Are “Shovel Ready” Projects Back?And Is Your Organization Ready?
The Canadian economy is sending warning signs. But for proactive organizations, that may mean opportunity.
Although we are still waiting for a formal budget from the Carney-led government, there are unmistakable signals emerging behind the scenes: the economy is faltering, and infrastructure spending may soon return in a big way. If your organization isn’t preparing now, you risk missing a critical window.
What the Economic Signals Are Telling Us
Recent economic data reveals troubling trends:
GDP Contraction: Canada’s GDP shrank by 0.1% in April 2025, with preliminary estimates indicating a similar decline in May. The manufacturing sector fell by 1.9%, led by a steep drop in transportation equipment manufacturing—its worst showing since April 2021.
Growth Forecasts Slashed: The OECD projects Canada’s growth to fall to 1.0% in 2025 and 1.1% in 2026, one of the lowest rates among advanced economies. Global trade tensions and U.S. tariffs are taking a toll on exports, business investment, and consumer confidence.
Recession Risk Looming: Institutions like TD Economics anticipate a shallow recession in 2025. Q2 GDP is expected to contract by 1.0%, and Q3 by 0.2%, accompanied by rising unemployment—especially in manufacturing and auto sectors.
“Per Capita” Recession Already Happened: Even before this downturn, inflation-adjusted GDP per person had declined 3.4% between mid-2022 and the end of 2023.
Sectoral Weakness: Manufacturing, wholesale trade, business investment, and consumer spending are all under pressure. The housing market remains flat. Purchasing power is deteriorating.
Monetary vs. Fiscal: It’s Time for Infrastructure
The Bank of Canada may continue cutting interest rates, but the effects won’t be felt until well into 2026. What’s left? Keynesian economics—stimulus through public investment.
From conversations with Carney’s Senior Officials, it’s clear: a major infrastructure stimulus package is coming. The upcoming Fall Economic Statement is expected to contain a significant infrastructure component, if it passes. And they’re not asking for new policy ideas or wishful envelopes—they’re looking for “ready-to-go” infrastructure projects.
History Repeats: Harper’s 2009 “Shovel Ready” Moment
We’ve seen this before.
In response to the 2008–2009 financial crisis, Prime Minister Stephen Harper launched the 2009 Economic Action Plan, which quickly mobilized 3,000+ “shovel ready” projects across Canada. At that time, many communities and organizations were caught off guard. Some were skeptical—many simply weren’t ready.
Fast-forward to 2025: we’re back to “shovel ready.” Will your community or organization meet the moment—or miss it again?
What You Need to Do—Right Now
Being “shovel ready” means:
Completing feasibility studies
Advancing through design and costing
Securing land, permits, partnerships
Being ready to build by April 2026
Don’t wait for the formal announcement. The opportunity to shape your ask is now—not after the window opens.
How We Can Help
Our teams at CCSProject and Megillah Group (Project Management and Design Services) have been here before. We know how to prepare communities and organizations to take advantage of infrastructure stimulus programs—designing projects that are not just fundable, but prioritized.
If you're unsure what to do next—or want support to move quickly—we're here to help you prepare, pitch, and deliver.
Get your ducks in a row. E-mail us at sales@ccsproject.ca or call 416 944-8555 Extension 1, and get our team to assist you in developing your project so you can have a Shovel Ready Project that will take advantage of the window of opportunity coming this fall.