The construction industry in British Columbia is facing a complex landscape in 2025, shaped by global economic shifts, rising material costs due to tariffs, and a pressing need for workforce development. At Berto Contractors, we recognize these challenges and are committed to adapting and thriving amidst them.

Tariffs and Rising Material Costs

One of the most significant pressures affecting BC’s construction sector in 2025 is the rising cost of materials triggered by global tariffs. Trade tensions and policy shifts have led to increased duties on commonly used construction imports, especially from the United States. Key materials like structural steel, aluminum, electrical components, and prefabricated assemblies are now subject to tariffs as high as 25% in some cases.

These added costs have a cascading effect on the entire construction process. Suppliers are passing their increased expenses down the supply chain, forcing contractors to absorb higher upfront costs or pass them on to clients. As a result, project budgets are under more strain than ever before. Many firms, particularly small to mid-sized contractors, are finding it increasingly difficult to stay competitive in the bidding process, while clients face tougher choices around project viability.

The volatility in pricing also makes planning more difficult. Projects that were financially sound six months ago may now require revisions or delays due to shifting materials costs. Additionally, some contractors are being forced to source alternative materials or rework specifications in real-time, leading to design delays, procurement bottlenecks, and scheduling disruptions.

According to insights from Singleton Urquhart Reynolds Vogel LLP, tariffs don’t just affect upfront pricing, they influence the entire contract structure, risk allocation, and financial forecasting. Firms are being urged to reassess how they negotiate construction agreements, build in contingencies, and approach long-term supply chain planning.

Economic Headwinds and Project Delays

Tariffs are only part of the equation. Economic conditions more broadly are contributing to a measured slowdown in construction activity across Canada and the U.S., and BC is not immune to these pressures. According to the American Institute of Architects’ (AIA) January 2025 Consensus Construction Forecast, non-residential construction spending is projected to increase by just 2.2% this year, a marked deceleration compared to pre-pandemic growth rates.

Higher interest rates, sustained inflation, and shifting investment strategies are making clients more cautious, particularly in the commercial, institutional, and multi-use sectors. Lenders are tightening financing terms, municipalities are grappling with budget limitations, and private developers are recalibrating timelines and priorities.

For contractors, this translates into longer decision-making cycles, delayed project launches, and more risk-averse clients who expect tighter estimates, greater cost transparency, and higher performance guarantees. While large-scale infrastructure projects are still moving forward, smaller developments, particularly those dependent on municipal approvals or private capital, are often being postponed or reevaluated.

This slowdown impacts not only contractors but also the broader economic ecosystem. Delayed projects mean fewer jobs created, fewer apprenticeship opportunities, and reduced demand across supporting sectors like engineering, surveying, and logistics.

Workforce Development: Investing in Long-Term Solutions

In the face of material and economic pressure, there’s a clear understanding in the industry that investment in people is essential. One of the most promising developments in 2025 has been the BC Construction Association’s (BCCA) launch of the Past Chair Legacy Fund. This newly established Construction Education Fund is designed to support innovative education initiatives, skills training, and workforce retention programs across the province.

The fund will offer grants to industry-led organizations and post-secondary institutions focused on developing curriculum, enhancing hands-on training opportunities, and supporting career mobility within the construction trades. By focusing on long-term capacity building, the fund helps ensure that BC has the skilled workforce it needs to remain competitive in the coming decades.

The fund also prioritizes digital adoption in the construction process, a necessary pivot in a sector that’s rapidly embracing building information modeling (BIM), project management software, and data-driven operations. By equipping current and future workers with the skills to thrive in a tech-enabled environment, the industry can reduce inefficiencies, boost productivity, and respond more effectively to the challenges of material cost volatility and scheduling disruptions.

Promoting Trades to the Next Generation

Workforce development doesn’t start at graduation, it starts in the classroom. One standout initiative launched in 2025 is the BCCA-supported pilot project in Chilliwack aimed at promoting skilled trades to elementary school students.

In collaboration with local school districts, the program introduces students in grades 5 and 6 to concepts in science, technology, engineering, arts, and math (STEAM) through a construction lens. Activities include hands-on challenges like bridge-building, basic electrical wiring, and blueprint reading, delivered by trades professionals and educators.

The goal is to normalize and elevate construction careers from an early age. Rather than treating trades as a fallback or secondary option, the pilot project encourages students to see these pathways as viable, rewarding, and essential to the province’s growth. Early exposure also helps bridge the representation gap by reaching a broader demographic of students, including girls, newcomers, and Indigenous youth who may not otherwise consider careers in construction.

As the industry continues to face labour shortages and a retiring workforce, building a robust talent pipeline is critical. Programs like this support the long-term health of the sector and ensure that BC’s future builders are as diverse and skilled as the communities they serve.

Moving Forward with Resilience and Purpose

While the economic and policy environment in 2025 presents clear challenges, it also offers a moment of recalibration for the construction industry. The rising cost of materials, project delays, and evolving workforce dynamics are catalysts for smarter, more strategic thinking across every phase of a build.

To stay competitive in this climate, construction firms must adopt a multi-pronged approach:

• Proactive Supply Chain Management: Diversifying suppliers, leveraging long-term contracts, and integrating procurement earlier into the project lifecycle can help mitigate tariff risks and material shortages.
• Cost Management Innovation: Using data analytics and real-time budgeting tools can improve forecasting accuracy and build client trust in uncertain economic times.
• Workforce Retention and Upskilling: Expanding mentorship programs, offering career progression pathways, and investing in digital fluency are essential to attracting and keeping top talent.
• Early Engagement with Youth and Underserved Communities: Supporting outreach programs and building partnerships with schools, community organizations, and training hubs will ensure the next generation of workers is better prepared and more representative of our province.

At Berto Contractors, we are meeting this moment with focus and purpose. Our commitment to delivering quality, precision, and reliability is matched by our dedication to evolving alongside the industry we serve. By engaging in and supporting forward-thinking workforce initiatives and adapting project strategies in response to market volatility, we’re helping to shape a resilient future for construction in British Columbia.