Construction firm leaders and industry groups expressed optimism and some concerns following Donald Trump’s election victory this week.
An expectation of a more favorable regulatory environment generated several positive reactions.
“We are ready to work with the incoming administration and Congress to help craft an agenda that is focused on easing regulatory obstacles that are needlessly delaying infrastructure and economic development projects across the country; continuing to invest in improving infrastructure; and addressing construction workforce shortages,” said Jeffrey Shoaf, CEO of the Associated General Contractors of America, in a statement to Construction Dive. “To that end, we are eager to work with the president-elect as he and his team fashion their economic and regulatory agendas.”
Michael Bellaman, CEO at Associated Builders and Contractors, said Trump’s commitment to supporting free enterprise and workforce development gives the construction employer trade group confidence for continued construction growth.
“This is an exciting day for our industry,” said Bellaman, whose organization advocates for merit-based inclusion on public contracts, as opposed to having requirements for unionized labor, in a statement. “We are confident that the construction industry will thrive and all workers will be given the opportunity to build America with fewer obstacles.”
Ron Tutor, CEO and chairman of Los Angeles-based heavy civil contractor Tutor Perini, said he was delighted by the election’s outcome on the firm’s third-quarter earnings call on Wednesday.
“I’m elated that Trump won and wiped Kamala Harris out,” Tutor said. “I’ve always considered Trump good for business and since his background is construction, I can’t imagine him being anything but positive.”
Infrastructure outlook
While Skanska Acting CFO Pontus Winqvist told Construction Dive that the firm is “quite neutral” for the time being on the election results, he said the major factors contributing to the Swedish firm’s business in the U.S. won’t change when Trump returns to the Oval Office. He noted a Republican president will almost certainly mean lower taxes for businesses, which would benefit the firm’s bottom line.
“The infrastructure bill continues to be there. There will continue to be a lot of investments in the infrastructure. Also in the big building segment with data centers,” Winqvist said.
The National Utility Contractors Association emphasized the urgency of addressing infrastructure needs, especially in water systems, roads and energy projects.
“America’s infrastructure issues are nonpartisan. A leaking water service main, or Americans without clean water are everyone’s concerns,” said NUCA’s CEO, Doug Carlson, in its statement. “Americans are counting on Congress to responsibly deliver the billions of dollars in construction for the roads, bridges, energy and broadband infrastructure our nation needs.”
Some caveats
Despite the congratulatory comments, some industry experts cautioned that not all potential changes from Trump’s second administration will boost construction activity. For example, new tariffs on imported materials could lead to higher costs, said Michael Guckes, chief economist at ConstructConnect.
“Certain proposed policies risk triggering higher construction costs,” said Guckes. “New tariffs on imported construction goods, which would raise the price of these goods, may lead to a second spell of construction inflation.”
Similarly, stricter immigration policies would likely worsen construction’s ongoing labor shortage, said Guckes. Chris Gower, CEO of Edmonton, Alberta-based contractor PCL Construction, whose U.S. headquarters are in Denver, said his firm is keeping a close track on how these potential policy changes will unfold.
“The things that Trump will do and has promised to do can hurt us and help us,” said Gower. “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.”
Other responses
The National Electrical Contractors Association issued a statement that touched on getting past the divisiveness of the recent campaign, while maintaining momentum for broader electrification, which could be a lower priority for Trump than under current President Joe Biden.
“Through this election we are reminded of our responsibility as leaders in the electrical construction industry to come together and support one another,” said David Long, the group’s CEO. “NECA will continue to advocate for policies that enhance the success of our members with sensible tax policy, permitting reform and driving the electrification of America.”
Other groups were notably silent on the news that Trump will be moving back to the White House in January. North America’s Building Trades Unions, which represents workers’ groups that made gains under Biden, hadn’t issued a statement by Thursday morning. The group had previously endorsed Vice President Kamala Harris for president.
And the AFL-CIO, the umbrella organization for union groups that also endorsed Harris, highlighted the outcome as a setback.
“This result is a blow for every worker who depends on our elected leaders to fight for our jobs, our unions and our contracts,” said AFL-CIO President Liz Shuler in the statement. “We organized for months to produce a nearly 17-point advantage for Vice President Kamala Harris with union members. But it is clear that the economic struggle working-class people are facing is causing real pain and neither party has sufficiently addressed it.”
Nevertheless, Guckes said a Trump presidency with a potential Republican-led Congress should positively impact the overall construction economy. He said that a relaxed regulatory environment will promote construction activity, along with lower taxes and the opening of federal lands to development.
“These changes could free the construction industry of the regulations that have historically held it back from faster growth,” Guckes said.
Zach Phillips and Matt Thibault contributed to this article.
