In the last couple of weeks, the new administration has announced a slew of changes that will likely impact the construction industry. We are trying to keep a watchful eye while realizing that some of these initiatives might get pulled back before they become reality. Sometimes it’s senseless worry to worry too soon.
For several years now, we have added a clause to our contracts giving us protection in the event of rising material costs. This is an attempt to manage our risk and also be fair with our customer relationships. It was first a major issue when the supply chain was so greatly affected by Covid-19, and now the proposed tarriffs on Canada and Mexico threaten to have an impact on construction material costs. Our nation was told these would go into effect immediately, but they have now been delayed. If they do, consumer pricing will go up, which is something the administration campaigned against just a few short months ago.
An even larger challenge to the industry will be labor and the deportation push which is much harder to quantify than material cost. According to Pew Research Center estimates, 26% of workers in construction are immigrants and 13% of people employed in the industry are not authorized to work in the U.S. We are waiting to see how this will impact the construction labor market.
We can all speculate, but in the meantime, we try to keep our heads down, building projects with the tools we are given at the time.
