how the construction company recommits to american production of materials

with the trump administrations implementation of tariffs, there have been hotly debated arguments that the construction industry will be negatively impacted by the increased cost to imported aluminum, steel, lumber and copper. while we may feel the effect in some areas, there are ways to continue providing customers quality work without such a hit to their budget.

the trump administration placed the new economic and trade policy in place for several reasons including; protecting domestic industries from foreign competition AND addressing trade imbalances. THE NEW ADMINISTRATION BELIEVES a strong domestic manufacturing base is essential for national defense. the administration has also used the new policies as a negotiating leverage with the goal of creating better trade deals.

this post is not meant to validate or invalidate the actions of the current administration. it is recognizing the current state these policies place the construction industry in and how we can work within the parameters and not necessarily just let it drive cost up for us and our customers.

to mitigate the effects of tariffs on construction materials, SOME contractors are exploring several alternatives and strategies. FIRST, THEY ARE SOURCING MATERIALS LOCALLY. CONSTRACTORS ARE INCREASINGLY LOOKING FOR LOCAL SUPPLIERS TO REDUCE RELIANCE ON IMPORTED MATERIALS SUBJECT TO TARIFFS. THIS CAN HELP AVOID ADDITIONAL COSTS AND SUPPORT LOCAL ECONOMIES. SECOND, USING ALTERNATIVE MATERIALS. SOME BUILDERS ARE CONSIDERING ALTERNATIVE MATERIALS THAT ARE NOT SUBJECT TO TARIFFS. FOR EXAMPLE, USING WOOD OR ENGINEERED WOOD PRODUCTS INSTEAD OF STEEL FOR CERTAIN STRUCTURAL APPLICATIONS, OR EXPLORING COMPOSITE MATERIALS THAT CAN SERVE SIMILAR FUNCTIONS. THIRD, USING RECYCLED STEEL AND ALUMINUM CAN BE A COST-EFFECTIVE ALTERNATIVE. RECYCLED MATERIALS OFTEN COME AT A LOWER PRICE POINT AND CAN HELP REDUCE THE OVERALL ENVIRONMENTAL IMPACT OF CONSTRUCTION.

OTHER CREATIVE WAYS TO WORK WITHIN THE POLICIES OF THE NEW ADMINISTRATION IS ADOPTING NEW CONSTRUCTION METHODS, SUCH AS MODULAR CONSTRUCTION OR PREFABRICATION, WHICH CAN REDUCE MATERIAL WASTE AND POTENTIALLY LOWER COSTS. THESE METHODS CAN ALSO SPEED UP THE CONSTRUCTION PROCESS. DESIGN MODIFICATION TO USE LESS MATERIAL OR TO INCORPORATE MATERIAL NOT IMPACTED BY TARIFFS CAN HELP MITIGATE COST INCREASES. FOR EXAMPLE, USING LIGHTER FRAMING MATERIALS OR OPTIMIZING STRUCTURAL DESIGNS TO REDUCE THE AMOUNT OF STEEL NEEDED.

cONSTRACTOR'S CAN ALSO NEGOTIATE BULK PURCHASING AGREEMENTS WITH SUPPLIERS TO SECURE BETTER PRICING AND REDUCE THE IMPACT OF TARIFFS ON THEIR PROJECTS. SOME BUILDERS ARE INVESTING IN TECHNOLOGY AND SOFTWARE THAT CAN HELP OPTIMIZE MATERIAL USAGE AND PROJECT MANAGEMENT, ULTIMATELY REDUCING COSTS AND IMPROVING EFFICIENCY. ENTERING INTO LONG=TERM CONTRACTS WITH SUPPLIERS CAN HELP LOCK IN PRICES AND PROVIDE SOME PROTECTION AGAINST FUTURE PRICE INCREASES. LASTLY, DIVERSIFYING SUPPLY CHAINS TO INCLUDE MORE LOCAL SUPPLIERS AND AMERICAN-MADE PRODUCTS.

BY EXPLORING THESE ALTERNATIVES, GETTING CREATIVE AND EXAMINING OR RE-EXAMINING WHAT IS AVAILABLE TO US IN OUR OWN BACKYARD CONTRACTORS AIM TO MANAGE COSTS MORE EFFECTIVELY AND MAINTAIN PROJECT VIABILITY. MCELHINNY BROTHERS CONSTRUCTION COMPANY, INC. IS COMMITED TO STAYING ON TOP OF THE NEWEST TRENDS IN OUR INDUSTRY IN ORDER TO PROVIDE OUR CLIENTS WITH THE BEST PRODUCTS AND SERVICE IN THE MOST COST-EFFECTIVE MANNER.