The Impact of Tariffs on Construction Costs
As construction costs continue to soar, the industry is bracing for even sharper increases in 2025. Tariffs on key materials—iron, steel, and lumber—are expected to drive up construction expenses significantly, placing pressure on profitability across the sector.
Rising Costs and Declining Profitability
The tariffs on these essential materials are a growing concern for construction professionals. Jacqueline Greenberg Vogt, Chair of the Construction Law Group at Mandelbaum Barrett PC, offers valuable insight into how these tariff-induced increases in costs will likely impact the bottom line.
According to Jacqueline, the consequences are clear: “Tariffs on iron, steel, and lumber are expected to result in sharp increases in construction costs in 2025. The net result? Profitability will decline.”
With these challenges on the horizon, construction leaders must take proactive steps to navigate rising costs while maintaining profitability.
The Road Ahead: Navigating Rising Construction Costs
The growing impact of tariffs is a critical issue that demands attention and action from both the private and public sectors. Businesses must stay informed about how these changes will affect their operations and work with legal experts to mitigate the financial strain that could come with higher construction material costs.
