Ontario's non-residential building construction price index increased 4.3% year over year in Q3 2026, with prices rising 1.1% from the previous quarter, according to the Ontario Construction Secretariat. The annual pace eased slightly from Q2, but the quarter-over-quarter gain suggests construction costs continued to climb into the third quarter. The report, published Nov. 5, 2026, provides a key market signal for glazing contractors facing tender escalation, supply chain and labour cost pressures across Ontario's non-residential sector.
The bulletin cites Statistics Canada, which reported that builders across Canada reported "rising material, fuel, transportation and labour costs, alongside skilled labour and subcontractor capacity pressures, particularly in Atlantic Canada and the Prairies." Statistics Canada also noted that "changes to Canadian retaliatory tariffs on U.S. products, including steel and aluminum, added to construction cost pressures." These forces matter for glazing contractors because steel and aluminum are common inputs in curtain wall framing, storefront systems and structural attachments.
Industrial construction drives price growth
Within Ontario's ICI sectors, industrial construction recorded the strongest annual price increase at 6.0%, while commercial construction prices rose 3.7% and institutional construction prices rose 3.0%, according to the bulletin. Industrial work, which often includes large manufacturing and logistics buildings, carries significant weight in certain regional indexes and has been a driver of the overall index.
The pattern held across Ontario's major markets, though the pace varied considerably. London posted the highest increases in all three sectors, with industrial prices rising 8.5%, commercial prices increasing 7.2%, and institutional prices growing 5.8%. Toronto and Ottawa–Gatineau recorded slower but still positive growth in each sector, which the bulletin presents in the context of differing construction mixes.
Regional gap widens as London reaches 7.9%
London recorded the strongest overall annual increase among Ontario's major markets at 7.9%, compared with 3.6% in Toronto and 3.4% in Ottawa–Gatineau (Ontario part), the bulletin states. The spread between London and Toronto widens to 4.3 percentage points, a significant gap for contractors bidding across regions.
London's higher growth stems partly from its construction mix. Factory construction accounts for 73.4% of London's non-residential price index, compared with 14.1% in Toronto. Concrete and structural steel framing together account for 38.2% of London's index, versus 6.9% in Toronto. In London, structural steel framing prices rose 15.5% year over year and concrete prices rose 8.1%, which likely contributed to the region's higher overall construction price inflation, according to the Ontario Construction Secretariat. For glazing contractors, this means that contracts tied to London-area projects with heavy industrial scope may face more intense cost escalation than similar work in the Greater Toronto Area.
Division-level costs: steel and conveying equipment climb
At the construction division level, conveying equipment recorded the strongest year-over-year increase at approximately 12.0%, followed by structural steel framing at 9.4% and equipment at 8.0%, according to the bulletin. These divisions include materials and systems that frequently appear in non-residential building envelopes and interiors.
Several divisions saw stronger annual price growth in Q3 than in Q2. Equipment accelerated from 6.5% to 8.0%, and thermal and moisture protection rose from 4.9% to 5.4%. Metal fabrications slowed from 8.7% to 6.7%, and earthwork eased from 3.3% to 2.4%. On a quarterly basis, structural steel framing and conveying equipment each rose 2.7%, while concrete prices increased a more moderate 0.6%. The bulletin notes that the latest quarterly movements show structural steel framing tied with conveying equipment for the largest gain, which keeps pressure on bid estimates for projects with significant structural scope.
Tariffs and labour constraints add pressure
Statistics Canada's observations, cited in the bulletin, point to supply-side pressures that extend beyond Ontario. Builders across Canada reported rising material, fuel, transportation and labour costs, along with skilled labour and subcontractor capacity constraints, particularly in Atlantic Canada and the Prairies. Changes to Canadian retaliatory tariffs on U.S. products, including steel and aluminum, also added to construction cost pressures. For glazing contractors, these same steel and aluminum products appear in curtain wall frames, window wall assemblies and storefront components, so tariff-driven cost increases can flow into glazing bids even when fenestration itself is not separately tracked by the index.
Key Q3 2026 figures at a glance
According to the Ontario Construction Secretariat, the Q3 data show the following annual changes:
- Ontario non-residential BCPI: +4.3% year over year, +1.1% quarterly
- Industrial: +6.0%; commercial: +3.7%; institutional: +3.0%
- London: +7.9%; Toronto: +3.6%; Ottawa–Gatineau (Ontario part): +3.4%
- Conveying equipment: +12.0%; structural steel framing: +9.4%; equipment: +8.0%
- Structural steel framing quarterly: +2.7%; concrete quarterly: +0.6%
The bulletin does not provide a forecast, but the gap between London and Toronto highlights how regional construction mixes can amplify cost escalation in markets with heavier industrial or steel-intensive work.
What it means for glazing contractors
The bulletin does not isolate glass, window or curtain wall divisions, so fenestration-specific cost movements are not directly captured. However, glazing contractors bidding non-residential projects often work within divisions that appear in the index, including structural steel framing and thermal and moisture protection. In Q3, structural steel framing rose 9.4% year over year and 2.7% from the previous quarter, while thermal and moisture protection increased from 4.9% to 5.4%. Concrete prices, another input on glazing-adjacent projects, rose 0.6% quarterly across Ontario and 8.1% annually in London. These movements suggest that bid assumptions made earlier in the year may need upward revision, especially for projects with significant steel or building envelope scope.
For contractors working to Canadian fenestration standards such as CSA A440, the Ontario index does not provide fenestration-specific thresholds, but it signals how broader construction inputs are moving. The bulletin does not say when current pressures will ease. Tender teams should monitor future quarterly updates to track whether the pace of escalation continues to ease from the Q2 level.