The Construction Industry’s Reaction to Trump’s Win is Mostly Divided

After Trump won the election, construction contractors reacted to the development, some with optimism and some with a strong sense of concern. On one hand, some contractors have reacted positively to Trump winning the race for the White House in anticipation of favorable regulatory environments, while on the other end, others are concerned over the possible resumption of trade wars with China which would lead to an increase in tariffs on imported goods that are vital to the construction industry.

There are also concerns surrounding the labor supply as Trump has vowed to deport illegal immigrants who form a significant portion of the construction labor supply. This may cause issues in the labor supply that is already facing a shortage of skilled workers.  

Nevertheless, there is still optimism in certain quarters who look forward to working with the Trump administration.

What are the reactions to the election results so far

Reactions have started pouring in as Trump prepares to take on the role of the presidency. There were certain quarters that decided to back Trump in the elections while some took a solid stance in favor of Kamala Harris.

A strong sense of optimism for some

The CEO of the Associated General Contractors of America, Jeffrey Shoaf, sounded optimistic as he expressed willingness to work with the new administration. His optimism was focused on working with the new administration to ease “regulatory obstacles” responsible for “delaying infrastructure and economic development projects across the country.”

The CEO at Associated Builders and Contractors, Michael Bellaman, echoed similar sentiments by saying that construction growth would be revitalized with Trump’s commitment to supporting free enterprise. He was also confident about workforce development under Trump. His message was clear and focused on the good days ahead with the Trump administration to take charge soon.

“We are confident that the construction industry will thrive and all workers will be given the opportunity to build America with fewer obstacles” he said.

Trump’s win has been welcomed by the Associated Builders and Contractors. However, this was widely expected as this national trade association representing 23,000 members had earlier endorsed Trump.

Bellaman, in fact, sounded too optimistic.

“This is an exciting day for our industry. ABC is optimistic about the future of America’s construction industry and the opportunities to advance policies that protect free enterprise, reduce regulatory burdens and expand workforce development.”

Bellaman feels they would be able to work with the Trump administration on issues, such as skilled labor shortage and regulatory burdens. He felt other issues of concern would also be addressed like inflation and taxes.

What concerns do others have about the new administration?

However, there are others who have expressed concerns. Despite congratulating Trump, experts opine that the situation may not be so encouraging for the construction sector under Trump. This concern was cited by the chief economist at ConstructConnect, Michael Guckes. He maintained that certain policies highlighted the risk of possible increases in construction prices. He mentioned the possibility of trade wars under the new administration, saying the “new tariffs on imported construction goods, which would raise the price of these goods, may lead to a second spell of construction inflation.”

However, concerns are not merely restricted to increased tariffs on imported goods. There are other sources of concern as well. One significant point of worry for many people is the strict immigration policies the new administration is likely to adopt.

The CEO of Edmonton, Alberta-based contractor PCL Construction, Chris Gower, decided to wait before forming a conclusion.

“The things that Trump will do and has promised to do can hurt us and help us,” he said.

He exercised caution on reaching any conclusion as of yet since it was too early.

“I’m not sure today, without knowing how those plans are going to unfold, if it’s neutral, or if it’s positive or negative. We’re looking at it from a number of fronts and we’re tracking how it’s going to impact us in more detail.”

It will likely take some more time before heavy equipment suppliers express their views on the new administration. However, one thing is for sure: the Trump administration has left the construction industry divided in opinion.

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