractors to sharpen their financials, refine their bids, and ensure they’re running at peak efficiency. If a wave of infrastructure spending is coming, the time to prepare is now. Get your business in order, know your numbers, and position yourself to take full advantage of the opportunities ahead.
