TORONTO – A new report says Canada’s heavy equipment manufacturers will likely see uneven growth this year as the construction sector is being hit by a housing slowdown while a push for mining projects could increase demand.
The report prepared for the Association of Equipment Manufacturers focuses on off-highway equipment, which means mostly construction, farming and mining needs.
The S&P Global Market Intelligence report found that the sector as a whole generated $54 billion in direct and indirect sales last year, up from $48.7 billion when the study was last done in 2022.
Direct employment in the sector grew in 2023 but then declined in 2024 and 2025, leaving direct employment at 70,915, still up 3.2 per cent from the last report in 2022.
The report notes that while U.S. trade policy has affected demand, Canada’s favourable tariff rates have helped soften the blow with construction machinery exports to the U.S. down only 2.2 per cent compared with 28.9 per cent for Germany and 18.9 per cent for Japan.
It says mining equipment demand should be supported by the critical minerals push, but that project timing and price volatility create lumpiness.
This report by The Canadian Press was first published May 4, 2026.
