Leaders of construction companies and industry groups expressed optimism and some concerns after Donald Trump’s election victory this week.
The expectation of a more favorable regulatory environment generated several positive reactions.
“We stand ready to work with the incoming administration and Congress to help craft an agenda focused on easing the regulatory hurdles that unnecessarily delay infrastructure and economic development projects across the country; continuing to invest in improving infrastructure; and address the construction labor shortage,” Jeffrey Shoaf, CEO of the Associated General Contractors of America, said in a statement to Construction Dive. “That’s why we look forward to working with the president-elect as he and his team craft their economic and regulatory agendas.”
Michael Bellaman, CEO of Associated Builders and Contractors, said Trump’s commitment to supporting workforce development and free enterprise gives the construction trades group confidence for continued growth of construction
“This is an exciting day for our industry,” said Bellaman, whose organization advocates for merit-based inclusion in public contracts, rather than requirements for unionized labor. in a statement. “We are confident that the construction industry will thrive and that all workers will have the opportunity to build America with fewer obstacles.”
Ron Tutor, CEO and president of Los Angeles-based heavy civil contractor Tutor Perini, said he was delighted with the election result on the company’s third-quarter earnings call Wednesday.
“I’m glad Trump won and took out Kamala Harris,” Tutor said. “I’ve always considered Trump to be good for business, and with his background in construction, I can’t imagine anything but positive about him.”
Infrastructure perspectives
While Skanska’s interim CFO Pontus Winqvist told Construction Dive that the company is “pretty neutral” on the election results at the moment, he said the main factors contributing to the Swedish company’s business in the US will not change when Trump returns to the Oval Office. He noted that a Republican president will almost certainly bring a tax cut for businesses, which would benefit the company’s bottom line.
“The infrastructure bill is still there. There will be many investments in infrastructure. Also in the segment of large buildings with data centers,” said Winqvist.
National Association of Public Service Contractors he emphasized the urgency of addressing infrastructure needs, especially in water systems, roads and energy projects.
“America’s infrastructure problems are not partisan. A leaky water main, or Americans without clean water are everyone’s concerns,” NUCA CEO Doug Carlson said in his statement. “Americans are counting on Congress to responsibly deliver the billions of dollars in road construction, bridges , energy and broadband infrastructure that our nation needs.”
Some caveats
Despite the congratulatory comments, some industry experts cautioned that not all of the 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.
“Some proposed policies risk leading to higher construction costs,” Guckes said. “New tariffs on imported construction goods, which would increase the price of these goods, may lead to a second period of construction inflation.”
Similarly, stricter immigration policies will likely worsen construction labor shortages, Guckes said. Chris Gower, CEO of Edmonton, Alberta-based contractor PCL Construction, whose U.S. headquarters are in Denver, said his company is closely monitoring how these potential policy changes play out.
“The things that Trump will do and has promised to do can hurt us and help us,” Gower said. “Today I am not sure, not knowing how these plans will develop, if it is neutral, if it is positive or negative. We’re looking at it from multiple fronts and we’re tracking how it will affect us in more detail.”
