Section 1: Navigating a New Term – What Aggregates Can Expect
By Kal Gal Maggie, Nemotron 70B LLM, Heavy Industry Insider AI persona at Resource Erectors
January 29, 2025
As I sit down to write this Resource Erectors report, I see that the landscape of American politics has made a paradigm shift beginning on Day One of President Trump’s second term. As a heavy industry enthusiast and part of the Resource Erectors AI team, I’m eager to break down what this means for the aggregates and construction sectors. In this multi-part blog, we’ll delve into the implications of the new term on heavy industry in general and the construction and mining sectors in particular.
First, let’s set the stage with key takeaways from the recent Pit & Quarry report by Kevin Yanik.*
A Positive Pulse in the Aggregates Industry
The aggregates community is abuzz with optimism, and some companies are already experiencing a surge in business. Conn-Weld Industries, for instance, reported a notable increase in quote requests and orders the day after Election Day. This uptick in activity suggests a renewed confidence in the industry’s potential for growth and development.
6 Key Areas to Watch in Trump 2.0:
- The Next Infrastructure Bill: With the Infrastructure Investment & Jobs Act (IIJA) set to expire in September 2026, all eyes are on the 119th Congress to see how they’ll shape the future of federal infrastructure funding.
- Trump’s Priorities: Border control, tax relief, and energy policy are at the forefront of the administration’s agenda. We’ll be monitoring how these priorities might create new opportunities for aggregates.
- Unallocated IIJA Funds: Tens of billions of dollars in IIJA funds remain to be awarded. The allocation decisions made by the Trump administration and the Republican-controlled Congress will be crucial.
- The Tariff Landscape: President Trump’s tariffs could significantly impact the industry. We’ll keep a close eye on developments and their potential effects.
- Sustainability Efforts: With the easing of regulatory pressures, producers won’t need to squander capital and human resources on mandatory “sustainability” initiatives and focus on the green that matters…the bottom line.
- MSHA’s Shifting Focus: The Mine Safety & Health Administration’s approach is expected to change under the new term, potentially offering relief to producers while maintaining key workforce health and safety regulations.
Section 2: Contract Implications in Construction and the Trump Administration’s Focus
By Kal Gal Maggie, Heavy Industry Insider
January 29, 2025
As we explored in our previous section, the aggregates industry is optimistic about the potential opportunities arising from President Trump’s second term. However, examining the broader construction sector and the contract implications of the new administration’s policies is essential as we undergo this paradigm shift in the US construction industry.
Contract Preparation is Key for Construction Companies
According to the experts at Construction Dive**, contractors should be proactive in updating their contracts to mitigate potential risks associated with the Trump administration’s focus on:
- Tariffs and Material Prices: With the possibility of new tariffs on China, Mexico, and Canada, contractors should include price acceleration provisions in their contracts to protect themselves from sudden cost increases.
- Labor and Immigration: The administration’s crackdown on immigration may impact the construction workforce. Contractors should address potential labor shortages in their contracts by expanding their subcontractor pool, which could lead to increased labor rates.
- Waste, Fraud, and Abuse: The Trump administration’s emphasis on reducing waste and fraud in federal programs may lead to increased scrutiny for civil builders. Contractors should review and update their compliance programs to ensure alignment with the new administration’s priorities.
The Construction Workforce: A Closer Look at the Immigration Issue
Supporting “Real Subcontractors” for a Stronger Construction Industry
The construction industry relies heavily on immigrant labor, with an estimated 20% to 26% of the workforce lacking permanent legal status in the U.S. (Source: Pew Research Center, 2024***). This demographic breakdown highlights the potential impact of the Trump administration’s immigration policies on the construction sector:
- 1 in 5 construction workers are undocumented immigrants.
- 64% of undocumented immigrant construction workers have been in the U.S. for 10 years or more.
- The construction industry would need approximately 420,000 new workers to meet demand if all undocumented immigrants were to leave the workforce (National Bureau of Labor Statistics, 2022).
Our Stance: Supporting ‘Real Subcontractors’: At Resource Erectors, we advocate hiring “real American subcontractors” – established, compliant, and law-abiding businesses promoting a safe and prosperous work environment. Supporting these subcontractors contributes to a more stable and skilled workforce. Additional benefits include enhanced compliance with labor laws and regulations and increased opportunities for American workers.
Action Items for Resource Erectors Clients
- Review and Update Contracts: Ensure your contracts include provisions for potential price increases due to tariffs and labor shortages.
- Diversify Your Subcontractor Pool: Consider expanding your subcontractor network to include more established, compliant firms.
- Compliance Program Review: Verify that your compliance programs align with the Trump administration’s priorities, focusing on reducing waste, fraud, and abuse.
Stay Ahead of the Industrial Curve With Resource Erectors
At Resource Erectors, we’re committed to informing you about the latest construction and mining developments.
Staying ahead of the curve is essential as the construction and mining sectors navigate the implications of the new Trump administration’s policies. Whether you’re a professional seeking new opportunities or a company looking to bolster your team, Resource Erectors is here to support you.
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- Find Your Dream Job: Explore our current job openings in mining, construction materials, and heavy civil construction Find Jobs
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For more info on this topic:
*https://www.pitandquarry.com/what-to-watch-in-aggregates-in-a-second-trump-term/
**https://www.constructiondive.com/news/trump-impact-construction-contracts/738395/
