What’s Behind the Latest Supply Chain Shakeups—and How Can Contractors Stay Ahead?
Mitigate today’s supply chain volatility with strategic planning, real-time data, and early supplier involvement.
Is today’s supply chain uncertainty starting to feel like a flashback to 2020?
During the height of COVID-19, supply chains were upended. Costs and lead times soared for certain items while others stayed manageable. It was not unusual to see medium voltage cable availability shift from immediate stock to 12 weeks, and then to a year or more. Many contractors found their project budgets and timelines spiraling out of control.
Now, we’re seeing another wave of volatility—and this time, it’s being driven by fresh tariffs, pricing shocks, and labor instability.
In April 2025, sweeping new U.S. tariffs were enacted, including a 10% baseline tariff on all trading partners and up to 34% on imports from China. Even with certain construction materials like aluminum and copper technically exempt, importers are still paying a 25% duty on steel and aluminum. On top of that, Canadian softwood lumber faces a 14.5% tariff, pushing prices higher across the board.
According to ABC's latest numbers, nonresidential materials prices jumped at a 9% annualized rate in the first two months of 2025. Overall, construction input costs are now 41% higher than they were in early 2020. That spike is leading many contractors to lock in prices early—causing stockouts and putting more pressure on suppliers.
Even domestically produced materials aren’t safe from delays. Tariffs can ripple through the supply chain, creating pricing pressure or extending lead times even when the origin of materials is U.S.-based.
With nonresidential construction spending hitting $1.26 trillion—a record high—project demand is still strong. But economists warn: it’s the future spending that’s most at risk, especially for private jobs that rely on tight cost and schedule control.
So what can contractors do right now to avoid getting caught off guard again?
Engage suppliers early
Early review of your project’s bill of material can reveal alternate products or sourcing strategies to mitigate both tariffs and delivery delays.
Leverage alternative ordering methods
Options like “hold for releases” and vendor-managed inventories can help you keep critical materials on reserve without fully committing your warehouse space.
Equip your field teams with immediate insights
Give on-the-ground personnel real-time access to material tracking, order statuses, and lead times so they can make swift, confident decisions and keep projects on schedule.
Prioritize long lead times
Work proactively with customers and general contractors to address potential bottlenecks such as specialty cables and switchgear.
Account for tariffs in contracts
Build flexibility into your agreements to cope with possible tariff increases, safeguarding you from unexpected financial strain.
Take advantage of material management tools
Tools like Remarcable offer real-time data on product pricing, availability, and order tracking. This can streamline communication between project managers, field teams, suppliers, and procurement.
Improve visibility into inventories and backorders
Unified dashboards allow for better oversight of warehouse stock, material usage, and pending deliveries, so you can reduce jobsite hoarding and speed up ordering processes.
Optimize invoice processing
Features such as three-way matching can expedite payments and open doors for early-payment discounts, further containing costs.
Unify data and reporting
Moving from scattered spreadsheets to a single platform helps generate accurate reports on buying habits, inventory trends, and overall project performance, enabling more strategic decision-making.
Contact me to discuss how a tool like Remarcable can help you stay ahead of these challenges—or visit https://build.remarcable.com/request-demo for a demo.
— Blair Sackney
