The ongoing trade tension between China and the United States could have a major impact on the construction industry here in the U.S. if there isn’t a deal reached within the next few months, GlobalData has reported.

Many goods from China, such as aluminum, Canadian lumber, and steel, are needed for home construction and commercial buildings. Since last September, these items have been subjected to a 10 percent tariff.

A construction analyst at Global Data, Dariana Tani, said that higher tariff rates will increase the costs for imported building materials. In turn, the higher costs could cause decreases in job creation and growth in the building industry.

This will affect the spending on infrastructure and will cause disruption of the supply chains and operations of companies. This will also reduce investment in the construction industry and will put construction loans at greater risk.

Curtailing New U.S. Construction Projects

U.S. products subjected to Chinese tariffs could affect the new construction projects based in the U.S. An example of how this came into play took place in October 2018 when a liquefied natural gas (LNG) export terminal being built in Louisiana was postponed by Australia’s LNG Limited following a Chinese-placed 10 percent tariff on all exports from U.S. LNG.

GlobalData’s Tani said that about one-half of the U.S. import value is from intermediate goods, including machine parts, capital equipment, raw materials, and industrial inputs, which is the category into which most Chinese imports that are subjected to the tariffs fall into.

This tariff rate on these products, is like taxing U.S. contractors by increasing the costs of their building materials. At the time of the report, steel producers can’t increase steel production to equal the demand to match the production of foreign steel suppliers. If contractors make the switch to a local U.S. producer, they will face serious delays in receiving the needed building supplies.

This situation might leave contractors in a situation where existing suppliers cannot source what they need so they will need to find a new supplier and pay higher material costs. Contractors and subcontractors will be forced to charge higher prices as well as price risks in their bids. To prevent increasing customer costs, contractors might start cutting corners, which could compromise durability and safety in projects.

Veterans have protected this country, and now, along with so many others, they are part of a countrywide effort to rebuild it, providing the infrastructure that the future of America will be powered by, and we are honored to be able to play a small part in that.

As both state and federal governments are focusing on infrastructure, and the need to invest significantly into rebuilding and modernizing existing infrastructure and building the new construction that will support us into the future, a career in construction has perhaps never offered so much potential.

In fact, there is so much support for construction, it is no wonder that so many are looking to retrain to build new careers in the industry. One of the largest groups doing that is our veterans, who are taking advantage of the various programs such as the GI Bill that give them the opportunity to learn new skills and build new careers. With such demand for construction skills, it should be no surprise that veterans are frequently turning to the construction industry and the various skills training that is on offer. Transitioning from the military can be a challenge, and having a stable, reliable career can be an important part of that process, and the construction industry has a lot to offer in that regard.

Here at ATS, we are extremely proud of the fact that we have helped over 2000 veterans retrain and forge new, lucrative careers for themselves as they adapt to civilian life. Through various funding and other assistance, programs veterans have taken part in our courses that deliver classroom coaching and on-site experience, enabling them to gain the skills and confidence to build careers to be proud of. We actively promote the programs that provide the funding veterans need for those skills, and in addition, we offer qualified veterans an additional incentive, covering the cost of their accommodation during any courses they take with us, our way of saying thanks for the sacrifices they have made on our behalf.

We also think that it is fitting for veterans who have already given so much for their country, and are retraining to be part of projects that will literally rebuild it. Infrastructure projects across America are reshaping towns and cities, and they will be the platform on which the future of this country is built on. That so many veterans are involved with these projects, leaving their mark on this country in another way, is a testament to their courage and work ethic, and something they, and all of us, should be immensely proud of.