Tariffs keep managers, contractors guessing on material costs
In the first half of the year, one word continued to appear in headlines surrounding broad economic and political change: “uncertainty.” Construction Dive’s Uncertainty Series seeks to delve into various topics swirling in uncertainty to explore how we got here and what the future holds.
Uncertainty around trade policy and its impact on materials costs could lead more contractors to hold off on shovels hitting the ground.
Construction input costs climbed 6%?through May on an annualized basis and have remained up more than 40% since February 2020, according to the U.S. Bureau of Labor Statistics. That jump follows several months of policy uncertainty, with tariff announcements rolled out unevenly and implementation timelines in flux.
In fact, contractors say tariff hikes have already triggered delays on certain projects. Pittsfield, Massachusetts-based Unistress Corp., for example, recently?laid off 233 workers?after the postponement of two major contracts due to steel price volatility. The precast manufacturer said the delays caused significant financial pressure, temporarily shrinking its backlog and forcing the company to cut nearly half its workforce.
