President Trump’s policy agenda could have significant impacts on the construction industry. Here are five key areas where his policies may affect construction and contracting:
Labor: Immigration policy changes could worsen the current labor shortage, driving up wages and creating uncertainty among workers. Delays due to labor shortages may lead to extended project timelines and higher costs.
Tariffs: Trump’s tariffs, including a 25% levy on steel and aluminum, will increase the cost of construction materials like steel, aluminum, and copper. This could disrupt supply chains, lead to price hikes, and force contractors to renegotiate contracts or delay projects. The full impact may take 6-9 months to become clear, but contractors will need to factor in potential price increases when bidding.
Deregulation: Trump’s push for deregulation could reduce the burden of OSHA and environmental rules, potentially speeding up project timelines. However, contractors will still need to prioritize safety, even with relaxed regulations.
Energy Costs: Trump’s focus on boosting domestic energy production may lower oil and gas prices. However, cuts to green energy incentives could slow growth in the renewable sector, which could affect power needs for energy-heavy industries.
Public-Private Partnerships (PPPs): PPPs will continue to be a focus, especially for large-scale infrastructure projects like roads and bridges, requiring private sector investment to make these projects financially viable.
In conclusion, the construction industry will face challenges related to labor, tariffs, energy, deregulation and public-private partnerships. Contractors must remain adaptable to navigate these uncertainties.
Reference
Kassalen B. (2025) Five Ways President Trump’s Policies Could Reshape the Construction Industry. Metal Construction News. March 10.