2025 began with optimism, driven by lower rates, a strong backlog, and waning supply chain disruptions. But in a matter of weeks, sweeping tariff announcements, economic contraction, and policy shifts introduced new waves of uncertainty. CBIZ surveyed construction leaders nationwide just before the “liberation day” announcements, and their responses, combined with our expert analysis, provide critical insight into sentiment and strategy during this pivotal moment.

Key Takeaways:

1. Timing matters: Optimism was high before major shocks, but sentiment may now be more cautious.
2. Labor is still the top concern, but new headwinds are emerging fast.
3. Backlog remains strong, but may be a lagging indicator.
4. Policy volatility is the new risk frontier.

Tariffs Are Raising Costs — But Also Forcing Smarter Operations

With material prices on the rise and trade conditions in flux, construction firms are rethinking procurement and supplier relationships. Leaders who pivot quickly can mitigate costs and uncover efficiencies.

As tariffs inflate costs, contractors need to focus their efforts on cash flow management. Read our recent article offering 7 tips for managing cash flow.