In today’s construction industry, material costs and labor availability are two of the biggest concerns for contractors and project managers. With the recent announcement of a potential tariff on imports from Canada and Mexico, the industry is bracing for significant increases in construction costs. If you’re planning a project, the time to act is now—before prices soar and supply chains become more strained than they already are.

Canada and Mexico are two of the United States’ largest trading partners, supplying essential building materials such as lumber, steel, aluminum, glass, and cement. A 25% tariff on imports from these countries would directly increase the cost of these materials, making construction projects more expensive. Here’s how it could impact different sectors of the industry:

• Lumber and Wood Products: Canada is the largest supplier of softwood lumber to the U.S., a key material in residential and commercial construction. A 25% tariff could add thousands of dollars to the cost of framing a home or commercial building.

• Steel and Aluminum: Both Canada and Mexico export large quantities of structural steel, rebar, and aluminum used in everything from skyscrapers to bridges. Higher prices for these metals mean higher project costs and tighter budgets.

• Glass and Windows: The glazing industry, which is already experiencing high demand, relies heavily on glass imports from Canada. Increased costs will directly affect energy-efficient building projects, particularly in commercial and high-end residential developments.

• Cement and Concrete: With cement imports also impacted, the cost of concrete—one of the most fundamental materials in construction—will rise, affecting infrastructure, roadwork, and large-scale developments.

If you’re considering a construction project, delaying could mean paying significantly more in the future. Here’s why getting started now is the smartest move:

• Lock in Material Costs Before Prices Increase – Many suppliers honor pricing for a certain period once a contract is signed. By securing materials now, you can avoid the inevitable cost hikes due to tariffs.

• Avoid Supply Chain Disruptions – Tariffs often lead to bottlenecks in supply chains as contractors scramble to source materials before costs rise. Starting your project now ensures that you receive materials before potential shortages occur.

Don’t wait until costs become unmanageable. Take action now to ensure your construction project remains financially viable and competitive in an unpredictable market. If you are managing a public project, Blue Streak Project Management can help you navigate the process and speed up project initiation using cooperative purchasing contracts instead of going through a lengthy public bidding process. This allows you to secure materials and contractors faster, avoiding additional costs and delays.