Construction is inherently material-intensive, but while contractors have always dealt with material price swings, new tariffs and global supply chain uncertainty are adding new complexity to this longstanding challenge.
In March 2025, the United States announced a 25-percent tariff on products imported from Canada and Mexico, including steel, aluminum and derivative parts. The impact of these tariffs, combined with ongoing Section 232 investigations into copper and lumber, has intensified cost pressures. For contractors, it could lead to budget overruns, project delays, and sourcing alternative suppliers that might not meet quality or demand.
It’s safe to say that the question isn’t if costs will rise, but how to respond quickly enough to protect profitability, and many contractors are finding the answer in technology.
TAPPING INTO TECH
From digital procurement networks to AI-powered contract review, new solutions are giving construction leaders the visibility, agility, and confidence to weather uncertainty, mitigate risk, and maintain profitability in four key areas:
Streamlining Material Pricing and Procurement: Every price change, no matter how small, ripples through bids, budgets and schedules, but digital procurement tools are changing how contractors manage these fluctuations. Through connected procurement networks, contractors link directly to suppliers to request prices, receive quotes, and place orders digitally. Supplier data is always up to date and synced to contractor estimates, which ensures every bid reflects current market conditions. If steel or copper prices spike overnight, for example, the contractor is alerted and prompted to update their estimate or explore alternative materials. This level of automation and connectivity allows contractors to make data-driven sourcing decisions instantly, before a bid is lost or a profit margin is compromised.
By replacing manual quote requests and spreadsheets with automated workflows, contractors gain real-time visibility into costs and can compare multiple supplier quotes side by side. This shift results in faster decisions, fewer errors, and greater pricing accuracy in a volatile market.
Extending Machine Life Through Smarter Equipment Management: When budgets tighten, new equipment purchases are often the first to get postponed. With asset management platforms and predictive maintenance tools, contractors are getting more value from the machines they already own.
These tools monitor equipment performance, enabling contractors to proactively schedule service to keep machines in good working order and repair them before costly breakdowns occur. By integrating telematics and real-time usage data, contractors can extend machine life, optimize utilization, and delay capital expenditures. Whether tracking idle time, fuel consumption, or wear rates across the fleet, asset management platforms give contractors the visibility to make operational decisions that protect the bottom line without sacrificing productivity.
Connecting the Field and Office for Data-Driven Decisions: In an uncertain economy, disconnected systems are a liability. Field teams, project managers, and accounting departments must all work from the same data to make timely, informed decisions.
Connected construction management systems connect project management, financial management, and supply chain solutions to eliminate the silos that slow down decision-making.
By centralizing financial, operational, and project data, contractors can see how tariff-affected materials impact cost, while finance teams track those exact costs in the ERP system. Real-time cost tracking and financial insights also optimize project planning and help control expenses.
When everyone operates from a single source of truth, contractors can quickly respond to changes in material prices, supplier availability, or project scope. This unified workflow keeps budgets on track and teams aligned, despite shifting economic conditions.
Navigating Economic Uncertainty with Real-Time Data: Economic instability thrives in the absence of information. Visibility into real-time costs, risks, and progress can be the difference between staying on budget or slipping into the red. Modern financial and project management platforms are equipped with dashboards and analytics that flag potential cost overruns, sourcing issues, and schedule delays early—when corrective action is still possible.
AI-powered tools also help contractors anticipate risk. Platforms such as Document Crunch offers an AI-powered, tariff-risk assessment tool that analyzes construction contracts to quickly identify risks related to tariffs and material costs, particularly concerning price escalation. In minutes, contractors can pinpoint potential exposures to price volatility and strengthen their contractual protections. This automation not only reduces administrative time but also empowers contractors to enter negotiations and bids with a clear understanding of where tariff risks exist and how to manage them.
BRINGING PREDICTABILITY TO AN UNPREDICTABLE MARKET
Tariffs and economic uncertainty aren’t challenges that can be solved overnight. However, by embracing connected construction technology, contractors can turn economic uncertainty into opportunity. Digital procurement networks reduce the chaos of material pricing, predictive analytics extend the life of existing assets, real-time data keeps teams on the same page, and AI tools bring clarity to complex contract language. Together, these advances are helping contractors make smarter, faster decisions and safeguard profitability in an unpredictable market.
about the author
Scott Crozier is the vice president of civil construction field systems at Trimble. In this role, he is responsible for Trimble’s civil construction business, including product development and strategy for the company’s technology solutions targeting the civil construction sector globally. This includes Trimble’s hardware and software solutions for machine control and construction surveying.