Tariff Impact Outlook

Tariff Impact Outlook

This quarterly update explores the current impact of tariffs on the construction industry. With the possibility of significant increases in the cost of imported materials like steel and lumber, along with potential labor shifts, the effects are being felt across job sites and project timelines nationwide.
 
That said, there’s no reason to panic. Although the situation on the ground is shifting day by day, the impact on costs and timelines has been minimal so far. We are, however, seeing clients respond thoughtfully—getting ahead of potential increases through our preconstruction process and engaging early with our team to address lead time considerations.

How Did We get Here? 

Comments from the field:

“The tariff uncertainty is not only driving up costs but also causing a rush to fill orders before deadlines, leading to an increased backlog at the ports and delays in deliveries. A common fear I am hearing is that there could be an economic downturn on the horizon and a slowing of the commercial construction market.” – Mike Maas, Senior Project Manager

“Right now, the best thing we can do is focus on the present facts and not panic. Whatever comes next, we will adjust accordingly. We adapted through the 2008 recession as well as the roadblocks that came from COVID.” – Brian Murphy, Estimator

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While the recent changes with the tariffs will not affect all areas equally, understanding where the pressure points are will help us stay ahead. MCP will continue to stay informed and ready to adapt as the industry evolves.

Disclaimer:  The information contained in this document is based on general market research and current and past experience in the construction industry and represents estimations and opinions only.  Any reliance, action, or inaction based on any of this information is at your own risk and MCP has no responsibility, obligation, or any liability relating thereto.