Tariff uncertainty rewards the ready

Eric Helitzer

April 28, 2025

Procurement Practices

The construction industry is no stranger to volatility, but current conditions are testing even the most seasoned subcontractors. Tariffs on imported materials, compounded with rapidly shifting supply chains, are making pricing more unpredictable than ever.

This isn’t just a short-term headache. Subcontractors are adjusting to a new normal that’s reshaping how they budget, bid, and build. And it’s highlighting a fundamental truth: proactivity is no longer just a competitive edge – it’s a necessity.

The cost of not knowing

Subcontractors know the numbers are going up. What they don’t know is when, by how much, or even which materials will be hit hardest. That uncertainty is already affecting projects in motion, especially when budgets are locked and contracts leave little room for flexibility.

One stark example comes from a recent Business Insider report, that said tariffs have contributed to steel prices rising 8-10%, adding nearly $2 million to the budget of a warehouse project in Newark, New Jersey. These aren’t abstract increases – they’re reshaping decisions mid-project, creating ripple effects across timelines, costs, and relationships.

At the same time, vendors are quoting high to try and stay ahead of increases. This creates a moving target for subcontractors, who are forced to make purchasing decisions in a fog of unknowns.

Replacing guesswork with real-time systems

The subcontractors we see adapting fastest aren’t waiting for the market to stabilize. They’re building systems that cut through the noise.

That means treating real-time information as critical infrastructure, moving from reactive workflows to proactive decision-making, and asking better questions:

Where are prices trending?
When should we buy?
Which vendors are most reliable – not just on cost, but on availability?

Tools that support better thinking

SubBase is built to support this kind of shift. Not to replace relationships, but to enrich them. With tools like SubBase, subcontractors can request multiple quotes in just a few clicks, compare responses at the line-item level, and track which vendors are moving where.

It’s not about trying to predict the future. It’s about being prepared for it.

Planning in an unstable environment

Proactive subcontractors are taking a range of approaches:

Locking in prices early to protect against cost spikes.
Bulk buying or aggregating orders for upcoming jobs.
Flagging backordered items early, recognizing that availability and timing can be just as critical as price.

It’s not a one-size-fits-all strategy, but what matters is having the visibility – and willingness – to make informed decisions, not reactive ones. With live market data, cleaner comparisons, and more connected workflows, teams can act without waiting for perfect certainty.

Proactivity isn’t optional anymore

This is a moment that rewards those who lean in. While no tool can eliminate all uncertainty, the right systems can bring clarity, surface opportunities, and help teams respond faster than the market shifts.

We built SubBase to support better thinking, and in times like these, thoughtful action – backed by real-time data - is what will separate those who endure from those who lead.

If you're navigating these challenges and want to explore new ways of working, we’d be happy to talk: schedule a demo or get in touch.

Reference article: Tariffs Are Raising Costs for Steel and Other Construction Materials - Business Insider