As we have discussed in this six-part article, a new tariff imposed on steel and aluminum is making headlines around the world. In the first, second, and third sections, we discussed the new tariff, the state of American made steel today, and how this tariff may impact the future of steel production in America. In the last section, we discussed the negative impact this tariff could have on buyers and suppliers in the construction industry. In this section and the final section, we will discuss the potential cause and effect of this tariff and how it may stunt construction industry job growth, affect vital industry sectors, and universally raise prices for consumers.
As Jacksonville construction lawyers, we know that this tariff could affect everybody from contractors to laborers, to the people that work or live in the infrastructure built by the construction industry. If you are in need of legal advice, contact a Jacksonville construction lawyer today.
Construction Job Growth May Be Impacted
Economic experts project that the newly imposed tariff will create approximately 33,000 jobs within the steel and metal industries, but cost nearly 180,000 jobs for any steel or metal utilizing industries. This includes nearly 30,000 construction jobs. This is largely because the number of steel-utilizing industries (automobiles, aerospace, and construction) employ 80 times as many workers as steel manufacturers. Simply put, raising prices on production costs will, in turn, affect the industry’s overall economic welfare and limit employment opportunities within the construction job sector.
Consumers Pay More
With higher production costs for manufacturers comes higher prices on products for consumers. This means that the average American may have less disposable income resulting in less demand for products. Typically, steel and aluminum are part of the manufacturing process for a product, so it’s difficult to determine exactly how much more expensive certain products will become. However, steel-based products like automobiles are projected to increase hundreds of dollars in the immediate future and affordable housing options are unlikely to be available anytime soon as well.
Affecting the Infrastructure Sector
With projected increases in steel and aluminum prices, this tariff is expected to impact horizontal construction and infrastructure projects that rely on purchasing massive amounts of steel for production. This uncertainty in regard to the buying market for steel will make it even more difficult to predict material costs and could limit job creation in this sector of the construction industry as well. This also may make it more challenging for Washington to pass a federal 1.5 trillion dollar infrastructure bill.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.