Construction Association Calls on President to Immediately End Tariffs and Quotas on Steel, Aluminum, and Lumber as First Step to Easing Pressure on Construction Costs and Supply-Chain Bottlenecks

On June 9, AGC and the business community urged President Biden to remove steel and aluminum tariffs and quotas on the nation’s allies to help address significant price and availability issues for those construction materials. For instance, a widely watched index of steel prices rose 11% in April alone, setting new record highs each week. Many suppliers have warned of difficulty in securing truck or rail transportation from factories, distribution centers and ports. One steel manufacturer, for example, reported on April 28 having to wait 15 days for railcars to ship a load of steel. Recent reports speculate that the president and European Union leaders could next week announce plans to remove some steel and aluminum tariffs by Dec. 1, 2021. Members of the White House National Economic Council recently met with AGC’s Chief Economist Ken Simonson, who communicated the severity of the construction materials situation and the need to immediately remove such tariffs and quotas to help provide some relief.

Many Construction Firms Also Report Difficulty Finding Qualified Workers to Hire as Some Remain Reluctant to Return to Work amid Child Care Challenges and Elevated Unemployment Supplements

On June 1, President Biden called for an “all-of-government effort to expand contracting opportunities for underserved small businesses across the country.” Among other initiatives, the goal is to increase the share of contracts going to small, disadvantaged businesses (SDB) by 50 percent by 2026, which the administration calculates as an additional $100 billion to SDBs over the five-year period. SDBs include 8(a) participants and other small businesses that are at least 51% owned and controlled by socially or economically disadvantaged individuals or groups. The Administration is silent about the other small business subcategories such as Women-Owned Small Businesses, HUBZone Small Businesses, and Service-Disabled Veteran Owned Small Businesses. According to a recent Congressional Research Service report that analyzed federal contracts in FY2019, SBD contractors received 8.69% of all federal contracts and 10.13% of all small business eligible federal contracts.

Houston-The Woodlands-Sugar Land and Odessa, Texas Have Worst 14-Month Construction Job Losses; Indianapolis-Carmel-Anderson, Ind. and Sierra Vista-Douglas, Ariz. Lead List of 217 Metros with Job Gains

Construction Officials Say New Infrastructure Funding, Tariff Relief and Measures to Reduce Manufacturing and Delivery Delays for Key Materials Needed to Jump Start Nonresidential Activity

Texas and Louisiana Have Worst Job Losses Since February 2020, While Utah and Idaho Top Gainers; Illinois and New Hampshire Add the Most in April, as Texas and Iowa Posts Biggest Monthly Losses

The cost of goods and services used in construction accelerated further in April as more items logged double-digit increases over the past year, according to an analysis by the Associated General Contractors of America of government data released today. Meanwhile, nonresidential contractors struggled with delays in receiving materials and intensifying competition that limited their ability to pass on higher costs. Association officials urged the Biden administration to quickly roll back tariffs and quotas on imported construction materials that are adding to costs and availability problems.

Construction employment was unchanged from March to April as nonresidential contractors and homebuilders alike struggled to obtain materials and find enough workers, according to an analysis by AGC of government data released today. Association officials said the industry’s recovery was being hampered by problems getting stable prices and reliable deliveries of key materials, while the pandemic and federal policies were making it harder for firms to find workers to hire.

Construction Officials Say New Infrastructure Investments, Tariff Relief for Key Construction Materials are Needed to Help Contractors Cope with Continued Economic Impacts of the Pandemic