As the construction industry grapples with rising costs, tariffs, staffing shortages and immigration challenges, companies are innovating and adapting.
With material prices surging and a shrinking labor pool, industry leaders are finding creative solutions to ensure projects stay on track while maintaining quality and efficiency.
Amid these hurdles, a renewed focus on workforce development and collaboration is emerging.
Material costs keep climbing
Uncertainty about tariffs, including the current 10% tariff on all foreign products and a 145% tariff on Chinese goods, may prompt homebuilders to pause or adjust their strategies, potentially leading to higher home prices.
estimates that tariffs could increase the average cost of a new home by $10,900.
Denver-area construction leaders say the new tariffs can also affect supply chains.
Byron J. Haselden, CEO and president of Haselden Construction, a general contracting company that builds schools, municipal buildings and hospitals, including Intermountain Health’s new Lutheran Hospital, said the company closely monitors global supply chain dynamics using a strategy that focuses on proactive procurement planning, strong vendor relationships, and continuous market monitoring.
Haselden ranks 16th for midsize companies and has earned a spot on the Top Workplaces list for the past decade.
“While we haven’t made drastic changes yet, we have adopted a thoughtful and strategic approach to procurement, collaborating with trade partners and suppliers to anticipate challenges and mitigate risks,” Haselden said.
“Our strategy is built on early procurement planning, strong vendor relationships, and continuous market monitoring, ensuring that we remain agile and well-informed. This proactive approach helps us manage cost fluctuations effectively and keep our projects on track, even in a rapidly changing economic landscape.”
Haselden said the company doesn’t accept cost hikes at face value, and assesses whether they are truly tariff-driven or influenced by other market factors.
“By fostering strong communication and strategic adaptability, we continue to navigate market complexities minimizing disruption the best we can, protecting the interests of all stakeholders while maintaining the highest standards in our work.”
Dave Blumenthal, director of talent acquisition for Vivax Pros, an exterior home painting company, said the company continuously assesses its procurement strategies to mitigate cost increases and ensure value for clients. Vivax Pros ranks seventh for the best midsize company. This is the company’s fourth time being ranked on the Top Workplaces list.
SEMA Construction, a full-service construction firm specializing in heavy construction and civil infrastructure projects, maintains a “Buy American” policy. SEMA ranks 43rd for midsize companies and has earned a spot on the Top Workplaces list four times.
Lifetime Home Remodeling also uses American-made products, said Kelly Shearer, vice president of human resources for the company, which made its first appearance on the Top Workplaces list this year, ranking 59th among the best small companies.
“Thankfully, our products are American-made, so our purchasing methods remain unchanged,” Shearer said.
Meeting staffing needs
The , primarily from South and Central America. in the U.S. construction industry are immigrants.
The construction industry has long faced challenges in recruitment and retention.
Haselden said his company monitors policy changes that can affect its workforce.
“While stricter immigration policies have not significantly impacted our staffing to date, we continue to work closely with our HR and legal teams to stay informed and compliant.”
The company’s staffing approach focuses on long-term workforce planning, strategic recruitment, and talent development.
“We also partner with industry organizations and educational institutions to strengthen the pipeline of future talent and provide opportunities for individuals from all backgrounds,” Haselden said.
“Ultimately, our focus is on building a sustainable, skilled workforce that reflects the communities where we live and build—now and in the future.”
Blumenthal said Vivax Pros remains committed to maintaining a diverse and talented workforce.
“While immigration policies can influence staffing, we focus on compliance and supporting all employees through any policy changes,” he said.
SEMA Construction, a full-service construction firm specializing in heavy construction and civil infrastructure projects, has always relied on a diverse workforce.
“We continue to hire great people, verify work eligibility, and invest in training. We don’t care where you’re from, what school you went to, or what mistakes you’ve made—if you’re in the right spot and aligned with our values, we’ll invest in your success,” the company said in a written statement prepared by Raena Whitney, marketing and proposal coordinator, and T. Brett Ames, CEO.
“As a result, we’ve built a workplace where diversity is one of our strengths and each team member is united by the drive to build something better.”
SEMA ranks 43rd for midsize companies and has earned a spot on the Top Workplaces list four times.
ECC, an employee-owned company that provides design-build, construction, and environmental remediation services, ranks 29th for best small companies and has earned a spot on the list three times.
“ECC has a great reputation within our industry as a great place to work,” said Prashant Khanna, company vice president.
ECC is committed to providing customized training for all employees.
“ECC assesses every employee’s position, background, and skill set to develop a customized training program with supplemental training through ECC University, ECC’s Leadership Development Program, our employee resources groups, and more.”
What to expect this year
The construction industry is poised for significant changes, driven by a growing focus on environmental sustainability and the adoption of innovative technologies.
As companies strive to meet customers’ demands for faster service and transparent communication, teamwork will be crucial.
Haselden anticipates the industry will continue to integrate technology, including AI.
“At Haselden, we’re actively leveraging these advancements to streamline workflows, enhance collaboration, and improve planning and execution across every phase of our projects. From field operations to supporting departments, technology is helping us work smarter, faster, and more efficiently.”
Hiring and keeping skilled workers will continue to be challenging, which is why Haselden will continue to invest in programs to develop talent.
“We’re committed to building that pipeline—both internally, through training and development programs, and externally, through strong partnerships with local schools, trade programs, and community organizations.”
SEMA said clients will continue to expect faster delivery and greater transparency.
“That requires contractors to evolve or fall behind,” the company said in a prepared statement.
“The industry will see more collaborative partnerships, more focus on carbon footprint, and an increased emphasis on technology-enabled efficiency, without losing the hands-on, boots-on-the-ground leadership that makes or breaks a project.”
Shearer anticipates that clients may be hesitant to invest in housing projects due to economic uncertainty; therefore, the company will offer a range of financing options to address this concern.
“We are a local and trusted partner in our community and want to help every homeowner achieve their remodeling dreams. We’re not just in the construction industry, we’re in the people industry—and we’re here to help.”
