This audio is automatically generated. Please let us know if you have any comments.
Patrick E. Murphy is a former Congressman from Florida, current CIO of Coastal Construction and CEO of Togal.ai, both based in Miami. The opinions are the author’s own.
As a Democrat and former congressman, I was not thrilled by the outcome of the presidential election. But as a leader in construction, I see real potential in how the Trump administration could support builders and stimulate the economy.
Some unexpected aspects are emerging.
Patrick E. Murphy
Permission granted by Patrick Murphy
For example, last week’s announcement that Elon Musk and Vivek Ramaswamy will lead a new Department of Government Efficiency could be promising news for an industry riddled with red tape. Its aim to cut red tape and streamline regulatory processes could bring significant improvements, particularly in speeding up compliance checks and offering subsidies to help localities invest in technology to speed up permitting.
The reality is stark: 81% of developers report delays due to slow permit approvals, a bottleneck that directly affects the housing market. If excessive regulations and delayed permits prevent new construction, we simply cannot address the housing shortage.
With the nation in need 4.5 million additional homesit is time for the construction industry and government agencies to innovate and accelerate the road to construction.
Encourage new construction
One of the biggest challenges in construction is navigating local and state zoning regulations, which are often outdated and no longer serve the needs of the community. Initiatives by leaders like Musk and Ramaswamy could help encourage local and state governments to update zoning rules and approve more building plans.
The Trump administration could incentivize cities with funding in exchange for pro-growth policies, such as ease zoning restrictionsallowing taller, denser buildings, and rejecting NIMBY opposition.
We saw an example of these policies in action in Florida: the “Live local act” allows developers who include affordable apartments in their projects to build more than zoning laws allow. It is causing a lot of applications for more density. This successful policy could serve as a national model for addressing the housing crisis.
Add all of this, along with more liquidity, crypto growth and lower corporate taxes, and we could see banks lending more freely to developers, creating new opportunities to address the affordable housing crisis.
A push for innovation
With Musk’s expertise in technology, I am hopeful that he will unleash the power of artificial intelligence on government functions that can be completed faster and better with technology.
AI could help automate building code, fire and life safety, and extensive environmental review approvals, allowing governments and contractors to shorten construction timelines. It could also help quickly spot design problems, reducing costly rework. Rework costs American companies over $177 billion annually and can represent up to 20% of the total cost of a project.
I don’t know if we want to live in a world without AI guardrails, but if Musk takes most of the shackles off, innovation and efficiency will thrive.
This will also require buy-in from the construction companies, so the success of any Musk/Ramaswamy initiative will also depend on their ability to get our notoriously stubborn industry to adopt the technology.
Less than 4% of US construction companies we currently use AI, but it represents the best opportunity to address our bottlenecks and unlock faster and more efficient project completions.
Leadership that understands construction
While Musk has certainly become a controversial figure, he understands the labor shortages, delays, and obstacles we face when building big projects.
His career with Tesla, Starlink and The Boring Co. demonstrates understanding of large-scale projects and innovation. I am hopeful that it will drive the construction industry to innovate as well, to overcome challenges such as talent shortages and workplace safety.
We are on the precipice of AI, robotics, new materials and automation massively disrupting construction and real estate overseas. These changes will not only reduce costs, but dramatically reduce construction timelines.
My personal experience with these improvements suggests that they are resulting in a more durable, stronger, faster, less expensive and greener build. Having leadership that understands our industry will help advance innovation.
Policies favorable to companies
With Republican control of the White House and both houses of Congress, what we feel most in most corporate America, regarding a second Trump term, is that business growth will be a priority.
Fiscal policy will play an important role. The core of his tax plan includes an extension of his 2017 tax cuts and his campaign proposal to lower the corporate tax rate even further. from 21% to 15%.
Most business leaders I talk to, regardless of whether they supported Trump, are cautiously optimistic about the impact of a unified government that has long prioritized private sector growth. The promise of clear and consistent policy has so far been reassuring for markets, particularly sectors such as real estate, finance and technology.
Concerns about construction?
Trump’s campaign promises were not without concern for the construction industry: possible tariffs and immigration policy. I hope Trump’s rhetoric on these issues remains just that, political talk, because these policies would hurt the construction industry’s bottom line.
His proposed tariffs — 60% on Chinese products and from 10 to 20% on imports from other countries, it could increase the costs of building materials, blow our budgets and stop many jobs.
It’s not the first time we’ve seen it. When Trump raised tariffs on lumber, aluminum and steel, material costs increased in 2018increasing house prices and making affordability even greater, so let’s learn from the past and avoid repeating this mistake.
The construction industry could face a major setback if the Trump administration moves forward with mass deportations. Reduction of immigration during his previous mandate it led to labor shortages, driving up wages and construction costs. With around half a million vacant construction jobsthis ongoing shortage is already slowing down projects at a time when we urgently need faster and more affordable building solutions.
Instead of deporting those who want to stay and work, we should advocate for policies that allow them to obtain documentation, contribute taxes, and support our economy. Our industry is already in short supply and we need to focus on expanding, not hiring, our workforce.
looking ahead
As someone who supported Vice President Kamala Harris, I understand the concerns surrounding this administration. But as an optimist and an American, I see a unique opportunity for Trump to shape his legacy by fostering a stronger and more inclusive economy.
If he and his administration streamline regulations, incentivize construction and address other challenges in the construction industry, the potential impact on housing, job growth and economic stability could be transformative.
With a unified Congress behind him, President-elect Donald Trump has a rare opportunity to deliver on his campaign promises and take concrete steps to help America build stronger and faster.
