At the halfway-point of 2024, U.S. construction spending was down roughly 1.7 billion dollars from the previous year. Now construction businesses are figuring out how they can combat the new policies that President-elect Donald Trump has pledged to impose, according to industry leaders at EPD.

Calum Mair, Commercial Director North America for EPD, an aftermarket parts and components seller for construction, agricultural, and industrial machinery, has forecasted how the changes could threaten the construction industry, and how other businesses should be preparing:

“Since his election win, President Trump has threatened to impose a 60% tariff on imports from China, a 25% tariff on Canadian imports, as well as goods from Mexico. While it’s uncertain if these tariffs will go through, the proposed tariffs on imported materials could significantly raise construction input costs, impacting project budgets. We have begun prioritizing how to source materials domestically or from countries with lower tariff rates, and other businesses should do the same. Diversifying suppliers, both internationally and domestically, can reduce dependency on vulnerable trade routes. Companies should also consider stockpiling critical materials, leveraging technology for logistics, and focusing on no or low-tariff jurisdictions. His stricter immigration policies could also exacerbate the workforce shortages in the construction industry, especially in states heavily reliant on immigrant labor. It’s likely we will need to invest in workforce development programs, including training initiatives to attract and upskill domestic workers. Expanding the use of automation and construction technology can also help offset labor gaps. 

“The uncertainty around interest rates has also posed new challenges when planning new construction projects, as fluctuating borrowing costs could impact financing. Looking ahead, businesses should prioritize cash flow management and explore alternative funding options to reduce dependency on loans, as well as adopting alternative materials and optimizing resource usage can help offset cost increases. Proactive planning is more important than ever and ensures resilience against interest rate volatility while supporting project feasibility.” 

• Global ESG regulations could lead to higher prices for U.S. contractors

The U.S. is expected to ease environmental, social, and governance (ESG) regulations in the coming year, which, along with deregulation in the energy sector, means lower costs for builders and others in the construction industry. However, many countries where the U.S. sources construction supplies—such as those in the European Union—still must abide by stricter ESG regulations, which could lead to increased costs for building supplies from overseas. 

“Stricter ESG regulations in supplier countries could drive up material costs for U.S. contractors. To mitigate this, construction firms should explore sourcing from regions with less stringent ESG mandates or prioritize domestic suppliers. Additionally, investing in sustainable practices and materials now can reduce long-term reliance on high-cost imports and align with future regulatory trends. Proactively adapting supply chains ensures cost control while maintaining compliance and sustainability goals.”

• Interest rates to remain uncertain for the near future

Although the Federal Reserve has forecasted a drop in interest rates over the next year, from around 4.5% at the end of 2025 to around 3.4% at the end of 2026, near-term rates are less certain. Interest rate volatility could affect businesses looking to start new projects in 2025 as higher rates make borrowing more expensive. 

“Uncertainty around interest rates poses challenges for businesses planning new construction projects, as fluctuating borrowing costs could impact financing. To navigate this, firms should prioritize cash flow management and explore alternative funding options to reduce dependency on loans. Locking in rates when favorable and staggering project timelines can also mitigate financial risks. Proactive planning ensures resilience against interest rate volatility while supporting project feasibility.”

Mair added: “Although there may be challenges ahead, there are solutions businesses can adopt to help ease the burden they might cause. By diversifying supply chains, prioritizing domestic sourcing, and adopting sustainable materials, firms can offset the impacts of tariffs and global ESG regulations. Workforce development programs and advanced technologies can address labor shortages caused by stricter immigration policies. Additionally, proactive financial planning and resource optimization can help businesses manage uncertainty around interest rates and maintain project stability.”

The construction industry is looking to rebound in 2025. To do so, suppliers, builders, and contractors alike need to know what’s in store for the coming year. With a firm understanding of potential industry challenges, industry players will be better equipped to overcome them, leading to increased building projects and profits. For more information on construction industry trends, visit EDP.

About EPD

EPD, abbreviated from Excavator Parts Direct, specializes in providing top-quality spare and replacement parts for excavators and heavy machinery. With over 25 years of experience, we source OEM-quality components directly from leading manufacturers, ensuring guaranteed fitment and durability. Our expansive inventory includes over 30,000 parts, ready for next-day delivery. Committed to quality and customer satisfaction, we offer warranties, expert support, and seamless ordering through our Parts Finder tool. A global business with operations across multiple locations, including a U.S. office based in Austin, EPD is your trusted partner for keeping your machines running efficiently.  

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Attracting a diverse range of talent to the industry could help to fill this gap, and according to research from the Office for National Statistics (ONS), only 15% of workers in the sector are female. Here we’ll look at how incentivising more women to join the welding sector could help bridge the gap in skills and reduce the shortage. 

How can more diverse candidates be attracted to welding?

A considerable number of opportunities are opening within the world of construction, with an annual shortfall of engineers in the UK coming to around 59,000. This means plenty of roles are available, and with the need to fill these roles becoming more crucial as projects are scheduled and workload mounts up, candidates might be attracted to the salary offered.

Offering more education around what welding entails as a position could encourage more interest from more people, showing women that they could comfortably fit themselves into these hands-on roles. An idea that might be stuck in the heads of potential candidates is that the job is dangerous or that there’s no room to be creative.

This is not the case, as there have been significant advancements in safety in welding over the years, and there’s plenty to read on the legislation in place to protect workers. Similarly, from a creative side, there are plenty of metalworking projects that require laser welding that will flex creative muscles.

What can women bring to the industry?

Bringing a fresh perspective to an established industry can help create and execute new innovative and creative ideas. This is an exciting idea, as a female perspective can bring a different outlook to workflows and processes. 

Women also have several advantages that could allow them to flourish in welding. One example is that women have better hand stability than men, with fluctuations being 1.3 times more in men.

Research from the Theoretical Biology and Medical Modelling journal has found that women have an 8 – 15% lower longitudinal centre of gravity compared to men. Many welding jobs require you to keep your posture strong and stay balanced, and the lower centre of gravity would be beneficial to get those jobs done in fewer sittings than a man doing them might.

Challenges to overcome

Introducing more diverse, talented candidates qualified for the roles is crucial to the industry’s flourishing; however, it comes with challenges. One focus will be to tackle the issues around the industry being so male-centric, particularly with how women are treated on sites and in workplaces.

In fact, a report by On The Tools found that 78% of women in trade in the UK have faced some form of discrimination ranging from harassment to negative comments. However, there is an upside. More than 75% of women said they were satisfied or extremely satisfied with their careers.

Another challenge is the pay gap between genders. The report also found that women in trade are paid only 72% of what men receive, with only 29.75% of tradeswomen believing they were paid the same as their male colleagues. But this could change with the demand needing to be met, as mentioned earlier, so we could see these salary disparities level out.

Sources

https://www.citb.co.uk/about-citb/construction-industry-research-reports/construction-skills-network-csn/ 

https://www.fenews.co.uk/skills/new-london-welding-academy-will-provide-a-skilled-workforce-to-help-build-back-the-capitals-economy/#:~:text=The%20number%20of%20welders%20in,to%20ease%20the%20housing%20crisis. 

https://www.statista.com/statistics/1023964/employment-in-the-uk-construction-industry-by-gender/ 

https://theweldinginstitute.com/insights/8737710 

https://www.twi-global.com/technical-knowledge/faqs/faq-health-and-safety-in-welding 

https://free2learn.org.uk/weld-like-a-girl-welding-is-not-just-a-mans-career/ 

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2847550/#:~:text=It%20is%20well%20know%20that,men%20%5B8%2D10%5D. 

https://www.onthetools.tv/sign-up-for-women-ott-white-paper/ 

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