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Handling the Impact of Tariffs in the Construction Market

Published June 29 2020

The construction market in the United States is surely being impacted by the ever-changing landscape of tariffs and their influence on raw materials and finished goods. As of Q2 in 2019, tariffs on Chinese goods were equivalent to a $2.5 billion tax on housing, according to the National Association of Home Builders. 1 In California, the tariffs have added $20,000 to $30,000 to the cost of an average-size new home, which is affecting the overall market, slowing construction because housing has become unaffordable.

For those in the building products manufacturing industry, keeping up with pricing changes and shifting demands is critical and needs to be handled rapidly as they arise.

How to respond quickly to changing market conditions:

Manufacturers have to manage these changes in material costs. To help manage fluctuating raw material prices, Dynamics 365 includes robust planning options to help optimize materials acquisition and tracking. In addition, Dynamics 365 cost tracking capabilities are extensive.

Looking for more on the challenges facing building products manufacturers and how to handle them? Download the eBook below.



1. Construction Data, Association of General Contractors,, 2018.