How does Mark Carney plan to rebuild Canada and reduce reliance on the US?

Introduction

Canada’s Prime Minister, Mark Carney, has promised to ‘build, baby, build’.

It is an important and interesting time in Canadian history, and for the construction industry across Canada.

Canada has now turned east, west and north – diversifying away from its focus to the south – in response to the impact of tariffs and talk of annexation from the US. In the lead up to Monday’s election, the various political parties were largely aligned that the country needed to respond robustly to Donald Trump’s threats and focus on making necessary changes to the Canadian economy to reduce its integration with the US.

Construction was an important part of the new government’s platform. Mark Carney stated in his victory speech that ‘it’s time to build twice as many homes every year with an entirely new housing industry using Canadian technology, Canadian skilled works, Canadian lumber’. Other sectors also received significant attention and there was a clear sense of urgency, shared by many Canadians, to act quickly given the economic impact of moving away from the US. With Carney’s victory, it will be fascinating to see how quickly and how extensive the promises to build will be.

Is Canada rebuilding a nation?

The trans-Canada railway connected Eastern Canada to British Columbia in the late nineteenth century. It came about, in part, to support British Columbia’s entry into Confederation in 1871. Previously, the only viable long travel routes between British Columbia and Eastern Canada went through the US. Many who backed the construction of the trans-Canada railway wanted to ensure that the western British colony did not join the US, despite that seeming logical to many given the geography.

The new Canadian government’s push for infrastructure and construction in response to US economic pressure may signal a new phase of nation-building in Canada. Time will tell but it is clear this will create opportunities both for local players and international investors in the infrastructure sector.

Impact on infrastructure

Carney has promised that the federal government will drive the largest effort to build affordable housing in Canada since the Second World War. The new government will create ‘Build Canada Homes’, an initiative where the federal government will act as developer to build affordable housing at scale, including on public land. It will also provide over $25 billion in financing to innovative prefabricated home builders in Canada and $10 billion in low-cost financing and capital to affordable home builders. Ports and pipelines were also high on Carney’s list during the election.

Whilst the tension in US / Canadian relations brings with it the risk of short-term pain, Canada could benefit from re-thinking its reliance on its neighbour. Mark Carney has made clear his desire to ‘[i]nvest to build infrastructure that connects Canada, breaks down barriers, and brings people and economies closer together’, including the building of a high-speed rail connection between Windsor and Quebec City and the development of Canada’s east-west electricity grid. The new government has likewise recognised the importance of investing in digital infrastructure, which will require the construction of data storage facilities and high speed and reliable communication networks. There will also be a need for a new east-west pipeline to spur development and lessen Canada’s reliance on the US export market for Canadian oil products. Significant development is also expected in the North, aimed at strengthening Canada’s Arctic presence through investment in dual-use infrastructure, including ports, airstrips, and highways serving both military needs and trade with remote communities.

This ambition to modernise Canada’s infrastructure, whilst preparing for future challenges, can also be seen on the ground – 15 new major infrastructure projects with a combined value of $22 billion have been announced in 2025 across the country, including six hospitals, three energy initiatives, and two water / wastewater projects. The transit sector, with projects valued at $121 billion, continues to dominate the ReNew Canada’s ‘Top100Projects Report’, underscoring the critical need to invest in efficient and sustainable transportation systems[1]. The buildings sector follows closely with $61 billion spread across 34 projects, while energy, transportation, and water / wastewater initiatives also represent significant investments. In Toronto alone, significant infrastructure projects are changing the face of the city and the Greater Toronto Area more generally as we reported on here and here.

There will of course be challenges – major infrastructure projects in Canada are often procured at the provincial or municipal level so it will be interesting to see whether a new approach is adopted to achieve Mark Carney’s ambition to develop ‘one Canadian economy’. The federal government will need to take a more robust lead in encouraging all levels of government to work together to get big things done quickly, whilst staying on the same page.

Conclusion

Whilst the list of construction initiatives is long and ambitious for Canada, it has the potential to be a moment in history where the political will and economic imperatives align to see dramatic progress. The construction industry, including those contractors and consultants who are looking to enter the market, will be paying close attention. The opportunities may be significant and happen (relatively) quickly.

We are excited to have opened a new office in Toronto, supporting our Canadian and international clients with their construction and infrastructure project needs. Should you have any questions on this article or require tailored advice in respect of future opportunities or projects in Canada, please contact Andrés Durán.

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[1] The ‘Top100 Projects Report’ was published prior to Prime Minister Justin Trudeau’s announcement in February 2025 of ‘the largest infrastructure project in Canadian history’ in the form of the development of a 1,000km high-speed rail network, which will be known as Alto, connecting Quebec City and Toronto, which we reported on here.