While recent trade policy developments dominate headlines, the broader construction industry continues to grapple with rising material costs, tariff uncertainty and persistent workforce shortages, according to Associated Builders and Contractors (ABC).

In a statement following President Donald Trump’s 2026 State of the Union address, ABC President and CEO Michael Bellaman emphasized that while the construction industry remains resilient, affordability pressures and policy uncertainty are weighing on contractors across market segments.

“While resilient, the construction industry faces ongoing headwinds from high costs, tariff uncertainty and a chronic workforce shortage,” Bellaman said, urging federal policymakers to create stable, pro-growth conditions that enable contractors to deliver housing, infrastructure and energy projects more efficiently.

For the PHCP-PVF channel, those headwinds translate directly into project pricing pressure and bid volatility. Plumbing and mechanical systems rely heavily on materials and components influenced by trade policy, including steel, copper, aluminum, castings, electronics and imported subassemblies.

ABC’s analysis of U.S. Bureau of Labor Statistics Producer Price Index data shows construction input prices remain roughly 3–4% higher year over year, with tariff-sensitive materials such as copper wire and aluminum mill shapes posting even sharper increases in recent months. Independent industry reporting has similarly found that nonresidential construction material costs climbed approximately 3.2% over the past year, with metals and imported products contributing significantly to upward pressure.

Although emergency tariff authorities were curtailed by the Supreme Court, Section 232 tariffs on steel and aluminum and Section 301 tariffs on Chinese imports remain fully in place. Many PHCP-PVF products incorporate imported metal or electronic subassemblies subject to these tariff regimes.

Beyond materials, workforce availability continues to strain project delivery. ABC estimates the construction industry must attract more than 500,000 additional workers in 2026 alone to meet demand, with skilled trades such as plumbing, pipefitting and mechanical installation among the most constrained. Reuters reporting on builder sentiment has likewise noted that contractors continue to cite rising material prices and labor shortages as major constraints on growth and project affordability. The combination of tariff exposure, material inflation and workforce gaps adds complexity to inventory planning, pricing discipline and customer demand forecasting.

Bellaman called for policies that promote stability and affordability, stressing that contractors remain essential to delivering housing, infrastructure and energy projects nationwide.

For the PHCP-PVF market, the message following the Supreme Court ruling is nuanced: while one tariff mechanism has been curtailed, material pricing remains elevated, metal duties remain intact and labor shortages continue to shape the operating environment for 2026.