The U.S. construction industry continues to be in a state of unpredictability with rapidly changing tariffs. New tariffs are certainly making impacts – from rising material costs, to supply chain disruptions, to contractor confidence erosion. In an industry with razor-thin margins, these tariffs represent an urgent challenge where project stability is at risk. In this volatile environment, bidding accurately and protecting profits isn’t just important—it’s essential for survival.
We’ll break down how today’s tariff environment is impacting construction, why tariff-proofing your business is critical, how clean data can protect your margins, and how STACK empowers you with the tools to estimate accurately, move quickly, and maintain stability—even in uncertain times.
The Tariff Fallout: A Wake-Up Call for Contractors
Recent data from an Associated Builders and Contractors survey paints a grim picture:
- 80% of contractors report suppliers have increased prices due to tariffs.
- 20% of projects experienced delays or interruptions in March 2025 alone.
- Over 40% of contractors anticipate a decline in profit margins in the next six months.
The current administration’s recent tariffs—25% on steel and aluminum imports, plus additional duties on goods from Mexico, Canada, and China—have exacerbated the situation. The result is skyrocketing costs for additional essential materials like lumber, copper, ceiling tiles, and more. Contractors are feeling the squeeze. Projects are being delayed or canceled, and profit margins are under unprecedented pressure.
Why Tariff-Proofing Your Construction Business Is Critical
Tariffs throw a wrench in financial forecasting and margin control. When steel, aluminum, and other core materials jump 15–30% in price overnight, it’s not just an inconvenience—it’s a direct hit to your bottom line. Contractors working on already tight margins don’t have the luxury of absorbing sudden cost increases or delays caused by unpredictable supply chains.
Here’s why a tariff-proof strategy matters now more than ever:
- Backlogs Are in Jeopardy: If your bids don’t accurately account for volatile material costs, the projects you thought were profitable could quickly become financial liabilities.
- Bidding Blind Is a Recipe for Disaster: Without a comprehensive and accurate estimating platform, you’re just guessing. And guessing in this market could mean losing out on work, or worse—winning jobs that bleed cash.
- Delays Compound Losses: Projects impacted by tariff-related supply chain disruptions don’t just slow down—they cause ripple effects in labor scheduling, client satisfaction, and future business opportunities.
- Cash Flow Suffers: Overruns eat into already slim margins, forcing contractors to dip into reserves or delay payments, destabilizing business operations.
Tariff-proofing means getting ahead of the uncertainty. It’s vital to build resilience into your estimating process, ground your bids in real-time accurate data, and prepare for pricing shifts before they derail your projects.
Data Hygiene: The Secret to Profit Stability in a Tariff-Turbulent Market
When costs are unpredictable, your greatest competitive edge is predictable data.
Tariffs are adding chaos to construction costs—but with clean, organized, and connected data, you can bring order to the chaos. According to a Deloitte report, companies considered data leaders experience 50% higher profit growth annually compared to those just beginning their data journey. Why? Because when you start with good data, you stay in control no matter how volatile the market gets.
Here’s how strong data hygiene helps future-proof your construction business:
- Catch Profitability Threats Early: Real-time access to job costing and historical takeoff data helps you identify faults or red flags before they spiral.
- Reduce Risk and Rework: Clean, centralized data reduces duplication, miscommunication, and costly rework—saving overhead and safeguarding your margins.
- Adopt Advanced Technology: Reliable data unlocks the full potential of tools like AI-powered estimating and automated reporting, setting the foundation for long-term digital transformation.
- Strengthen Forecasting: With organized, trustworthy data, you can make more accurate predictions around revenue, margins, and risk—even in a fluctuating market.
STACK is Your Shield Against Tariff Turmoil
STACK is your lifeline during tariff-induced uncertainty, providing your business with:
1. Accurate, Real-Time Estimating
With material prices fluctuating rapidly, outdated data can lead to costly mistakes. STACK’s cloud-based platform provides real-time cost data, ensuring your estimates reflect current market conditions. This accuracy helps you bid competitively without sacrificing profitability.
"We build about 60 projects a year, from a few thousand dollars to multi-million dollar jobs. By starting off on the right foot having more accuracy in the bid with STACK, it helps promote success for the rest of the project.”
2. Lightning-Fast Takeoffs and Bidding
Time is money, especially when projects are at risk of delay. STACK streamlines the takeoff and bidding process, allowing you to respond quickly to bid opportunities and secure more work. Our fast, accurate measurements and powerful automation mean more chances to win projects and maintain a healthy backlog.
3. Enhanced Project Insights with Centralized Data
By providing detailed insights into costs and timelines, STACK helps you plan more effectively, starting with clean, organized data. With STACK’s dashboards and smart estimating reports, you get custom estimate data with at-a-glance views of key metrics. Visualize historical and real-time data to spot trends, make fast decisions, and refine future project strategies.
4. Improved Profit Margins
STACK’s precise estimating tools help you identify and mitigate potential cost overruns before they occur. By accounting for tariff-related increases upfront, you can protect your profit margins and ensure financial viability.
"In 2024, we have scaled continuously with less employees. We were able to downsize 8-10 guys and still produce $1.5M more than we did the year before.”
Don't Let Tariffs Derail Your Business
The construction landscape has changed. Tariffs have introduced a new level of uncertainty, but with the right tools, you can adapt and thrive. STACK empowers you to bid smarter, build more efficiently, and safeguard your profits.
