Construction costs rise due to tariffs and workforce shortage

Consumers looking to buy or renovate homes should prepare for higher construction costs. The construction industry is facing challenges due to increased prices for building materials and a shortage of workers. This situation has been worsened by tariffs on imported products and strict immigration policies enacted during the Trump Administration. According to Ken Simonson, chief economist for the Associated General Contractors of America, the construction sector is particularly vulnerable to tariffs. This is because it relies heavily on imports of materials like lumber, steel, and copper. Local construction companies are trying to manage these rising costs while honoring existing contracts. Many immigrant workers, including those with legal status, are hesitant to work due to fears of Immigration and Customs Enforcement (ICE) raids. This has led to longer project timelines and higher overtime costs for the workers who remain. Simonson emphasized that without enough workers, projects will not only take longer but also become more expensive. Smaller construction companies in Oregon are particularly affected. They are facing competition from larger firms that can afford to stockpile materials likely to be impacted by tariffs. Nate McCoy, executive director of the National Association of Minority Contractors in Oregon, noted that these policies directly harm smaller businesses and the overall economy in Portland and beyond. Trade workers who have been in the industry for years often worry about their safety and feel unwelcome in the U.S. McCoy expressed concern that the current climate makes it seem like the country prefers those who contribute to leave. He feels that this attitude is shameful for a nation that prides itself on being the "United States."