Tariff Trouble & Talent Shifts: How Trade Policy is Reshaping Construction Hiring in 2025
The construction industry has seen its fair share of challenges over the years, but tariffs on imported goods are reshaping more than just project budgets. They’re quietly altering workforce strategies, salaries, and hiring practices across the board. While rising material costs often grab headlines, tariff-driven workforce changes may prove to be an even greater disruptor.
For leaders at ENR 400 contractors and specialty firms, the message is clear: evolving trade policies demand a proactive and strategic approach to workforce planning. Get it right, and you’ll secure a valuable competitive edge. Get it wrong, and you risk falling behind on your most essential projects.
Here’s how tariffs are driving change across the construction talent landscape and what smart firms are doing differently to protect their profitability and reputation.
It’s Not Just Steel and Lumber – Workforce Realities Are Shifting Too
When tariffs impact material costs like steel, lumber, and aluminum, the ripple effects on project budgets are immediate and significant. However, the hidden impact of these tariffs stems from how they exacerbate broader economic uncertainty.
How does this play out in hiring? Contractors are finding it harder to plan long-term workforce needs in the face of volatility. Progressively, firms are pivoting their hiring strategies to focus on flexibility, more versatile roles, and cross-functional talent who can adapt as project demands evolve.
But the biggest shift is occurring in how workforce strategies are being viewed. No longer just a cost to be contained, your workforce plan is becoming a critical lever for managing risk and market unpredictability.
Quick Stat: According to ConstructionDive, material price volatility tied to tariffs caused contractors to increase their premiums for talent with project-critical skills. This additional cost directly impacts bottom-line profitability.
The Salary Paradox: Why Wages Are Rising Despite Cost Pressures
Tariffs are hitting contractors with a cruel paradox. Rising material costs and increased project delays squeeze profit margins. Yet, construction recruiters report unprecedented competition for talent like project managers and estimators has pushed salaries to new heights.
Here’s what’s driving this phenomenon:
- Demand for Leadership: Skilled roles like superintendents, construction managers, and estimators are in higher demand than ever before. Even with fewer projects moving forward, firms are safeguarding against failure by keeping their best people on board.
- Decline in Labor Supply: Immigration restrictions and early retirements have led to a reduced pool of available talent, leaving contractors vying for a smaller pool of qualified workers.
- Premium on Flexibility: To compete, workers are being offered higher salaries to perform hybrid roles—for example, estimators doubling as business development experts or superintendents taking on project manager responsibilities.
What to Watch: The Birmingham Group’s 2025 Construction Salary Report shows that project manager salaries are climbing nearly 11% year-on-year. Adjusting compensation expectations will be a necessary move for any firm serious about attracting talent.
How Top Contractors Are Turning Hiring Challenges into Opportunities
Leaders at ENR 400 contractors are proactive in the face of these workforce challenges. These firms are not just reacting to market changes; they’re shaping strategy to stay competitive. Here’s what they’re doing differently:
1. Offering Early Talented Hires
Smart contractors are offering employment opportunities earlier in the planning stages rather than waiting for materials and approvals to align. A more robust onboarding pipeline means better readiness when projects finally break ground.
2. Benchmarking Salaries Regularly
Detailed salary benchmarking has become routine at top firms. Knowing exactly where your offers rank compared to competitors helps avoid losing top candidates.
Pro Tip: Use resources like The Birmingham Group’s Salary Survey to assess where your construction salaries stand in 2025.
3. Redesigning Hybrid Roles
Project demands are evolving, and so are the types of skills required. Top firms are creating hybrid roles to maximize efficiency. For example, a role combining traditional scheduling with data analysis ensures value on tight-budget projects.
Moving Forward From Risk to Opportunity
Navigating tariffs doesn’t stop with better hiring practices. Leadership needs to view workforce planning as a key element of overall business strategy. Here’s how you can lead your firm through this volatile time while positioning it for long-term success:
1. Invest in Workforce Strategy
Understand that people aren’t just costs. They’re a source of innovation and efficiency. If tariffs have increased material unpredictability, a strong workforce strategy gives you a competitive edge.
2. Maximize Retention
Training programs, transparent career paths, and a strong company culture can reduce churn and improve productivity. Recruitment doesn’t always need to be external.
3. Develop Predictive Hiring Models
Data-driven hiring models and AI hiring solutions reduce the guessing game. Accurate forecasting minimizes gaps while controlling labor costs.
4. Engage Leadership Teams
From HR to operations, ensure everyone speaks the same language when it comes to hiring priorities. Strategic alignment allows you to make bold decisions with confidence.
Winning in Turbulent Times
The rising costs and pressures introduced by tariffs are undoubtedly changing how projects are built. Yet strategic ENR 400 leaders recognize a deeper transformation is underway—not just in what gets built, but in who builds it.
Winning amid these shifts requires recognizing that people, not materials, are the key to delivering profitable, on-time projects. Treat hiring as an opportunity, not a risk, and you won’t just keep up with market changes. You’ll lead them.
About The Birmingham Group
Our firm specializes in placing top-tier senior leadership and management in companies that are in the ENR 400 or similar, with revenues from $10 million to $10 billion annually. We understand the nuances of the construction industry’s talent pipeline and the specific demands of the non-residential construction outlook.
If you’re a talented construction professional looking for your next challenging role, especially as a superintendent or project manager, explore opportunities and submit your resume via our Candidate Outreach page or submit your resume directly. For hiring managers seeking exceptional construction leadership talent to strengthen your team and navigate the complexities of today’s construction market forecast, we invite you to contact us for hiring managers. Ready to find your next leader? Schedule a confidential 15-minute call with Brian today to discuss your talent needs!
About the Author
As President & CEO, Brian Binke leads The Birmingham Group, an executive search firm with roots in construction recruitment dating back to 1967. With over 30 years of experience, Brian has placed more construction managers and leaders than any other individual in the industry, and his expertise is regularly sought by prominent publications like The Wall Street Journal, Forbes, and ConstructionDIVE.
Connect with Brian: Schedule a 15-minute call.
