How contractors can manage costs in the face of tariffs
With the looming potential for ballooning material prices due to 25 percent tariffs on goods imported from Canada and Mexico – not to mention the already rising costs for things like copper and lumber, foreign steel and aluminum – contractors of all stripes need to protect their margins where they can. And while material prices are entirely out of a contractor’s grasp, there is one aspect of construction where they can wrestle back control: labor.
Labor Planning keeps labor costs predictable
Labor Planning every job and making the most of who you have won’t solve the looming trade war. It will, however, help make project costs a little more predictable when the rest of the world most certainly is not. Not only does shoring up labor inefficiencies help take the uncertainties out of bidding, it increases labor Productivity and project profitability.
You can anticipate labor peaks and adjust schedules proactively versus throwing bodies at a problem that seemingly came out of nowhere. You’ll know when to ramp up and ramp down, where schedule compression could bite you and will always have the right people on the right jobs at the right times. Or you could skip all this and keep hiring temp labor when problems arise. Except temp labor is never as productive as someone from your bench and it always costs more. It hurts your field force’s morale too.
Construction industry insights on tariff impacts
For more insight on how these rounds of tariffs may affect your contracting business, we’ve compiled resources from leading trade groups, trade media and editorial publications.
Construction Executive
Note: Some of these Construction Executive articles are from 2018’s tariff implementation. While the timing may be different, there is knowledge to be gained from the last round of import duties. The publication will be hosting a webinar April 2nd, 2025 at 2 P.M. EST about the industry impacts of the day’s trade announcements. You can register for that right here.
• Bidding in the Time of Tariffs, December 2018
• New Tariffs Could Shorten Construction Expansion Cycle, March 2018
• The Construction Industry’s Impending Crisis and Opportunities for Growth, April 2019
• Construction Materials Prices Increase 0.6%, Steel Surges Nearly 4% in February, March 2025
SMACNA
• FAQ: Contractors’ Responses to Rising Tariffs’ Impact on Material Costs
Construction Dive
• New Tariffs Add Pressure to Construction Pipeline, March 2025
• The Construction Materials Most at Risk for Tariffs, March 2025
Dodge Construction Network
• How Tariffs May Impact the Construction Industry in 2025, March 2025