RC122 JanFeb 2026 - Magazine - Page 27
SHIFTING SANDS
How contractors can balance long-term goals
with short-term volatility
by Dustin Stephens
CROSS CANADA, the construction sector is being asked
to deliver more than ever before. Ambitious
federal targets for infrastructure and housing
are expanding the pipeline of large, long-term
projects. But at the same time, contractors are
navigating a market shaped by short-term volatility—from shifting material costs and regulatory changes to
supply chain delays and skilled labour shortages.
The challenge is clear: long-term projects depend on
stability, yet today’s environment is anything but stable.
That mismatch is forcing even seasoned industry leaders
to rethink how they plan, budget and execute.
PSPC
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The new risk landscape for Canadian contractors
The Canadian construction industry is entering 2026 in a
cautiously optimistic position. While 2025 presented some
headwinds, many forecasters see 2026 as a turning point.
BuildForce Canada, for example, forecasts a rebound in
residential construction, fueled by easing interest rates
and pent-up demand.
Recovery, however, seems fragile. Tari昀昀s from the
ongoing U.S.-Canada trade, insurance cost hikes, and
the upcoming renegotiation of CUSMA are adding new
layers of uncertainty to project economics.
Small and mid-sized businesses, the backbone of Canada’s construction sector, are especially exposed. A March
2025 survey by the Canadian Federation of Independent
Business (CFIB) found that four in 昀椀ve small businesses are
already facing disruptions due to the trade war, and nine
in ten report di昀케culty in planning beyond a few months.
The risk is not just cyclical; it is structural, reshaping how
contractors must think about risk management.
Against these market realities, companies that position
themselves with 昀氀exible, real-time strategies will be better
able to capture the upside as the market recovers.
RENEWCANADA.NET
Rethinking project and budget strategies mid-stream
In the past, contractors built budgets at the start of a
project and stuck to them. But when no two quarters look
the same, rigid 昀椀nancial models quickly become obsolete.
Increasingly, 昀椀rms are embracing rolling forecasts, realtime variance analysis and scenario planning to adapt
mid-stream.
This shift is being accelerated by technology.
Arti昀椀cial Intelligence (AI) and cloud-based construction
昀椀nancial management tools allow leaders to uncover
budget variances as they happen, rather than waiting
for the monthly close. This means contractors can act
decisively—whether it’s renegotiating supplier contracts,
adjusting procurement schedules, or reallocating
resources to keep a project on track.
Small and mid-sized businesses are resilient by nature.
But resilience in today’s market demands more than
grit; it requires new tools and the agility to pivot quickly.
Embracing AI is no longer optional; it is becoming central
to how contractors plan and respond.
Stabilizing cash flow in a volatile market
Cash 昀氀ow has always been the lifeblood of construction
昀椀rms, but in a volatile market, it becomes a matter of
survival. Fluctuating procurement costs and delayed
customer payments can leave even well-managed 昀椀rms
exposed.
Technology is playing a key role in stabilizing cash
昀氀ow. Advances in accounts payable automation, for
example, are helping 昀椀rms reduce manual errors,
accelerate invoice processing, and gain real-time insights
into spend. These improvements don’t just save time
—they provide leaders with the visibility needed to
make con昀椀dent decisions, even when markets shift
unexpectedly.
Dustin Stephens is
vice president of
Construction and Real
Estate at Sage.
JANUARY/FEBRUARY 2026 – RENEW CANADA 27
