Published February 7, 2025 . 8 mins read

We’ve all heard the noise—tariffs on materials from China, Canada, Mexico, and the EU and those are the ones we know about. On February 3, the tariffs for Mexico and Canada were delayed for 30 days, but who knows what will happen next? If you’re a contractor, the question isn’t if this affects you. It’s how much—and are you ready?

So, let’s talk about tariffs.

Tariffs are particularly interesting to me as I’ve spent over a decade knee-deep in construction data from 500+ contractors, analyzing market shifts, financial impacts, and everything in between. To give you an idea, I’m talking about hundreds of billions of dollars in contract value. If there’s one thing I’ve learned, it’s this: contractors who wait to react get burned. The ones who think ahead, anticipate change, and adjust early? They’re the ones who thrive.

Forecasting Is Already a Headache—Tariffs Make It Worse

Let’s be real—forecasting in construction is already tough. You’re juggling labor shortages, material price fluctuations, and unpredictable project timelines. Now, throw in a wildcard like tariffs, and suddenly, your entire cost structure is a moving target.

Ignoring the problem isn’t a strategy. Getting ahead of it is.

Protecting Your Cash Flow & Profitability

Cash flow is king. You let it slip, and your entire operation is on the ropes.

Here’s what contractors should be doing right now:

Margins in construction are already thin. Let them get thinner, and you’re working for free.

Scenario Planning: The Key to Staying in the Game

This isn’t about guessing—it’s about preparing for whatever happens next.

Say you’ve got a multi-million-dollar project relying on steel, concrete, and electrical components from Canada and China. If you’re not running scenario forecasts, here’s what’s going to happen:

If you’re not modeling this out, you’re already behind.

Yeah, This Sounds Daunting. But It Doesn’t Have to Be.

All of this probably sounds daunting and time-consuming—because, well, it is. That’s why smart contractors aren’t doing it manually.

Luckily, there are tools out there that do the heavy lifting for your PMs. And I’ll do a shameless plug here: ProNovos equips construction professionals to lead with confidence by providing a central hub for project management and financial intelligence. With intuitive tools that transform project managers into project leaders, ProNovos gives PMs greater control, reduces time spent on administrative tasks, and ensures projects run smoothly. By delivering complete visibility into project performance and financial health—from kickoff to closeout—this streamlined approach minimizes costly errors, protects profit margins, enhances cash flow, and ensures that every project is successful.