Contractors are already grappling with rising costs, tight labor markets, and project delays—but now, tariffs are adding a new layer of financial pressure. Recent trade moves by the U.S. government have led to higher prices on imported steel, aluminum, and lumber, materials that many construction companies rely on every day.
If you’re feeling the squeeze, you’re not alone. Here's what’s happening and what builders can do about it.
Tariffs on Key Materials Are Driving Up Prices
New or reinstated tariffs on steel and aluminum from Canada and Mexico, and softwood lumber from Canada, are raising prices across the board. According to the National Association of Home Builders, lumber tariffs alone are expected to increase the cost of a typical single-family home by over $9,000.
Affected Materials Include:
Structural steel and rebar
Aluminum framing and ductwork
Softwood lumber for framing
Piping and fixtures
Why It Matters: Even if you source materials domestically, global price shifts still influence local suppliers. Everyone pays more.
What This Means for Contractors
Higher material costs ripple through every part of your business. Margins shrink. Bids become more difficult to lock in. Clients get frustrated with rising prices. And cash flow becomes harder to predict.
You Might Be Seeing:
Price volatility that disrupts estimates
Delays as clients reassess budgets
Pressure to cut corners or reduce scope
A greater risk of project disputes over costs
How Builders Can Respond
You can’t control global policy—but you can prepare your business.
1. Communicate Price Fluctuations Upfront
Use escalation clauses in contracts
Set expectations with clients about volatility
Offer alternatives where possible
2. Improve Cost Tracking and Forecasting
Track real-time material prices and usage per job
Forecast cash flow with updated cost assumptions
Analyze margins more frequently
3. Leverage Local and Recycled Materials
Explore regional suppliers to reduce tariff exposure
Consider reclaimed or surplus materials when possible
4. Digitize Operations for Efficiency
Use platforms like BuilderComs to stay organized, reduce delays, and improve team communication, even when margins are tight.
Final Thoughts: Stay Proactive, Not Reactive
Tariffs and supply chain disruptions aren’t going away overnight. Builders who succeed in 2025 will be those who adapt—by staying informed, pricing strategically, and building smarter systems.
Want to stay competitive when costs go up? Schedule a demo with BuilderComs and discover how streamlined communication and project oversight can help you stay profitable, even in a challenging market.
How Tariffs Are Raising the Cost of Construction in 2025