Poerio Inc. | Industry News | Cost Management
If you’ve been following the news lately, you’ve probably heard that tariffs on imported building materials have been pushing prices higher across the construction industry. As a property owner or developer planning a project, you might be wondering: how does this actually affect my bottom line? We want to give you a straight answer.
What’s Happening with Material Prices
Over the past two years, trade policy changes have introduced new tariffs on steel, aluminum, and lumber — three of the most critical materials in commercial construction. While prices had stabilized somewhat through 2024, the latest rounds of tariff adjustments in 2025 and 2026 have created fresh uncertainty. Suppliers are passing those costs along, and contractors across the country are feeling the squeeze.
The tricky part isn’t just higher prices — it’s volatility. A quote on structural steel that’s valid today might shift next month. That unpredictability makes budgeting harder for everyone, and it’s something we take very seriously at Poerio.
How This Affects Your Project
For most commercial projects, materials make up roughly 40–60% of the total construction cost. Even a 10–15% increase on key materials like steel or lumber can meaningfully change a project budget. That said, not every project is affected equally. A ground-up steel structure is going to feel this more than a tenant fit-out, for example.
The bigger risk for owners isn’t the price increase itself — it’s being caught off guard by it. If you’re working with a contractor who locked in pricing six months ago without accounting for tariff risk, you could be looking at change orders and uncomfortable conversations.
What We’re Doing About It
At Poerio, we’ve been managing through material price swings for over 35 years, and our approach comes down to a few things. First, we maintain strong relationships with our suppliers and distributors throughout the Pittsburgh region and beyond. Those relationships give us early visibility into price changes and, in many cases, the ability to lock in pricing ahead of increases.
Second, during preconstruction, we build contingencies into our estimates specifically for material volatility. We’d rather have an honest conversation about a realistic budget up front than surprise you later. Third, when it makes sense, we explore domestic sourcing alternatives and value engineering options that reduce exposure to tariff-affected materials without compromising quality.
What You Can Do
If you’re planning a project in the next 12–18 months, the best thing you can do is start the conversation early. The more time we have to plan, the more options we have to manage costs intelligently. Waiting until you’re ready to break ground to think about material pricing is a recipe for sticker shock.
Have questions about how current pricing trends might affect your project? We’re always happy to talk it through — no commitment needed. Give us a call or send us a message through our website.
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