Canada's 2025 federal budget represents a watershed moment for the construction industry. With $115.2 billion allocated over five years for infrastructure investment, Prime Minister Mark Carney has made it clear: this is a budget about building and building faster than ever before.
For construction businesses, this isn't just about opportunity. It's about preparedness. According to the Q3 2025 Canada Construction Monitor, the industry currently faces financial constraints cited by 60% of respondents as a major impediment to building, alongside persistent labour shortages and rising material costs. The businesses that position themselves strategically now, with solid financial foundations and access to capital, will be the ones capturing these generational contracts.
"In the last few years we have seen increased financial pressure on construction firms even for those firms who came out of COVID-19 relatively unscathed. Labour pressure, the cost of materials, and challenges in customers being able to pay on a timely basis has made profitable projects strain cash flow across the board. With new incentives and increased technology investments in the industry we remain optimistic for a productive road ahead for construction firms," says Kaz Jaffer, Principal at Finalyze.
The federal government has committed to enabling over $1 trillion in total investment when accounting for private sources over the next five years:
Build Canada Homes, a new federal agency with $13 billion over five years, aims to double the pace of homebuilding in Canada. This represents a fundamental shift: focus on non-market and affordable housing at scale, emphasis on modern construction methods, support for modular and prefabricated approaches, and year-round building to overcome weather delays.
This is where construction businesses can benefit both as contractors AND as business owners investing in their own facilities.
As a contractor, this super-deduction creates immediate opportunities. Manufacturing clients will be rushing to build before the 2030 deadline, creating compressed timelines and increased demand for your services. If your construction company operates prefabrication facilities or modular building operations, portions of your own facilities may qualify. Consult with your tax advisor to determine if your specific situation qualifies.
"Construction firms have a unique opportunity here for substantial tax savings if the transaction is properly planned and structured properly. A construction specialized firm such as Finalyze is uniquely positioned to support clients in this sector," says Kaz Jaffer, Principal at Finalyze.
The opportunities are clear. But here's the reality: in an environment of rising costs and financial constraints, financial preparedness separates winners from those left watching from the sidelines.
The Q3 2025 Canada Construction Monitor shows that 63% of respondents reported rising material costs, while the Construction Sentiment Index dropped to -3 in Q3 2025. Major infrastructure projects mean significant working capital requirements. You'll need to finance materials and labour before milestone payments arrive, manage extended payment terms on government contracts, cover bonding requirements, and bridge the gap between project expenses and receivables.
"Even in a period of historic federal investment, cash flow remains a top constraint for construction businesses," notes Daire Burke, Head of North America at Swoop. "Companies that proactively assess their capital needs and plan for liquidity have a clear advantage when large contracts hit the market."
Government contracts and large private projects require surety bonds, performance guarantees, clean financial statements, and established banking relationships. Surety companies and banks will scrutinize your financial health before extending the credit you need. Now is the time to clean up your balance sheet and improve your working capital position.
Working with a firm like Finalyze CFO that specializes in construction accounting, job costing, and virtual CFO services can help you get audit-ready, identify working capital opportunities, and present your business in the strongest possible light to lenders and surety providers.
Growth requires investment. To scale up for larger projects, you need additional equipment, expanded workforce, larger facilities, technology systems, and working capital to support bigger contracts. Understanding which funding option best fits your growth stage and project pipeline is critical.
"Clients need to understand their capital stack to be able to identify the best way to fund these projects from a pre-tax and after-tax perspective. The dollar magnitude of these investments require a new approach beyond funding through operating cash flow or obtaining a traditional equipment lease," says Kaz Jaffer, Principal at Finalyze.
Construction businesses must ensure they have the financial bandwidth to execute large contracts, manage cash flow gaps, and scale efficiently.
"Securing a major contract is only the first step," says Daire, Head of North America at Swoop. "The businesses that succeed are the ones that have thought through not just project execution, but the financial strategies that enable delivery on time and on budget."
With huge federal infrastructure investment on the horizon, the construction businesses that thrive will be the ones that pair strong operational capabilities with strategic financial planning. Understanding your funding options before contracts are awarded and before costs begin to rise is a crucial part of that preparation. For businesses looking to assess their readiness, compare funding structures, or understand which financial tools best fit their growth plans, Swoop provides a straightforward way to explore a wide range of options in one place.
"The funding landscape is evolving quickly. Taking the time to explore your options early, whether through your existing partners or platforms like Swoop, gives businesses the clarity they need to plan confidently for the opportunities ahead," notes Daire.
Canada's 2025 budget represents a once-in-a-generation opportunity for construction businesses. Opportunity alone isn't enough. It's the positioning that matters the most.
The businesses that will thrive are those that get their financial house in order now, establish creditworthiness and banking relationships proactively, understand their capacity and growth requirements clearly, and access the right financing at the right time through strategic partners.
The work is there. The investment is committed. The question is: will your business be ready to capture it?
Ready to position your construction business for growth? Explore your financing options through the Swoop Funding platform and connect with Finalyze CFO to get your finances audit-ready. The time to prepare is now before the bidding begins.
Disclaimer: Swoop Finance Ltd (Swoop) helps Canadian firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans or other finance products ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Swoop may receive a commission or finder’s fee for effecting such introductions. If you feel you have a complaint, please read our complaints section highlighted above and also contained within our terms and conditions.
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