TRADE REGION

Quick Numbers:

• U.S. construction spending hovers around $2.2 trillion USD annually.
• Canada’s building and infrastructure construction likely exceeds $300 billion USD annually when converting from CAD.
• Combined, North America (Canada + U.S.) spends roughly $2.5 trillion USD per year on construction. That is approximately $12,800 USD per taxpayer per year combined.

Construction is a colossal engine in North America. Between the U.S. and Canada, annual construction spending runs into the multi-trillions of dollars—about $2.2 trillion in the U.S. alone and an estimated $300 billion in Canada when including both buildings and civil infrastructure. These totals mean every year countless materials (steel, concrete, lumber), labour hours, and specialized equipment go into creating and renewing homes, offices, roads, and utilities.

The bulk of this spending is split among residential housing, non-residential buildings (commercial, institutional, industrial), and engineering/infrastructure work. Residential projects drive a large portion of volume, but large commercial jobs and public infrastructure often dictate the scale and swings in spending. Labour shortages, material cost inflation, rising interest rates, and heavier regulation contribute to the rising costs seen on job sites.

Understanding where your construction dollar goes is crucial for anyone in the trades or working with project owners. Labour and materials typically dominate costs, but soft costs such as design fees, permitting, code compliance, and project risk can add 20–30% or more to the total. Additionally, higher borrowing costs and delays impact overall economics, especially for larger builds where time is money.

Given this context, the high cost you see on plans or quotes isn’t sloppy—it reflects the reality of operating inside a massive, expensive system. If you’re a contractor, designer, or owner, being aware of the macro scale helps in setting expectations, negotiating contracts, and conveying value. Construction isn’t just about bricks and beams—it’s about navigating a complex ecosystem where labour, regulation, markets, and economics all intersect.