How to keep your construction business competitive in 2026

Whenever I look at the construction and rental equipment industry across Canada, I'm struck by the resilience and determination of our sector. Even with a cooling market and new challenges, our industry keeps moving.

Many of us went into 2025 planning for growth, only to face project delays, rising costs, and new import tariffs that caused a lot of uncertainty.

It's a clear reminder of how quickly conditions can shift. We all had to pivot fast, leaning on trusted partners, shuffling teams, and finding creative ways to keep things moving.

We have learned some important lessons along the way: when everything else is uncertain, a clear strategy can be a competitive advantage.

In 2026, our industry will continue to adapt, innovate, and contribute billions to Canada's economy. Competitive pressures and budget constraints may remain, but new public sector infrastructure commitments are creating opportunities for growth and could help support contractors.

Success in this high-stakes environment will hinge on adaptability. The companies that thrive will be those who leverage partnerships and recognize the true value of their people, technology, and equipment strategy.

Smarter job sites need smarter tools

In 2026, real-time equipment insights will become a true competitive advantage. With the right data, you can see, understand, and act on issues instantly, turning information into smarter decisions.

We hear it from our customers all the time: data alone isn't enough. The real value comes from turning everyday job site activity into actionable insights: reducing guesswork, increasing uptime, and maintaining greater control over equipment.

Overspending on rentals is all too common. A contractor rents a more expensive compact track loader when a skid-steer loader would have been more suitable to the application, often because the rental provider didn't ask the right questions or lacked the expertise to spot the opportunity to advise the contractor accordingly.

To work smarter in 2026, focus on your biggest cost drivers like labour and materials, and work with your rental equipment provider to specify the right equipment for the job. This will help you define and analyze the data that truly matters to your business.

Your people matter — invest in them

Even the smartest tools won't move the needle without the right people using them. A skilled, engaged workforce is one of the strongest competitive advantages, because even the best equipment strategy depends on those who can execute it.

Technology can help offset labour shortages, but you still need the right people with the right mindset. Training, mentorship, continuous learning, and clear career pathways are key to attracting and retaining talent. We are often moving team members into new opportunities to learn and develop their skills: helping them strengthen their expertise and build a highly capable team that stands apart from our competition.

The talent pool is tight. So many companies are struggling to attract, hire, and keep workers. Rethink what makes the ideal candidate. Technical skills can be taught, so broaden your reach and tap into new talent pools. Your people are the most important asset for navigating the year ahead.

Think about the true cost, not price alone

As we head into 2026, rising equipment costs and rental rates will put more pressure on margins. Leveraging technology, investing in workforce development, and building strong partnerships is how companies can stay competitive. Treating rental decisions as strategic, not transactional, helps protect margins and gain an edge.

Some customers still want to own part of their fleet. A mixed fleet can make sense, but ownership comes with significant, and often underestimated costs that add up quickly.

For equipment that you are renting, take a close look at overall spend and evaluate suppliers. The support you get can impact project outcomes and overall costs. Remember, the cheapest rental option is not always the best one. The right partner will support your business and help protect your bottom line in the long run.

Leverage new opportunities for growth with infrastructure projects

The private market may remain cool in 2026, but the federal, provincial, and municipal government's latest plans and announcements on investment in infrastructure projects could provide a welcome boost to the industry.

Public sector projects can provide a lot of value, predictable revenue, and long-term stability. Even better, they often come with funding tied to apprenticeships, employment programs, and skills training: support that could help you grow your workforce.

But you still need the technology, people, and a flexible equipment strategy to succeed. Infrastructure jobs often require specialized solutions like trench safety and pump and power. You need the right experts to help recommend, install, and maintain equipment, providing guidance on safety and shifting regulations along the way. A trusted rental partner can help you forecast what you need, secure the right equipment, and stay flexible as projects change.

Navigating 2026 requires flexibility

Canada's construction and rental industries are strong. We have the tools, talent, and know-how to thrive, even in tough markets.

This is the year to take a close look at your equipment strategy. Treat it as a key lever for staying competitive. Success will depend on strong partnerships. Focus on total value, not just the lowest price. Invest in a skilled, engaged workforce and lean into technology to help you work smarter.

Get this right, and you'll navigate 2026 with confidence.

This article originally appeared in the January 2026 issue of Heavy Equipment Guide.