Tariffs and Construction: Key Impacts Contractors Need to Know
Recent changes to U.S. trade policy are expected to increase cost pressures across the construction industry. Newly implemented tariffs, especially those affecting steel and aluminum products, add another challenge on top of inflation, supply chain constraints, and workforce shortages.
Associated General Contractors of America (AGC) recently published a national overview examining how these tariffs may impact construction companies. Below is a brief summary highlighting key takeaways most relevant to contractors in Greater Florida.
How Tariffs Are Impacting Construction Costs
Tariffs do not just affect imported materials. Historically, they have also driven up the cost of domestically produced materials as pricing adjusts across the market.
While tariff rates may continue to change, contractors should expect ongoing volatility and plan procurement strategies accordingly.
Planning for Cost & Contract Impacts
Many contractors have relied on stockpiling materials to manage near-term costs, but this is only a temporary solution. As inventories are depleted, higher material prices may begin to affect active and upcoming projects.
Contractors should consider reviewing supply chains, backlog projections, and contract terms, particularly escalation clauses, and communicate early with project owners about potential cost increases.
Sectors Showing Continued Opportunity
Periods of economic uncertainty can also present opportunity. National data indicates continued investment in several key sectors that may help offset challenges elsewhere, including:
Technology, particularly data centers
Healthcare, as providers expand facilities closer to patients
Infrastructure, supported by ongoing public funding
Manufacturing, where tariff policy may influence where future facilities are built
Contractors with experience or interest in these markets may want to explore how their expertise aligns with emerging demand.
Building Long-Term Resilience
As trade policy and global conditions continue to shift, adaptability will be critical. Construction firms are encouraged to evaluate strategies that strengthen long-term resilience, including:
Leveraging technology to improve safety and productivity
Investing in workforce recruitment and retention
Enhancing data and cost-tracking capabilities across projects
AGC’s Ongoing Advocacy & Resources
AGC at the national and chapter levels continues to monitor tariff developments and advocate for policies that support the construction industry. We encourage members to review the full national overview for deeper insights.
Read the full AGC national article: Smart Planning for Tariffs
For updates, resources, and advocacy efforts affecting Florida contractors:
Learn more about AGC of Greater Florida
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