Spring Economic Update 2026

Source: Department of Finance Canada – Spring Economic Update 2026: Key Measures (April 27, 2026) [canada.ca]

Overview

The federal government’s Spring Economic Update 2026 outlines major investments focused on housing, infrastructure, skilled trades, nature conservation, and affordability. While not sector‑specific, several measures are expected to directly influence demand, labour availability, and future funding opportunities for the nursery, greenhouse, landscape construction, and landscape maintenance industries.

Key Impacts for the Nursery & Landscape Sector

1. Housing Acceleration Will Drive Landscaping Demand

The federal government is advancing housing construction through:

• Accelerated regulatory approvals and modernized building codes
• Over $7 billion in low‑cost CMHC financing to advance rental and housing projects
• Support for modular and factory‑built housing

Industry implications

• Higher housing starts typically lead to increased demand for trees, shrubs, sod, perennials, and landscape installation services.
• Faster construction timelines may shorten landscape installation windows, increasing pressure on labour, scheduling, and plant availability.
• Opportunities may grow for nurseries able to supply uniform, pre‑approved, and climate‑resilient plant material at scale.

2. Skilled Trades Expansion – Opportunity and Competition

The Team Canada Strong initiative aims to recruit and train 80,000–100,000 skilled trades workers by 2030–31.

Industry implications

• Landscape construction and maintenance employers may benefit from expanded training pipelines, immigration pathways, and credential recognition.
• At the same time, competition for labour is expected to intensify as housing, infrastructure, and major projects scale up.
• Employers may need to focus on retention strategies, training partnerships, and productivity improvements.

3. Nature Strategy Supports Green Infrastructure & Plant Demand

The Update reinforces Canada’s Nature Strategy, including the goal to protect 30% of lands and waters by 2030 and to mobilize capital for nature‑based solutions.

Industry implications

• Strong alignment with:
  • Native plant production
  • Ecological restoration
  • Urban forestry and green infrastructure
• Potential growth in public procurement and private investment tied to biodiversity, climate adaptation, and natural asset management.
• Nurseries producing native, climate‑resilient, and restoration‑grade stock are well positioned.

4. Infrastructure & Major Projects Create Long‑Term Opportunities

The federal government is launching:

• A Canada Strong Fund (sovereign wealth fund)
• A Major Projects Office advancing 21 nation‑building initiatives

Industry implications

• Large infrastructure projects often include:
  • Site remediation and restoration
  • Urban greening and streetscaping
  • Long‑term landscape establishment and maintenance
• Early engagement in planning discussions may create opportunities for sustainable landscape solutions to be embedded from the outset.

5. Affordability Measures – Modest Cost Relief

Short‑term measures include:

• A temporary pause on the federal fuel excise tax until Labour Day
• A reduction in the base CPP contribution rate effective January 1, 2027

Industry implications

• Fuel tax relief may provide temporary, limited cost savings for transportation‑intensive operations.
• CPP rate reduction offers small but permanent payroll savings for both employers and employees beginning in 2027.

What to Watch Next: Provincial Programs & Funding

While the federal update sets the direction, many supports will flow through provincial and territorial governments over the coming months.

Industry should closely monitor:

• Provincial skilled trades funding, including expanded apprenticeships, wage subsidies, training grants, and employer supports
• Infrastructure and housing programs that include landscape, urban forestry, or green infrastructure components
• Climate, conservation, and natural infrastructure funding, where nurseries and landscape firms may be eligible suppliers or project partners
• Regional workforce strategies aimed at addressing seasonal labour shortages

As details are finalized, provinces are expected to roll out targeted programs tailored to local labour market needs, creating opportunities for businesses that are prepared, informed, and engaged.