678ÌåÓý¹Ù·½ÆµµÀ

Regulations around tariffs are evolving rapidly, and while the full effects remain uncertain, the consensus is that there will be a significant impact on commercial interior renovations. The tariffs that the United States government has enacted on our global trade partners has already put pressure on costs, lead times, and sourcing. Contractors, suppliers, and property owners are all bracing for the ripple effect.  

However, as tariffs and material costs fluctuate, Skyline remains committed to researching daily developments, adapting our strategies, and proactively mitigating challenges.  

In this article, some of our most seasoned preconstruction experts â€� Project Executive Steve Arnold, Principal Craig Jones, Chicago President Andy MacGregor, and Preconstruction Executive Matt Slayen â€� offer their outlooks on the future of commercial interior renovations, as well as providing advice and guidance for navigating the uncertainty of the market to ensure projects are kept on schedule with as little budget fluctuation as possible.  

Materials Under Pressure: What’s Getting Hit the Hardest? 

Many of the materials that make up a typical commercial interior space are directly impacted by tariffs. Among the most affected are: 

1. Steel, Aluminum & Copper: Prices for these foreign-sourced materials � essential for items such as framing, ductwork, structural supports, equipment, electrical conduits, wiring and gear � are increasing
2. Glass: Curtain walls, windows, and glass partitions are likely to see an increase due to tariffs on imports from China and Europe. 
3. Luxury Vinyl Tile (LVT): A popular flooring choice in commercial spaces, LVT is largely imported from China. 
4. Cabinetry & Millwork: Tariffs on Canadian lumber imports, as well as steel and aluminum used for hardware, have escalated manufacturing expenses for cabinetry and millwork. 
5. Electrical Components: LED lighting, wiring, and circuit boards from China and Mexico are all subject to tariff impacts.

Dissecting the Challenges Ahead 

Subcontractors and suppliers are already responding to the volatility. “There is a current consensus in the industry that there is uncertainty,â€� said MacGregor. “And just like the pandemic, there is an understanding that prices will rise.â€�   

Increased demand for domestic materials might seem like the answer, but that’s causing its own set of problems.  

“Even when we try to pivot to domestic products to avoid tariff impacts, the demand has already outpaced supply,” said Arnold. “We’re seeing longer lead times across the board because everyone is placing large orders at once, trying to get ahead of the increases. That kind of rush strains the whole system, and ultimately, it’s the projects that feel the delay.” 

This strain on the supply chain leaves teams searching for alternatives—but material substitutions may not always offer a clear-cut solution. 

“If you decide to go with timber construction instead of steel, wood is being tariffed as well,” said Jones. “One doesn’t trade for the other. Every alternative comes with its own set of challenges, whether it’s pricing, availability, or even structural feasibility. That’s why it’s critical to evaluate not just the cost impact, but the bigger picture —schedule, performance, and long-term resilience.” 

Compounding the issue is a decline in domestic production. 

 â€œOur U.S. steel production has dropped dramatically,â€� Slayen added, “and over the next decade, domestic capacity and manufacturing capabilities will struggle to meet demand.â€� 

Proactive Strategies for Mitigating Project Risks  

In a rapidly evolving construction market, staying ahead of challenges requires strategic foresight. At Skyline, we don’t just react to market shifts â€� we anticipate them, implementing key strategies to mitigate risk, control costs, and keep projects moving forward. Our approach includes: 

1.  Building flexibility into budgets to absorb unexpected cost increases due to tariffs, ensuring the project stays on track without the need for major redesigns or delays.  

2. Proactively securing materials early to lock in pre-tariff pricing. “We are actively working with subcontractors to lock in pricing when we negotiate,â€� MacGregor said. “This approach helps protect our clients from the impending market volatility and uncertainty caused by tariffs.â€� 

3. Exploring alternative materials and sourcing that can provide cost efficiencies without sacrificing quality. “This might mean exploring different manufacturers, adjusting material specs, or finding domestic options that meet the same standards,â€� Arnold said. “The key is being creative and flexible while still delivering a high-quality end product.â€�  

 Ultimately, protecting project success comes down to a proactive, hands-on approach.  

“These are all strategies that we are proactively implementing to protect our client’s projects,â€� MacGregor said. “However, the key to any successful project starts with honest, upfront conversations about market conditions. We are being that much more thorough with each trade partner’s proposal. Locking in pricing early and securing deposits on key items can help ensure inventory is available when needed for the project.â€� 

An Evolving Industry, A Proactive Partner  

Tariffs are just one of many factors shaping today’s construction landscape, but Skyline is committed to staying ahead of the curve. Our dedication to research, strategic planning, and industry expertise ensures that we deliver the best possible outcomes for our clients, no matter what challenges arise. By embracing change and focusing on proactive solutions, we continue to build strong, successful projects with confidence. 

Interested in continuing the discussion? Reach out to one of our experts.