Non-residential capital and repair expenditures, 2023 (revised), 2024 (preliminary) and 2025 (intentions)

Released: 2025-02-26

Total capital expenditures by businesses and governments on non-residential tangible capital assets are expected to increase by 5.5% to reach $388.6 billion in 2025. Growth in both the public (+5.7%) and private (+5.5%) sectors is expected in 2025. Data on capital spending intentions were collected from September 2024 to January 2025, before the recent tariffs announcements.

Chart 1 
Capital spending on non-residential tangible assets, by industrial sector

Continued growth in capital spending for manufacturing

Manufacturing is the sector showing the largest growth in investment intentions for 2025. Capital outlays in the manufacturing sector are expected to increase by 15.5% in 2025 to $38.4 billion, up from $33.3 billion in 2024.

The increase in 2025 stems from anticipated growth in several subsectors, including transportation equipment manufacturing (+$1.7 billion), chemical manufacturing (+$1.6 billion), electrical equipment, appliance and component manufacturing (+$1.4 billion) and food manufacturing (+$497 million).

Investment in the manufacturing sector in Ontario is expected to increase 24.0% to $18.0 billion in 2025, following a 23.1% gain in 2024. In 2025, the electrical equipment, appliance and component manufacturing subsector (+72.3% to $4.8 billion) should lead the growth in Ontario, where several major projects related to the automotive sector were announced in 2024.

Capital outlays in manufacturing in Alberta (+25.8% to $6.0 billion) are also expected to increase significantly in 2025, driven by the construction of new petrochemical facilities in the chemical manufacturing subsector (+70.1% to $3.4 billion).

Saskatchewan is expected to see significant investment growth in the food manufacturing subsector (+96.6% to $814.7 million) in 2025, as construction of new major plants in this subsector continues. For the first time, this would elevate Saskatchewan to the number two spot in Canada, behind Ontario and surpassing Quebec, for investment in this subsector.

The mining, quarrying, and oil and gas extraction sector to remain the largest contributor to capital spending

In terms of total capital expenditures, the mining, quarrying, and oil and gas extraction sector regained the top spot in 2023 and 2024, after falling behind the transportation and warehousing sector from 2020 to 2022. The sector is expected to maintain its ranking for 2025, as capital outlays (+5.4%) are expected to reach $64.4 billion, accounting for more than 16% of the year's capital expenditures.

A sizable decrease in capital expenditures in British Columbia (-$613 million) in 2025 would be more than offset by increases in Alberta (+$3.4 billion) and Saskatchewan (+$774.9 million).

Investment in Alberta ($34.4 billion) would make up more than half of the sector's total investment in 2025, driven by the oil and gas extraction subsector. This is followed by Saskatchewan ($9.6 billion), with investments primarily coming from the mining and quarrying (except oil and gas) ($5.8 billion) and the oil and gas extraction ($3.5 billion) subsectors.

Increased spending in the utilities sector expected

Capital spending in the utilities sector is expected to increase by 10.3% in 2025 to $49.1 billion, up from $44.5 billion in 2024.

An investment increase of $2.5 billion (+7.8%) in the electric power generation, transmission and distribution subsector is expected to lead the sector's growth in 2025. Saskatchewan (+21.4%), Ontario (+18.0%) and Quebec (+16.7%) should reach double-digit growth in the utilities sector for a third consecutive year. Ontario and Quebec announced significant investment plans to meet future increased electricity demand in their provinces. Hydro-Quebec has set an investment goal of almost $100 billion to increase network capacity by 2035. Meanwhile, Ontario aims to further develop their renewable energy sector through plans for an additional 5,000 megawatts of wind and solar power generation over the next decade, as well as the development of three small modular reactors.

Continued growth in the public sector

Public sector organizations are expected to invest $150.6 billion (+$8.1 billion) in 2025, following eight consecutive years of growth.

In the health care and social assistance sector, public sector capital spending is expected to increase by 4.9% in 2025 to $15.0 billion, while private sector spending is expected to increase by 26.7% to $3.5 billion.

In the education sector, public spending is expected to decrease 3.3% to $16.1 billion in 2025, following two consecutive double-digit annual increases, while private spending is expected to increase 15.7% to $866.5 million. A 17.6% decrease in the sector in Quebec would more than offset increases in all other provinces in 2025.

Capital expenditures on Canadian infrastructure increase by 10.8% in 2023

Today's release includes data on capital expenditures in Canadian infrastructure assets incurred in 2023, according to their function, as well as new estimates for reference years 2013 to 2017.

Total capital spending on infrastructure assets increased by 10.8% to $135.9 billion in 2023. Growth was observed in 13 of the 16 infrastructure functions.

Road transportation had the largest year-over-year growth in 2023, with an increase of $3.8 billion. Investments in road transportation increased in all provinces and territories, except Saskatchewan and the Northwest Territories. Manitoba (+33.2%) saw the largest percentage growth, followed by Nunavut (+30.1%), Ontario (+29.4%), British Columbia (+27.7%) and Quebec (+24.3%). The increase observed in Manitoba resulted from the province's strategic highway initiatives (Enhancing National Trade Corridors Strategy, Trade and Commerce Grid Initiative and Perimeter Freeway Initiative) focused on enabling greater trade access.

Investments for health and social protection rose by $2.3 billion (+24.9%) in 2023, with increased spending observed in 10 provinces and territories. British Columbia (+67.8%; +$1.2 billion) saw a notable increase and was the largest contributor to national growth, followed by Quebec (+28.0%; +$771.1 million).

Capital expenditures on infrastructure increased in all provinces and territories in 2023. Ontario saw the largest total growth of all provinces and territories, with total capital spending increasing by $6.5 billion, driven by major investments in public transit (+$1.9 billion) and road transportation (+$1.7 billion).

Chart 2 
Capital expenditures, infrastructure assets, by function

Contact information

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