Tariffs are having a direct impact on the construction industry by driving up material costs, complicating project budgets and disrupting supply chains.
They are changing how projects get built, priced and delivered. As companies face rising costs, tighter financial planning and reconfigured supply chains, many are being forced to rethink the way they operate. Here are three ways tariffs are currently reshaping the construction industry .
1. Material Costs and Procurement Volatility
Tariffs on imported materials have driven up costs and injected a considerable amount of uncertainty into procurement planning. Companies are now facing longer lead times and have needed to shift their sourcing strategies to adapt to these changes.
2. Budgeting and Financial Forecasting
The uncertainty of tariff policies has made it increasingly challenging to project multi-year financial forecasts. As a result, many companies are now building in larger variances, revisiting contract terms and adjusting cash flow models to better navigate the unpredictable landscape.
3. Supply Chain Reconfiguration
In an effort to reduce exposure to tariff-affected areas, companies are reevaluating their sourcing strategies. This includes increasing supplier diversification and restructuring contracts to pass tariff costs downstream.
As we learn more about how the current tariffs will impact the construction industry, strategic innovation and adaptability are crucial for preparing for the future.
How Can Schneider Downs Help?
If you have questions about navigating tariff uncertainty in the construction industry, our team is here to help. Contact us at [email protected].
About Schneider Downs Construction Services
Led by a diverse group of shareholders and managers, Schneider Downs provides strategic and practical solutions for our construction clients in all facets of their business. Our dedicated team of more than 350 professionals have a wide background of tax, accounting, technological and business experience in the region, specifically in Pittsburgh and Columbus.
To learn more, visit our Construction Industry Group page.
