06/05/2025
🔔 Attention, Construction Community! Tariff Alert! 💥
President Trump has just doubled steel and aluminum tariffs from 25% to 50% (with the U.K. exempt until July 9), and that spike is already squeezing our project budgets. 😬 At a recent Skanska webinar, experts warned that a $375 million healthcare development could end up paying an extra $22 million, nearly 6% more, because of these new duties. Some materials have jumped as much as 8% in price, and Midwest aluminum premiums are up 54% since January. 📈
What This Means for Your Projects:
• Escalating Material Costs: Structural steel is up 5–8%, coil-based products have surged 50%, and aluminum is more expensive than ever.
• Supply Chain Shake-Up: Suppliers like Kawneer are rerouting contracts and tweaking production to dodge tariffs. Fabricators recommend bundling orders now to lock in better pricing.
• Hidden Price Hikes: Even if the tariff isn’t on your invoice, you could see a 20–25% cost bump from sourcing swaps.
• Longer Lead Times: U.S. steel mills are running at about 75% capacity, and aluminum smelters aren’t at full tilt—expect delays.
Tips to Keep Margins Intact:
1. Rework Contracts: Consider unit-based or index-based pricing clauses so you and your clients share the tariff risk.
2. Bundle Jobs: Combine your orders across multiple projects to negotiate bulk discounts and secure scheduling.
3. Find Tariff-Friendly Suppliers: Look for vendors absorbing some of the costs or using domestic alloys, and explore alternative materials where it makes sense.
4. Build in Contingencies: Factor a 5–8% material escalation into your bids, cash flow projections, and timelines now, before it’s too late.
Stay proactive to protect your bottom line and keep projects rolling. Have you felt the impact of these tariffs yet? How are you adapting? Let’s share ideas—drop your thoughts or questions below! 👇