How Are Construction Businesses Handling Tariff Pressures?

Broad tariffs imposed by the Trump administration continue to affect industrial businesses, including those in the construction industry. A recent survey by Plant-Tours, a communications equipment manufacturer, gathered insights from 500 professionals across multiple industries—such as manufacturing, construction, transportation, and warehousing—and found that tariffs have only incentivized about 10% of businesses to reshore production. Instead, many companies report being hindered by growing costs caused by tariffs.

While some companies initially tried to absorb the added expenses, most found this approach unsustainable. In total, 75% of respondents said they had to shift the burden to customers. For many in the construction sector, this shift has strained customer relationships. Of the total, 14% of respondents identified customer loss as an unexpected consequence of tariffs, with that figure rising to 16% for the construction sector.

In the construction industry, the unpredictability of material pricing has led to significant hesitation. About 52% of construction professionals said they had delayed or canceled projects due to tariff-related concerns.

“We’ve had to spend extra time reevaluating costs and negotiating with suppliers hit by tariffs,” one Southern firm shared. That uncertainty extends across planning, budgeting, and staffing—making it difficult for firms to scale or commit to new projects.